Company Focus and Strategy - The company has shifted its main focus from traditional sanitation services to providing technological support, management, and operational platform support for industry stakeholders, reflected in the name change to Newange Ambient Intelligence Technical Service Co. Ltd[5]. - The company has expanded its waste management services to new regions including Xinjiang Yili, Shandong Yantai, and Chongqing[32]. - The company has initiated a rural environmental comprehensive governance model in Lishu County, Jilin Province, as part of its rural revitalization strategy[32]. - The company is actively engaged in environmental management and has implemented a green and sustainable service model[59]. - The company is focused on maintaining good credit and customer satisfaction to enhance its operational performance[69]. - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[162]. Financial Performance - The company's operating revenue for the current period is CNY 303,530,097.55, a decrease of 2.77% compared to the same period last year[23]. - The net profit attributable to shareholders of the listed company is CNY 20,491,960.33, reflecting a decline of 29.57% year-on-year[23]. - The company's total revenue for the current period is CNY 303,530,097.55, representing a decrease of 2.77% compared to CNY 312,173,442.09 in the previous year[43]. - The gross profit margin has decreased to 21.00% from 22.84% in the previous year[43]. - The company's operating profit decreased by 27.23%, totaling CNY 25,202,612.89, down from CNY 34,633,021.55 in the previous year[43]. - The company's net profit decreased by 30.53%, from 29,318,048.61 to 20,367,098.76[45]. - The company reported a total comprehensive income of CNY 4,962,526.59, with a decrease of CNY 850,000.00 compared to the previous period[168]. Shareholder Returns and Capital Management - A cash dividend of RMB 0.36 per 10 shares was distributed to shareholders, totaling approximately RMB 10.84 million based on a base of 301,187,571 shares[5]. - The company has repurchased approximately 5.9966 million shares, totaling around RMB 20.02 million, which represents 1.96% of the total share capital and 99.94% of the planned repurchase amount[5]. - The company has a dividend commitment planned until December 31, 2024, as disclosed in its three-year shareholder return plan[93]. - The company has reported that the restricted cash is primarily due to guarantee deposits, which do not impact operational efficiency[96][97]. Research and Development - The company has made progress in technology research and development, obtaining 8 patents, including 7 utility model patents and 1 invention patent[6]. - The company has applied for 1 new patent and obtained 8 patents during the reporting period, including 1 invention patent and 7 utility model patents[31]. - The company’s R&D expenses increased by 19.30%, amounting to CNY 3,278,876.45, compared to CNY 2,748,316.06 in the previous year[43]. Risk Factors - The company operates in a competitive environment with increasing government purchases of public service projects, which may lead to fluctuations in project revenues and potential declines in gross margins[11]. - The company faces labor source risks as it is a labor-intensive enterprise, which may impact operational efficiency[11]. - The company is subject to fiscal policy risks, particularly if macroeconomic conditions lead to tighter government spending, which could impact its municipal sanitation services[70]. - The company has observed a 327.34% increase in other income, amounting to CNY 3,389,506.46, compared to CNY 793,156.01 in the previous year[43]. Corporate Governance and Compliance - The company has established a customer service mechanism to ensure high satisfaction and timely feedback from clients[59]. - The company has implemented a comprehensive safety management system to minimize production risks and ensure employee safety[61]. - The company has a robust internal control system to safeguard employee rights and manage labor disputes effectively[73]. - The company has confirmed that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[176]. Employee and Management Changes - The total number of employees decreased from 13,859 to 9,401, with a net reduction of 7,131 employees during the reporting period[132]. - The company appointed a new director, Wang Guangqiang, who has extensive experience in management and sales[130][131]. - The company has a total of 9 board members, 3 supervisors, and 6 senior management personnel[119]. Financial Position and Assets - The total assets at the end of the current period amount to CNY 1,022,019,959.91, representing a growth of 2.30% from the previous year[24]. - The total liabilities increased by 22.08% to CNY 173,426,186.59 compared to the end of the previous year[24]. - The company's cash and cash equivalents decreased by 12.24%, totaling CNY 152,091,692.93, down from CNY 173,301,918.51[40]. - The company reported a total asset value of ¥1,022,019,959.91, up from ¥999,047,938.61, indicating a growth of 2.3%[142]. Related Party Transactions - The company identified a related party fund occupation issue involving shareholder Zhong Wei, with an initial balance of ¥1,000,000, which was fully repaid by January 30, 2022[83]. - The company has no outstanding debts with related parties at the end of the reporting period, as all amounts were settled[86]. - The total amount of related party transactions was below the threshold requiring board review, ensuring compliance with internal regulations[84].

