Financial Performance - The company's operating revenue for 2020 was approximately ¥375.76 million, representing a year-on-year increase of 9.41% compared to ¥343.46 million in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately ¥66.73 million, a 4.03% increase from ¥64.15 million in 2019[22]. - The total assets at the end of 2020 reached approximately ¥1.23 billion, a 196.54% increase from ¥415.93 million at the end of 2019[22]. - The net assets attributable to shareholders increased by 335.43% to approximately ¥1.08 billion at the end of 2020, compared to ¥247.58 million at the end of 2019[22]. - The basic earnings per share for 2020 was ¥1.11, down 9.76% from ¥1.23 in 2019[23]. - The cash flow from operating activities for 2020 was negative at approximately -¥65.53 million, compared to -¥38.69 million in 2019[22]. - The company reported a quarterly operating revenue of ¥123.18 million in Q4 2020, with a net profit attributable to shareholders of approximately ¥26.06 million[25]. - Non-recurring gains and losses for 2020 included a government subsidy of approximately ¥2.51 million, down from ¥5.54 million in 2019[27]. - The weighted average return on net assets for 2020 was 12.46%, a decrease of 22.54 percentage points from 35.00% in 2019[23]. Dividend Distribution - The company plans to distribute a cash dividend of 2.8 yuan per 10 shares, totaling approximately 20,306,022.24 yuan, which accounts for 30.43% of the net profit attributable to shareholders for 2020[5]. - The profit distribution plan has been approved by the board and requires approval from the annual general meeting[5]. - The company has established a cash dividend policy in accordance with regulatory guidelines, emphasizing the importance of returning value to shareholders[172]. - The company did not propose any capital reserve transfer to increase share capital or issue bonus shares for the 2020 fiscal year[173]. - The company’s cash dividend distribution plan has been approved by the board and requires shareholder meeting approval[172]. - The company has a structured plan for the distribution of profits, ensuring compliance with relevant regulations and shareholder interests[172]. Corporate Governance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The board of directors and supervisory board members have all attended the board meeting, ensuring accountability for the report's accuracy[4]. - The company does not have any special arrangements for corporate governance[7]. - The company’s legal representative is Huang Wenjun, ensuring compliance with corporate governance standards[15]. Research and Development - The research and development expenditure accounted for 5.96% of operating revenue in 2020, slightly down from 5.97% in 2019[23]. - The company invested a total of ¥22,396,911.25 in R&D, marking a 9.21% increase from ¥20,508,967.01 in the previous year[87]. - The number of R&D personnel increased to 62, accounting for 52.10% of the total workforce, with total R&D personnel compensation reaching RMB 1,150.25 million[95]. - The company has a total of 84 intellectual property applications, with 15 new applications filed in the current year[85]. - The company is developing a smart operation and maintenance management system based on IoT, with a total investment of ¥6,500,000 planned for this project[90]. Market Expansion and Strategy - The company is focused on expanding its market presence through innovative technologies and strategic partnerships in the environmental protection sector[12]. - The company aims to enhance its market competitiveness and risk resistance by actively seeking investment and acquisition opportunities[169]. - The company plans to further expand its market presence in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta region in 2021[112]. - The company has expanded its operational network across multiple provinces in China, including Shanghai, Guangdong, Zhejiang, Anhui, Hubei, Henan, and Guangxi, enhancing its cross-regional operational capabilities[101]. - The company aims to enhance its market share and brand image in the sludge treatment industry through continuous improvement and optimization of its technology and production systems[190]. Technology and Innovation - The company reported a significant reduction in sludge moisture content, achieving a decrease from 90-99% to below 30% using low-temperature vacuum dehydration and drying integrated technology[11]. - The company’s high-temperature resistant filter plates have improved temperature performance from below 50°C to 120°C, enhancing operational efficiency[12]. - The company has developed a series of waste gas purification technologies, including active oxygen ion purification and biological filter purification, which demonstrate high adaptability and efficiency[12]. - The company emphasizes the importance of advanced technology in enhancing the efficiency of sludge treatment and waste gas purification processes[12]. - The company has successfully developed and implemented low-temperature vacuum dehydration and drying integrated technology based on the frame filter press, achieving significant comprehensive benefits and stable long-term operation[67]. Risks and Challenges - The company faces risks related to the uncertainty of its integrated low-temperature vacuum dehydration technology in downstream markets[117]. - The company is at risk of reduced core competitiveness if it fails to upgrade its technology in response to competitors' advancements in safety, environmental protection, and energy efficiency[118]. - The company has a significant reliance on the East China and South China markets, with 47.07% of its revenue coming from the Shanghai area, posing a regional dependency risk[120]. Compliance and Regulatory - The company will comply with the regulations set by the China Securities Regulatory Commission regarding share reduction by major shareholders[178]. - The company commits to timely and fully explain any failure to fulfill commitments due to uncontrollable factors, apologizing to shareholders and the public[200]. - The company will take corrective actions within the timeframe required by regulatory authorities if commitments are not fulfilled[200]. - The company guarantees that the actual controller's nominated directors will occupy a majority of the board seats[200]. - The company will not seek to assist any party outside the actual controller in gaining control of the company within 60 months of its IPO[200].

