Financial Performance - The company reported a net loss for the year, indicating it has not yet achieved profitability since its listing[3]. - The company's operating revenue for 2022 was CNY 342.08 million, a decrease of 10.45% compared to 2021[23]. - The net profit attributable to shareholders decreased by 65.68% to CNY 25.93 million, while the net profit excluding non-recurring items fell by 69.33% to CNY 20.00 million[24]. - The net cash flow from operating activities dropped significantly by 92.21% to CNY 3.49 million, primarily due to delays in project execution and increased operational expenses[25]. - Basic and diluted earnings per share decreased by 65.85% to CNY 0.28, with the adjusted earnings per share dropping by 69.01% to CNY 0.22[22]. - The company's total assets increased by 19.11% to CNY 1,196.53 million, while the net assets attributable to shareholders rose slightly by 0.60% to CNY 774.67 million[23]. - The company's main business revenue for 2022 was ¥340,339,890.24, a decrease of 10.52% compared to the previous year, primarily due to challenges in the river and lake sludge treatment business[138]. - The gross profit margin for 2022 was 35.17%, down 2.35% from the previous year, influenced by delays and inefficiencies in project operations[139]. Business Strategy and Expansion - The company is focused on expanding its business in high-water-content waste treatment, particularly in sectors like water environment governance and food and beverage[11]. - The company has completed a strategic acquisition of a local competitor for 300 million RMB, which is expected to enhance its market share by 10%[20]. - The company plans to increase its R&D budget by 30% to accelerate the development of new technologies and products[20]. - The company aims to achieve a construction waste resource utilization rate of 60% by 2025, indicating significant growth potential in the construction waste treatment sector[69]. - The company is actively exploring market expansion and new strategies in the high-value utilization of brewing wastewater, aligning with industry trends and regulatory requirements[85]. - The company plans to expand its investment in the bioconversion feed business, with a production capacity of 150,000 tons per year[134]. - The company is entering a critical phase of project expansion and infrastructure investment over the next three years, focusing on project construction responsibility and management systems to ensure timely and quality project completion[180]. Research and Development - The company has received several patents for its innovative technologies, including 12 invention patents and 79 utility model patents, strengthening its intellectual property portfolio[20]. - The total R&D expenditure for the year was CNY 13,506,641.62, a decrease of 15.31% compared to the previous year, which was CNY 15,949,008.29[99]. - The company has ongoing projects with a total expected investment of CNY 7,900.50 million, with CNY 1,350.66 million invested this period[104]. - The number of R&D personnel increased from 54 to 60, representing 15.58% of the total workforce, up from 13.81%[108]. - The company is focusing on the development of technologies for the resource utilization of high-water-content waste and has established a core technology system for microbial solid-state fermentation[109]. Market and User Growth - User data showed an increase in active users, reaching 500,000, which is a 20% increase year-over-year[20]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a growth expectation of 25%[20]. - The company is expanding its market presence, targeting new regions with a projected investment of 200 million RMB over the next two years[20]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[197]. Governance and Compliance - The board of directors has ensured that all members attended the board meeting, indicating strong governance[4]. - The company has established a comprehensive intellectual property protection system with 31 authorized patents, including 5 invention patents, and over 20 pending patents[77]. - The company has implemented a new stock incentive plan to enhance employee engagement and align employee career development with company growth[180]. - The supervisory board held 6 meetings in 2022, ensuring compliance and oversight of the company's operations[184]. - The company has established a risk prevention system covering the entire process of investment, financing, management, and exit to ensure fund security[178]. Environmental and Technological Innovations - The company has developed core technologies, including solid-state fermentation and integrated dewatering technology, which are applied in food and beverage waste, river sludge, and engineering slurry treatment[88]. - The company’s high-concentration brewing wastewater treatment process achieves a COD reduction of 80-90% and reduces wastewater volume by over 20%, significantly lowering subsequent treatment costs[71]. - The company’s proprietary technology for organic lees microbial solid-state fermentation is key to producing functional biopharmaceutical feed[70]. - The company has developed a new product series "Linfeng®" for high-value utilization of high-concentration brewing wastewater, which has received positive feedback from industry experts[78][85]. Challenges and Risks - The company has outlined potential risks in its annual report, which investors should be aware of[3]. - The company faced significant challenges in its lake sediment treatment business, leading to a decline in revenue and increased credit impairment losses[24]. - The company has a risk of short remaining operational periods for its current orders in the river and lake sludge treatment business, necessitating a focus on long-term projects[123]. - The company is actively monitoring raw material price trends to mitigate the impact of potential cost increases on its profitability[121].

