Financial Performance - Net profit attributable to shareholders for the first quarter of 2022 was CNY 4,077,386.55, representing a year-on-year increase of 14.87%[16] - Operating revenue for the first quarter of 2022 reached CNY 67,980,226.36, which is a 9.24% increase compared to the same period last year[16] - Total operating revenue for Q1 2022 was CNY 67,980,226.36, an increase from CNY 62,229,847.53 in Q1 2021, representing a growth of approximately 12.4%[39] - Net profit for Q1 2022 reached CNY 4,077,386.55, compared to CNY 3,549,468.95 in Q1 2021, reflecting a growth of approximately 14.8%[41] - Operating profit was 166,284.00 million, compared to a loss of 595,858.92 million in the same period last year[44] Assets and Liabilities - Total assets as of March 31, 2022, amounted to CNY 679,841,034.68, reflecting a slight increase of 0.17% compared to the end of the previous year[16] - The total liabilities as of March 31, 2022, were CNY 338,446,117.66, down from CNY 341,342,298.16 at the end of 2021[33] - The company's total liabilities to total assets ratio (consolidated) was 49.78%, a slight decrease from 50.30% at the end of the previous year[16] - The company's equity attributable to shareholders increased to CNY 341,394,917.02 from CNY 337,317,530.47, representing a growth of approximately 1.01%[33] Cash Flow - The net cash flow from operating activities decreased significantly by 98.71% to CNY 233,921.58, primarily due to increased payments for bid guarantees and taxes[17][18] - Cash flow from operating activities was 233,921.58 million, a decrease from 18,201,645.41 million in the previous year[48] - The net increase in cash and cash equivalents was -$3,229,933.25, compared to -$1,889,524.90 previously, highlighting liquidity challenges[51] Shareholder Information - The registered capital of the company is CNY 76,363,347[14] - The total number of ordinary shareholders as of the report date was 4,788[20] - The largest shareholder, Guangdong Environmental Protection Group Co., Ltd., holds 24,500,000 shares, representing 32.08% of total shares[22] - The total shares held by the top ten shareholders amount to 58,789,846, which is 76.97% of the total shares[23] - The company has a total of 5 shareholders holding more than 5% of the shares[23] Operational Insights - The company is primarily engaged in engineering management services within the scientific research and technical services industry[13] - The company has not reported any major events in the current period[25] - There were no significant related party transactions outside of routine transactions, indicating a stable operational environment[26] Expenses - Total operating costs for Q1 2022 were CNY 61,905,659.61, up from CNY 56,256,014.63 in Q1 2021, indicating an increase of about 10.4%[40] - Research and development expenses for Q1 2022 were CNY 4,730,096.17, compared to CNY 4,674,729.93 in Q1 2021, marking an increase of approximately 1.2%[40] - The company incurred management expenses of 518,865.01 million, down from 720,293.84 million in the previous year[44] Financial Ratios - The weighted average return on equity based on net profit attributable to shareholders was 1.20% for the first quarter of 2022, down from 1.86% in the same period last year[16] - The company's total liabilities to equity ratio improved significantly, reflecting a stronger financial position[37]

Awards and Recognition - In 2021, Guangzi International was awarded the "Friendship Medal" by the former President of the Federated States of Micronesia, recognizing its contributions to infrastructure development [6]. - The company received multiple honors in June 2021, including being named one of the "Top Ten Leading Enterprises in China's PPP Consulting Industry" and "Top 100 Comprehensive Strength in China's Investment Consulting Industry" [8]. - The company has been recognized for its long-standing commitment to contract integrity, receiving accolades for 25 years of compliance in Guangdong Province [9]. - The company has established a strong brand reputation in the engineering consulting industry, recognized as one of the top firms in various categories [51]. Financial Performance - The company's operating revenue for 2021 was CNY 444,592,356.28, representing a 12.82% increase from CNY 394,082,787.25 in 2020 [34]. - The net profit attributable to shareholders for 2021 was CNY 68,831,404.30, up 12.59% from CNY 61,133,552.19 in 2020 [34]. - The gross profit margin for 2021 was 36.37%, slightly down from 37.08% in 2020 [34]. - The weighted average return on equity based on net profit attributable to shareholders was 29.13% in 2021, down from 34.64% in 2020 [34]. - The basic earnings per share for 2021 was CNY 0.97, an increase