In this paper, an improved system to efficiently utilize the low-temperature waste heat (WHUS) from the flue gas of coal-fired power plants is proposed based on heat cascade. The essence of the proposed system is that the waste heat of exhausted flue gas is not only used to preheat air for assisting coal combustion as usual but also to heat up feedwater and the low-pressure steam extraction. Preheated by both the exhaust flue gas in the boiler island and the low-pressure steam extraction in the turbine island, thereby part of the flue gas heat in the air preheater can be saved and introduced to heat the feedwater and the high-temperature condensed water. Consequently, part of the high-pressure steam is saved for further expansion in the steam turbine, which obtains additional net power output. Based on the design data of a typical 1000 MW ultra-supercritical coal-fired power plant in China, in-depth analysis of the energy-saving characteristics of the optimized WHUS and the conventional WHUS is conducted. When the optimized WHUS is adopted in a typical 1000 MW unit, net power output increases by 19.51 MW, exergy efficiency improves to 45.46%, and net annual revenue reaches 4.741 million USD. In terms of the conventional WHUS, these aforementioned performance parameters are only 5.83 MW, 44.80% and 1.244 million USD, respectively. The research of this paper can provide a feasible energy-saving option for coal-fired power plants.