路德环境科技股份有限公司 证券代码：688156 证券简称：路德环境 公告编号：2023-028 路德环境科技股份有限公司 关于举办2022年度暨2023年第一季度 业绩说明会的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏，并对其内容的真实性、准确性和完整性承担 个别及连带责任。 重要内容提示： 一、说明会类型 路德环境科技股份有限公司（以下简称"公司"）已于 2023 年 4 月 29 日在上 会议召开时间：2023 年 05 月 05 日（星期五）15:00-16:30 会议召开地点：价值在线（www.ir-online.cn） 会议召开方式：网络互动方式 会议问题征集：投资者可于 2023 年 05 月 05 日 前 访 问 网 址 https://eseb.cn/14bBJ1sWmgU 或使用微信扫描下方小程序码进行会前提问， 公司将通过本次业绩说明会，在信息披露允许范围内就投资者普遍关注 的问题进行回答。 路德环境科技股份有限公司 海证券交易所网站（www.sse.com.cn）披露了《2022 年年度报告》《2022 年度报 告摘要》及《20 ...

路德环境科技股份有限公司 证券代码：688156 证券简称：路德环境 路德环境科技股份有限公司 投资者关系活动记录表 | --- | --- | --- | |--------------------|------------------------------|------------------------------------------------------| | | | 编号： LDHJ 2022-022 至 025 | | | ■特定对象调研 | □分析师会议 | | | □媒体采访 □业绩说明会 | | | 投资者关系活动类别 | □新闻发布会 □路演活动 | | | | □现场参观 ■电话会议 | | | | ■网络会议 □其他 | | | | 2022 年 5 月 17 日 | | | | 下午（ 16:00-17:00 | ）：东吴证券、申万菱信 | | | 下午（ 18:00-19:00 | ）：中泰证券、长城财富、南方基金、 | | | | 五地投资、招商资管、财通资管、交银施罗德、财通基金、 | | | | 海创基金、长城财富、前海开源、域秀资本、方正富邦、 | | | | 理成 ...

Group 1: Company Overview and Financial Activities - Lude Environmental Technology Co., Ltd. plans to issue 8.16 million A-shares to its actual controller, raising no more than 113.18 million yuan, with 36 million yuan allocated for R&D and 77.18 million yuan for working capital [3] - The company aims to enhance its R&D capabilities in the treatment and resource utilization of organic and inorganic solid waste [3][4] Group 2: Business Model and Market Strategy - The company focuses on the production of microbial fermentation feed from liquor waste, targeting large feed processing and breeding enterprises in China [4][8] - Lude Environmental has established long-term supply agreements with major liquor companies, ensuring a stable supply of raw materials [8][9] Group 3: Technological Advancements and Intellectual Property - The company has developed a solid-state fermentation technology for organic waste, with 23 authorized patents, including 5 invention patents [6][9] - The fermentation process includes aerobic proliferation, anaerobic metabolism, and high-temperature autolysis, achieving a yeast concentration of over 2.5 billion per gram [6][7] Group 4: Product Characteristics and Market Position - The liquor waste fermentation feed is positioned as a functional feed ingredient, rich in protein, fat, and beneficial components, enhancing animal immunity and promoting gut health [7][8] - The company prioritizes the use of sauce-flavored liquor waste due to its local availability and suitability for feed production [8][9] Group 5: Cost Structure and Economic Efficiency - The main costs for the liquor waste fermentation feed business include procurement costs, labor costs, fuel and power costs, and depreciation, with significant cost reductions observed due to increased production scale [9]

Group 1: Company Overview - Luther Environmental Technology Co., Ltd. is listed under stock code 688156 [1] - The company focuses on the comprehensive treatment and resource utilization of high-water-content waste [3] Group 2: Investor Relations Activities - Investor relations activities were conducted from June 17 to June 28, 2022, including online meetings and discussions with various investment firms [2][3] - Key participants included the Chairman and General Manager, Ji Guangming, and the Deputy General Manager and Board Secretary, Liu Jing [3] Group 3: Capital Increase and Business Model - The company has approved a private placement of shares to its actual controller, Ji Guangming, as of June 2, 2022 [3] - The company aims to convert brewery wastewater into functional feed, highlighting the high nutrient content of the wastewater [3] Group 4: Production Capacity and Strategic Planning - Projected production capacity for the company's fermented feed from liquor waste is expected to reach 170,000 tons in 2022, 220,000 tons in 2023, and 300,000 tons in 2024 [4] - The company plans to deepen its investment in the core production areas of liquor and expand into other organic waste resource utilization [4] Group 5: Procurement and Pricing Strategy - The procurement price of liquor waste is influenced by supply and demand, with lower prices during the peak waste disposal season from July to November [4] - The company employs long-term supply agreements and public bidding for procurement, ensuring competitive pricing [4][5] Group 6: Competitive Advantages - The company has 23 authorized patents, including 5 invention patents, and over 20 pending patents [5] - Strategic partnerships with major liquor producers secure a stable supply of liquor waste, which is crucial due to its high moisture content and short shelf life [5] Group 7: Cost Structure - The main costs for the fermented feed business include liquor waste procurement, labor, fuel, and depreciation [6] - The average procurement cost per ton has remained stable over the past three years, while labor costs have decreased due to increased production volume [6]

证券代码：688156 证券简称：路德环境 路德环境科技股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 信息的真实、准确、完整。 2022 年第三季度报告 2022 年第三季度报告 | 稀释每股收益（元/股） | 0.05 | -70.59 | | 0.25 | | -50.00 | | --- | --- | --- | --- | --- | --- | --- | | 加权平均净资产收益率 | 0.64 | 减少 1.41 | | 3.00 | 减少 | 3.27 个 | | （%） | | 个百分点 | | | | 百分点 | | 研发投入合计 | 3,549,469.81 | 58.12 | | 12,513,475.39 | | ...

Financial Performance - The company reported a half-year performance summary, with a focus on financial accuracy and completeness, ensuring no misleading statements or omissions [3]. - The report is unaudited, with the management team affirming the accuracy of the financial statements [7]. - The company achieved operating revenue of RMB 150.51 million in the first half of 2022, representing a year-on-year increase of 1.80% [19]. - The net profit attributable to shareholders decreased by 39.82% to RMB 18.38 million compared to the same period last year [20]. - The basic earnings per share fell by 39.39% to RMB 0.20, while the diluted earnings per share remained the same at RMB 0.20 [20]. - The company reported a significant decline of 98.12% in revenue from environmental technology equipment and materials sales [20]. - The net cash flow from operating activities surged to RMB 29.39 million, a substantial increase from RMB 1.40 million in the same period last year [20]. - The company's total assets slightly decreased by 0.15% to RMB 1.00 billion compared to the end of the previous year [20]. - The company reported a net profit of 21.52 million yuan, a decline of 33.60% year-on-year, with the net profit attributable to shareholders decreasing by 39.82% to 18.38 million yuan [79]. - The gross profit margin for the reporting period was 33.20%, down by 2.98 percentage points compared to the previous year, primarily due to increased costs in the white liquor residue fermentation feed and the impact of the pandemic on the lake and river sludge treatment services [77]. Research and Development - Research and development expenses accounted for 5.96% of operating revenue, an increase of 1.72 percentage points from the previous year [20]. - The company experienced a significant increase in research and development expenses, which rose by 43.15% year-on-year, focusing on new product development and technology upgrades [22]. - The company's R&D expenses increased by 43.15% year-on-year, totaling ¥8,964,005.58, compared to ¥6,261,859.55 in the previous year [60]. - The number of R&D personnel increased to 58, representing 16.07% of the total workforce, compared to 12.53% in the previous year [68]. - The company has filed 21 new patents, including 1 invention patent and 20 utility model patents, focusing on resource recovery and wastewater treatment technologies [58]. Risk Management - The company has outlined various risks in its operations and corresponding mitigation measures, urging investors to pay attention to investment risks [3]. - The management has emphasized the importance of forward-looking statements and the associated risks, advising investors to be cautious [5]. - The company has a comprehensive risk management strategy in place to address potential operational challenges [3]. - The company is actively monitoring raw material price fluctuations, which may impact profitability due to changes in market supply and demand [88]. - The company is facing risks related to core technology personnel turnover, which could affect its research and development capabilities [86]. Corporate Governance - The board of directors confirmed the