Financial Performance - The company's operating revenue for 2021 was ¥874,384,526.15, a decrease of 4.94% compared to ¥919,833,075.77 in 2020[18]. - The net profit attributable to shareholders for 2021 was ¥106,556,615.58, down 39.80% from ¥177,012,440.92 in 2020[18]. - The net profit after deducting non-recurring gains and losses was ¥72,669,794.42, a decline of 47.04% from ¥137,225,157.23 in 2020[18]. - The basic earnings per share for 2021 were ¥0.16, a decrease of 38.46% from ¥0.26 in 2020[18]. - The weighted average return on net assets was 6.32% in 2021, down from 11.38% in 2020, a decrease of 5.06 percentage points[18]. - The company's total revenue for Q1, Q2, Q3, and Q4 was approximately $158.73 million, $250.17 million, $189.57 million, and $275.92 million respectively, showing a significant increase in Q2 and Q4[20]. - The net profit attributable to shareholders for the same quarters was $21.21 million, $40.15 million, $17.96 million, and $27.23 million, indicating strong performance in Q2[20]. - The company's total operating revenue for 2021 was approximately 874.38 million yuan, a decrease of 4.94% compared to 2020[80]. - Water services contributed 625.60 million yuan, accounting for 71.55% of total revenue, while solid waste treatment revenue dropped by 32.41% to 180.50 million yuan[80]. - The company achieved a revenue increase of 7.61% in the water services sector compared to the previous year[80]. - The company’s international revenue increased by 192.60% to 25.27 million yuan, while domestic revenue decreased by 6.81%[82]. Cash Flow and Investments - The net cash flow from operating activities increased by 28.56% to ¥116,555,530.40 in 2021, compared to ¥90,664,943.13 in 2020[18]. - The net cash flow from investment activities was -¥207,372,461.00, a significant decline of 174.08% compared to the previous year, mainly due to increased purchases of financial products[100]. - The net cash flow from financing activities improved to ¥4,868,300.54, a 127.95% increase, attributed to reduced cash payments for debt repayment[100]. - Operating cash inflow totaled ¥731,562,545.11 in 2021, showing a slight decrease of 0.01% compared to the previous year[99]. - The cash and cash equivalents net decrease was -¥85,948,630.06, reflecting a significant decline of 3,456.69% compared to the previous year[99]. - As of the end of 2021, cash and cash equivalents decreased to CNY 48,104,004.73, representing 1.73% of total assets, down from 5.12% at the beginning of the year, a decrease of 3.39%[102]. Market Position and Industry Outlook - The company operates in the ecological environment governance industry, which is expected to grow significantly due to strong policy support and increasing market demand[27]. - The water treatment sector is transitioning towards comprehensive management of water resources, with a focus on zero discharge and resource reuse, indicating a growing market opportunity[28]. - The solid waste management industry is expanding, driven by policies promoting waste reduction and resource recovery, presenting further investment opportunities[29]. - The flue gas treatment market is evolving to include non-electric sectors, with a focus on carbon reduction technologies, aligning with national carbon neutrality goals[30]. - The company anticipates significant market opportunities in wastewater treatment, resource utilization, and zero discharge due to the implementation of various national policies[37]. - The solid waste industry is projected to see a comprehensive utilization rate of 60% for major solid waste by 2025, with a focus on sludge and biomass coupling treatment[39]. - The market for flue gas governance is anticipated to expand significantly, with a focus on ultra-low emissions and comprehensive governance in key industries[41]. Technological Innovation and R&D - The company has developed several core technologies, including high-salt wastewater zero discharge technology and sludge drying coupling treatment technology, which have been recognized in national and provincial awards[59]. - The company is developing a zero liquid discharge (ZLD) technology aimed at resource recovery from wastewater and waste salt, currently