A：In 2025, the mid-term main operating income of the Urban Resources Group was 3.04 billion yuan, a year-on-year increase of 13.1%. The revenue growth mainly came from the resource floating business, especially with an increase of about 270 million yuan in revenue from the Hong Kong area. However, the net profit attributable to the parent company was 32.5 million yuan, a year-on-year decrease of 74.7%, mainly due to an asset impairment loss of 162 million yuan in the hazardous waste business's Xianju project. Excluding this impact, the adjusted net profit attributable to the parent company was 194 million yuan, a year-on-year increase of 50%.

A：In mid-2025, earnings per share were 0.91 RMB, a year-on-year decrease of 74.7%; the dividend per share in US dollars was 1.8 Hong Kong cents, a year-on-year increase of 50%. In terms of revenue, urban services accounted for 88%, totaling 2.66 billion RMB; floating business accounted for 7%, totaling 215 million RMB; and other business accounted for 5%, totaling 160 million RMB. Urban services are divided into urban environmental management services and construction services, with urban environmental management services generating revenue of 2.66 billion RMB, a year-on-year increase of 10.9%. There have been changes in revenue from urban environmental management services in mainland China and the Hong Kong region.

A：In mid-2025, the revenue from hazardous waste business was 215 million RMB, a year-on-year decrease of 6%; the gross profit margin was 0.3%, a year-on-year decrease of 4.5%. The decline in gross profit margin of hazardous waste business was mainly due to the reduction in production by upstream industrial enterprises leading to a decrease in demand for harmless disposal, resulting in a decrease in average processing unit price. At the same time, the underutilization of some projects made it impossible to effectively allocate fixed costs. In addition, there were 30 new projects added at the beginning of the year, 22 projects terminated at maturity, and as of June 30, 2025, a total of 239 projects were in operation.

A：In mid-2025, finance expenses were 424 million, a year-on-year decrease of 24.2%; management expenses were 256 million yuan, a year-on-year decrease of 9.4%, mainly benefiting from the implementation of cost control measures and optimization of regional business structures. Interest-bearing liabilities decreased to 2.601 billion yuan, with an optimized loan structure, a decrease in the proportion of short-term loans, and an increase in the proportion of long-term loans. In terms of capital expenditure, the capital expenditure in mid-2025 was about 130 million yuan, a year-on-year decrease of 180 million yuan, mainly due to a reduction in vehicle and machinery equipment purchases. Important financial data such as total assets, cash balance, current ratio, net debt-to-equity ratio, and asset-liability ratio have improved. The significant increase in free cash flow reflects the improvement in operating profit and the improvement in accounts receivable collection.

A：Regarding the inclusion of the remaining accounts receivable debt system into the rhythm, we will continue to optimize and promote the construction and online promotion of the digital system in the second half of the year to improve the accuracy and timeliness of production data collection. Through strengthening the practice of innovation cases in frontline operations and forming best practices, we will further improve the quality and efficiency of operations. At the same time, we will continue to focus on and promote improvements in account receivable management to ensure the stable operation of cash flow.

A：We started studying related policies from 2024 and are trying to improve our financial security through different ways. In the first half of this year, we have already obtained the first subsidy of over 10 million yuan in the form of long-term special national bonds. This funding has not yet been fully received, and whether it will be approved depends on the instructions of the central government and relevant ministries. However, there has been a successful case which provides a replicable and scalable experience for future applications, hoping to solve the problem of accounts receivable.

A：Currently, there are nearly twenty projects actively being pushed forward, with a total amount of approximately 16 billion.

A：This cycle is approximately six months long, and each payment has a different purpose. We have explored a variety of ways to use these special funds.

A：The hazardous waste industry is facing challenges that the entire industry is facing. Currently, we see that some companies in the same industry are closing down, reducing the supply side, and the supply-demand relationship is expected to improve. However, we have not yet seen a trend of recovery in the short term. We are making corresponding judgments on each project and cannot disclose more information for the time being.

A：Based on the company's ample cash flow and good profits in the first half of the year, dividends will continue to be distributed. Because we have sufficient cash flow and profit support, we will continue to reward shareholders.

A：Although the profit margin in Hong Kong may be slightly lower, the timely cash flow is of high value to us. Currently, we are focusing on developing regions with strong financial payment capabilities. Despite lower profits, the payments are made promptly. In the future, we will continue to expand our environmental sanitation business in Hong Kong and prioritize developing regions with strong payment capabilities domestically.

A：Unmanned sanitation technology is currently in its infancy, facing challenges in terms of technological maturity and economy. It will be primarily promoted in areas with relatively simple operating scenarios, such as sidewalks. The company has rich experience in scenario operations, strong data accumulation, and a nationwide layout, which will help in the large-scale promotion of unmanned sanitation technology, while also increasing investment in intelligent equipment.

A：Currently, the VC business has not shown significant improvement, and there has been no noticeable improvement in raw material supply and prices. In the future, progress will be made in resource utilization and more high-priced materials will be sought. With some companies in the same industry shutting down or stopping production, there may be improvements in both the supply and price of materials in the future, but the specific timing is uncertain.