absence of non-operational fund occupation by controlling shareholders or related parties [6]. - There are no special arrangements for corporate governance or significant matters affecting the company [5]. - The company has implemented a robust mechanism to protect the rights of minority investors, enhancing corporate governance [146]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity [149]. - The company will ensure that any related party transactions are fully disclosed and compliant with regulations [140]. Market Expansion and Strategy - The company is focusing on the resource utilization of food and beverage residues, particularly in the production and sales of white liquor residue fermentation feed, which has significant market potential [29]. - The company plans to stabilize production costs and increase sales prices in the second half of the year to mitigate profit decline risks due to rising energy and transportation costs [22]. - The company is focusing on expanding its biological fermentation feed business, leveraging the growing demand for high-quality feed alternatives amid a shortage of protein raw materials in the domestic market [80]. - The company plans to increase its fermentation feed production capacity to 420,000 tons per year and its liquor residue processing capacity to over 1.1 million tons per year by the end of 2024 [81]. - The company is actively pursuing new strategies for market expansion and technological innovation, enhancing its competitive edge in the environmental protection sector [49]. Environmental and Social Responsibility - The company processed approximately 70,000 tons of waste liquor during the first half of 2022, reducing carbon emissions from landfill disposal [124]. - The company provided 65 job opportunities in Gulin County, contributing to local poverty alleviation efforts [125]. - The company emphasizes its commitment to sustainable practices, aiming to reduce carbon emissions by 30% over the next five years [143]. - The company has received strong support from local governments for its environmental services, enhancing its competitive position in the liquor residue processing market [70]. - The company is focused on resource utilization of high-concentration wastewater generated during liquor production, with a COD exceeding 50,000, aiming for effective resource recovery [52]. Financial Management - The company plans to issue A-shares to specific investors, with a proposal for the use of raised funds focusing on technology innovation [113]. - The total amount of financial assets measured at fair value increased by 154.52% to ¥155,060,366.48, indicating a significant rise in financial product investments [107]. - The company reported a 99.37% increase in financial income, with interest income rising significantly compared to the previous year [99]. - The company has invested approximately ¥150 million in establishing a new subsidiary for producing bioconversion feed, with an annual capacity of 80,000 tons [104]. - The company has implemented a technology for recycling filter cake, which enhances dewatering efficiency and reduces material costs [54]. Shareholder Commitments - The actual controller and major shareholders committed to not transferring or entrusting the management of their shares for 36 months from the date of the company's IPO [128]. - The company has a commitment to ensure that any share transfers after the lock-up period do not exceed 25% of the total shares held at the time of the IPO each year for 4 years [128]. - The company will adhere to regulations regarding share reduction and will notify the company three trading days in advance before any share reduction [129]. - The company has established a plan to ensure stable operations and control rights after the lock-up period [128]. - The company will ensure that any income obtained from unfulfilled commitments will be returned to the company within 5 days [129].

2022 年第一季度报告 证券代码：688156 证券简称：路德环境 路德环境科技股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务报表 信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比上年 | | --- | --- | --- | | | | 同期增减变动幅 | | | | 度(%) | | 营业收入 | 57,114,167.43 | 15.41 | | 归属于上市公司股东的净利润 | 3,842,222.07 | -54.18 | | 归属于上市公司股东的扣除非经常 | 3,457,064.77 | -42. ...

