Business Environment and Market Conditions - The company reported a significant reliance on government policies for its business, particularly in the air pollution control industry, which could impact revenue and net profit if policies change[10]. - The company faced increased competition in the VOCs treatment market, with a growing number of industry participants, which may affect operational performance if the company fails to innovate[10]. - The COVID-19 pandemic has impacted business operations, particularly in major cities like Shanghai and Beijing, potentially delaying project bidding and contract signing[10]. - The VOCs治理行业 is experiencing strong demand growth, supported by national policies aimed at reducing air pollution and achieving carbon neutrality by 2060[57]. - The industry is characterized by regional demand concentration, with major VOCs emissions sources located in economically developed areas such as the Yangtze River Delta and the Pearl River Delta[58]. - The government has set ambitious targets, aiming for a reduction of over 10% in VOCs and nitrogen oxides emissions by 2025 compared to 2020 levels[61]. Financial Performance - The company's operating revenue for the current period is ¥15,533,993.39, a decrease of 39.86% compared to the same period last year, which was ¥25,831,855.78[26]. - The net profit attributable to shareholders of the listed company is -¥1,379,035.18, representing a decline of 121.37% from the previous year's profit of ¥6,451,943.75[26]. - The total assets at the end of the current period amount to ¥290,181,923.78, down 4.41% from ¥303,580,204.31 at the end of the previous period[27]. - The total liabilities decreased by 38.08% to ¥10,718,841.21 from ¥17,309,705.18[27]. - The net cash flow from operating activities is -¥1,842,172.71, a significant decline of 106.81% compared to ¥27,054,025.57 in the previous year[27]. - The company's gross profit margin decreased to 45.45%, down from 51.45% in the same period last year[74]. - The company's operating profit was CNY -2,066,081.02, a decrease of CNY 9,665,311.77 or 127.19% compared to the same period last year, due to reduced operating revenue[77]. - The company's net profit for the period was CNY -1,652,416.56, a decrease of CNY 8,104,360.31 or 125.61% compared to the same period last year, mainly due to decreased operating revenue and increased management expenses[78]. Research and Development - The company holds 1 invention patent and has 6 invention patents under substantive examination, along with 6 utility model patents and 49 software copyrights[32]. - R&D expenses totaled ¥3,395,400, accounting for 21.86% of operating revenue, with 8 projects initiated, 4 completed, and 4 ongoing[51]. - The company is committed to technological innovation and increasing R&D investment in the VOCs treatment and monitoring field to maintain competitive advantages[103]. - The company aims to expand into high-end sensor and analytical instrument manufacturing, contributing to environmental quality improvement and carbon neutrality goals[33]. Operational Developments - The company established a new subsidiary, Wuxi Chip Intelligence Technology Co., Ltd., focusing on the R&D and manufacturing of high-pressure ceramic sensor components[55]. - The company is advancing the construction of the "VOCs Online Monitoring System and Core Sensor Assembly Testing Center" and "R&D Center" projects, with site acquisition and renovation completed[53]. - The third-party testing service subsidiary has a laboratory area exceeding 700 square meters, capable of testing various environmental and industrial parameters[43]. - The company has developed a smart monitoring platform utilizing big data technologies for real-time analysis and reporting in the petrochemical sector[40]. Financial Management and Investments - The company's financial structure shows a significant decrease in cash and cash equivalents by 54.68%, from 215.55 million yuan to 97.69 million yuan[68]. - The company's fixed assets increased dramatically by 6,394.91%, from 1.20 million yuan to 77.96 million yuan, indicating substantial investment in infrastructure[68]. - The company has seen a 91.56% reduction in employee compensation payable, from 2.99 million yuan to 252,068.91 yuan, suggesting a potential restructuring or cost-cutting measures[68]. - The company’s financial investments included 24,000,000 yuan in bank financial products, with no overdue amounts reported[92]. Compliance and Governance - The company has no significant litigation or arbitration matters during the reporting period[112]. - The management team confirmed adherence to legal obligations and company bylaws, with no instances of misappropriation of company funds or assets[122]. - The company guarantees that the public offering prospectus and related disclosure materials do not contain false records, misleading statements, or significant omissions, and assumes legal responsibility for their accuracy and completeness[198]. - The controlling shareholders and senior management have committed to a lock-up period of 12 months for shares held prior to the public offering, with an additional 6-month extension if the stock price falls below the offering price for 20 consecutive trading days[132]. Shareholder Commitments and Stock Management - The company is actively working on strategies to stabilize stock prices and has made commitments regarding share repurchase plans[121]. - The total amount used for stock repurchases cannot exceed 30% of the previous year's audited net profit[147]. - Major shareholders expressed confidence in the company's future and plan to continue holding shares for a certain period post-lock-up[140]. - The company will publicly explain the reasons for not implementing stabilization measures and apologize to shareholders if such measures are not taken[163].

