Business Expansion and Innovation - In 2022, the company established a wholly-owned subsidiary, Hebei Sailite New Energy Co., Ltd., to expand its business scope and enhance market competitiveness[6]. - The company obtained 13 new patents in 2022, including 2 invention patents and 4 software copyrights, demonstrating its commitment to innovation[11]. - The "Smart Agriculture IoT System" received the "Hebei Province Science and Technology Achievement" honor, indicating industry recognition of the company's smart irrigation systems[10]. - The company was recognized as an "Excellent Provincial Enterprise Technology Center," affirming its research and development capabilities[8]. - The company was included in the first batch of "Specialized, Refined, and New 'Little Giant' Enterprises," highlighting its continuous innovation ability[9]. - The company achieved a second-level qualification for "Electronic and Intelligent Engineering Professional Contracting," facilitating its entry into smart agriculture-related businesses[7]. - The company was selected as a "National Star-Level Agricultural Science and Technology Social Service Organization," acknowledging its contributions to agricultural technology application[5]. - The company is recognized as a national-level "specialized, refined, distinctive, and innovative" enterprise and holds 106 patents in total[51][53]. - The company continues to focus on smart agriculture irrigation projects, achieving significant social and economic benefits[58]. - The company is currently developing an intelligent irrigation and fertilization system aimed at improving the automation and precision of water and fertilizer management in agricultural facilities[108]. - The company has developed a smart filtering and fertilization integrated machine, which has received several patents and copyrights[108]. Financial Performance - The company's operating revenue for 2022 was CNY 659,915,579.70, representing a 12.04% increase compared to CNY 589,013,277.03 in 2021[36]. - The net profit attributable to shareholders for 2022 was CNY 49,548,540.32, a decrease of 14.82% from CNY 58,167,745.49 in 2021[36]. - The gross profit margin for 2022 was 20.88%, down from 25.82% in 2021[36]. - The total assets at the end of 2022 amounted to CNY 1,076,507,365.55, a 4.76% increase from CNY 1,027,562,381.05 at the end of 2021[37]. - The total liabilities at the end of 2022 were CNY 199,736,658.35, reflecting a 6.65% increase from CNY 187,279,718.17 at the end of 2021[37]. - The net cash flow from operating activities for 2022 was CNY 68,747,530.92, a significant increase of 370.51% compared to CNY 14,611,198.23 in 2021[39]. - The weighted average return on equity (ROE) based on net profit attributable to shareholders was 5.79% for 2022, down from 7.15% in 2021[36]. - The company reported a decrease in net profit growth rate of 14.82% for 2022, compared to a growth of 5.22% in 2021[40]. - The company achieved a basic earnings per share of 0.19 for 2022, a decrease of 13.64% from 0.22 in 2021[36]. - The total non-recurring gains and losses for 2022 amounted to CNY 4,750,947.26, compared to CNY 2,852,657.21 in 2021[46]. - The company reported a significant increase in other income, which rose by CNY 47.81 million, a year-on-year increase of 12,687.71% due to a listing reward[78]. Market Trends and Risks - The company reported a significant increase in the domestic water-saving irrigation market, driven by government policies, indicating a favorable market outlook[18]. - The company faces risks related to intensified industry competition and potential withdrawal of government subsidies for water-saving equipment[19]. - The global trend towards water-saving irrigation technologies is driven by increasing water resource scarcity, with a strong emphasis on efficient and precise agricultural practices[60]. - The company is exposed to risks from fluctuations in raw material prices, particularly for PVC and PE, which are derived from petrochemical products[142]. - The construction of water-saving projects constitutes a significant portion of the company's main business revenue, but faces risks from various uncertainties during the long construction period[144]. - The company has implemented a project duration warning system to monitor and address potential delays in government-bid water-saving irrigation projects[146]. Research and Development - Research and development expenses amounted to 34.69 million yuan, representing an 8.89% increase year-on-year[57]. - The company employs 100 R&D personnel, representing 23.81% of total employees, reflecting a strong commitment to research and development[106]. - The company has