Research Brief | Green Power Environmental Protection hosts 50 institutions including Dongwu Securities; in 2025, cash flow increased by 400 million year-over-year; received 476 million in government subsidy repayments

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Basic Research Situation

On March 30, 2026, Green Energy Environmental Protection Group Co., Ltd. (hereinafter referred to as “Green Energy Environmental Protection”) held an analyst meeting in the form of a phone conference. The company’s deputy general manager and secretary to the board, Zhu Shuguang, received 50 institutional investors, including institutions such as Dongwu Securities, GF Securities, Haitong Securities, E Fund, and Fullgoal Fund. The meeting focused on core issues including the company’s 2025 operating performance, improvement in cash flow, cost control, M&A of projects, and its future development plans.

Interpretation of Core Issues

Cash Flow and Government Subsidy Receipts: Significant Improvement, Sustainability Depends on Policy

Regarding the reasons for the improvement in cash flow in 2025, the company stated that the company’s net cash flow from operating activities for the full year increased by approximately RMB 400 million year over year. This was mainly driven by the improvement in government subsidy (national subsidy) and municipal solid waste treatment fee receipts compared with the same period in 2024. Specifically, in 2025, the company received RMB 476 million in government subsidies, and the collection performance was better than the previous year. However, the company also pointed out that the settlement of government subsidies has not yet become normalized; the progress mainly depends on the disbursement of the national special fund for renewable energy, and the settlement cycle is not fixed.

Cost Control: Refined Management Shows Results, Major Overhaul Costs Rise in the Short Term

In terms of cost control, the company said that its environmental protection fees and material costs in 2025 decreased year over year. This was mainly attributable to refined management measures such as the construction of smart power plants, which reduced unit consumption, as well as expanding the scope of centralized procurement to lower procurement costs. If the impact of major overhaul costs is excluded, the company’s operating cost for the full year decreased. Regarding the issue that major overhaul costs increased significantly, the company explained that it was due to the number of major overhaul projects in 2025 being higher than in the previous year.

Finance Costs and Asset Impairment: Interest-Bearing Liabilities Decline, Impairment Pressure Eases

Regarding finance costs, the company stated that as bank loans are gradually repaid, the balance of interest-bearing liabilities will continue to decline. At the same time, through methods such as loan refinancing and issuing medium-term notes, financing costs are expected to be further reduced. With respect to the Huludao hazardous waste (crisis waste) project, the company has already accrued an asset impairment of RMB 197 million at the end of 2025. The project’s carrying value remaining is approximately RMB 56 million. Further impairment headroom has been significantly compressed. In the future, the company will improve operations through opening up revenue and cutting expenses.

Business Expansion: Growth from Steam Supply and Slag Disposal, Newmi Project Synergy and Efficiency Gain

In the steam supply business, the steam supply price is generally stable. In 2025, the steam supply volume increased significantly. Currently, only one-third of the projects are providing steam, and in 2026 it is expected to continue to grow steadily. In terms of slag disposal, the company’s slag output is about 25% of its waste treatment volume. In 2025, after certain projects carried out re-bidding for slag disposal, prices increased. After the contracts of the subordinate projects expire in the future, the company will consider re-bidding, which is expected to drive growth in slag prices and revenue.

For M&A, the Newmi project completed industrial and commercial registration changes in February 2026, with annual net profit of approximately RMB 20 million. After the acquisition, it will form synergy with the Dengfeng project. Through centralized procurement, loan refinancing, and other measures, the company expects to enhance returns. At its current stage, the company’s M&A focuses mainly on peer integration in the waste incineration power generation sector, while it also explores high-quality targets in other sub-sectors such as large energy and other large environmental protection areas.

Strategic Planning: Focus on IDC Synergy and Overseas Markets, Dividend Policy Steady

The company stated that it is studying the feasibility of cooperation models between waste incineration power generation and data centers (IDC). For overseas markets, it has been selected as a supplier in the list of environmentally friendly waste-to-energy projects in Indonesia. The company will actively participate in subsequent bidding and continuously monitor other high-quality projects in other regions.

In terms of dividend policy, in 2024 and 2025, the company’s dividend payout ratios were both over 70%. In the future, the company will formulate new dividend guidance by considering factors such as profitability and cash flow stability, to maintain stable returns to shareholders. Regarding convertible bonds, the company has clearly stated that it will not revise the conversion price downward within the next 12 months. Afterwards, it will dynamically assess and fulfill its information disclosure obligations.

List of Participating Institutions (Partial)

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Responsible editor: Xiaolang Express