China Tianying Inc. (000035)

Equity Research Report | Industry: Solid Waste Treatment & Green Energy | Report Date: September 13, 2026 | As of the close of the latest complete trading day on September 11, 2026; shareholder structure data as of March 31, 2026, announcement date April 29, 2026, representing a lag of approximately five and a half months

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

China Tianying is currently in a transition phase characterized by stable but limited growth in its traditional solid-waste business, while its green hydrogen business has yet to achieve production and commercialization. In 2025, operating revenue was RMB 5.283 billion, down 6.77% year on year, while net profit attributable to shareholders was RMB 283.9 million, up 1.42%. In the first half of 2026, revenue was RMB 2.6873 billion, up 3.50%, and net profit attributable to shareholders was RMB 213.5 million, up 1.11%, with no obvious incremental contribution yet from large-scale commissioning of new-energy projects. The company’s core profit still comes from power generation and waste-treatment services, whose gross margin was 47.70% in 2025, while the gross margin of construction services fell to -1.31%.

The operating quality of the traditional business has improved. In the first half of 2026, adjusted net profit attributable to shareholders increased 15.47% year on year, while net cash flow from operating activities was RMB 455.6 million, up 28.28%. In 2025, waste received at facilities was approximately 8.4892 million tonnes, on-grid electricity generation was approximately 2.150 billion kWh, and steam sales were approximately 2.43 million tonnes, up 43.5% year on year, indicating a degree of resilience in the operation of existing waste-to-energy projects and the heating and steam-supply business. However, the company remains a capital-intensive, long-cycle operator. As of the end of June 2026, current liabilities exceeded current assets by approximately RMB 4.181 billion, while net cash flow from investing activities was negative RMB 1.0424 billion. Construction of new-energy projects is putting pressure on capital expenditure, financing and liquidity.

The company’s growth drivers mainly comprise improvements in the operating efficiency of solid-waste projects, steam and waste-heat utilization, bottom-ash recycling, environmental-protection equipment and overseas engineering, as well as the commissioning and commercialization of the Liaoyuan and Anda green-hydrogen projects and the green methanol business. At present, the relevant planned capacity has not been fully converted into operational capacity. Institutional forecasts are sensitive to project schedules, green methanol sales volumes and product prices. Moreover, the number of institutions issuing 2026 forecasts in the past six months is limited, and forecast divergence and execution uncertainty remain high.

As of September 11, 2026, the company’s share price closed at RMB 4.94, near the lower end of its 52-week range but having rebounded from its July low. The share price was above MA10 and MA20 but below MA5, while MACD remained above the zero line. The technical rebound structure has not yet been fully broken, but main-fund net outflows continued for the latest three trading days. The share price was also close to the upper Bollinger Band of RMB 5.09–5.10, leaving short-term pressure from insufficient trading volume and profit-taking. The controlling shareholder has partially implemented a share-purchase plan of not less than RMB 50 million and not more than RMB 100 million, but the plan has not yet been completed. Matters related to the change of the Board of Directors were postponed because some independent-director candidates had not completed their documentation.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Waste incineration power generation and waste-treatment services: The company obtains local-government concession rights through BOT, BOO and other models. Revenue comes from waste-treatment fees, on-grid electricity sales, steam and heating revenue, bottom-ash recycling and other by-product revenue.
• Urban and rural environmental sanitation services: The company provides sweeping and cleaning, waste sorting, waste transfer, renewable-resource recycling and emergency-support services for roads, bridges, public squares, public waters and other areas.
• Environmental-protection equipment manufacturing and construction services: Coverage includes household-waste incineration power generation, construction waste, kitchen waste, sludge, hazardous-waste treatment and intelligent waste sorting. Services include equipment design, manufacturing, installation, commissioning, handover, operation and EPC contracting.
• Green hydrogen: The company is developing wind power, photovoltaics, energy storage, alkaline water electrolysis for hydrogen production, green ammonia, green methanol, renewable natural gas and, in the future, sustainable aviation fuel.
• Key green-hydrogen projects: the Jilin Liaoyuan green-hydrogen integration project and the Heilongjiang Anda wind-power, photovoltaic, energy-storage, hydrogen, ammonia and methanol integration project; related planned capacity has not yet been fully converted into operational capacity.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

China Tianying operates in the midstream, comprehensive-operations segment of the solid-waste treatment value chain. It has formed a business chain of “urban and rural sanitation—waste collection and transfer—waste incineration power generation—fly-ash treatment and bottom-ash recycling—green-power and steam sales,” while extending into environmental-protection equipment manufacturing, overseas engineering and green hydrogen. Traditional profits mainly come from waste-to-energy projects with concession characteristics.

