Gaoneng Environment's non-GAAP net profit is expected to increase by 145.32% in 2025, with key projects' production capacity continuing to be released.

On the evening of March 12, Gao Neng Environment (603588) released its 2025 annual report. In 2025, the company achieved operating revenue of 14.732 billion yuan and net profit attributable to shareholders of 838 million yuan, representing a year-over-year increase of 73.94%. The company also reported a non-recurring profit of 794 million yuan, up 145.32% year-over-year.

The annual report shows that the hazardous and solid waste resource utilization business accounted for over 80% of Gao Neng Environment’s revenue in 2025, making it the company’s core business segment. Over nearly a decade of accumulation, Gao Neng Environment has established three closed-loop operational systems centered on the recovery of industrial waste containing copper, lead, and nickel.

During the reporting period, the new revenue in the resource recycling segment mainly came from the gradual release of capacity at Jinchang Gao Neng and Zhuhai Xin Hong. Meanwhile, key projects such as Jinchang Gao Neng, Jiangxi Xinke, and Jingyuan Gao Neng collaborated to continuously improve the closed-loop industrial chain for nickel, copper, lead, and other resources, enhancing the separation, purification, and high-value processing of precious and rare metals. This supports the company’s operational efficiency, profit growth, and core competitiveness. Currently, the company’s projects are operational across Jiangxi, Gansu, Hubei, Guangdong, Chongqing, and other provinces and cities, forming a nationwide capacity layout.

Building on earlier project commissioning, process integration, and industry chain collaboration, and leveraging technological and capacity advantages, Gao Neng Environment’s resource utilization business has shown significant results. Its high-value-added platinum group metal purification capacity has reached industry-leading levels. During the period, the company’s platinum group metal capacity reached 3,694.74 kilograms, with annual production increasing more than sixfold and sales exceeding five times the previous year, ranking among the industry leaders and greatly enhancing competitiveness and profitability.

Additionally, Gao Neng Environment’s subsidiary Jingyuan Gao Neng has achieved integrated production from initial processing to deep processing of lead-containing industrial waste. Its refined bismuth capacity is globally leading, contributing 4,021.41 tons of refined bismuth in 2025. The purity meets high-end manufacturing demands and is an important raw material for pharmaceuticals, electronics, and semiconductors. With the successful commissioning of Jingyuan Gao Neng’s “Ultra-pure Micro-scale 4N Bismuth Oxide Deep Processing Project,” the company has extended from refined bismuth to bismuth trioxide, marking a key breakthrough from basic metal recovery to high-end new materials, continuously improving the high-value chain of rare metals and further increasing product added value and core competitiveness.

In terms of environmental operation business, Gao Neng Environment focuses on waste incineration power generation. By 2025, the 13 operating projects had a total daily capacity of 11,800 tons, processing a total of 4.0929 million tons of household waste annually, with a power generation of 1.52 billion kWh and an increase of over 50 million kWh in grid-connected electricity year-over-year. The company has improved efficiency through a dual mechanism of “preventive maintenance + condition-based repairs,” expanded “cogeneration” business, and deployed AI combustion optimization systems. The power generation per ton of waste increased by 4.1%, and the annual heating supply approached 600,000 tons, achieving a win-win situation for environmental protection and efficiency.

While consolidating its main business advantages, Gao Neng Environment has also made breakthroughs in supply chain extension, international expansion, and AI digital upgrades. In the resource chain upstream, the company acquired exploration rights for four major high-quality gold mines, establishing a complete industry chain from resource extraction to recycling. Its international layout has achieved notable results, signing agreements for waste tire resource processing projects in Mexico, waste sorting projects in Thailand, and winning bids for incineration power projects, entering the global supplier network for Indonesian environmental projects, and transitioning from project export to global foothold. Meanwhile, AI technology has been fully integrated into operations, with over 90% automation in waste incineration operations, a combustion stability improvement of over 10%, and enhancements in cost reduction, efficiency, and operational safety.

Looking ahead, Gao Neng Environment states that national policies are shifting from “end-of-pipe control” to “source empowerment.” Supported by the “Dual Carbon” goals and the “14th Five-Year Plan,” the company aims to improve the resource recycling system and promote “waste-free cities,” benefiting all three core business segments. Metal resource recycling, as a key area, receives strong policy support and market-driven incentives for large-scale development. The environmental protection operation industry is guided by policies requiring standardized operations and increasing demand for professional services. The environmental engineering sector benefits from upgrades in environmental facilities, with growing project implementation needs aligned with green and low-carbon development. Additionally, resource recycling has become a global consensus, with rising environmental demands in emerging markets such as Southeast Asia, Latin America, the Middle East, and Africa, further expanding the company’s overseas development opportunities.