Following the completion of its acquisition of CANVEST ENV, Grandblue Environment Co.,Ltd. has achieved the highest net profit since its public listing. On the evening of August 26, Grandblue Environment released its 2025 interim report. For the first half of the year, while the company's operating revenue experienced a slight decline (-1.05%), it achieved attributable net profit of 967 million yuan, representing a year-on-year increase of 8.99%.

This performance exceeds Grandblue Environment's interim results over the past three years (887 million in 2024, 690 million in 2023, and 546 million in 2022), setting a new record since the company's listing. From a horizontal comparison perspective, Grandblue Environment ranks among the most profitable environmental protection companies in the first half of this year, trailing only China Everbright Environment (HK$2.207 billion) and Weiming Environmental (1.425 billion), and slightly ahead of Beijing Capital (HK$879 million).

The successful acquisition of CANVEST ENV has elevated Grandblue Environment's performance to a new level, ushering in a new era for the company.

**Attributable Net Profit Reaches 967 Million Yuan with 8.99% Year-on-Year Growth**

Grandblue Environment had previously forecasted its improved performance. On July 14, the company disclosed its first performance forecast following the privatization of CANVEST ENV, projecting attributable net profit of approximately 967 million yuan for the first half of 2025, representing an increase of about 79.82 million yuan compared to the same period last year, with approximately 9.00% year-on-year growth.

The company explained the reasons for the performance improvement: First, starting in June, the newly consolidated CANVEST ENV Power Limited (52.44% shareholding) contributed approximately 50 million yuan to attributable net profit for June. Second, continued implementation of cost reduction and efficiency improvement measures achieved positive results, maintaining high operational efficiency, along with newly recognized performance compensation income from the original shareholders of subsidiary Jiangxi Grandblue Energy Co., Ltd.

On August 26, the official interim report was released, with results consistent with the previous performance forecast, achieving attributable net profit of 967 million yuan, up 8.99% year-on-year. Comparing the past three years, Grandblue Environment's interim performance grew progressively from 546 million in 2022 to 690 million in 2023 and 887 million in 2024, with this year approaching 1 billion yuan and setting a historical high.

**First Financial Report After CANVEST ENV Acquisition Contributes Approximately 60 Million Yuan in Attributable Net Profit**

This interim report marks Grandblue Environment's first financial statement following the privatization of CANVEST ENV. On June 2, Grandblue Environment announced that all conditions for the privatization of CANVEST ENV had been met, and CANVEST ENV was delisted from the Hong Kong Stock Exchange on the same day.

This signified that the nearly year-long billion-yuan acquisition, which began on July 7, 2024, when Grandblue Environment initiated the privatization of CANVEST ENV, had finally concluded. This event is viewed as a milestone marking the beginning of the consolidation era in the environmental protection industry.

This major asset restructuring involved privatization procedures for Hong Kong-listed companies, approvals or filings from multiple regulatory departments, transaction schemes and prerequisites, transaction authorization approvals, valuation and pricing, fund raising, regulatory inquiries, and information disclosure, among many other aspects. It was an extremely complex systematic project that took 11 months to complete, qualifying as one of the most complex acquisition cases in the history of the environmental protection industry.

Following the acquisition's completion, Grandblue Environment's waste incineration processing capacity reached 97,590 tons/day, ranking among the top three nationally and first among A-share listed companies. Starting June 1, CANVEST ENV achieved consolidation. In June, CANVEST ENV realized net profit of 117 million yuan, contributing approximately 60 million yuan in attributable net profit to Grandblue Environment.

Due to CANVEST ENV's consolidation, Grandblue Environment's total assets increased by 24.133 billion yuan compared to the end of 2024, an increase of 61.40%. Additionally, during the reporting period, Grandblue Environment's net cash flow from operating activities was 1.221 billion yuan, an increase of 280 million yuan year-on-year, with a growth rate of 29.77%. This was mainly due to the newly consolidated CANVEST ENV contributing approximately 200 million yuan, and with support from relevant governments, the company advanced and implemented accounts receivable collection plans, improving receivables collection compared to the same period.

**Achieving Leap-Forward Development Through Acquisition: Environmental Protection Industry Enters Consolidation Era**

Grandblue Environment's privatization of CANVEST ENV also signifies the beginning of a new phase for the environmental protection industry. After more than twenty years of development, the environmental protection industry has entered a relatively mature stage. In this phase, mergers and acquisitions have become important means for environmental companies to rapidly achieve resource integration, expand market share, and address supply chain gaps.

From a policy perspective, since 2024, the State Council and China Securities Regulatory Commission have introduced multiple policies to further stimulate merger and acquisition market vitality among listed companies, encouraging strategic mergers and acquisitions and resource integration, promoting listed companies and large enterprise groups to advance from "scale expansion" to "value creation."

Mergers and acquisitions happen to be Grandblue Environment's specialty. Reviewing the company's development history, they have repeatedly achieved leap-forward development through "strategic acquisitions." In 2004, 2006, and 2011, the company entered sewage treatment, waste incineration, and gas sectors respectively through acquisitions. In 2014, it acquired Vertex China, strengthening its solid waste business volume and increasing waste-to-energy capacity from 3,000 tons/day to 14,350 tons/day. In 2023, it acquired 40% equity in Xinyuan Energy, extending business exploration to Thailand.

Each significant acquisition by Grandblue Environment has aligned closely with industry development trends. Acquisition-led development has become an important formula for the company's growth.

Specifically regarding the parties in this acquisition, Grandblue Environment is an environmental leader that emerged from a local water utility company, while CANVEST ENV is Guangdong's largest private waste-to-energy enterprise. Both Grandblue Environment and CANVEST ENV occupy positions on the "Top 50 Chinese Environmental Companies by Revenue 2024" list released by the All-China Federation of Industry and Commerce's Environmental Chamber of Commerce.

Therefore, the billion-yuan acquisition of CANVEST ENV aligns with Grandblue's "key DNA" and reflects the management team's accurate assessment that the industry is about to enter a "new era of inventory consolidation." From the perspective of both companies' scale, industry position, and the timing of the acquisition, this acquisition case undoubtedly represents a landmark major consolidation in the industry and has been interpreted by the outside world as "a symbol of the beginning of the environmental protection inventory consolidation era."