of 11.49% from CNY 0.87 in 2020 [34]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 66,687,454.71 for 2021, an increase of 11.57% from CNY 59,769,962.51 in 2020 [34]. - Total assets increased by 33.40% from the beginning of the year to 678,659,828.63 yuan [36]. - Net cash flow from operating activities rose by 29.75% to 73,179,831.07 yuan compared to the previous year [38]. - The total equity attributable to shareholders increased by 77.98% to 337,317,530.47 yuan [36]. - The company’s total share capital rose by 9.09% to 76,363,347 shares [41]. Market and Competition - The company faces risks related to macroeconomic policy changes, which could impact its business performance due to its reliance on national fixed asset investment [16]. - Market competition is intensifying, especially after the halt of qualification approvals for engineering cost consulting firms, which may affect the company's market share [18]. - Rising labor costs pose a risk to the company's profitability, as it is a knowledge-intensive service industry where personnel costs are a major component of operational expenses [17]. - The company is exposed to risks from rising labor costs, which could negatively impact operating performance if revenue does not increase correspondingly [19]. - The company operates in the knowledge-intensive service industry, with personnel costs being a major component of its operating expenses [19]. Future Outlook - Guangzi International's future outlook is optimistic, with expectations of increased demand in the engineering management service sector as infrastructure investment is projected to rise [16]. - The company is positioned to benefit from new business opportunities arising from the implementation of key projects outlined in the "14th Five-Year Plan" [125]. - The company aims to leverage digital transformation by integrating data processing, cloud computing, and artificial intelligence into traditional consulting services to enhance decision-making accuracy and reduce reliance on human resources [125]. Research and Development - The company has successfully cultivated its first postdoctoral candidate in collaboration with Jinan University, enhancing its research and development capabilities [10]. - R&D expenditure amounted to ¥19,580,378.53, representing 4.40% of operating revenue, down from 5.28% in the previous period [97]. - The total number of R&D personnel increased from 73 to 75, with R&D personnel now accounting for 10.11% of total employees, up from 8.8% [98]. - Key R&D projects include a BIM-based municipal tunnel modeling project expected to improve efficiency by at least 50% [100]. - The company is developing a comprehensive cost management platform to enhance integration and efficiency in cost consulting services [100]. Corporate Governance and Compliance - The company has established measures to compensate for the dilution of immediate returns due to public stock issuance, with commitments from major stakeholders to ensure these measures are effectively implemented [149]. - The company and its controlling shareholders committed to stabilize the stock price for three years post-public offering, with specific actions to be taken if the stock price falls below the audited net asset value per share [148]. - The company has implemented measures to ensure compliance with commitments regarding related party transactions [145]. - The company has not experienced any breaches of commitments by its management or shareholders during the reporting period [151]. Employee Development - The company has established a performance-based compensation system to align employee income with their contributions and responsibilities [191]. - The company has implemented a comprehensive training program aimed at enhancing employee skills and understanding of corporate culture [191]. - The total number of employees increased from 722 to 852, representing a growth of approximately 18% [189][190]. - Management personnel increased from 97 to 110, while technical personnel rose from 300 to 344, indicating a focus on enhancing expertise [190]. Strategic Initiatives - The company actively participated in the "14th Five-Year Plan" development, focusing on infrastructure investment and major engineering projects to stimulate economic growth [124]. - The company is involved in the "dual carbon" strategy, contributing to research and policy formulation related to carbon peak and carbon neutrality, and participating in various seminars and training sessions [121]. - The company aims to become a new type of think tank in the engineering consulting industry, focusing on strategic research and decision-making services for government governance and investment management [126].