Financial Performance - Operating revenue rose by 35.14% to CNY 203,454,516.43 year-on-year[5] - Net profit attributable to shareholders increased by 35.91% to CNY 92,449,717.51 compared to the same period last year[5] - The net profit after deducting non-recurring gains and losses grew by 29.89% to CNY 86,329,629.96[5] - Basic earnings per share rose by 32.23% to CNY 0.4345[5] - The company reported a total profit of CNY 105,968,440.63 for Q1 2021, compared to CNY 75,892,376.29 in Q1 2020, an increase of 39.6%[26] - Net profit for Q1 2021 reached CNY 93,748,421.55, representing a 36.8% increase compared to CNY 68,571,632.33 in Q1 2020[27] Assets and Liabilities - Total assets increased by 0.64% to CNY 3,650,380,293.32 compared to the end of the previous year[5] - The total number of shareholders reached 16,689 at the end of the reporting period[10] - Total liabilities decreased to CNY 522,581,782.22 in Q1 2021 from CNY 568,750,046.02 in Q1 2020, a reduction of 8.1%[26] - The company’s equity increased to ¥3,207,451,462.30 from ¥3,112,645,849.76, reflecting a growth of about 3.04%[19] - Total liabilities decreased to ¥442,928,831.02 from ¥514,659,151.47, a reduction of approximately 13.93%[19] Cash Flow - The net cash flow from operating activities was negative at CNY -22,827,321.75, compared to CNY -11,149,849.52 in the previous year[5] - The company reported a net cash flow from operating activities of -22,827,321.75 RMB, compared to -11,149,849.52 RMB in Q1 2020, indicating a decline in operational cash flow[34] - The total cash inflow from operating activities was 162,864,444.10 RMB, while cash outflow was 185,691,765.85 RMB, resulting in a net cash flow deficit[34] - The company experienced a significant cash outflow in investment activities, totaling -82,836,589.24 RMB, compared to -183,245,349.13 RMB in Q1 2020[34] Research and Development - Research and development expenses accounted for 6.83% of operating revenue, an increase of 1.01 percentage points[5] - Research and development expenses rose by 49.13% to CNY 13,071,385.48 from CNY 8,765,340.93, indicating increased investment in R&D[14] - Research and development expenses rose to CNY 13,071,385.48 in Q1 2021, up 49.5% from CNY 8,765,340.93 in Q1 2020[26] Shareholder Information - The largest shareholder, Liao Zhimin, holds 45.93% of the shares, totaling 126,760,500 shares[11] - Shareholders' equity increased to CNY 3,046,181,111.35 in Q1 2021 from CNY 2,987,274,188.34 in Q1 2020, an increase of 2.0%[26] Tax and Financial Expenses - The company’s income tax expense increased by 66.92% to CNY 12,220,019.08 from CNY 7,320,743.96, correlating with the growth in profits[14] - The company’s financial expenses showed a significant decrease of 744.54%, resulting in a financial income of CNY -2,009,872.86 compared to CNY 311,832.77 in the previous year[13] Inventory and Receivables - Accounts receivable financing increased by 64.78% to CNY 20,764,280.28 from CNY 12,601,005.05, primarily due to an increase in bank acceptance bills received[13] - Inventory decreased to ¥139,481,706.53 from ¥149,441,537.56, showing a decline of about 6.67%[18] - Accounts receivable increased to ¥655,838,089.63 from ¥632,419,463.08, representing a rise of approximately 3.25%[18]

Financial Performance - The company reported a total share capital of 276 million shares as of December 31, 2020[5]. - The company's operating revenue for 2020 was CNY 970,880,809.91, representing a year-on-year increase of 24.81%[22]. - The net profit attributable to shareholders of the listed company was CNY 386,687,739.74, up 50.09% compared to the previous year[24]. - The net cash flow from operating activities increased by CNY 151,757,712.41, a growth of 65.78% year-on-year, with total collections amounting to CNY 925,192,585.07, an increase of CNY 163,720,182.77 from the previous year[25]. - The total assets at the end of 2020 reached CNY 3,627,305,001.23, a 99.29% increase from the end of 2019[22]. - The basic and diluted earnings per share for 2020 were CNY 1.8176, reflecting a growth of 46.03% year-on-year[23]. - The weighted average return on equity increased to 27.51%, up 3.58 percentage points from the previous year[23]. - The net assets attributable to shareholders of the listed company increased by 166.11% to CNY 3,080,504,971.71 at the end of 2020[25]. - The company reported a net profit of CNY 384,449,702.58 for the reporting period, with cash flow from operating activities accounting for 99.48% of this net profit[25]. Dividends and Shareholder Commitments - The company plans to distribute cash dividends of RMB 10.00 per 10 shares, totaling RMB 276 million, which accounts for 71.38% of the net profit attributable to shareholders for 2020[5]. - The company is not planning to issue bonus shares or convert capital reserves into share capital[5]. - The cash dividend policy stipulates that the company will distribute at least 10% of the annual distributable profit in cash