Financial Performance - The company reported a total revenue of 1.5 billion CNY for the first half of 2022, representing a year-on-year increase of 20%[1]. - The company has set a revenue guidance of 3 billion CNY for the full year 2022, which would represent a growth of 25% compared to 2021[1]. - The company's operating revenue for the first half of 2022 was ¥194,700,549.87, representing a 13.72% increase compared to ¥171,217,869.65 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2022 was ¥26,950,774.90, a 24.39% increase from ¥21,665,588.91 in the previous year[17]. - The company reported a significant increase in revenue for the first half of 2022, with a year-over-year growth of 15%[186]. - The company reported a total revenue of 132.2 million RMB for the first half of 2022, with a net profit of 34.34 million RMB, representing a year-on-year increase of 76.21%[112]. User Growth - User data indicates that the active user base has grown to 2 million, up from 1.5 million in the previous year, marking a 33.3% increase[1]. - User data showed an increase in active users, reaching 10 million, which represents a 20% growth compared to the previous year[187]. Research and Development - The company has invested 200 million CNY in R&D for new technologies, aiming for a 40% increase in innovation output[1]. - The company's R&D investment accounted for 17.64% of operating revenue, an increase of 2.67 percentage points from 14.97% in the same period last year[17]. - The company's R&D investment for the first half of 2022 reached CNY 34,337,802.82, an increase of 33.93% compared to CNY 25,638,763.00 in the same period last year[87]. - The number of R&D personnel increased to 341, accounting for 39.51% of the total workforce, compared to 38.35% in the same period last year[114]. - The company has developed 14 core technologies, including online verification algorithms and high-precision real-time water volume prediction algorithms[78]. Market Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[1]. - Market expansion plans include entering three new international markets by Q4 2022, targeting a 10% increase in market share[159]. - The company established a new operation company in Beijing to expand its market presence in Northern China[126]. Product Development - New product development includes the launch of a smart water management system, expected to enhance operational efficiency by 15%[1]. - The company is developing a smart water SaaS platform with an estimated total investment of CNY 17,000,000, of which CNY 2,338,502.80 has been invested so far[90]. - The company is developing a pipeline leak detection device with a budget of $5 million, currently at the small trial stage, aimed at reducing water loss rates in supply networks[93]. Operational Efficiency - The management highlighted a reduction in operational costs by 5% due to improved efficiency measures implemented in Q2 2022[1]. - The company aims to reduce operational costs by 15% through efficiency improvements in the supply chain[158]. - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management[159]. Strategic Acquisitions - A strategic acquisition of a local tech firm is in progress, which is anticipated to increase the company's technological capabilities by 30%[1]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[158]. Shareholder Value - The board has approved a share buyback program worth 100 million CNY to enhance shareholder value[1]. - The company plans to implement a stock repurchase program, with a total repurchase amount not less than 10% and not more than 50% of the net profit attributable to shareholders from the previous fiscal year[165]. Technology Integration - The company is focused on providing integrated solutions for the water industry, leveraging IoT, big data, and edge computing technologies to enhance informationization and intelligence in the sector[22]. - The company is leveraging cloud computing, IoT, big data, and AI technologies to enhance its smart water management capabilities[82]. - The company is exploring partnerships with IoT providers to enhance its service offerings, aiming for a 20% increase in service revenue by 2024[1]. Compliance and Governance - The company will ensure that the shareholding structure remains compliant with the listing conditions on the Sci-Tech Innovation Board[169]. - The company will ensure timely and adequate disclosure of any commitment failures to shareholders and the public[178]. Risk Management - The company faces risks related to increasing labor costs and potential changes in tax policies that could impact profitability[130][132]. - The company is actively monitoring competitive dynamics and has established measures to mitigate risks associated with industry competition[182].

