[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section confirms the board's responsibility for the report's accuracy and states that the first-quarter report is unaudited - Company management guarantees the quarterly report's content is **true, accurate, and complete**, free from false records, misleading statements, or major omissions[8](index=8&type=chunk) - This company's first-quarter report is **unaudited**[11](index=11&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) This section outlines the company's key financial performance and shareholder structure for the reporting period [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) Q1 2021 saw robust revenue and net profit growth, with total assets and net assets significantly expanding due to IPO proceeds, improving financial health Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Year Same Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue (RMB)** | 1,122,748,866.60 | 1,010,224,933.86 | 11.14% | | **Net Profit Attributable to Shareholders (RMB)** | 109,397,821.26 | 90,421,891.61 | 20.99% | | **Net Cash Flow from Operating Activities (RMB)** | 75,568,146.16 | -76,243,966.83 | N/A | | **Basic Earnings Per Share (RMB/share)** | 0.2481 | 0.2276 | 9.01% | | **Weighted Average Return on Net Assets (%)** | 4.41% | 4.77% | Decrease by 0.36 percentage points | | **Total Assets (RMB)** | 4,506,026,239.51 | - | Increase of 21.57% from end of prior year | | **Net Assets Attributable to Shareholders (RMB)** | 2,826,702,593.76 | - | Increase of 52.87% from end of prior year | - During the reporting period, the company's **non-recurring gains and losses totaled RMB 1,136,766.21**, primarily from government subsidies and disposal gains/losses of non-current assets[15](index=15&type=chunk) [Shareholder Information](index=4&type=section&id=2.2%20Shareholder%20Information) As of period-end, the company had 35,234 shareholders, with the controlling shareholder holding 52.61% of shares, a portion of which are pledged - As of the end of the reporting period, the company had a total of **35,234 shareholders**[15](index=15&type=chunk) Top Two Shareholders' Holdings | Shareholder Name | Shares Held at Period End | Percentage (%) | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | Henan Lantian Group Co., Ltd. | 243,423,000 | 52.61 | Pledged 118,929,231 shares | | Li Xinhua | 33,400,000 | 7.22 | Pledged 33,400,000 shares | [Significant Events](index=5&type=section&id=Item%20III.%20Significant%20Events) This section details major financial statement changes, primarily driven by the company's IPO, and confirms no other significant undisclosed matters [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) Significant financial changes were primarily driven by the company's IPO, increasing cash, capital reserves, and investment-related assets, while boosting construction in progress Major Changes in Balance Sheet and Cash Flow Statement Items and Reasons | Account | Change Percentage (%) | Reason for Change | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | 136.61% | Due to proceeds from the company's IPO | | **Other Current Assets** | 241.44% | Due to the use of idle IPO proceeds to purchase wealth management products | | **Construction in Progress** | 31.61% | Due to continuous investment in IPO projects | | **Capital Reserve** | 371.13% | Due to share premium from the company's IPO | | **Cash Paid for Acquisition of Long-term Assets** | 237.21% | Due to continuous investment in IPO projects | | **Cash Received from Investments** | / | Due to proceeds from the company's IPO | - General and administrative expenses increased by **32.67% year-on-year**, primarily due to expenses incurred from the company's IPO[21](index=21&type=chunk) [Other Significant Matters](index=7&type=section&id=3.2-3.4%20Other%20Significant%20Matters) The company had no significant undisclosed progress, overdue unfulfilled commitments, or major cumulative net profit change forecasts during the period - The company has **no significant event progress, overdue unfulfilled commitments, or major profit warnings**[24](index=24&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) This section provides the unaudited financial statements for the first quarter of 2021, along with other relevant supplementary information [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited detailed financial statements for Q1 2021, including consolidated and parent company balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, total assets grew 21.57% to **RMB 4.506 billion**, total liabilities decreased, and equity attributable to parent company shareholders