• The core treatment object is household waste organized by local governments and municipal collection and transportation systems, rather than typical mineral or chemical raw materials. As of December 31, 2024, the company operated 20 domestic and overseas waste-to-energy projects, with total daily treatment capacity of 21,550 tonnes.
• Major inputs for the waste-incineration business include incinerators, boilers, steam-turbine generator sets, flue-gas purification equipment, fly-ash treatment and plasma-melting equipment, bottom-ash recycling equipment, flue-gas treatment chemicals, activated carbon, lime, equipment spare parts, and repair and maintenance services.
• Major inputs for the sanitation business include vehicles, machinery and labor. Green-hydrogen project inputs include wind turbines, hydrogen-production equipment, electrolyzers, energy-storage equipment, water resources, biomass and carbon dioxide.
• In 2025, depreciation and amortization in the cost of power-generation and waste-treatment services was approximately RMB 661 million, raw-material costs were approximately RMB 165 million, and labor costs were approximately RMB 228 million, reflecting the capital-intensive nature of waste incineration.
• The company’s annual report does not provide further details of raw-material costs for flue-gas treatment chemicals, fuel and spare parts, nor does it disclose the concentration of major equipment suppliers. It is therefore impossible to conclude that the company has significant bargaining power over any particular equipment or chemical-material suppliers.
• Household-waste resources are mainly supplied through local governments and municipal collection and transportation systems. Project companies generally rely on concession agreements to secure waste sources. Equipment, chemicals and maintenance services are procured on a market basis, while some in-house equipment-manufacturing capabilities help reduce procurement and systems-integration costs.
• Wind-power, hydrogen-production and green-methanol projects remain in a construction- and investment-driven phase, requiring external equipment, engineering and financing inputs, and have not yet developed mature scale-based cost advantages.
• Major downstream customers include local governments and their authorized public-service procurement entities; State Grid and local electricity markets; steam customers in nearby industrial parks and industrial enterprises; environmental-engineering owners and peer environmental-protection companies; and overseas governments, local public authorities and international environmental-engineering companies.
• Waste-to-energy projects generally adopt concession models, with waste-treatment fees and concession periods agreed in the relevant contracts. Electricity sales are affected by on-grid tariffs, green-power transactions and subsidy policies, limiting the company’s pricing power over end-user electricity prices.
• The waste-to-energy business is closer to a “regional concession + partially regulated pricing” model than to fully market-based pricing. The company is affected by government policies relating to waste-treatment fees, electricity prices and subsidies.
• The bargaining power of heating and steam-supply businesses is relatively stronger than that of pure electricity sales, but steam prices, supply radius and customer stability depend on demand from local industrial parks.
• Sales to the top five customers in 2025 totaled RMB 1.060 billion, accounting for 20.07% of annual sales, while related-party sales accounted for 0%. This figure is for 2025 only; the report materials did not provide data for other years. The names and business nature of the top five customers should be confirmed with the customer details in the annual report.
• In 2025, waste received at the company’s domestic and overseas waste-to-energy projects was approximately 8.4892 million tonnes, on-grid electricity generation was approximately 2.150 billion kWh, and steam sales were approximately 2.43 million tonnes, up 43.5% year on year. Growth in steam sales reflects the company’s expansion into heating, steam supply and waste-heat utilization.
• In 2025, the company won the Toulouse Mirail waste-to-energy project in France, undertaking the design, installation and commissioning of core equipment including incinerators and boilers, with a contract value of approximately EUR 56 million.
• As of December 31, 2025, consolidated accounts receivable were RMB 1.981 billion, equivalent to approximately 37.49% of 2025 operating revenue and approximately 6.97x attributable net profit. Accounts payable were RMB 2.490 billion, equivalent to approximately 47.12% of operating revenue. Accounts payable exceeded accounts receivable, indicating that the company can to some extent use the commercial credit of engineering contractors, equipment suppliers and other suppliers to ease capital usage. However, the company remains a capital-intensive, long-cycle project operator. The above ratios are on a consolidated basis and do not distinguish between waste incineration, sanitation, engineering construction and overseas projects; they therefore cannot directly represent the collection quality of any individual project.
• Sales to the top five customers in 2025 totaled RMB 1.060 billion, accounting for 20.07% of annual sales, while related-party sales accounted for 0%. This concentration data is available only for 2025; the report materials did not provide data for other years. The top five customers may include governments or large project owners, but their specific names and business nature were not specified in the report materials and should be confirmed with the latest annual report.