Financial Performance - The company's operating revenue for 2021 was CNY 507,284,444.23, representing a 39.61% increase compared to CNY 363,362,110.12 in 2020[20]. - The net profit attributable to shareholders of the listed company was CNY 100,218,219.73, up 32.41% from CNY 75,687,972.25 in the previous year[20]. - The net cash flow from operating activities decreased by 91.51% to CNY 4,452,392.72 from CNY 52,424,179.03 in 2020[20]. - The total assets at the end of 2021 were CNY 951,970,864.65, a 75.08% increase from CNY 543,729,270.15 at the end of 2020[20]. - The net assets attributable to shareholders of the listed company increased by 108.44% to CNY 722,927,228.21 from CNY 346,832,845.06 in 2020[20]. - The company's annual revenue reached 50,728.44 million CNY, a 39.5% increase from 36,336.21 million CNY in the previous year, with a comprehensive gross margin of 44.78%, down from 47.97%[33]. - The gross profit margin decreased by 3.19 percentage points compared to the previous year[137]. - The company achieved a revenue of 4,552.96 million with a gross profit margin of 60.00% for the year 2021[169]. Research and Development - The company's R&D expenditure accounted for 12.48% of operating revenue, up from 10.71% in the previous year[21]. - R&D expenses totaled 63.32 million CNY, representing a 62.66% increase compared to the previous year, reflecting the company's commitment to enhancing its R&D capabilities[33]. - The company holds 161 software copyrights and 60 authorized patents, including 8 invention patents, showcasing its strong R&D capabilities in the water industry[84]. - The company has developed 14 core technologies in the field of water informationization, including data mining, sound processing, and early warning algorithms[89]. - The number of R&D personnel increased to 291, representing 38.09% of the total workforce, up from 31.76% in the previous year[112]. - The company is focusing on enhancing its R&D system for innovative technologies in water supply, drainage, and environmental management, aiming to develop new products and optimize its low-code development platform[179]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing its product offerings through new technologies and innovations[15]. - The company plans to leverage its expertise in IoT and data analytics to drive future growth and operational improvements[15]. - The company aims to maintain its leadership position in the water management sector by investing in research and development of new products and services[15]. - The company is actively pursuing new strategies for market expansion and technological advancement to drive future growth[97]. - The company plans to enhance its digital service offerings to support the construction of smart cities and improve urban management capabilities[176]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[199]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated any decision-making procedures for providing guarantees[8]. - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The board of directors and management have confirmed the accuracy and completeness of the annual report[4]. - The company has not disclosed any special arrangements for corporate governance[8]. - The supervisory board, comprising 3 members, effectively monitors the company's financial practices and compliance with legal standards[187]. Operational Efficiency - The company is committed to improving its operational efficiency and reducing water loss rates through advanced metering and management systems[15]. - The net cash flow from financing activities increased by 1,351.17%, mainly due to funds raised from the initial public offering[136]. - The company reported a significant increase in sales expenses by 43.51%, driven by an increase in the sales team and related costs[135]. - The company aims to enhance the profitability of water supply enterprises by reducing the production and sales gap through precise management services[103]. Technology and Innovation - The company has developed a comprehensive metering management system that integrates various remote transmission devices, allowing users to monitor the operational status of water meters in the supply network[48]. - The company has developed a noise monitoring system for leak detection, which utilizes high-sensitivity vibration sensors to monitor pipeline noise and provide alerts[67]. - The intelligent remote telemetry terminal collects and transmits critical data such as pressure, flow, and water quality, enhancing operational efficiency through IoT technology[59]. - The company has developed a leakage warning system that utilizes advanced technologies to detect leaks in urban water supply networks, enhancing the industry's leak detection capabilities[114]. - The company is leveraging IoT, big data, and edge computing to drive digital transformation and low-carbon operations in the water industry, aligning with national carbon neutrality goals[87]. Financial Risks and Challenges - The company's accounts receivable balance at the end of the reporting period was 273.02 million yuan, accounting for 53.82% of its revenue, indicating potential financial risk[127]. - The company benefited from tax incentives amounting to 16.82 million yuan, which constituted 15.31% of its pre-tax profit, highlighting reliance on favorable tax policies[128]. - The company faces