聚焦废弃油脂资源化利用，碳减排政策推动市场快速发展

1 ⚫⚫⚫⚫⚫ Seethe last page for disclaimerAPPENDIX 1Summary➢The company is a leading enterprise in the field of organic solid waste investment and operation. It focuses onurban organic waste disposal and resource utilisation, urban heating, and other areas. It focuses on investingin and operating organic waste disposal and resource utilisation projects, creating a platform for processingand exporting recycled oils and fats. Its main business is utilising kitchen waste resources. In 2024, theprocessing volume of kitchen waste increased by 8.1% year-on-year and oil production increased by 7.1%. Onthe other hand, the company achieved significant cost control results, with cash production costs per tondecreasing by 7.1% year-on-year and cash collection and transportation costs per ton decreasing by 2.0%. Asof June2025, the company's kitchen waste project has a designed production capacity of 5,490 tons per day.The company is focusing on its core business and plans to increase its daily kitchen waste processing capacityto 8,000–10,000 tonnes per day.➢Since the beginning of 2025, demand for UCO has remained relatively stable. From January 2025 onwards,the European Union and the United Kingdom will implement the mandatory addition of SAF. Based on anaddition ratio of 2%, it is estimated that this willcreate an additional demand of around 1.8 million tonnes ofUCO for the whole year. As a leading company in the industry, the company is in contact with many well-known domestic and foreign biofuel enterprises for inquiries, and currently has ample orders.China's SAFindustry is currently in the pilot stage, and the scope of the pilot has been expanded to include all flights atfour airports since March 2025. China is a member of the International Civil Aviation Organization. Accordingto the InternationalAviation Industry Carbon Offset and Reduction Mechanism, all member countries willparticipate in the offset mechanism from 2027. Domestic demand for bio aviation fuel is expected to reach anew level during the 15th Five Year Plan period.➢On 16 July, the company announced its '2025 Plan for Issuing A-Shares to Specific Targets'. This issuance isintended for the company's actual controller, High Speed Production Investment. The issue price is 5.13 yuanper share and the total funds raised will not exceed 718 million yuan. After deducting relevant issuanceexpenses, all funds will be used to supplement working capital and repay bank loans. As China's householdwaste classification system gradually becomes more established and improved, the food waste disposal marketin China is expected to grow rapidly in the coming years, creating development opportunities for the foodwaste treatment industry. As a listed company primarily focused on the utilisation of kitchen waste resources,this issuancewill strengthen the company's capital, laying the groundwork for seizing future industrydevelopment opportunities.➢Timely implementation of dividends to repay investors. Due to historical reasons, the company's consolidatedfinancial statements in recent years have shown negative undistributed profits, meaning the conditions forimplementing cash dividends have not been met. However, the company's undistributed profit indicators havegradually improved in recent years. According to performance forecasts, the net profit attributable to the parentcompany from January to June 2025 is expected to be between 40 and 45 million yuan. In the first half of 2025,the company will continue to promote cost reduction and efficiency improvement measures, increase kitchenwaste and oil production collection and disposal, and reduce cash costs. Due to factors such as the EU SAFmandatory addition policy, the UCO market price has increased compared to the previous period. The BeijingLianyou litigation case that occurred in the same period last year has resulted in large estimated liabilities, butno provision has been made for these inthis period. Once undistributed profits become regular, the companywill consider development needs and implement dividends in a timely manner to repay investors.➢Risk warning. Market risk; Exchange rate fluctuation risk; Risk on the raw material side. 2 Seethe last page for disclaimer分析师介绍分析师庄怀超，本科毕业于北京航空航天大学，硕士毕业于香港大学金融学专业，主要覆盖化工和新材料行业。该分析师2022-2024年曾任职于海通国际研究部，团队2022年获得过亚洲货币第一名，该分析师2025年加入环球富盛理财有限公司，继续覆盖化工和新材料行业。环球富盛理财有限公司是一家香港的持牌券商机构，成立于2014年。该分析师曾在wind发布报告超过500篇，主要覆盖行业包括化肥、农药、气体、炸药、氟化工、分子筛、电解液和合成生物学等行业。覆盖的公司包括:东岳集团、环球新材国际、中国心连心化肥、中化化肥、阜丰集团、中国三江化工、中国联塑、浦林成山、米高集团、中国石油化学、中国旭阳集团、彩客新能源、天德化工、理文化工等。邮箱:charles.zhuang@gpf.com.hk电话:(852)97487114;(86)18801353537 3 SECTOR RATING DEFINITIONThe Benchmark: Hong Kong Hang Seng IndexTime Horizon: 6 to 18 monthsRatingOutperform跑赢大市Neutral中性Underperform跑输大市DISCLOSURE OF INTERESTS(1) The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2) The Analysts and their associates do not have any financial interests in relation to the issuer mentioned