The company occupies a midstream, comprehensive-operations position in the solid-waste treatment value chain. Its traditional business is neither a high-bargaining-power resource company nor a high-margin, consumer-facing brand. Instead, it generates profits through concession rights, waste-to-energy operating efficiency, equipment-manufacturing capabilities and cascade utilization of energy. Further profit improvement will mainly depend on raising utilization rates and electricity generation per tonne of waste at existing projects, expanding steam sales and bottom-ash recycling, controlling overseas engineering and project-construction costs, and bringing the Liaoyuan and Anda green-hydrogen projects into operation and securing stable orders.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

In the first half of 2026, adjusted net profit attributable to shareholders was RMB 229.7 million, up 15.47% year on year; basic EPS was RMB 0.09. In 2025, adjusted net profit attributable to shareholders was RMB 312.9 million, up 23.99% year on year; basic EPS was RMB 0.12. Gross margin in the first half of 2026 was approximately 31.87%, net margin was approximately 8.75%, and net cash flow from operating activities was RMB 455.6 million, up 28.28% year on year. Net cash flow from investing activities was negative RMB 1.0424 billion. Net cash flow from operating activities in 2025 was RMB 653.1 million, and net assets attributable to shareholders of listed companies at year-end were RMB 10.893 billion.

Revenue growth in the first half of 2026 was relatively stable, with no obvious incremental contribution yet from large-scale commissioning of new-energy projects. Growth in adjusted attributable net profit and operating cash flow was significantly higher than growth in attributable net profit, reflecting improved profitability and cash collection in the traditional environmental-protection business. However, investing cash flow showed a substantial net outflow, and construction of new-energy projects is creating pressure on capital expenditure, financing requirements and liquidity. As of June 30, 2026, the company’s consolidated current liabilities exceeded current assets by approximately RMB 4.181 billion.

3.2 Earnings Forecasts

Forecast data mainly come from the Tonghuashun platform aggregation, Cinda Securities’ initial coverage report dated April 9, 2026, and Guotai Haitong Securities’ interim-report review dated September 4, 2026. The number of publicly verifiable institutional samples is limited. As of September 5, 2026, two institutions had issued 2026 earnings forecasts during the previous six months, which should not be regarded as a broad, multi-institution consensus estimate. Cinda Securities forecasts 2025E/2026E/2027E operating revenue of RMB 5.848 billion, RMB 6.225 billion and RMB 6.792 billion, respectively, and attributable net profit of RMB 389 million, RMB 493 million and RMB 657 million, respectively. Guotai Haitong forecasts 2026–2028 attributable net profit of RMB 498 million, RMB 595 million and RMB 677 million, respectively. Cinda Securities forecasts green-methanol sales volumes of 25,000 tonnes and 75,000 tonnes in 2026 and 2027, respectively, corresponding to revenue of approximately RMB 165 million and RMB 495 million, with an assumed gross margin of approximately 32%. These forecasts are sensitive to project commissioning schedules and product selling prices.

3.3 Valuation and Institutional Ratings

Valuation data as of the September 11, 2026 close: closing price of RMB 4.94, approximately 2.388 billion shares outstanding, market capitalization of approximately RMB 11.797 billion, PB of approximately 1.07–1.09x, and TTM/forward PE of approximately 40.9–41.1x. Based on institutional forecast EPS, forward PE for 2026E, 2027E and 2028E is approximately 23.5x, 18.3x and 17.6x, respectively. Based on Cinda Securities’ forecasts, 2026E and 2027E forward PE are approximately 23.5x and 17.6x, respectively. Based on Guotai Haitong’s 2027 EPS forecast of RMB 0.25, 2027E PE is approximately 19.8x. Current valuation implies that attributable net profit will increase from RMB 283.9 million in 2025 to approximately RMB 490–500 million in 2026. Valuation reasonableness depends on earnings delivery. The profitability quality of the traditional environmental-protection business has improved, but commissioning schedules for new-energy projects, green-methanol sales volumes and prices, capital expenditure, financing costs and debt levels remain key uncertainties. Institutional coverage is limited. 2027 attributable net profit forecasts range from RMB 595 million to RMB 657 million, and target prices also vary considerably. At present, the RMB 6.62 target price from Guotai Haitong following the September 2026 interim report should be given priority, while the RMB 8.99 target price should be viewed as a historical or lower-confidence reference.