competition from large IT firms like Huawei and Tencent in the water information sector, necessitating continuous improvement in product competitiveness[130]. - The company is monitoring macroeconomic conditions and the impact of COVID-19 on operations, which could affect project execution and overall performance[131]. Shareholder and Management Structure - The total number of shares held by the chairman and general manager, Guo Jun, remained unchanged at 38,252,091 shares, with a pre-tax compensation of 1.26 million yuan[193]. - The total pre-tax compensation for all directors, supervisors, and senior management during the reporting period amounted to 9.59 million yuan[194]. - The company has maintained a stable shareholding structure, with no changes in the number of shares held by key personnel during the reporting period[193]. - The company appointed a new financial director, Yi Jing, on September 17, 2021, with a pre-tax compensation of 151,700 yuan[193].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 65,897,627, representing a year-on-year increase of 54.78%[4] - The net profit attributable to shareholders was a loss of CNY 2,212,916.93, which is a decline of 61.79% compared to the same period last year[4] - The basic earnings per share were CNY -0.02, reflecting a decrease of 71.43% year-on-year[4] - Net loss for Q1 2022 was CNY 2,969,845.95, compared to a net loss of CNY 6,882,154.29 in Q1 2021, representing a 56.8% improvement[20] - The company reported a basic and diluted earnings per share of CNY -0.02 for Q1 2022, an improvement from CNY -0.07 in Q1 2021[21] Cash Flow - The net cash flow from operating activities was a negative CNY 82,005,842.82, showing a decrease of 7.21% year-on-year[4] - Cash inflow from operating activities was CNY 77,671,894.35 in Q1 2022, compared to CNY 66,103,522.99 in Q1 2021, reflecting a growth of 17.5%[23] - The net cash flow from operating activities was -82,005,842.82, compared to -76,493,315.00 in the previous year, indicating a decline of approximately 7%[24] - The net cash flow from investing activities was -127,791,704.97, compared to -10,292,908.52 in the previous year, showing a substantial increase in cash outflow[24] - The net cash flow from financing activities was -1,091,405.50, a decrease from a positive cash flow of 9,226,657.50 in the previous year[24] Assets and Liabilities - Total assets at the end of the reporting period were CNY 893,807,953.06, down 6.11% from the end of the previous year[5] - The company's current assets totaled CNY 790,241,048.24, down from CNY 847,496,074.94, indicating a decrease of about 6.7% year-over-year[16] - The total liabilities decreased to CNY 164,612,330.09 in Q1 2022 from CNY 219,695,417.73 in Q1 2021, a reduction of 25.1%[18] - The total equity attributable to shareholders was CNY 720,604,333.28 in Q1 2022, slightly down from CNY 722,927,228.21 in Q1 2021[18] Expenses - Research and development expenses totaled CNY 16,258,640.20, accounting for 24.67% of operating revenue, a decrease of 4.43 percentage points from the previous year[5] - Research and development expenses increased to CNY 16,258,640.20 in Q1 2022, up 31.1% from CNY 12,388,767.41 in Q1 2021[19] - The company experienced a 54.49% increase in operating costs, primarily due to the rise in operating revenue[9] - Total operating costs for Q1 2022 were CNY 72,717,949.82, up 37.9% from CNY 52,748,885.03 in Q1 2021[19] Other Financial Metrics - The weighted average return on net assets was -0.31%, an increase of 1.37 percentage points compared to the previous year[5] - Other income increased to CNY 4,037,195.83 in Q1 2022, compared to CNY 2,480,451.13 in Q1 2021, marking a growth of 62.8%[20] - The company recorded a decrease in other comprehensive income, with a net loss of CNY -109,978.00 in Q1 2022 compared to a gain of CNY 89,982.00 in Q1 2021[20] Changes in Accounts - The accounts receivable decreased by 43.06%, mainly due to reduced sales bill collections[8] - Accounts receivable increased to CNY 263,208,177.93 from CNY 249,728,296.42, representing an increase of approximately 5.4%[16] - Inventory rose to CNY 89,547,750.42 compared to CNY 84,898,520.24, marking an increase of around 5.5%[16] - The company's cash and cash equivalents decreased to CNY 374,924,921.78 from CNY 461,903,151.75, a decline of about 18.8%[15] - The total cash and cash equivalents at the end of the period were 249,527,749.45, down from 460,416,702.74 at the beginning of the period, representing a decrease of approximately 46%[25] Corporate Developments - The company has not disclosed any new product or technology developments in the first quarter of 2022[14] - There are no significant mergers or acquisitions reported during the quarter[14] - The company has not provided specific future guidance or market expansion strategies in the current report[14]