in the pilot stage[94]. - The company is focusing on the development of self-owned intellectual property products, materials, and equipment for reduction and recycling, particularly in the field of pollution-resistant reverse osmosis membranes[95]. - The company is actively involved in the development of technologies for pollution control, aiming to contribute to carbon peak and carbon neutrality goals[41]. - The company is enhancing its technological innovation capabilities by integrating IoT, AI, and big data into the environmental protection industry, aiming for digital and intelligent transformation[117]. - The company has established a national-level environmental industry technology innovation strategic alliance, undertaking over 20 major scientific and industrialization projects[61]. Corporate Governance and Management - The company maintains independence from its controlling shareholders in business, personnel, assets, institutions, and finance, ensuring autonomous operational capabilities[138]. - The company has established an independent financial accounting department with a separate accounting system and financial management protocols[139]. - The company has a clear ownership of all assets related to its business activities, ensuring complete control and management[138]. - The company has implemented a talent strategy focused on employee health, safety, and satisfaction, enhancing overall employee quality[190]. - The company has established a transparent performance evaluation and incentive mechanism to enhance employee motivation and management efficiency[135]. - The company has a performance appraisal system that links individual performance to the company's operational development[164]. Risks and Challenges - The company faces significant risks from the ongoing COVID-19 pandemic, which could adversely impact its financial performance and operational management if not effectively controlled[123]. - The prices of steel, copper, and chemical products have increased significantly due to the pandemic and the Russia-Ukraine conflict, with carbon steel plate prices rising approximately 43% from 4,610 RMB/ton in January 2021 to a peak of 6,580 RMB/ton in May 2021[124]. - The company has a significant amount of accounts receivable, which poses cash flow risks, but its clients are primarily government departments and large enterprises with strong creditworthiness[129]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of ¥0.50 per 10 shares to all shareholders, based on a total of 676,710,000 shares[5]. - The company plans to distribute a cash dividend of RMB 0.50 per share (including tax), totaling RMB 33,835,500, which represents 31.75% of the net profit attributable to shareholders for the year 2021[169]. - The total distributable profit available to shareholders as of December 31, 2021, is RMB 919,125,980.16[169]. - The cash dividend amount represents 100% of the total profit distribution for the period[168]. - The company has a cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring transparency and compliance[167]. Employee and Talent Management - The company has a total of 574 employees, with 231 in production, 37 in sales, 232 in technical roles, 18 in finance, and 56 in administration[163]. - The management team includes professionals with significant experience in the energy and environmental sectors, enhancing the company's strategic capabilities[150]. - The company emphasizes talent development and management, implementing incentive plans to drive performance and ensure long-term growth[67]. - The company has implemented an annual training plan that includes both internal and external training programs[165]. Environmental Responsibility - The company emphasizes environmental responsibility and aims to contribute to a cleaner environment while fulfilling its social responsibilities[189]. - The company has established a stable wastewater treatment facility that meets the GB18918-2002 Class A standard, ensuring effective pollution control[186]. - The company faced an administrative penalty of 170,000 yuan due to exceeding wastewater discharge standards, attributed to an increased proportion of industrial wastewater[188].