4. Recent News and Announcements

4.1 Controlling Shareholder Initiated a Share-Purchase Plan and Has Partially Implemented It

On August 6, 2026, China Tianying disclosed that its controlling shareholder, Nantong Qianchuang Investment Co., Ltd., planned to purchase company shares within three months from the date of the announcement through centralized bidding, block trades and other methods. The purchase amount would be not less than RMB 50 million and not more than RMB 100 million, with no price range set. At the time of the announcement, Nantong Qianchuang held 421,522,183 shares, representing 17.65% of total shares outstanding, and had obtained a special-loan commitment letter for share purchases from the Shenzhen Branch of Ping An Bank, with a loan amount of not more than RMB 90 million. From August 12 to September 1, 2026, Nantong Qianchuang purchased an aggregate 6,239,300 shares through centralized bidding, representing 0.26% of total shares outstanding. Its ownership increased to approximately 17.91%, and the combined ownership of it and its concert parties increased by 0.26% from before the purchases. Concert parties Yan Shengjun and Nantong Kunde Investment Co., Ltd. did not purchase shares during the period. The controlling shareholder may continue purchasing shares over the next 12 months, but the plan has not been completed, and the actual purchase amount may be below the upper limit. Overall, this is moderately positive.

4.2 Ping An-Related Shareholders Sold Shares in April; Their Actions Differ from the Recent Controlling-Shareholder Purchases

From April 9 to April 16, 2026, Ping An Life and Ping An Real Estate sold a combined 22,036,300 China Tianying shares through centralized bidding, representing 0.92% of total shares outstanding. The combined shareholding of Zhongping Guoyu and the two Ping An entities declined from 5.92% to approximately 5.00%. Ping An Life sold 18,197,300 shares, Ping An Real Estate sold 3,839,000 shares, and Zhongping Guoyu did not sell any shares. The April selling by Ping An-related shareholders and the purchases by Nantong Qianchuang from August to September 2026 were actions by different shareholders and should not simply be interpreted as indicating that the company’s shareholders as a whole are uniformly bullish or bearish.

4.3 Cancellation of Certain Options under the 2023 Stock-Option Incentive Plan Completed

On September 9, 2026, the company disclosed that the cancellation of certain stock options under its 2023 stock-option incentive plan had been completed. Because the company’s 2025 net profit and operating revenue did not reach the trigger levels specified in the incentive plan, the performance conditions for the third exercise period were not met, involving 11.5700 million stock options. In addition, certain incentive recipients lost their eligibility due to resignation, involving 402,500 stock options. The company canceled a total of 11.9725 million stock options, equivalent to approximately 0.50% of current total shares outstanding, and completed the relevant procedures. The matter will not have a material impact on the company’s financial condition or operating results, nor will it affect the continued implementation of the incentive plan. Cancellation of unexercised options will not create new shares, which is favorable in terms of short-term dilution pressure. However, the failure to meet the incentive-plan trigger levels for 2025 revenue and net profit reflects historical performance pressure. The specific assessment targets and actual performance figures should be confirmed with the annual report and incentive-plan documents.

4.4 Board-Change Proposals Postponed Because Documentation for Certain Independent-Director Candidates Was Incomplete

On August 27, 2026, the company’s 16th meeting of the ninth Board of Directors reviewed matters relating to the change of the Board and proposed candidates for the 10th Board. The 10th Board was proposed to comprise seven directors, including four non-independent directors and three independent directors. Candidates included Yan Shengjun, Cao Debiao, Mao Hongju and Tu Haihong, as well as independent-director candidates Li Shuhua, Yang Dongsheng and Liu Ruizhi. On September 12, 2026, the company disclosed that, because some independent-director candidates were still supplementing relevant materials, it had decided to postpone consideration of the non-independent- and independent-director proposals related to the Board change at the extraordinary shareholders’ meeting. A shareholders’ meeting will be convened separately after the materials are complete. The ninth Board will continue performing its duties until the new director candidates are elected by shareholders. Other matters at the extraordinary shareholders’ meeting will generally remain unchanged, and voting will take place during trading hours on September 16, 2026. This does not mean that the Board change has failed or that the candidates have been disqualified, but the postponement prolongs short-term uncertainty at the corporate-governance level.