significantly increased 52.87% to **RMB 2.827 billion**, driven by IPO proceeds Key Items from Consolidated Balance Sheet (As of March 31, 2021) | Item | Period-End Balance (RMB) | Change from Prior Year-End | | :--- | :--- | :--- | | **Total Assets** | 4,506,026,239.51 | +21.57% | | Cash and Cash Equivalents | 1,341,934,834.08 | +136.61% | | **Total Liabilities** | 1,678,287,753.86 | -9.45% | | Short-term Borrowings | 630,772,863.89 | -0.01% | | **Equity Attributable to Parent Company Shareholders** | 2,826,702,593.76 | +52.87% | | Capital Reserve | 1,017,386,054.91 | +371.13% | [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, total operating revenue grew 11.14% to **RMB 1.123 billion**, with operating costs growing slower than revenue, leading to improved gross margins and a 20.99% increase in net profit attributable to parent company shareholders to **RMB 109 million**, indicating sustained profitability Key Items from Consolidated Income Statement (Q1 2021) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | 1,122,748,866.60 | 1,010,224,933.86 | +11.14% | | **Total Operating Costs** | 976,647,970.84 | 895,697,025.45 | +9.04% | | Of which: Operating Costs | 932,394,426.80 | 858,364,523.53 | +8.62% | | **Operating Profit** | 146,891,334.60 | 119,074,700.20 | +23.36% | | **Net Profit Attributable to Parent Company Shareholders** | 109,397,821.26 | 90,421,891.61 | +20.99% | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2021, cash flow significantly improved, with **net operating cash flow turning positive to RMB 75.57 million**, financing activities generating **RMB 867 million** from IPO proceeds, and investing activities seeing a net outflow of **RMB 146 million**, leading to a substantial increase in period-end cash to **RMB 1.32 billion** Key Items from Consolidated Cash Flow Statement (Q1 2021) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 75,568,146.16 | -76,243,966.83 | | **Net Cash Flow from Investing Activities** | -146,150,324.42 | -6,396,942.14 | | **Net Cash Flow from Financing Activities** | 843,500,668.87 | -104,370,609.03 | | **Net Increase in Cash and Cash Equivalents** | 772,918,490.61 | -187,011,518.00 | | **Period-End Balance of Cash and Cash Equivalents** | 1,319,740,345.68 | 396,511,830.59 | [Other Appendix Information](index=19&type=section&id=4.2-4.4%20Other%20Appendix%20Information) The company did not adopt new leasing standards in this period, resulting in no adjustments to opening financial statements, and this quarterly report remains unaudited - The company **did not adopt new leasing standards** for the first time in Q1 2021, with no related financial statement adjustments[56](index=56&type=chunk) - This quarterly financial report is **unaudited**[56](index=56&type=chunk)

Financial Performance - The company's operating revenue for 2020 was CNY 3,551.84 million, a decrease of 2.22% compared to 2019[33]. - The net profit attributable to shareholders of the listed company in 2020 was CNY 332.83 million, an increase of 2.11% year-on-year[33]. - The net cash flow from operating activities for 2020 was CNY 591.84 million, down 2.57% from the previous year[33]. - The total assets at the end of 2020 were CNY 3,706.51 million, a decrease of 1.00% compared to the end of 2019[33]. - The net assets attributable to shareholders of the listed company increased by 8.08% to CNY 1,849.04 million by the end of 2020[33]. - The basic earnings per share for 2020 was CNY 0.84, reflecting a 2.44% increase from 2019[34]. - The weighted average return on equity for 2020 was 18.92%, a decrease of 1.35 percentage points from 2019[37]. - The company's total revenue for the year was approximately 9.06 billion RMB, a decrease from 11.66 billion RMB in the previous year, reflecting a decline of about 22%[41]. - The company reported a net loss of approximately 3.02 million RMB due to various non-operating expenses, compared to a loss of about 2.40 million RMB in the previous year[41]. Dividend Policy - The company plans to distribute a cash dividend of 5 RMB per 10 shares, totaling 231,351,000 RMB (including tax) for the 2020 fiscal year[7]. - The company has a cash dividend policy that mandates a minimum of 30% of the distributable profits to be distributed as cash dividends annually, provided there are no major investment plans or significant cash expenditures[101]. - In 2020, the company distributed a total of 231,351,000 RMB in cash dividends, which accounted for 69.52% of the net profit attributable to ordinary shareholders[105]. - The cash dividend for 2019 was 198,601,000 RMB, representing 60.93% of the net profit attributable to ordinary shareholders[105]. - The