Financial Performance - The company's operating revenue for 2021 was RMB 382,000,137.03, representing a 52.56% increase compared to RMB 250,399,501.97 in 2020[20]. - The net profit attributable to shareholders for 2021 was RMB 75,539,102.26, up 58.23% from RMB 47,740,797.49 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 65,218,599.61, reflecting a 73.53% increase from RMB 37,584,273.43 in 2020[20]. - The net cash flow from operating activities for 2021 was RMB 44,812,668.69, a significant increase of 90.46% compared to RMB 23,528,354.56 in 2020[20]. - As of the end of 2021, the net assets attributable to shareholders were RMB 770,076,330.47, an 8.78% increase from RMB 707,906,229.13 at the end of 2020[20]. - The total assets at the end of 2021 reached RMB 1,004,559,208.33, marking a 14.31% increase from RMB 878,794,589.11 at the end of 2020[20]. - Basic and diluted earnings per share rose to 0.82 RMB, reflecting a year-on-year increase of 28.13%[21]. - The company's gross profit margin for 2021 was 37.52%, a decrease of 7.59% year-on-year, attributed to temporary facility amortization and equipment depreciation costs incurred during the pandemic[122]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 27,552,000.00 (including tax) based on a total share capital of 91,840,000 shares as of December 31, 2021, resulting in a cash dividend payout ratio of 36.47%[6]. - The independent directors have expressed clear agreement with the profit distribution plan, which is subject to approval at the annual shareholders' meeting[6]. - The company has not proposed any stock dividends or capital reserve transfers for the year[6]. - In 2020, the company distributed cash dividends of RMB 2.0 per 10 shares, totaling RMB 18.368 million[200]. Research and Development - The company's R&D expenditure accounted for 4.18% of operating revenue, a decrease of 0.28 percentage points from the previous year[22]. - Research and development expenses amounted to CNY 15.95 million, representing 4.18% of operating revenue, with 31 patents applied for during the reporting period[45]. - The company increased its R&D investment by 42.80% in 2021, totaling ¥15,949,008.29, compared to ¥11,169,090.59 in the previous year[88]. - The company holds a total of 99 patents, including 16 invention patents and 81 utility model patents, as of the end of the reporting period[85]. - During the reporting period, the company applied for and was granted 31 new patents, including 3 invention patents and 28 utility model patents[85]. Risk Management - The company has detailed potential risks in its annual report, emphasizing the importance of risk awareness for investors[4]. - The company has a comprehensive risk statement regarding forward-looking statements, cautioning investors about potential uncertainties[7]. - The company is exposed to risks related to raw material price fluctuations, which could impact profitability, and plans to adjust procurement policies accordingly[108]. - The company faces risks from concentrated market regions, particularly in the Yangtze River Delta, and aims to diversify its resource utilization projects to enhance sustainability[109]. - The company is actively monitoring industry policies and competition, adapting its strategies to mitigate risks from potential changes in the regulatory environment and increasing competition[112][113]. Corporate Governance - The company has a structured governance framework in place, ensuring accountability and transparency in its operations[8]. - The company has established a robust corporate governance structure, holding three shareholder meetings in 2021 to ensure compliance with legal and regulatory requirements[164]. - The board of directors convened eight meetings in 2021, ensuring effective decision-making and adherence to governance protocols[164]. - The company has implemented a management system for insider information, ensuring confidentiality and compliance with disclosure regulations[167]. - The company is committed to investor relations management, enhancing communication with shareholders and addressing their concerns[166]. Market Expansion and Strategy - The company is focusing on the resource utilization of organic and inorganic high-water-content waste, particularly through the transformation of organic waste into feed products[153]. - The company plans to expand its business through mergers and acquisitions in the solid waste treatment sector, enhancing its capabilities in both organic and inorganic waste processing[154]. - The company is deepening cooperation with major liquor enterprises to secure long-term supply agreements, thereby increasing its market share in wine lees acquisition[159]. - The company is exploring partnerships with local firms to strengthen its supply chain and reduce costs by 15%[181]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[182]. Environmental and Technological Innovations - The company has developed a core technology system for sludge dewatering and solidification, which includes 9 invention patents and 55 utility model patents[18]. - The company’s insect protein feed production, initiated in September 2021, utilizes insect and microbial degradation technology to convert organic waste into high-value insect protein feed[56]. - The company has developed synthetic soil from dewatered sludge, meeting the standards for greening planting soil as per CJ/T 340-2016[82]. - The company has implemented a high-efficiency thermal drying process for sludge, allowing for energy recovery during combustion in power plant boilers[82]. - The company’s innovative technologies enhance the efficiency of solid-liquid separation and organic matter degradation, contributing to sustainable waste management solutions[82].