Financial Performance - Operating revenue for the first quarter of 2022 was CNY 140,712,437.69, representing a 13.51% decrease compared to CNY 162,699,083.34 in the same period last year[13] - Net profit attributable to shareholders for Q1 2022 was CNY 9,234,757.02, down 54.16% from CNY 20,146,156.87 in Q1 2021[13] - Basic earnings per share decreased by 57.14% to CNY 0.03 in Q1 2022, compared to CNY 0.07 in the same period last year[13] - The company's net profit for Q1 2022 was CNY 9,340,447.76, a decrease of 54.6% compared to CNY 20,594,057.58 in Q1 2021[47] - Total revenue for Q1 2022 was CNY 140.71 million, a decrease of 13.5% compared to CNY 162.70 million in Q1 2021[46] - The company's total comprehensive income for Q1 2022 was CNY 9,340,447.76, down from CNY 20,594,057.58 in Q1 2021[48] Cash Flow - The net cash flow from operating activities increased by 453.64% to CNY 7,432,984.82, compared to a negative cash flow of CNY -2,101,834.25 in Q1 2021[13] - Operating cash inflow for Q1 2022 was CNY 135.63 million, slightly down from CNY 136.48 million in Q1 2021, reflecting a decrease of 0.63%[54] - The company reported a significant increase in net cash flow from operating activities for the parent company, reaching CNY 13.58 million in Q1 2022, compared to CNY 3.21 million in Q1 2021[57] - Cash inflow from financing activities increased to CNY 32 million in Q1 2022, up from CNY 1.96 million in Q1 2021[55] - Net cash flow from financing activities improved to CNY 29.08 million in Q1 2022, compared to a negative CNY 33.99 million in Q1 2021[55] Assets and Liabilities - Total assets as of March 31, 2022, reached CNY 1,033,362,937.84, a 3.43% increase from CNY 999,047,938.61 at the end of 2021[13] - The company's asset-liability ratio was 21.94% for the parent company and 16.16% for the consolidated entity as of March 31, 2022[13] - Current liabilities rose to CNY 156.14 million, up from CNY 130.35 million[39] - Total liabilities increased to CNY 167.04 million from CNY 142.06 million[40] - Shareholders' equity increased to CNY 866.33 million from CNY 856.99 million[40] Operational Costs and Expenses - Increased operational costs due to rising oil prices and higher labor costs from minimum wage adjustments contributed to the decline in net profit[15] - Total operating costs for Q1 2022 were CNY 130.86 million, compared to CNY 136.37 million in Q1 2021[46] - The cost of goods sold in Q1 2022 was CNY 49,961,581.99, a decrease of 16.4% compared to CNY 59,778,872.09 in Q1 2021[50] - Research and development expenses for Q1 2022 were CNY 1,237,919.66, down 26.3% from CNY 1,678,038.33 in Q1 2021[51] Shareholder Information - The total registered capital of the company is CNY 306,280,000[11] - The total number of shares held by the top ten shareholders is 198,833,778, representing 64.92% of the total shares[23] - The largest shareholder, Xuanjie Holdings, holds 147,422,200 shares, accounting for 48.13% of the total shares[23] Other Financial Information - Non-recurring gains and losses for the period amounted to CNY 79,782.66 after tax, with a total of CNY 75,471.45 in non-recurring items[17] - The company reported a financial expense of CNY -2,668,006.13 in Q1 2022, compared to CNY -2,202,229.79 in Q1 2021[51] - The investment income for Q1 2022 was CNY 6,295,626.35, significantly higher than CNY 144,053.25 in Q1 2021[51] - The company's tax expenses for Q1 2022 were CNY 1,331,120.82, a decrease of 63.0% from CNY 3,589,034.28 in Q1 2021[47] Rental and Litigation - The company has a rental agreement with related parties for office space, with a total rent of 28,800.00 yuan for the year 2022[30] - The company reported a total of 7,499,412.00 yuan in litigation claims, which is approximately 0.88% of the audited net assets for 2021[28] Share Repurchase - The company plans to repurchase shares using its own funds for employee stock incentive plans, as approved on March 2, 2022[32]