Financial Performance - Operating revenue for the first nine months rose by 7.19% year-on-year to CNY 252,580,215.61[6] - Net profit attributable to shareholders decreased by 11.00% year-on-year to CNY 40,674,398.94[6] - Basic and diluted earnings per share decreased by 19.10% to CNY 0.72[7] - Total operating revenue for Q3 2020 was approximately $101.04 million, a decrease of 26.5% compared to $137.76 million in Q3 2019[32] - Net profit for Q3 2020 was approximately $13.34 million, a decline of 56.9% from $30.95 million in Q3 2019[33] - The company's total profit for the first three quarters of 2020 was approximately $48.91 million, down from $55.38 million in the same period of 2019, a decrease of 12%[33] Assets and Liabilities - Total assets increased by 184.93% year-on-year to CNY 1,185,119,709.88[6] - Total liabilities decreased by 54.41% in tax payables to CNY 4,709,835.99 as a result of reduced income tax expenses[17] - Current liabilities decreased to CNY 129,570,861.58 from CNY 165,045,654.55, a reduction of approximately 21.5%[25] - Total liabilities amounted to CNY 133,156,541.72, down from CNY 168,357,466.23, reflecting a decrease of around 20.9%[26] - Non-current assets totaled CNY 39,508,665.56, up from CNY 34,658,327.06, indicating an increase of about 13.3%[25] Shareholder Information - The total number of shareholders reached 6,241 by the end of the reporting period[12] - The top shareholder, Huang Wenjun, holds 16.54% of the shares, totaling 11,992,904 shares[13] - Owner's equity surged to CNY 1,051,963,168.16 from CNY 247,576,846.09, marking an increase of approximately 324.5%[26] Cash Flow - Net cash flow from operating activities was negative at CNY -89,241,036.29[6] - The company reported a 1281.81% increase in cash flow from financing activities to CNY 763,448,998.49 from the initial public offering[19] - The cash flow from operating activities for the first three quarters of 2020 was negative at -¥89,241,036.29, worsening from -¥35,734,809.84 in the first three quarters of 2019[38] - The company's total cash inflow from operating activities was ¥127,000,287.15 in the first three quarters of 2020, down from ¥206,126,062.02 in the same period of 2019[38] Research and Development - R&D expenditure as a percentage of operating revenue increased by 0.72 percentage points to 5.56%[7] - Research and development expenses increased to approximately $5.27 million in Q3 2020, up 36.7% from $3.85 million in Q3 2019[32] - Research and development expenses for Q3 2020 were ¥7,939,039.88, up from ¥6,644,141.15 in Q3 2019, reflecting a 19.4% increase[36] Inventory and Receivables - Accounts receivable rose by 67.74% to CNY 146,042,897.43 driven by business growth[17] - Inventory decreased by 49.32% to CNY 57,851,222.79 due to the first-time implementation of new revenue accounting standards[17] - The company reported a decrease in inventory by CNY 30,027,072.87, reflecting a shift to contract assets[48] Financial Adjustments and Standards - The adjustment of CNY 29,685,588.85 from "pre-receipts" to "contract liabilities" was made in compliance with the new revenue recognition standards[45] - The company executed the new revenue recognition standards starting January 1, 2020, impacting financial reporting[50]