dividends, with a cumulative cash distribution of no less than 30% of the average annual distributable profit over the last three years[147]. - The controlling shareholder committed to not transferring or managing shares for 36 months post-IPO, with a lock-up extension of 6 months if stock price falls below the IPO price for 20 consecutive trading days[152]. - The company will publicly disclose any failure to fulfill commitments and apologize to shareholders if such events occur[152]. Technology and Innovation - The company has developed the FMBR technology for organic wastewater treatment, significantly improving effluent quality while minimizing sludge production[11]. - The company emphasizes a distributed water treatment model, focusing on local collection and treatment of wastewater[11]. - The company has developed proprietary technologies such as the FMBR wastewater treatment process and JDL heavy metal wastewater treatment process, which have been widely applied in various sectors[36]. - The company’s innovative FMBR process is positioned as a core patented technology, creating a technical barrier in nitrogen and phosphorus removal, and operational efficiency[52]. - The company has developed a new FMBR technology for high-concentration wastewater treatment, with ongoing projects valued at 900 million RMB and a current investment of 551.17 million RMB[77]. - The company is working on an integrated medical wastewater treatment system, with a project budget of 820 million RMB and an investment of 528.56 million RMB[77]. - The company has created a smart water environment system that combines information perception, multi-end interconnection, big data analysis, and precise decision-making[67]. Market Position and Growth - The company has a significant presence in the village and town sewage treatment market, with a reported sewage treatment rate of 54.43% for towns and only 18.21% for rural domestic sewage as of 2019, indicating substantial growth potential[53]. - The company has been recognized as a leading enterprise in the village and town sewage treatment sector, reflecting its strong market position and growth trajectory[53]. - The water environment governance industry in China is experiencing rapid growth, supported by government policies and increasing investment, indicating a favorable market outlook[50]. - The company is expanding its overseas market, generating 52.20 thousand yuan in revenue from international operations, showing an increase from the previous year[94]. Research and Development - The company achieved a total R&D investment of approximately ¥52.98 million, which represents 5.46% of its operating revenue, a decrease of 1.36 percentage points compared to the previous year[74]. - The company added 14 new patents during the reporting period, including 2 invention patents, bringing the total number of authorized patents to 105, with 64 being invention patents[71]. - The company’s R&D efforts are aimed at achieving zero discharge of sludge, with ongoing projects focused on organic sludge resource utilization and the development of organic fertilizers[75]. - The company is currently working on over ten research projects, focusing on optimizing FMBR technology for village wastewater treatment and developing solutions for high-salinity wastewater in arid regions[75]. Operational Efficiency - The company has established a comprehensive business system integrating water pollution control equipment, overall solutions, and project operation services, enhancing its market competitiveness[36]. - The company’s automated control system for FMBR technology allows for unmanned operation and precise management of treatment parameters, enhancing operational efficiency[70]. - The company established an intelligent, unattended project operation system, improving maintenance response time and reducing operational costs[87]. - The company’s production model is based on "sales-driven production," aligning procurement and manufacturing with market forecasts and actual project needs[47]. Risks and Challenges - The company faces risks related to accounts receivable collection, particularly from government clients, which may affect asset quality and operational performance[98]. - Future government environmental investment and policy changes may significantly impact the company's operations and market competition[99]. - The company is actively developing new markets and clients to mitigate risks associated with a rapidly changing customer base[97]. Compliance and Governance - The company has received a standard unqualified audit report from Zhongzheng Zhonghuan Accounting Firm[4]. - The company maintains a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[177]. - The company has not made any guarantees outside of its subsidiaries during the reporting period, with a total guarantee amount of 0 RMB[184]. - The company will ensure compliance with all public commitments made during the IPO process[169].