Financial Performance - The company's operating revenue for 2021 was RMB 382,000,137.03, representing a 52.56% increase compared to RMB 250,399,501.97 in 2020[20]. - The net profit attributable to shareholders for 2021 was RMB 75,539,102.26, up 58.23% from RMB 47,740,797.49 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 65,218,599.61, reflecting a 73.53% increase from RMB 37,584,273.43 in 2020[20]. - The net cash flow from operating activities for 2021 was RMB 44,812,668.69, a significant increase of 90.46% compared to RMB 23,528,354.56 in 2020[20]. - As of the end of 2021, the net assets attributable to shareholders were RMB 770,076,330.47, an 8.78% increase from RMB 707,906,229.13 at the end of 2020[20]. - The total assets at the end of 2021 amounted to RMB 1,004,559,208.33, which is a 14.31% increase from RMB 878,794,589.11 at the end of 2020[20]. - Basic and diluted earnings per share rose to 0.82 RMB, reflecting a year-on-year increase of 28.13%[21]. - The company's gross profit margin for 2021 was 37.52%, a decrease of 7.59% year-on-year, attributed to temporary facility amortization and equipment depreciation costs incurred during the pandemic[122]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 27,552,000.00 (including tax) based on a total share capital of 91,840,000 shares as of December 31, 2021, resulting in a cash dividend payout ratio of 36.47%[6]. - The company has a cash dividend policy in place to ensure sustainable returns to investors, as outlined in its three-year shareholder return plan[200]. - In 2020, the company distributed cash dividends of RMB 2.0 per 10 shares, totaling RMB 18.368 million[200]. Research and Development - The company's R&D expenditure accounted for 4.18% of operating revenue, a decrease of 0.28 percentage points from the previous year[22]. - The company increased its R&D investment by 42.80% in 2021, totaling ¥15,949,008.29, compared to ¥11,169,090.59 in the previous year[88]. - Research and development expenses increased by 20%, totaling $100 million, to support new technology initiatives[181]. - The company has developed a core technology system for sludge dewatering and solidification, which includes 9 invention patents and 55 utility model patents[12]. - The company holds a total of 99 patents, including 16 invention patents and 81 utility model patents, as of the end of the reporting period[85]. Market Expansion and Strategy - The company has a strategic focus on expanding its market presence and enhancing its technological capabilities in environmental management[11]. - The company plans to continue expanding its business in sludge treatment and functional feed products in line with national policies[22]. - The company is focusing on expanding its market presence through direct sales and distributor partnerships, enhancing its operational efficiency in the sludge treatment sector[60]. - The company is exploring trade pathways for insect protein feed to expand its revenue and achieve economies of scale in the short term[160]. - The company plans to invest 300 million RMB in R&D over the next two years to further enhance its technological edge[175]. Risk Management - The company has detailed potential risks in its annual report, emphasizing the importance of risk awareness for investors[4]. - The company is exposed to risks related to raw material price fluctuations, which could impact profitability, and plans to adjust procurement policies accordingly[108]. - The company faces risks from concentrated market regions, particularly in the Yangtze River Delta, and aims to diversify its resource utilization projects[109]. - The company is aware of potential industry policy changes that could affect its market environment and is committed to adapting its strategies accordingly[112]. Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and has held three shareholder meetings in 2021[163]. - The board of directors convened eight meetings in 2021, adhering to governance rules and ensuring effective decision-making processes[164]. - The company has implemented a comprehensive information disclosure management system to ensure transparency and protect the rights of minority shareholders[166]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making or operations[166]. Environmental Focus - The company is focused on environmental technology, particularly in the treatment of high-water-content waste materials, which includes river and lake sludge, engineering mud, and organic residues[11]. - The company aims to achieve a reduction in waste and promote harmless and stable resource utilization through its innovative technologies[12]. - The company is strategically positioned to benefit from supportive environmental policies and regulations, which are expected to drive rapid growth in the sludge treatment industry[75]. - The company is leveraging advanced fermentation technologies to convert liquor lees into high-value biological feed, contributing to a circular economy and reducing reliance on traditional feed sources[66]. Operational Efficiency - The company has established several subsidiaries to enhance its operational capabilities and market reach[11]. - The company has implemented cost control measures by using self-developed materials and direct procurement strategies, which help reduce purchasing costs[103]. - The company is actively enhancing its talent pool by recruiting high-end professionals in animal nutrition and biological fermentation[46]. - The company has established long-term supply agreements with major liquor enterprises, securing a stable source of high-water-content organic waste, particularly from liquor production[101].