cash dividend for 2018 was 158,880,800 RMB, which was 53.58% of the net profit attributable to ordinary shareholders[105]. - The company prioritizes cash dividends over stock dividends when conditions for cash distribution are met[101]. Audit and Compliance - The company has received a standard unqualified audit report from Deloitte Huayong Accounting Firm[5]. - The board of directors has confirmed that all members attended the board meeting, ensuring the integrity of the annual report[4]. - The company has committed to ensuring the financial report's authenticity, accuracy, and completeness[6]. - The company has not violated decision-making procedures for external guarantees[9]. - The company has no instances of more than half of the directors being unable to guarantee the authenticity of the annual report[9]. - The company has not reported any overdue guarantees or potential joint liability for unexpired guarantees[127]. - The company has not disclosed any significant related party transactions or guarantees during the reporting period[124]. Operational Efficiency and Strategy - The company has implemented advanced automated scheduling and management systems to improve operational efficiency and reduce costs[50]. - The company improved operational efficiency by optimizing processes and utilizing online platforms for better communication[56]. - The company has established a stable gas supply advantage by signing procurement agreements with multiple suppliers, including PetroChina and Sinopec, ensuring a reliable gas source[50]. - The company has expanded its long-distance pipeline network, enhancing its coverage to central and northern Henan, thereby increasing its market presence[50]. - The company aims to enhance its gas supply capacity and efficiency in response to national energy policies promoting cleaner energy[86]. - The company plans to continue expanding its market presence and invest in new technologies and products in the upcoming years[1]. Risks and Challenges - The company has outlined major operational risks in the report, advising investors to be cautious[11]. - The report includes forward-looking statements regarding future plans and strategies, highlighting potential investment risks[8]. - The company is aware of risks related to government pricing policies that may affect its financial performance[95]. - The company faces risks from reliance on key suppliers, particularly if there are significant supply reductions from major suppliers like PetroChina[95]. - The company recognizes the risk of competition from alternative energy sources, including coal and renewable energy[95]. - The company acknowledges the potential impact of changes in national gas industry policies on its competitive advantage[95]. Shareholder Structure - The largest shareholder, Henan Lantian Group Co., Ltd., holds 61.28% of the shares, amounting to 243.423 million shares[158]. - The actual controller, Li Xinhua, directly holds 8.41% of the company's shares and controls 64.08% of Lantian Investment, which in turn holds 100% of Lantian Group[169]. - The top ten shareholders include Henan Lantian Group with 243,423,000 shares and Li Xinhua with 33,400,000 shares[162]. - The company has no other significant shareholders holding more than 10% of shares[170]. - There are no changes in the controlling shareholder during the reporting period[166]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 1,358[199]. - The company maintains a stable level of employee compensation and benefits during the reporting period[200]. - The compensation for independent directors is set at 60,000 yuan per year, while senior management compensation is based on performance evaluations[195]. - The total pre-tax remuneration for the chairman and general manager, Chen Qiyong, is 330,400 RMB[175]. - The educational background of employees includes 6 with master's degrees, 307 with bachelor's degrees, 619 with associate degrees, and 426 below associate degree level[199]. Future Outlook - The company plans to achieve a sales revenue of 4.453 billion yuan and a net profit of 351 million yuan in 2021[91]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of 100 million allocated for potential deals[181]. - The company provided guidance for 2021, projecting a revenue growth of 10% to 12%, aiming for a total revenue between 1.65 billion and 1.68 billion[187]. - New product launches are expected to contribute an additional 200 million in revenue in 2021, focusing on innovative technology solutions[187]. - The company is investing 50 million in R&D for new technologies aimed at enhancing operational efficiency[181].