organized academic exchange meetings and trained 80 technical professionals as part of its research initiatives[109]. - The company emphasizes the cultivation and introduction of technical talents, forming a talent hierarchy of senior, intermediate, and junior levels to ensure continuous innovation capability[199]. - A three-tier training program has been implemented, including onboarding, departmental, and company-wide training, focusing on safety, skills, and regulations[199]. Corporate Governance and Shareholder Information - The company has a total share capital of 261,208,000 shares, with the controlling shareholder being Xue Baosong[29]. - The largest shareholder, Xue Baosong, holds 33.30% of the shares, totaling 86,970,163 shares[168]. - The top ten shareholders collectively own 59.28% of the company, with a total of 154,838,600 shares[168]. - The number of shareholders holding ordinary shares was reported at 15,199[165]. - The company has established measures to standardize and reduce related party transactions[159]. - The company has no significant related party transactions or asset acquisitions during the reporting period[157]. Social Responsibility and Environmental Compliance - The company donated over 2 million yuan to support vulnerable groups in 2022, demonstrating its commitment to social responsibility[126]. - The company has implemented environmental protection measures, including waste gas treatment and noise control, ensuring compliance with environmental standards[127]. - The company has established an emergency response plan for environmental incidents, enhancing its ability to manage potential environmental risks[129]. - The company has conducted self-monitoring of environmental impacts, with results meeting relevant emission standards[131]. Future Plans and Strategic Initiatives - The company plans to enhance its service capabilities and increase the scope of post-service operations, aiming to develop into a comprehensive company covering the entire industry chain from R&D to post-service management[135]. - The company will focus on strategic cooperation and explore the feasibility of mergers and acquisitions to rapidly expand its scale and promote industry development[135]. - The company plans to allocate 3,000.00 million to enhance the water-saving irrigation equipment industry base project in Shanxi[183]. - The company has decided to use the remaining balance of 5,149.13 million from the fundraising for other urgent projects due to delays in the marketing network construction[183].

Financial Performance - The company's operating revenue for 2022 was CNY 652.62 million, representing a year-on-year increase of 10.80%[3] - The net profit attributable to shareholders decreased to CNY 47.45 million, down 18.43% compared to the previous year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 43.41 million, a decline of 22.12% year-on-year[3] - Basic earnings per share were CNY 0.18, down 18.18% from the previous year[3] Assets and Equity - Total assets at the end of the reporting period were CNY 1,072.43 million, an increase of 4.37% year-on-year[4] - Shareholders' equity attributable to the company was CNY 874.67 million, up 4.09% from the beginning of the period[4] Revenue Drivers - The increase in operating revenue was primarily due to the expansion of the domestic market and increased direct sales of water-saving products[5] Cost Challenges - The decline in net profit was attributed to increased project costs due to pandemic-related delays and a rise in bad debt provisions[5] Research and Development - Research and development expenses increased year-on-year, reflecting the company's commitment to innovation[5] Investor Advisory - The company advises investors to be cautious as the financial data is preliminary and unaudited, with final figures to be disclosed in the annual report[6]

Intellectual Property and Innovation - The company obtained 6 patent certificates during the reporting period, including 5 utility model patents and 1 design patent[7] - During the reporting period, the company obtained 5 utility model patents, 1 design patent, and 3 software copyrights[42] - The company holds 99 patented technologies and 12 software copyrights, focusing on innovation and technology-driven market capture[78] Industry Recognition and Development - The company was recognized as a "National Star-Level Agricultural Science and Technology Social Service Organization" in January 2022, affirming its role in promoting agricultural technology application and high-quality development[6] - The company plans to focus on the water-saving irrigation industry, responding to national policies and market