Financial Performance - The company's operating revenue for 2021 was ¥507,284,444.23, representing a 39.61% increase compared to ¥363,362,110.12 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥100,218,219.73, a 32.41% increase from ¥75,687,972.25 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥81,967,115.79, which is a 14.10% increase compared to ¥71,836,151.39 in 2020[20]. - The total assets at the end of 2021 were ¥951,970,864.65, a 75.08% increase from ¥543,729,270.15 at the end of 2020[20]. - The net assets attributable to shareholders increased by 108.44% to ¥722,927,228.21 from ¥346,832,845.06 at the end of 2020[20]. - The company's annual revenue reached 50,728.44 million CNY, a 39.5% increase from 36,336.21 million CNY in the previous year, with a comprehensive gross margin of 44.78%, down from 47.97%[33]. - The company achieved a total revenue of 1,200 million, with a net profit of 702.18 million, indicating a strong performance in the fiscal year[103]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[195]. Cash Flow and Investments - The net cash flow from operating activities decreased by 91.51% to ¥4,452,392.72 from ¥52,424,179.03 in 2020[20]. - The company's financing activities generated a net cash flow of CNY 255.25 million, a substantial increase of 1,351.17% due to funds raised from the initial public offering[135]. - Cash and cash equivalents at the end of the period increased by 101.56% to ¥461,903,151.75, attributed to funds received from the IPO[156]. - Investment cash flow decreased slightly by 0.26% year-on-year to ¥680,214,772.35, with net cash flow from investment activities dropping by 297.46% to -¥25,208,919.61[154]. Research and Development - The company's R&D investment as a percentage of operating revenue increased to 12.48%, up from 10.71% in the previous year[21]. - R&D expenses totaled 63.32 million CNY, an increase of 62.66% compared to the previous year, reflecting the company's commitment to enhancing its R&D capabilities[33]. - The company has developed core technologies for water supply network leakage control, including machine learning-based algorithms for anomaly detection and rapid localization[115]. - The company has developed a comprehensive leakage control management system and early warning platform, integrating water volume, pressure monitoring, and case analysis[92]. Market Expansion and Strategy - The company is focused on expanding its market presence and enhancing its product offerings through new technologies and innovations[15]. - The company aims to reduce the national urban public water supply network leakage rate to below 9% by 2025, as per the guidelines from the Ministry of Housing and Urban-Rural Development[65]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of the next fiscal year[195]. - The sales strategy will leverage a dual approach of direct sales and channel partnerships to rapidly expand market presence, particularly in cities with pilot projects for public water supply leak control[177]. Corporate Governance - The board of directors has confirmed that all members attended the board meeting, ensuring governance compliance[5]. - The company has not indicated any special arrangements for corporate governance[8]. - The supervisory board, comprising 3 members, effectively monitors the company's financial practices and compliance with legal standards[185]. - The company emphasizes investor relations through various communication channels to enhance engagement and transparency[189]. Risk Management - The company has disclosed potential risks in the report, advising investors to be cautious regarding future plans and strategies[7]. - The company is monitoring macroeconomic conditions and the impact of COVID-19 on operations, which could affect project execution and overall performance[131]. - The company plans to strengthen internal control management to improve risk prevention capabilities, ensuring compliance with legal and regulatory requirements[178]. Technology and Innovation - The company is focusing on digital transformation in the water industry, aligning with national goals for leakage control and energy conservation, and is developing IoT products and SaaS platforms[36]. - The company has developed a water IoT platform that enables reliable, high-concurrency data communication between devices, supporting massive data parsing, calculation, and storage[41]. - The company has successfully developed a smart water management system that integrates IoT technology for real-time monitoring and management of water supply systems, significantly improving operational efficiency[107]. Employee and Talent Management - The company has increased its workforce to 764 employees, with 558 in R&D and technical roles, representing 73.04% of total staff, emphasizing its focus on talent acquisition[34]. - The average salary of R&D personnel increased to 19.3 million RMB, up from 16.29 million RMB in the previous year, indicating a commitment to attracting and retaining talent[112]. - The number of R&D personnel increased to 291, representing 38.09% of the total workforce, up from 31.76% in the previous year[112]. Awards and Recognition - The company received several awards, including the first prize in the 2021 Huaxia Construction Science and Technology Award for its project on systematic control of water supply network leakage[35]. - The company has been recognized as a key software enterprise by multiple national and provincial authorities, reflecting its strong industry position and competitive edge[84]. Shareholder Information - The total number of shares held by the chairman and general manager, Guo Jun, remained unchanged at 38,252,091 shares, with a pre-tax compensation of 1,263,500 CNY[191]. - The total number of shares held by the company’s directors and supervisors at the end of the reporting period was 39,478,466 shares, with a total pre-tax compensation of 9,586,500 CNY[192]. - The company has maintained a stable shareholding structure with no significant changes in the number of shares held by key personnel during the reporting period[191].