4.5 2026 Interim Report Shows Slight Earnings Growth and Generally Stable Operations

The company disclosed its 2026 interim report on August 29, 2026. In the first half of 2026, net profit attributable to shareholders was approximately RMB 213.5 million, up 1.11% year on year, and basic EPS was approximately RMB 0.09. During the reporting period, domestic and overseas waste-to-energy projects operated generally steadily. Waste received was approximately 4.2641 million tonnes, on-grid electricity generation was approximately 1.123 billion kWh, and steam sales were approximately 1.08 million tonnes. The company did not distribute cash dividends, issue bonus shares or capitalize its reserve fund during the first half of 2026. The interim report indicates continued earnings growth, albeit at a low rate. Future attention should focus on operating conditions at waste-to-energy projects and changes in overseas project operations.

4.6 No New Share-Buyback Plan Identified as of September 13, 2026

As of September 13, 2026, no newly disclosed share-buyback plan or additional buyback implementation announcement by China Tianying in September 2026 had been identified. Recent public matters related to “buybacks” mainly involve the cancellation of historically repurchased shares and a pledged-share repurchase transaction by the controlling shareholder, neither of which is equivalent to the company launching a new share-buyback plan. The company disclosed a pledged-share repurchase transaction by the controlling shareholder on June 26, 2026.

4.7 No New Major Acquisition or Asset-Reorganization Matter Identified as of September 13, 2026

As of September 13, 2026, no new major acquisition, major asset reorganization or backdoor listing matter disclosed by the company in September 2026 had been identified. Recent announcements have mainly concerned the controlling shareholder’s share purchases and changes in equity interests, stock-option cancellations, the 2026 interim report and the change of the Board.

4.8 No New Regulatory Penalty, Regulatory Measure or Inquiry Letter Identified as of September 13, 2026

As of September 13, 2026, no new regulatory penalty, regulatory measure or inquiry letter directly related to China Tianying had been identified. On August 29, 2026, the company disclosed its information-disclosure management system for debt-financing instruments in the interbank bond market. This indicates that the company has arrangements for issuing debt-financing instruments and standardized information disclosure, but the matter itself does not constitute a regulatory penalty or major negative regulatory event.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, China Tianying closed at RMB 4.94, remaining toward the lower end of its 52-week range but having rebounded from the July 2026 low. The share price was above MA10 and MA20 but below MA5. The rebound structure has not been fully broken, although short-term momentum has weakened. MACD remained above the zero line, while RSI was in the neutral range, with no obvious overbought or oversold signal. The price was close to the upper Bollinger Band at RMB 5.09, and an upside breakout would require volume support. In terms of fund flows, cumulative main-fund inflows were positive over the latest 10 trading days, but net outflows continued for the latest three trading days. On September 11, price weakness, higher trading value and main-fund net outflows occurred simultaneously, warranting attention to profit-taking pressure after the rebound. Recent trading value was approximately RMB 124–231 million, with turnover rates of approximately 1.06%–2.01%. Without a further increase in trading value, short-term trading may remain range-bound. Shareholder data are materially lagged. High concentration among the top ten tradable shareholders coexists with a rising number of accounts and greater ownership dispersion, so the data cannot directly determine the future direction. Market data and technical indicators on different platforms may use different adjustment methods, smoothing algorithms and update times. They should be used for range assessment rather than mechanically interpreted as buy or sell signals.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the closing data, historical prices and technical indicators as of September 11, 2026. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 50%–60%; a subjective heuristic weight based on current technical indicators, trading volume and fund flows, not a statistical probability): Price range of RMB 4.80–5.10. Trigger conditions are that the share price holds around RMB 4.85 but cannot effectively break RMB 5.10, while trading value remains within the recent normal range of approximately RMB 130–230 million. RSI6 is in the neutral range and MACD remains above the zero line, but funds have recorded net outflows for the latest three trading days, so further digestion after the rebound is possible.
• Weak downside move (medium weight; a subjective heuristic judgment, not a statistical probability): Price range of RMB 4.55–4.80. Trigger conditions are an effective closing break below RMB 4.85, daily trading value above RMB 230 million and continued main-fund net outflows. If the strong-support area of RMB 4.70–4.77 is breached on higher volume, the stock may retrace toward RMB 4.55–4.65. If market conditions or the environmental-protection sector weaken simultaneously, the pullback could be larger.
• Stronger rebound (relatively lower weight but cannot be ruled out; a subjective heuristic judgment, not a statistical probability): Price range of RMB 5.10–5.30. Trigger conditions are an effective closing breakout above RMB 5.10, a clear increase in daily trading value to more than RMB 250 million, and a shift in main-fund flows from consecutive net outflows to net inflows. If the stock breaks above the upper Bollinger Band and previous short-term highs with supportive volume and price action, the short-term move could extend toward RMB 5.20–5.30. If price rises without a corresponding increase in trading value, a false breakout or a rise followed by a retreat is more likely.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, recent turnover rates were approximately 1.06%–2.01%, and trading value over the latest six trading days was approximately RMB 124–231 million, averaging approximately RMB 188 million. On September 11, trading value was approximately RMB 203 million, turnover was 1.78%, and main-fund net outflow was approximately RMB 19.31 million. The latest shareholder-structure data are as of March 31, 2026, with an announcement date of April 29, 2026, approximately five and a half months before the market reference date. The top ten tradable shareholders collectively held approximately 47.74% of tradable shares, the number of shareholder accounts was approximately 76,500, up approximately 81.25% from December 31, 2025, and public funds, social security funds, insurers, securities-firm asset-management products and annuities collectively held approximately 1.92% of tradable shares. Therefore, high concentration among the top ten shareholders coexists with dispersed ownership at the account level, but the recent ownership structure may already have changed and should not be considered real-time data. In practice, the stock is not extremely illiquid, but medium-to-low turnover means that without higher trading value, short-term trading is more likely to remain range-bound. If higher volume is accompanied by falling prices and continued main-fund net outflows, attention should be paid to high-level turnover or profit-taking pressure.