opportunities for intensive and intelligent development[49] Financial Performance - The company achieved operating revenue of CNY 254.36 million, a year-on-year increase of 19.52%[40] - Net profit attributable to shareholders decreased by 7.73% to CNY 20.02 million compared to the same period last year[40] - Total assets at the end of the reporting period were CNY 1,023.47 million, down 0.40% year-on-year[28] - The company's net assets attributable to shareholders increased by 0.83% to CNY 847.24 million[28] - The gross profit margin decreased to 22.82% from 27.14% in the previous year[1] - The net profit for the current period is CNY 20,020,771.05, a decrease of 7.73% from CNY 21,697,662.71 in the previous year[53] - The company reported a significant increase in other income, which rose by 1,157.30% to CNY 5,409,446.03, primarily due to government incentives[55] Cash Flow and Liquidity - The net cash flow from operating activities was CNY -27.38 million, a decrease of CNY 1.11 million from the previous year[40] - Cash flow from operating activities was negative at CNY -27,380,195.64, worsening from CNY -16,268,371.26 in the previous year[63] - Investment activities generated a net cash flow of CNY 47,819,004.67, a substantial increase compared to CNY -30,324,732.59 in the previous year[63] - The company's cash and cash equivalents increased to ¥115,465,758.73, representing 11.28% of total assets, up from 10.56% the previous year, a change of 6.40%[50] Market Expansion and Competition - The company expanded its market presence in the Southwest and Southeast regions, as well as internationally, focusing on agricultural water-saving irrigation[41] - The company faces risks related to intensified industry competition and potential withdrawal of government subsidies for water-saving irrigation projects[13] - The company faces intensified competition in the water-saving irrigation industry but maintains a leading position with a strong business team and technological capabilities[78] Risk Management - The company has not experienced significant changes in major risks during the reporting period[13] - The company faces risks from the gradual withdrawal of government subsidies for water-saving irrigation projects, which may increase the cost burden on farmers and agricultural enterprises[79] - Fluctuations in the prices of key raw materials, such as PVC and PE, could significantly impact the company's profit margins, despite ongoing efforts to optimize production and maintain good supplier relationships[80] - The expansion of the company's scale may lead to management risks if the management capabilities do not keep pace with growth, necessitating talent development and process improvements[83] - Construction risks associated with water-saving projects include potential delays and safety hazards, which the company mitigates through a comprehensive safety management system[84] Corporate Governance and Structure - The actual controller of the company is Xue Baosong, with other associated individuals being Li Mingxin, Xue Lixia, and Xue Lichao[22] - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[106] - The company has established an emergency response plan for environmental incidents to mitigate pollution risks[77] Subsidiaries and Consolidation - The consolidated financial statements now include two new subsidiaries: Hebei Sailite New Energy Co., Ltd. and Linfen Rural Collective Economic Construction Co., Ltd.[72] - Hebei Sailite New Energy Co., Ltd. was established as a wholly-owned subsidiary, expected to positively impact the company's financial status and operational results in the long term[71] Employee and Management Changes - The total number of employees decreased from 422 to 393, with a reduction of 30 employees during the reporting period[127] - The number of administrative staff decreased from 40 to 35, while production staff decreased from 119 to 101[127] - The company has 2 independent directors remaining after the resignation of Wang Mingkai due to the completion of his six-year term[125] Environmental and Social Responsibility - The company donated CNY 2 million to the Red Cross Society for humanitarian assistance in Shanxi Province[75] - The company has implemented environmental protection measures, including waste gas treatment and noise control, ensuring compliance with relevant standards[76] Financial Reporting and Compliance - The financial statements are prepared in accordance with the accounting standards set by the Ministry of Finance, ensuring compliance and transparency[176] - The company has not reported any changes in accounting policies or prior period error corrections during this reporting period[160] - The company did not conduct an audit for the financial report[130]