Company Reports - Beijing Henghe Xinye Technology Co., Ltd. disclosed its 2021 annual report and Q1 2022 report on April 27, 2022[1] - The reports were made available on the official information disclosure platform of the Beijing Stock Exchange[1] Authenticity and Accuracy - The company guarantees the authenticity, accuracy, and completeness of the announcement content[1]

Financial Performance - Operating revenue for the first quarter of 2022 was CNY 4,284,269.78, down 57.99% from CNY 10,198,394.70 in the same period last year[19] - The net profit attributable to shareholders for the first quarter of 2022 was a loss of CNY 1,554,325.87, a decrease of 201.13% compared to a profit of CNY 1,536,904.43 in the previous year[19] - The net cash flow from operating activities was a negative CNY 3,564,892.49, a decrease of 117.89% from CNY 19,925,761.62 in the same period last year[20] - Basic earnings per share for the first quarter of 2022 were -CNY 0.02, a decrease of 166.67% from CNY 0.03 in the previous year[20] - The total comprehensive income for the first quarter of 2022 was a loss of CNY 1,554,325.87, compared to a gain of CNY 1,536,904.43 in the same period of 2021[45] - Total comprehensive income amounted to -1,043,151.13 CNY, compared to 2,152,065.20 CNY in the previous period[47] Assets and Liabilities - The company's total assets as of March 31, 2022, were CNY 294,952,880.91, a decrease of 2.84% compared to the end of the previous year[17] - The company's asset-liability ratio (consolidated) was 3.47% as of March 31, 2022, down from 5.70% at the end of the previous year[17] - The total number of unrestricted shares increased from 21,507,000 to 24,670,000, representing a rise from 30.48% to 34.97% of total shares[25] - The total number of restricted shares decreased from 49,043,000 to 45,880,000, which is a decline from 69.52% to 65.03% of total shares[25] - The total liabilities decreased from RMB 17,309,705.18 to RMB 10,236,707.65, a reduction of about 41%[38] - The company's total equity as of March 31, 2022, was RMB 284,716,173.26, slightly down from RMB 286,270,499.13 at the end of 2021[38] - The company's total liabilities were CNY 9,807,663.78, down from CNY 16,283,866.31 year-over-year, reflecting a reduction of approximately 39.0%[41] - The total equity of the company stood at CNY 292,416,169.25, slightly decreasing from CNY 293,459,320.38 in the previous year[41] Cash Flow - Net cash flow from operating activities was -3,564,892.49 CNY, a significant decrease from 19,925,761.62 CNY year-over-year[50] - Cash inflow from operating activities totaled 14,582,247.24 CNY, down from 53,783,164.08 CNY in the same period last year[49] - Cash outflow from operating activities reached 18,147,139.73 CNY, compared to 33,857,402.46 CNY previously[50] - Investment activities resulted in a net cash outflow of -104,708,842.58 CNY, compared to -12,000,000.00 CNY in the prior year[50] - Cash flow from financing activities showed a net outflow of -660,954.63 CNY, a decrease from -20,364,391.11 CNY year-over-year[50] - The ending cash and cash equivalents balance was 103,713,386.07 CNY, down from 37,317,270.14 CNY in the previous year[50] - The company reported a significant increase in cash paid for purchasing fixed assets, totaling 80,708,842.58 CNY[51] Operational Challenges - The company faced operational challenges due to the COVID-19 pandemic, affecting business development and project execution in various regions[19] - Research and development investments continued despite the decline in revenue, contributing to the net loss for the quarter[19] Shareholder Information - The largest shareholder, Wang Lin, holds 17,150,000 shares, accounting for 24.31% of total shares[26] - The second-largest shareholder, Li Yujian, holds 10,850,000 shares, representing 15.38% of total shares[26] - The total number of shareholders with unrestricted shares is 11,116[25] - The total number of shares held by the top ten shareholders is 45,245,196, which constitutes 64.13% of total shares[28] Investments and Acquisitions - The company has completed a significant acquisition or investment, as disclosed in announcement 2022-010[31] - The company acquired three properties in Beijing with a total area of 3,015.56 square meters for a total price of RMB 78,404,560, funded by both raised and self-owned funds[32] Research and Development - Research and development expenses for the first quarter of 2022 were CNY 1,392,878.96, compared to CNY 1,135,504.31 in the same period of 2021, marking an increase of about 22.7%[44]