A verifiable volume-confirmation signal would be a sustained increase in daily trading value to above RMB 250 million, together with the closing price remaining above RMB 5.10. Only then could stronger short-term fund participation be considered confirmed. If volume rises while the share price closes lower and main funds continue to record net outflows, this would be more indicative of high-level turnover or profit-taking pressure.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether RMB 4.85–4.90 can provide short-term support; this is an observation framework, not a buy or sell instruction.
• Monitor whether the strong-support area of RMB 4.70–4.77 experiences a high-volume breakdown; this is an observation framework, not a buy or sell instruction.
• Observe whether the resistance area of RMB 5.00–5.10 can receive volume support and be effectively breached; this is an observation framework, not a buy or sell instruction.
• Closely track whether trading value exceeds RMB 250 million on a sustained basis and whether main-fund flows shift from consecutive net outflows to net inflows; this is an observation framework, not a buy or sell instruction.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news, fund flows, broader-market conditions and other factors. Technical indicators have inherent lag and limitations. This analysis does not guarantee actual future performance and does not constitute investment advice. Investors should make independent judgments based on the latest market information and bear their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Conditions

China’s waste-to-energy industry has moved from a period of rapid expansion into a mature operating phase. The report materials indicate that by the end of 2025, more than 1,000 incineration plants had been built nationwide, with daily treatment capacity exceeding 1 million tonnes. The industry’s main challenges have shifted from insufficient waste-treatment capacity to overcapacity in certain regions, declining average utilization rates and regional divergence.

6.2 Competitive Landscape

• Waste sources are relatively stable and project utilization rates are relatively high in eastern coastal regions. Some central and western regions face insufficient waste volumes or underutilized capacity.
• Subsidies for waste-to-energy generation are gradually declining, putting pressure on traditional power-generation revenue. Heating and steam supply, green-power transactions, bottom-ash recycling and carbon assets have become supplemental profit sources.
• Environmental standards for flue-gas emissions, dioxins and nitrogen oxides are becoming stricter, requiring companies to continue investing in environmental-protection facilities and operation and maintenance.
• Competition is shifting from “winning projects and expanding scale” toward operating efficiency, cost control, collection capability and integration of existing projects.
• Industry barriers include access to local-government concession resources; project investment and long-term financing capabilities; environmental-emission and engineering-construction capabilities; incinerator and flue-gas-treatment technologies; years of operating experience; waste-source and regional coordination capabilities; and the management of accounts receivable, subsidies and government payments.
• In mature markets, high-quality existing projects, high utilization rates, stable collections and heating customers are becoming more important, while the value of simply adding new projects is declining.
• In 2025, power-generation and waste-treatment services accounted for 48.00% of China Tianying’s operating revenue and had a gross margin of 47.70%, significantly higher than urban sanitation and construction services, making them the current core profit source.