Financial Performance - Operating revenue for Q1 2022 was CNY 75,738,200.93, representing a year-on-year increase of 7.66%[15] - Net profit attributable to shareholders for Q1 2022 was CNY 10,196,688.47, a decrease of 2.02% compared to the same period last year[15] - The net profit after deducting non-recurring gains and losses decreased by 36.07% year-on-year, amounting to CNY 6,445,802.62[15] - Total operating revenue for Q1 2022 was ¥75,738,200.93, an increase of 7.3% compared to ¥70,351,131.60 in Q1 2021[40] - Net profit for Q1 2022 was ¥10,196,688.47, a slight decrease of 2.0% from ¥10,406,859.56 in Q1 2021[41] - Total profit for Q1 2022 was ¥11,467,892.02, down 10.7% from ¥12,846,487.12 in the previous year[40] Cash Flow and Liquidity - The net cash flow from operating activities for Q1 2022 was CNY -59,189,280.64, a decrease of CNY 31,952,000 compared to the same period last year[17] - Operating cash flow for Q1 2022 was negative at -59,189,280.64 CNY, compared to -27,232,083.56 CNY in Q1 2021, indicating a decline in operational efficiency[45] - Cash and cash equivalents at the end of Q1 2022 stood at 85,706,589.82 CNY, down from 110,435,637.98 CNY at the end of Q1 2021, indicating a liquidity contraction[46] - The company reported a net cash outflow of -10,855,327.06 CNY in Q1 2022, compared to -48,140,638.99 CNY in Q1 2021, suggesting an improvement in cash management[46] - Total cash outflow from operating activities in Q1 2022 was 164,527,908.90 CNY, up from 153,290,600.80 CNY in Q1 2021, indicating increased operational costs[45] Assets and Liabilities - Total assets as of March 31, 2022, were CNY 1,002,971,882.21, a decrease of 2.39% compared to the end of the previous year[15] - The company's asset-liability ratio (consolidated) improved to 15.20% from 18.23% year-on-year[15] - Total assets decreased from CNY 1,027,562,381.05 to CNY 1,002,971,882.21, a decline of approximately 2.5%[34] - Current liabilities decreased from CNY 160,297,422.61 to CNY 125,560,148.42, a reduction of about 21.7%[34] - Total liabilities decreased from CNY 187,279,718.17 to CNY 152,492,530.86, a reduction of about 18.6%[34] - Shareholders' equity increased from CNY 840,282,662.88 to CNY 850,479,351.35, an increase of approximately 1.4%[34] Shareholder Information - The number of shareholders holding more than 5% of shares increased, with the controlling shareholder's stake rising to 9.10%[21] - The company reported a total shareholding of 154,838,600 shares, representing 59.28% of total shares held by the top ten shareholders[24] - Xue Baosong holds 33.30% of the shares, amounting to 86,970,163 shares, making him the largest shareholder[24] Operational Challenges - The company faced challenges due to COVID-19, impacting sales and project execution, particularly in key regions like Inner Mongolia and Hebei[17] Non-Recurring Items - Non-recurring gains and losses for the period totaled CNY 4,412,785.28, with a net amount after tax of CNY 3,750,885.85[19] - The company has not implemented any profit distribution or capital increase from reserves during the reporting period[30] Other Financial Metrics - Research and development expenses increased to ¥2,839,838.91, up 29.7% from ¥2,188,349.53 year-over-year[40] - The company reported a credit impairment loss of ¥2,763,664.34, down 42.0% from ¥4,753,527.57 in Q1 2021[40] - Basic and diluted earnings per share remained stable at ¥0.04 for both Q1 2022 and Q1 2021[44] - Operating profit for Q1 2022 was ¥11,432,006.39, a decrease of 10.9% compared to ¥12,837,151.41 in Q1 2021[40] - The company’s other income increased significantly to ¥4,260,070.96 from ¥371,983.45 in Q1 2021[40]

Recognition and Achievements - The company was recognized as a national-level "specialized, refined, and innovative" small giant enterprise in May 2021, marking a comprehensive acknowledgment of its management, innovation capabilities, and economic benefits[4]. - The "Intelligent Water and Fertilizer Integration Machine" developed by the company received the "Hebei Province Scientific and Technological Achievement Certificate" from the Hebei Provincial Department of Science and Technology in June 2021[4]. - The company's research project on key technologies for water-saving irrigation of southern specialty economic crops won the second prize of the "Agricultural Water-saving Technology Award" in October 2021[4]. - The company became one of the first listed companies on the Beijing Stock Exchange in November 2021, celebrating its 11th anniversary[4]. - The company was included in the "2021 Green Manufacturing List" and