Financial Performance - The company's operating revenue for Q1 2022 was ¥294,908,319.69, representing an increase of 85.79% compared to ¥158,728,789.69 in the same period last year[3]. - The net profit attributable to shareholders for Q1 2022 was ¥24,022,937.91, up 13.27% from ¥21,209,123.22 year-on-year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥16,907,790.79, reflecting a 35.16% increase from ¥12,509,807.57 in the previous year[3]. - Total operating revenue for the current period reached ¥294,908,319.69, a significant increase from ¥158,728,789.69 in the previous period, representing an increase of approximately 86%[28]. - Net profit for the current period was ¥22,565,828.44, up from ¥21,976,666.39 in the previous period, indicating a growth of approximately 2.67%[30]. - Operating profit for the current period was ¥28,318,300.22, compared to ¥26,415,316.08 in the previous period, showing an increase of about 7.2%[29]. - The company reported a total profit of ¥27,955,018.74, compared to ¥26,414,638.46 in the previous period, indicating an increase of about 5.85%[29]. - Basic and diluted earnings per share for the current period were both ¥0.0355, up from ¥0.0313 in the previous period, reflecting an increase of approximately 13.5%[30]. Cash Flow - The company's cash flow from operating activities for Q1 2022 was -¥23,414,023.25, a significant decline of 960.94% compared to ¥2,719,600.48 in the same period last year[3]. - Cash flow from operating activities showed a net outflow of ¥23,414,023.25, a decline from a net inflow of ¥2,719,600.48 in the previous period[33]. - Cash flow from investment activities for Q1 2022 was ¥83,226,800, a 269.54% increase from -¥49,089,900 in the same period last year[17]. - Cash flow from investing activities generated a net inflow of ¥83,226,804.40, compared to a net outflow of ¥49,089,863.97 in the prior period[33]. - Cash and cash equivalents at the end of the period totaled ¥107,953,999.18, an increase from ¥92,541,810.70 at the end of the previous period[33]. - Cash and cash equivalents increased significantly to CNY 112,689,508.96 from CNY 48,104,004.73, representing a growth of 134.9%[24]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,867,069,888.32, an increase of 3.15% from ¥2,779,516,162.80 at the end of the previous year[3]. - The total liabilities of the company were CNY 1,048,194,420.81, compared to CNY 983,206,523.24 at the beginning of the year, marking an increase of approximately 6.63%[26]. - The company's total equity reached CNY 1,818,875,467.51, up from CNY 1,796,309,639.56, indicating a growth of about 1.25%[26]. - The company's current assets reached CNY 1,734,007,385.81, up from CNY 1,667,908,069.50 at the start of the year, indicating a growth of approximately 3.93%[24]. - The non-current assets totaled CNY 1,133,062,502.51, an increase from CNY 1,111,608,093.30, showing a growth of approximately 1.92%[25]. Research and Development - The company's R&D expenses for Q1 2022 amounted to ¥998.84 million, a 59.88% increase from ¥624.74 million in the same period last year[16]. - Research and development expenses increased to ¥10,109,651.62 from ¥6,247,396.25, marking a rise of approximately 62%[29]. Inventory and Receivables - The company's inventory increased to CNY 50,165,613.91 from CNY 35,839,126.99, representing a growth of about 39.83%[24]. - Accounts receivable rose to CNY 643,391,462.50 from CNY 625,801,519.92, reflecting an increase of about 2.5%[24]. - The company reported a significant increase in accounts receivable financing, which decreased by 52.07% to ¥25,822,400 from ¥53,872,100 at the beginning of the period[8]. - The company reported a significant increase in prepayments, which rose to CNY 66,185,696.87 from CNY 35,149,008.35, reflecting an increase of about 88.4%[24]. Shareholder Information - The company had a total of 42,192 common shareholders at the end of the reporting period[19]. - The total number of restricted shares at the end of the period was 179,661,807, down from 180,760,106, indicating a decrease of approximately 0.61%[22].