Financial Performance - The company's operating revenue for 2021 was CNY 67,847,632.71, a decrease of 42.26% compared to CNY 117,515,388.20 in 2020[31]. - The net profit attributable to shareholders for 2021 was CNY 16,356,251.15, down 46.73% from CNY 30,701,989.37 in 2020[31]. - The total assets increased by 53.49% to CNY 303,580,204.31 in 2021, compared to CNY 197,782,930.48 in 2020[33]. - The company's total liabilities decreased by 63.17% to CNY 17,309,705.18 in 2021, down from CNY 47,004,720.24 in 2020[33]. - The weighted average return on equity based on net profit attributable to shareholders was 9.81% in 2021, down from 21.72% in 2020[31]. - The company's basic earnings per share for 2021 was CNY 0.30, a decrease of 50.00% compared to CNY 0.60 in 2020[31]. - The total equity attributable to shareholders increased by 89.86% to CNY 286,270,499.13 in 2021, compared to CNY 150,778,210.24 in 2020[33]. - The company's cash and cash equivalents increased to ¥215,548,075.77, a growth of 309.35% compared to the previous year, primarily due to funds raised from stock issuance and accounts receivable recovery[65]. - The gross profit margin decreased to 51.12%, down from 58.35% in the previous year[67]. - The company reported a significant increase in cash flow from operating activities, with a net cash flow of CNY 50,679,653.12, up 708.37% from the previous year[86]. Research and Development - The company is focused on research and development to keep pace with industry standards and customer demands in the VOCs treatment market[10]. - The company completed the design and development of several new products, including a large-diameter thermal mass flow sensor and a magnetic flow sensor[52]. - The company launched a new gas emission treatment device and detection instrument for gas stations, which received positive market feedback[54]. - The company holds 1 invention patent and has 5 invention patents under substantive examination, along with 6 utility model patents and 49 software copyrights[48]. - Research and development expenses increased slightly to ¥6,927,221.96, accounting for 10.21% of total revenue, compared to 5.77% in the previous year[68]. - The number of R&D personnel increased from 17 to 21, with the proportion of R&D staff in total employees rising from 19.77% to 22.34%[2]. - Key R&D projects include the development of oil and gas online monitoring systems and various sensors, indicating a focus on technological innovation and expansion of product lines[106]. Market and Competition - The company is facing increased competition in the VOCs treatment market as more participants enter the industry[10]. - The industry is entering a growth phase driven by stricter pollution control policies and the national "14th Five-Year Plan" goals[56]. - The VOCs governance market in China is in its early growth stage, with increasing demand driven by national policies aimed at reducing emissions by over 10% during the 14th Five-Year Plan[123]. - The company plans to strengthen market promotion of new products in 2022 to expand revenue and enhance competitiveness[54]. - The company plans to expand its business into oil storage, petrochemical industries, and other sectors while developing a digital management platform for comprehensive monitoring of oil and gas recovery[124]. Risks and Challenges - The company reported a significant reliance on government policies for its business, particularly in the air pollution control industry, which poses a risk if policies change[10]. - The company has identified the risk of COVID-19 impacting its operations, particularly in project bidding and signing processes[11]. - The company has a high proportion of foreign procurement, which exposes it to exchange rate fluctuations that could impact gross margins and product competitiveness[11]. - The ongoing COVID-19 pandemic poses risks to project timelines and operational stability, potentially delaying new project bids and contracts[135]. - The company faces risks from policy changes affecting the air pollution control industry, which is heavily reliant on government support[128]. Corporate Governance and Compliance - The company has a standard unqualified audit report from its accounting firm, indicating the financial statements are accurate and complete[8]. - The company is committed to maintaining transparency and has provided multiple channels for investor communication[20]. - The company has stated that there are no false records or misleading statements in its financial disclosures[149]. - The management has declared compliance with legal obligations and has committed to avoiding conflicts of interest and self-dealing[148]. - The company has committed to fulfilling all obligations related to shareholding and management responsibilities as per the regulations[149]. Financial Management and Shareholder Commitments - The company has committed to stabilizing its stock price and has implemented measures to ensure this commitment is fulfilled[146]. - The actual controller and major shareholders have made commitments regarding share repurchase to address potential dilution of earnings[146]. - The company has committed to a three-year dividend return plan for shareholders following the public offering and listing on the selected tier[196]. - The company will strengthen the management of raised funds to ensure their proper and efficient use, preventing risks associated with fund usage[194]. - The company aims to improve operational efficiency and profitability by enhancing management levels and optimizing resource allocation[195].