recognized as a quality benchmark for industrial enterprises in Hebei Province in December 2021[4]. Financial Performance - The company's operating revenue for 2021 was ¥589,013,277.03, representing a 14.60% increase compared to ¥513,991,349.06 in 2020[29]. - The net profit attributable to shareholders for 2021 was ¥58,167,745.49, a 5.22% increase from ¥55,283,027.65 in 2020[29]. - The total assets at the end of 2021 amounted to ¥1,027,562,381.05, reflecting a 6.94% growth from ¥960,846,468.44 at the end of 2020[31]. - The company's debt-to-asset ratio (consolidated) was 18.23% at the end of 2021, slightly up from 18.06% at the end of 2020[32]. - The basic earnings per share for 2021 was ¥0.22, a decrease of 4.35% from ¥0.23 in 2020[29]. - The net cash flow from operating activities for 2021 was ¥14,611,198.23, a significant recovery from a negative cash flow of ¥46,836,976.18 in 2020[34]. - The gross profit margin slightly decreased to 25.82% from 25.99% year-on-year, while the operating profit was ¥70,800,930.62, a 10.96% increase from ¥63,804,974.97[73]. Research and Development - R&D expenditure for the reporting period was 31.86 million yuan, up 16.48% year-on-year[56]. - The company obtained 9 utility model patents and 3 software copyrights during the reporting period[56]. - The total number of patents owned by the company increased to 93 from 81 in the previous year[103]. - The company’s R&D investment for the year amounted to 31.857 million yuan, focusing on projects such as smart irrigation systems and wastewater treatment technologies[104]. - The smart irrigation and fertilization control system has achieved domestic leading performance and passed provincial acceptance in September 2021[104]. Market and Industry Position - The company operates in the construction industry, specifically in water-saving irrigation equipment manufacturing and related services[23]. - The company is recognized as a high-tech enterprise with multiple qualifications in construction and irrigation[49]. - The North China region accounted for 58.72% of total revenue, with significant growth driven by market expansion in Henan and Shanxi[81]. - The company is actively expanding its market presence in regions like Henan and Shanxi, contributing significantly to revenue growth[54]. - The company is positioned to benefit from the government's push for digital agriculture and smart farming initiatives, enhancing its technological capabilities[199]. Risks and Challenges - The company faces risks from intensified industry competition and potential withdrawal of government subsidies for water-saving irrigation projects[12][13]. - The reliance on government subsidies for water-saving equipment procurement may gradually decrease, leading to increased costs for farmers and agricultural enterprises[126]. - The company is expanding its scale, which poses management risks if management capabilities do not keep pace with growth[130]. - The construction of water-saving projects is subject to various uncertainties, including material quality and adverse weather conditions, which could disrupt operations[131]. Corporate Governance and Structure - The actual controllers of the company are Xue Baosong and Li Mingxin, with associated parties including Xue Lixia and Xue Lichao[23]. - The company has a total of 9 board members and 3 supervisory board members[180]. - The company has maintained a stable workforce with no significant changes in senior management during the reporting period[184]. - The company emphasizes the cultivation and introduction of technical talents, forming a talent ladder of senior, intermediate, and junior levels[190]. Environmental and Social Responsibility - The company has established environmental protection responsibility systems and monitoring procedures for waste management[116]. - The company has implemented emergency response plans for environmental incidents to mitigate pollution risks[117]. - The company is committed to enhancing water-saving irrigation methods and improving water use efficiency in agricultural facilities[200]. - The company is actively promoting the construction of high-standard farmland in designated production functional areas, focusing on ecological-friendly practices[200]. Shareholder Information - The total number of ordinary shares is 261,208,000, with 17,754 shareholders[157]. - The largest shareholder, Xue Baosong, holds 86,970,163 shares, accounting for 33.30% of total shares[160]. - The top ten shareholders collectively hold 154,838,600 shares, representing 59.28% of total shares[160]. - The company reported a cash dividend distribution plan of CNY 0.50 per 10 shares for the year[177].