Financial Performance - The company's revenue for the third quarter was ¥189,565,715.05, a decrease of 5.40% compared to the same period last year[4]. - Net profit attributable to shareholders was ¥17,962,919.36, down 48.70% year-on-year[4]. - The net profit after deducting non-recurring gains and losses was ¥14,544,200.43, a decrease of 35.09% compared to the previous year[4]. - Basic earnings per share were ¥0.0304, reflecting a decline of 48.70% year-on-year[4]. - Net profit for the current period was ¥80,706,808.74, down from ¥107,923,999.83, indicating a decrease of approximately 25.2%[34]. - Basic and diluted earnings per share both decreased to ¥0.133 from ¥0.178, a decline of about 25.3%[35]. Cash Flow - The operating cash flow for the year-to-date period increased significantly by 214.58% to ¥23,013,453.51[4]. - Net cash flow from operating activities for the first nine months of 2021 was CNY 23.01 million, an increase of 214.58% from a negative CNY 20.09 million in the same period last year, primarily due to increased sales collections[22]. - Total cash inflow from operating activities was ¥487,029,053.80, compared to ¥467,820,198.73 in the prior period, reflecting a growth of approximately 4.5%[36]. - Cash outflow from operating activities decreased to ¥464,015,600.29 from ¥487,905,505.62, indicating a reduction of about 4.4%[36]. - Net cash flow from financing activities improved to ¥14,234,615.47 from -¥1,701,013.53, indicating a positive shift[37]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,750,893,976.71, an increase of 2.89% from the end of the previous year[4]. - Total current assets as of September 30, 2021, amounted to CNY 1,660.46 million, compared to CNY 1,559.70 million as of December 31, 2020[30]. - Total liabilities increased to ¥982,556,477.99 from ¥972,804,716.72, marking a rise of about 1.5%[32]. - Non-current assets totaled ¥1,090,430,091.95, slightly down from ¥1,113,820,813.44, a decrease of approximately 2.1%[31]. Research and Development - Research and development expenses for the first nine months of 2021 were ¥26,843,100, an increase of 30.18% compared to the same period last year[20]. - Research and development expenses rose to ¥26,843,065.25 from ¥20,620,005.66, an increase of about 30.1%[33]. Borrowings and Financial Position - Short-term borrowings increased by 599.19% to ¥35,000,000.00, primarily due to new special borrowings[12]. - The company reported a significant increase in long-term borrowings, which rose to ¥292,318,200.00 from ¥268,500,000.00, an increase of approximately 8.9%[32]. Shareholder Information - Total number of common shareholders at the end of the reporting period was 49,697[24]. - The largest shareholder, Wang Zhengfu, holds 28.22% of shares, totaling 190,985,605 shares[24]. Audit and Reporting - The company did not undergo an audit for the third quarter report[38]. - The report was announced by the board of directors on October 26, 2021[39].

Financial Performance - The company reported a total revenue of 520.71 million RMB for the first half of 2021, with a year-on-year increase of 15%[17]. - The net profit attributable to shareholders for the same period was 76.5 million RMB, representing a growth of 20% compared to the previous year[17]. - The company's operating revenue for the reporting period was ¥408,898,387.80, representing a 2.95% increase compared to ¥397,165,889.05 in the same period last year[26]. - The net profit attributable to shareholders decreased by 14.53% to ¥61,359,044.06 from ¥71,791,917.46 year-on-year[26]. - The net cash flow from operating activities improved significantly, reaching ¥34,857,583.35, a 191.01% increase from a negative cash flow of ¥38,301,899.34 in the previous year[27]. - The basic and diluted earnings per share both decreased by 21.43% to ¥0.11 from ¥0.14 in the same period last year[27]. - The total assets at the end of the reporting period were ¥2,724,319,940.79, reflecting a 1.90% increase from ¥2,673,520,663.83 at the end of the previous year[27]. - The net assets attributable to shareholders increased by 2.96% to ¥1,689,620,078.24 from ¥1,641,011,723.24 at the end of the previous year[27]. - The company's total share capital is currently 676.80 million shares, with ongoing procedures for the repurchase of an additional 94,765 shares[25]. Business Expansion and Strategy - The company is actively expanding its market presence through strategic acquisitions and partnerships in the environmental protection sector[4]. - The company is focusing on the development of new technologies and products to enhance its service offerings in waste management and water treatment[4]. - The company has successfully expanded its main business from water treatment to