6.3 Major Competitors

Compared with China Everbright Environment, Grandblue Environment, Sanfeng Environment, Weiming Environment Protection and Dynagreen Environmental Protection, China Tianying is smaller overall but has developed an integrated portfolio covering sanitation services, waste incineration, fly-ash plasma melting, bottom-ash recycling, environmental-protection equipment exports, overseas projects and green hydrogen. Its core competitiveness still comes from waste-to-energy concessions and operating capabilities. Compared with equipment-manufacturing or regional public-utilities peers, the company has a more prominent overseas business and transition toward “solid waste + green power + green hydrogen,” but it also faces risks related to overseas engineering costs, capital expenditure, financing, project collections and the commissioning schedules of green-hydrogen projects.

7. Risk Factors

• Risk that green-hydrogen and green-methanol projects are commissioned or ramp up below expectations: Planned capacity at the Liaoyuan and Anda projects has not yet been fully converted into operational capacity. If construction, equipment delivery, project commissioning or commercial sales proceed more slowly than expected, the revenue and profit contributions anticipated in institutional forecasts may not materialize.
• Capital-expenditure, financing and liquidity-pressure risk: Net cash flow from investing activities was negative RMB 1.0424 billion in the first half of 2026, and current liabilities exceeded current assets by approximately RMB 4.181 billion as of the end of June 2026. Continued construction of new-energy projects may increase funding needs and put pressure on financing costs and debt-servicing arrangements.
• Waste-to-energy utilization and policy-pricing risk: Waste-treatment fees, on-grid electricity tariffs and subsidies for the company’s waste-to-energy projects are affected by government policies. The industry has entered a mature operating phase, with insufficient waste or declining capacity utilization in certain regions. Lower project utilization or faster subsidy reductions could compress traditional power-generation revenue.
• Construction-service losses and overseas engineering-execution risk: Construction-service gross margin was -1.31% in 2025. The company has disclosed that the business was affected by the settlement of individual projects, overseas engineering costs, materials and fulfillment costs. If overseas projects such as the Toulouse Mirail project experience cost overruns, delays or slower-than-expected collections, overall profitability could be affected.
• Accounts-receivable and project-collection risk: As of the end of 2025, consolidated accounts receivable were RMB 1.981 billion, equivalent to approximately 37.49% of annual revenue. The data do not distinguish between waste incineration, sanitation, engineering construction and overseas projects. Delays in government payments, engineering settlements or collections from overseas customers could increase working-capital usage and cash-flow pressure.
• Green-methanol earnings-forecast sensitivity risk: Institutional forecasts assume certain green-methanol sales volumes, revenue and a gross margin of approximately 32%. These forecasts are sensitive to project commissioning schedules, selling prices and actual sales volumes. If prices or volumes fall below expectations, the green-methanol business may contribute profits significantly later than expected.
• Corporate-governance uncertainty: Proposals related to the change of the Board were postponed because documentation for some independent-director candidates was incomplete. The ninth Board will continue performing its duties until the new candidates are elected by shareholders, and the postponement creates short-term uncertainty regarding governance arrangements.
• Shareholder structure, pledge and share-price volatility risk: The controlling shareholder’s purchase plan has not yet been completed, while Ping An-related shareholders previously sold 0.92% of total shares. Certain shares are also pledged. The latest shareholder-structure data are as of March 31, 2026, approximately five and a half months before the market reference date. Continued shareholder selling, changes in pledges or fund profit-taking could increase share-price volatility.
• Short-term technical pullback risk: The share price closed at RMB 4.94, near the RMB 5.00–5.10 resistance area, while main-fund net outflows continued for the latest three trading days. If volume does not expand sufficiently to break above RMB 5.10, or if the RMB 4.70–4.77 support area is breached on higher volume, the share price may continue retracing toward lower ranges.

8. Conclusion and Outlook

China Tianying’s core business remains waste-to-energy generation and waste-treatment services with concession characteristics. Relatively high business gross margins, stable waste sources and growth in steam sales provide a relatively clear earnings foundation for the traditional business. Future improvement in the traditional segment will mainly depend on utilization rates at existing projects, electricity generation per tonne of waste, the scale of heating and steam supply, bottom-ash recycling and overseas engineering cost control, rather than simply on expansion through new projects.