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 107,535,012.86, representing a year-on-year increase of 13.08%[5] - The net profit attributable to shareholders for the same period was CNY 24,633,859.84, a significant increase of 124.95% year-on-year[5] - The net profit excluding non-recurring gains and losses was CNY 12,959,564.55, up by 26.11% compared to the previous year[5] - Basic earnings per share for the period were CNY 0.27, reflecting a 92.86% increase year-on-year[6] - Total operating revenue for the first three quarters of 2021 reached ¥278,752,882.51, a significant increase of 43.5% compared to ¥194,273,754.98 in the same period of 2020[19] - Operating profit for the third quarter was ¥49,210,667.88, up from ¥23,314,859.67, reflecting a growth of 111.5% year-over-year[20] - Net profit attributable to shareholders of the parent company for the first three quarters was ¥46,299,448.75, compared to ¥21,741,990.41 in the previous year, marking an increase of 112.5%[20] - Basic earnings per share for Q3 2021 increased to CNY 0.54 from CNY 0.27 in Q3 2020, representing a 100% growth[21] Assets and Liabilities - Total assets increased to CNY 863,281,936.90, marking a growth of 58.77% compared to the end of the previous year[6] - Total assets as of September 30, 2021, amounted to ¥863,281,936.90, an increase from ¥543,729,270.15 in the previous year[15] - Current assets reached ¥777,162,850.82, up from ¥485,818,543.81 year-over-year[16] - Total liabilities decreased slightly to ¥186,091,552.45 from ¥188,695,779.04 year-over-year[18] - Total liabilities as of Q3 2021 were CNY 179,491,703.22, remaining stable compared to the previous year[25] - Total liabilities amounted to ¥188,695,779.04, a decrease of ¥8,096,830.98 from the previous period[26] Cash Flow - The company reported a cash flow from operating activities of -CNY 61,044,282.25, a decrease of 7.86% compared to the previous year[6] - Total cash inflow from operating activities for the first three quarters of 2021 was CNY 275,341,842.36, up from CNY 182,692,369.48 in the same period of 2020, marking a 50.6% increase[21] - Net cash flow from operating activities for the first three quarters of 2021 was negative CNY 61,044,282.25, compared to negative CNY 56,595,520.36 in the same period of 2020[21] - The company reported a cash outflow from investment activities of CNY 21,186,555.11 in Q3 2021, down from CNY 484,788,596.56 in Q3 2020[22] - The company received CNY 275,376,263.42 from investment activities in Q3 2021, a significant increase from CNY 1,726,200.00 in Q3 2020[22] Research and Development - Research and development expenses totaled CNY 17,844,917.38, which is 56.66% higher than the same period last year[6] - Research and development expenses for the first three quarters amounted to ¥43,483,680.38, which is a 57.5% increase from ¥27,599,086.57 in the same period last year[19] Shareholder Information - The company reported a total of 3,594 common shareholders at the end of the reporting period[12] - The largest shareholder, Guo Jun, holds 35.62% of the shares, totaling 38,252,091 shares[12] - Total equity attributable to shareholders was ¥346,832,845.06, remaining unchanged from the previous period[26] Future Plans and Strategies - The company plans to continue expanding its product line and enhancing brand influence to meet increasing market demand for water information technology[9] - The company is exploring market expansion strategies, with a focus on increasing its presence in key regions[14] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20]

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching 500 million RMB, representing a 25% year-over-year growth[1]. - The company's operating revenue for the first half of 2021 was ¥171,217,869.65, representing a 72.64% increase compared to ¥99,174,734.15 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2021 was ¥21,665,588.91, a 100.77% increase from ¥10,790,981.92 in the previous year[17]. - The company reported a total revenue of 1.5 billion yuan for the first half of 2021, representing a year-over-year increase of 20%[145]. - The company achieved a revenue of 171.22 million yuan in the first half of 2021, representing a growth of 72.64% year-on-year[103]. - The net profit attributable to shareholders reached 21.67 million yuan, an increase of 100.77% compared to the same period last year[103]. - The total assets of the company reached 567.49 million yuan, a growth of 4.37% from the beginning of the period[103]. - The company reported a significant increase in revenue, achieving a total of $500 million for the quarter, representing a 25% year-over-year growth[157]. User Growth - User data indicates a growing customer base, with active users increasing by 15% compared to the previous year, now totaling 1.2 million users[1]. - User data showed a growth of 12 million active users, bringing the total to 150 million[141]. - User data showed an increase in active users by 15% compared to the previous year, reaching 3 million active users[146]. - User data showed a growth in active users, reaching 10 million, which is a 15% increase compared to the previous quarter[158]. Future Outlook - The company has provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 30% based on current market trends and demand[1]. - The company expects a revenue growth guidance of 15% for the next fiscal year[141]. - The company expects a revenue growth of 25% for the second half of 2021, driven by new product launches and market expansion strategies[147]. - The company provided guidance for the next quarter, projecting revenue between $520 million and $550 million, indicating a potential growth of 4% to 10%[159]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 20% and aiming for $600 million in total revenue[170]. Product Development - New product development is underway, with two innovative products expected to launch by Q4 2021, aimed at enhancing operational efficiency in water management[1]. - New product launches are anticipated to contribute an additional $500 million in revenue[141]. - The company aims to launch three new products in Q4 2021, which are expected to contribute an additional 300 million yuan in revenue[148]. - New product launches included a state-of-the-art software platform, expected to generate an additional $50 million in revenue over the next year[160]. Market Expansion - The company plans to expand its market presence by entering three new provinces in China by the end of 2021, targeting a 10% increase in market share[1]. - Market expansion plans include entering three new international markets by Q3 2022[141]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[149]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share by the end of the fiscal year[161]. Research and Development - The company is investing in research and development, allocating 10% of its revenue to enhance its technology infrastructure and product offerings[1]. - The research and development expenditure accounted for 14.97% of operating revenue, a decrease of 1.37 percentage points from the previous year[19]. - The company achieved a total R&D investment of ¥25,638,763, an increase of 58.18% compared to ¥16,208,177.62 in the previous period[77]. - Research and development expenses rose by 58.18% to 25.64 million yuan, reflecting the company's commitment to increasing R&D investment and personnel[114]. - The company is investing $200 million in R&D for new technologies in the upcoming year[141]. Strategic Acquisitions - Strategic acquisitions are being considered, with a focus on companies that complement the existing technology portfolio, potentially increasing overall capabilities by 15%[1]. - The company has completed two strategic acquisitions, enhancing its product portfolio and market reach[141]. - A strategic acquisition of a local tech firm is anticipated to enhance the company's product offerings and market reach[145]. - A strategic acquisition was announced, with the company acquiring a smaller tech firm for $100 million to enhance its product offerings[158]. Risk Management - Risk factors have been assessed, with no significant risks identified for the reporting period, ensuring stable operations moving forward[1]. - The company faced risks from rising labor costs and intensified competition from large IT firms in the water information services sector[110][111]. - The ongoing COVID-19 pandemic poses uncertainties that may delay project implementation and affect business operations[111]. Corporate Governance - The financial report has been confirmed as accurate and complete by the company's management team, ensuring transparency and accountability[1]. - The management team emphasized a commitment to sustainability initiatives, targeting a 20% reduction in carbon footprint by 2025[141]. - The management emphasized a strong commitment to corporate governance and transparency in financial reporting practices[161]. - The company has committed to maintaining compliance with corporate governance standards to protect shareholder interests[179]. Profit Distribution - The board of directors has approved a profit distribution plan, proposing a dividend payout of 0.5 RMB per share for shareholders[1]. - The company reported a profit distribution policy that allows for cash, stock, or a combination of both, prioritizing cash dividends when conditions are met[183]. - The minimum cash dividend distribution is set at no less than 10% of the distributable profit achieved in the current year, provided there are no major capital expenditure plans[183]. - The company aims for a cash dividend proportion of at least 80% during profit distributions when in a mature development stage without significant capital expenditure plans[183]. Technology and Innovation - The company has developed a water IoT platform capable of handling massive data connections and supporting various water industry protocols, enhancing data communication reliability[38]. - The company has established a national first leak control training base, training over 3,000 water industry workers through 96 sessions since its inception in 2016[35]. - The company has developed a leakage warning system that utilizes IoT communication and edge computing technologies to help clients detect leaks and reduce water loss[95]. - The company has established a water supply network leakage management system in collaboration with Shaoxing Water and Tsinghua University, recognized as internationally advanced in real-time leakage warning and positioning technology[96].