include solid waste, hazardous waste, and flue gas governance, along with an innovation platform[36]. - The company aims to achieve an annual sludge treatment capacity of nearly 3 million tons, which is expected to reduce carbon dioxide emissions by approximately 100,000 tons per year[40]. - The company is investing in the ecological environment industry innovation cluster to support technology research and development, talent introduction, and industry incubation[46]. - The company has established a comprehensive pollution soil remediation technology system, including various advanced treatment methods[42]. - The company has nearly 500 patents and proprietary technologies, enhancing its competitive edge in the environmental sector[46]. - The company is positioned as a leader in the sludge coupling treatment industry, further solidifying its market position through strategic project acquisitions[53]. - The company is actively expanding its market presence in the flue gas governance sector, securing new projects such as those with Shanxi Coking and Donghua Energy[52]. Research and Development - The company has developed a "zero discharge" technology for wastewater treatment, which has been successfully promoted in various industrial sectors[37]. - The sludge drying coupling treatment technology has been recognized as a top environmental technology in the "Belt and Road" initiative, contributing to carbon reduction efforts[40]. - The company's innovation platform generated approximately 5.87 million RMB in revenue during the first half of 2021, reflecting its commitment to R&D and technology upgrades[54]. - The company has undertaken 20 major scientific research projects, including national and provincial initiatives, and has established multiple research platforms to enhance its R&D capabilities[68]. - Continuous investment in R&D for new technologies in water treatment, solid waste, and air pollution control is a priority for the company[66]. Risk Management - The management has outlined potential risks and corresponding mitigation strategies in the report, emphasizing the importance of risk management[4]. - The company faces risks from the ongoing COVID-19 pandemic, which could significantly impact its operations, supply chain, and overall financial performance if not controlled[106]. - The company is actively monitoring market trends and adjusting its operational strategies to mitigate risks associated with the pandemic and ensure stable operations[107]. - Rising costs of raw materials, particularly steel and copper, have put pressure on the company's operating costs, with steel prices increasing by 45.64% from January 2020 to August 2021[109]. - The company plans to enhance its procurement strategies and optimize supplier configurations to manage rising costs effectively[109]. Shareholder and Capital Management - The company plans to not distribute cash dividends or issue bonus shares for the current fiscal year[5]. - The total registered capital increased from 520.71 million RMB to 676.92 million RMB after a capital reserve conversion[24]. - The company has implemented a restricted stock incentive plan to motivate its management team and business backbone, successfully meeting performance assessment targets[73]. - The company has a total of 676,923,715 shares after a capital increase, with a cash dividend of 0.50 CNY per 10 shares distributed[160]. - The company has ongoing guarantees totaling 10 million CNY for its subsidiary in the waste management sector, with a guarantee period of 1 year[155]. Environmental Compliance and Governance - The company received an administrative penalty of 170,000 yuan due to exceeding wastewater discharge standards, with industrial wastewater accounting for 80% of the inflow, significantly above the existing process capacity[129]. - The company has established an emergency response plan for environmental incidents, which has been filed with the relevant authorities[129]. - There were no violations or penalties related to external guarantees during the reporting period[134]. - The company did not experience any non-operating fund occupation by controlling shareholders or related parties during the reporting period[133]. Subsidiary Performance - The subsidiary Nanjing Zhongdian Environmental Protection Water Co., Ltd. reported a net profit of 8,654,465.17[103]. - The subsidiary Nanjing Zhongdian Environmental Protection Solid Waste Resource Co., Ltd. reported a net loss of 3,191,419.43[103]. - The subsidiary Nanjing Zhongdian Environmental Protection Technology Co., Ltd. achieved a net profit of 1,917,033.17[103]. - Jiangsu Lianfeng Environmental Protection Industry Development Co., Ltd. reported a net profit of 3,389,327.12[103].