Green hydrogen and green methanol provide potential incremental sources of medium-term revenue and profit growth, but the Liaoyuan and Anda projects still need to complete construction, commissioning and commercial ramp-up. Forecast earnings are sensitive to commissioning schedules, product prices, sales volumes and capital expenditure. At the current valuation of approximately 40–42x dynamic PE and approximately 1.05–1.12x PB, the market already appears to anticipate an increase in 2026 attributable net profit to approximately RMB 490–500 million. Valuation reasonableness depends on simultaneous improvement in the traditional business and delivery of the new-energy projects.

Future monitoring should focus on the commissioning and order conversion of new-energy projects; green-methanol sales volumes and gross margin; whether operating cash flow can cover part of capital expenditure; changes in current liabilities and financing pressure; and costs and collections related to overseas projects. In the short term, RMB 5.00–5.10 is the main resistance area, while RMB 4.85–4.90 and RMB 4.70–4.77 are important observation ranges. Technical indicators reflect only historical price and fund-flow changes and cannot replace an assessment of the company’s operating execution.

Data Sources

• https://static.cninfo.com.cn/finalpage/2026-04-29/1225231252.PDF
• China Tianying (000035)_Company Announcements_China Tianying: 2025 Annual Report Summary_Sina Finance_Sina.com
• https://disc.static.szse.cn/download/disc/disk03/finalpage/2025-04-28/a49d43cf-7e41-449c-8b6c-d7e6c4337476.PDF
• China Tianying (000035)_Company Announcements_China Tianying: 2025 Annual Report_Sina Finance_Sina.com
• China Everbright Environment Group Limited
• Grandblue Environment Co., Ltd.
• Chongqing Sanfeng Environment Group Co., Ltd. 2025 Annual Report
• Zhejiang Weiming Environment Protection Co., Ltd. 2025 Annual Report
• Dynagreen Environmental Protection Group Co., Ltd. 2025 Annual Report
• China Tianying (000035)_Company Announcements_China Tianying: 2026 Interim Report Summary_Sina Finance_Sina.com
• China Tianying (000035) 2026 Interim Report Review: Green Methanol Ready to Launch; Traditional Segment Improving on Multiple Fronts_Sina Finance_Sina.com
• China Tianying (000035)_Company Announcements_China Tianying: 2026 Interim Report_Sina Finance_Sina.com
• China Tianying (000035) Earnings Forecasts_F10_Tonghuashun Financial Services
• Cinda Securities—China Tianying (000035) Initial Coverage Report: Deepening Its Solid-Waste Core Business; “Environmental Protection + New Energy” Twin Engines Drive New Growth—260409.pdf
• [[Cinda Securities]: Initial Coverage Report on China Tianying: Deepening Its Solid-Waste Core Business; “Environmental Protection + New Energy” Twin Engines Drive New Growth—Shuidi Research](https://www.sdyanbao.com/detail/952188?utm_source=openai)
• China Tianying (000035) 2025 Annual Report and 2026Q1 Review: Green-Methanol Project Nearing Commissioning; Order from Leading International Energy Company
• China Tianying (000035) Stock Information—Data Platform
• China Tianying (000035)_Company Announcements_China Tianying: 2026 Interim Report_Sina Finance_Sina.com
• Stock Code: 000035　　Stock Name: China Tianying　　Announcement No.: TY2026-36
• China Securities Journal—China Tianying Inc. Announcement on the Controlling Shareholder and Its Concert Parties’ Change in Equity Interests Reaching a 5% Threshold
• Stock Code: 000035　　Stock Name: China Tianying　　Announcement No.: TY2026-09
• China Securities Journal—China Tianying Inc. Announcement on Completion of the Cancellation of Certain Stock Options under the 2023 Stock-Option Incentive Plan
• China Tianying (000035): Board Election—CFi.CN
• China Tianying (000035)_Company Announcements_China Tianying: Announcement on Cancellation of Certain Proposals at the First Extraordinary Shareholders’ Meeting of 2026 and Supplemental Notice_Sina Finance_Sina.com
• China Tianying (000035)_Company Announcements_China Tianying: 2026 Interim Report Summary_Sina Finance_Sina.com
• China Tianying (000035) Announcements (Buybacks)—Lixinger
• China Tianying (000035) Announcements (All)—Lixinger

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the close of the latest complete trading day on September 11, 2026; shareholder-structure data are as of March 31, 2026, with an announcement date of April 29, 2026, representing a lag of approximately five and a half months. Timing differences may exist. Specific data should be verified against the company’s official announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear their own investment risks.