SYEP(SZ:300867)2022-11-21 05:34Group 1: Business Operations - The company primarily engages in urban solid and liquid waste treatment, with waste-to-energy operations contributing over 90% to its performance [4] - The cost of fly ash treatment is approximately 200 to 300 RMB per ton [4] - The company has established a stable solidification facility for fly ash and utilizes government or self-built landfills for disposal [4] Group 2: Expansion into Renewable Energy - The company plans to expand into solar and wind energy, leveraging its existing waste-to-energy operations [5] - The expansion is driven by local government support, project resource advantages, and the rich offshore wind resources in Fujian [5] - The synergy between waste-to-energy and renewable energy sectors allows for shared operational experience and customer resources [5] Group 3: Policy and Financial Implications - The company is responding to national policies promoting energy conservation and carbon neutrality by diversifying into renewable energy [5] - The subsidy for biomass power generation projects is capped at 82,500 hours or 15 years, whichever comes first [6] - The projected impact of subsidy reductions on profit margins is estimated at 4%, 8%, and 12% for reductions of 0.05, 0.10, and 0.15 RMB per kWh, respectively [7] Group 4: Project Development and Management - The company develops distributed photovoltaic projects using idle land and rooftops of existing waste-to-energy and sewage treatment plants [8] - The company has not entered the equipment manufacturing sector, focusing instead on project bidding for design and construction [8]