Company Overview - The company operates in the environmental sanitation industry, focusing on urban and community waste cleaning and disposal services [22]. - The company was established on July 15, 2011, and listed on November 15, 2021 [22]. - The major shareholder is Xuanjie Holdings Co., Ltd., with the actual controller being Wei Yantian [23]. - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm [9]. - The company completed the adjustment of its management structure, establishing a three-tiered flat management model with 1 headquarters and 33 project companies [48]. Financial Performance - The company's operating revenue for 2021 was ¥611,181,918.09, a decrease of 13.02% compared to ¥702,707,597.76 in 2020 [29]. - The net profit attributable to shareholders was ¥41,284,485.07, down 55.71% from ¥93,215,009.32 in the previous year [29]. - The gross profit margin decreased to 21.64% in 2021 from 25.53% in 2020 [29]. - Total assets at the end of 2021 were ¥999,047,938.61, a slight decrease of 0.95% from ¥1,008,604,406.82 at the beginning of the year [31]. - The company's cash flow from operating activities was ¥18,149,324.13, a significant decline of 63.85% compared to ¥50,198,747.88 in 2020 [33]. - The weighted average return on equity (ROE) based on net profit attributable to shareholders was 4.99% in 2021, down from 15.95% in 2020 [29]. - The basic earnings per share (EPS) dropped to 0.13 from 0.34 in 2020, representing a decline of 61.76% [29]. - The company reported a net loss from non-recurring items of ¥741,203.09 in 2021, compared to a gain of ¥1,114,340.25 in 2020 [42]. Business Operations - The company’s main services include waste classification, transportation, and urban landscaping management [22]. - The company is actively integrating businesses through investments and acquisitions to enhance competitiveness [49]. - The company aims to build a "smart living environment investment and operation" platform to adapt to industry development needs [55]. - The company has developed and installed over 600 units of the VP100 vehicle-mounted locator across 75 project departments nationwide, enhancing the "Xunji Smart Sanitation" solution [99]. - The company has successfully implemented the Xunji Collection Operation System in various regions, validating its practicality and reliability in different project characteristics [101]. Market and Industry Trends - The industry is experiencing rapid growth, with a focus on technological advancements to drive progress and meet market demands [55]. - The company is adapting to industry trends, with a focus on comprehensive environmental management projects as urban governance needs evolve [133]. - The company is preparing for a shift towards mandatory waste classification, which will enhance resource recovery and waste management efficiency [133]. Risks and Challenges - The company faces risks related to market competition, labor shortages, and operational management [11]. - The company is subject to fiscal policy risks that could impact its municipal sanitation business [11]. - The company has implemented safety measures for employees, including insurance and training, to address production safety risks [12]. - There is a risk of market competition and project revenue fluctuations due to increasing government purchases of public service projects [141]. - The company faces potential risks from tightening fiscal policies that could impact its municipal sanitation business [149]. Research and Development - The company invested ¥6,059,506.75 in R&D, accounting for 0.99% of operating income, compared to 0.89% in the previous period [93]. - The total number of patents held by the company increased to 63, including 9 invention patents, up from 59 and 8 respectively in the previous period [96]. - The company has completed the research on rural waste reduction and disposal processes, leading to a new approach in waste management and the filing of one invention patent [104]. - The company is focusing on the development of an electric multi-directional duckbill technology aimed at water conservation and cost reduction, with ongoing data collection and testing [106]. Shareholder Information - The total number of ordinary shares is 306,280,000 [23]. - The largest shareholder, Xuanjie Holdings, holds 147,422,200 shares, representing 48.13% of total shares outstanding [197]. - The total shares held by the top ten shareholders amount to 199,268,182, which is 65.15% of the total shares [198]. - Wei Wenyun holds 7,362,800 shares, representing 2.40% of total shares [197]. Corporate Governance and Compliance - The company has committed to fulfilling obligations related to social insurance and housing fund contributions for employees [186]. - The company has acknowledged the potential impact of asset restrictions on its operations, with no significant adverse effects anticipated [190]. - The company has no outstanding major litigation or arbitration cases during the reporting period [160]. - The company has implemented measures to address labor shortages by attracting various workforce demographics and utilizing temporary labor [144].