The most significant contract signed this week is undoubtedly the subcontract for the water supply system of the Basra seawater desalination project in Iraq signed by China Water Resources and Hydropower Fifth Engineering Bureau, with a total amount of 8.925 billion yuan, which is a major breakthrough for Chinese enterprises in the Middle East seawater desalination market. At the same time, United Water has taken the lead in winning the bid for the 15 year operation and maintenance project of 9 sewage treatment plants in Saudi Arabia, with a total revenue of approximately 2.366 billion yuan during the operation period, marking the extension of China's water companies' overseas model from equipment and engineering contracting to long-term operation services. In addition, Aerospace Kaitian Water has won the bid for the third phase of a sewage treatment plant in Singapore (over 80 million yuan), and Suez's largest industrial membrane seawater desalination plant for Wanhua Chemical has been put into operation in Yantai, providing a demonstration for water resource security in coastal industrial parks.

Intensive implementation of projects and accelerated formation of policies

Domestically, projects such as the 760 million yuan high salt wastewater deep treatment project in Panzhihua, the 512 million yuan Zaoyang Chemical Industrial Park wastewater project in Deepwater Haina, and the 225 million yuan chemical fiber textile industrial park wastewater treatment plant in Tianmen, Hubei have been promoted one after another. The policy side is also making intensive efforts: the National Development and Reform Commission and three other departments have issued the "Action Plan for the Development of the Desalination Industry", which specifies that the national desalination scale will reach 4.5 million tons/day by 2030; The State Council has issued the "15th Five Year Plan for Building a Beautiful China" to set the tone for environmental protection work in the next five years; The Action Plan for the Protection and Governance of Water Bodies Around the Masses and the 15th Five Year Plan for Soil, Groundwater, and Agricultural and Rural Ecological Environment Protection have been implemented simultaneously, constructing a policy system from macro to micro levels.

Performance Differentiation and Model Reflection

At the corporate level, Hanlan Environment reported a net profit attributable to its parent company of 1.205 billion yuan in the first half of the year, a year-on-year increase of 24.63%. Most of the 19 environmental listed companies, including Zhongshan Public Utilities, Zhefu Holdings, and Gaoneng Environment, are expected to perform well. However, the adjustment was also fierce: Taihe Water withdrew from the market, Energy Saving Guozhen withdrew from the Wuqiao Sewage Plant TOT project (52.89 million yuan in arrears to be liquidated), and Xizang Zangqing Industrial Park terminated its 30-year franchise agreement in advance, triggering profound reflection on the industry's asset heavy model and the risk of government payment. At the capital level, Three Gorges and CITIC heavily hold Xingrong Environment, Everbright Environment's CEO has changed, and 21 listed companies have experienced executive changes. The industry is undergoing a deep reshuffle. Overseas, the Teda Environmental Protection Alliance has received a letter of award for the Yogyakarta garbage incineration power generation project in Indonesia, and China's environmental protection forces are accelerating their global expansion. Editor/Yang Beihua