Financial Performance - Revenue for the first quarter reached ¥158,728,789.69, an increase of 11.71% compared to ¥142,086,520.06 in the same period last year[7] - Net profit attributable to shareholders was ¥21,209,123.22, reflecting an 8.86% increase from ¥19,482,895.03 year-on-year[7] - Basic earnings per share rose to ¥0.0403, up 6.05% from ¥0.0380 in the same quarter last year[7] - The total profit for Q1 2021 was 26.41 million yuan, reflecting a growth of 15.60% year-on-year[24] - The net profit attributable to shareholders for Q1 2021 was 21.21 million yuan, up 8.86% from the previous year[24] - Net profit for Q1 2021 reached CNY 21,976,666.39, representing a 10.3% increase from CNY 19,944,214.30 in Q1 2020[59] - Operating profit increased to CNY 20,692,846.95, compared to CNY 19,132,451.96 in the previous year, reflecting a growth of approximately 8.15%[63] Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥2,719,600.48, a turnaround from a negative cash flow of ¥53,201,735.93 in the previous year, marking a 105.11% increase[7] - The company's current assets totaled CNY 1,554,254,589.25, slightly down from CNY 1,559,699,850.39 at the end of 2020, indicating a decrease of about 0.35%[49] - The cash and cash equivalents decreased to CNY 99,476,409.73 from CNY 136,965,123.69, representing a decline of approximately 27.4%[48] - The company reported a significant increase in cash inflow from operating activities, totaling CNY 172,434,455.89, compared to CNY 134,726,679.68 in the previous year[67] - The net cash flow from financing activities was 9,141,420.51 CNY, compared to 74,632,470.83 CNY in the previous period[71] - The net increase in cash and cash equivalents for Q1 2021 was -26,213,054.17 CNY, indicating a decrease in liquidity[71] Shareholder Information - The total number of shareholders at the end of the reporting period was 38,729[11] - The top shareholder, Wang Zhengfu, holds 28.21% of the shares, amounting to 146,912,004 shares[11] - The company has a structured approach to managing its commitments and obligations to shareholders and stakeholders[42] Contracts and Revenue Recognition - The company secured new contracts worth 58 million yuan during the reporting period, primarily from the water industry[25] - The total amount of contracts not yet recognized as revenue at the end of the period was 2.841 billion yuan, with 963 million yuan from water services and 1.839 billion yuan from solid waste treatment[25] - The company reported a total of 103.42 million yuan in unconfirmed revenue orders at the end of the reporting period[28] Operational Management and Strategy - The company plans to accelerate market expansion and improve operational management to enhance performance in the ecological environment industry[23] - The company is actively managing risks associated with accounts receivable to ensure cash flow stability despite the growing balance[39] - The company is focused on improving its operational efficiency and cost control capabilities in response to market pressures[38] - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and is prepared to adjust its management strategies accordingly[34] Research and Development - The company obtained 3 new authorized patents during the reporting period through independent research and development[25] - The company reported an increase in research and development expenses to CNY 6,247,396.25, up from CNY 5,296,800.81 in Q1 2020[58] Market and Competition - The company is actively addressing market competition risks by leveraging its technological and brand advantages, and by collaborating with government and industry funds to consolidate resources[35] - The company anticipates continued growth in the environmental protection industry, driven by national policies and increased demand for public ecological services due to heightened awareness of public health safety[34] Financial Health and Liabilities - Total assets at the end of the reporting period were ¥2,655,408,849.28, a decrease of 0.68% from ¥2,673,520,663.83 at the end of the previous year[7] - The total liabilities decreased to CNY 932,317,578.50 from CNY 972,804,716.72, showing a decline of approximately 4.15%[51] - The company's equity attributable to shareholders increased to CNY 1,662,619,503.74 from CNY 1,641,011,723.24, reflecting an increase of about 1.32%[52] Supplier and Customer Dynamics - The company’s top five suppliers saw changes, with four out of five suppliers changing, but the overall procurement ratio remained reasonable, indicating no significant reliance on a few suppliers[32] - The total revenue from the top five customers was 98.62 million yuan, accounting for 62.13% of the company's total revenue, with four out of five customers changing, maintaining a reasonable sales ratio[33]

Financial Performance - The company's operating revenue for 2020 was approximately ¥919.83 million, representing a 1.43% increase compared to ¥906.88 million in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately ¥177.01 million, a 23.85% increase from ¥142.92 million in 2019[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥137.23 million, up 34.75% from ¥101.84 million in 2019[16]. - The net cash flow from operating activities for 2020 was approximately ¥90.66 million, reflecting a 26.10% increase from ¥71.90 million in 2019[16]. - The total assets at the end of 2020 were approximately ¥2.67 billion, a 6.58% increase from ¥2.51 billion at the end of 2019[16]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.64 billion, an increase of 11.60% from ¥1.47 billion at the end of 2019[16]. - The basic earnings per share for 2020 were ¥0.34, representing a 21.43% increase from ¥0.28 in 2019[16]. - The weighted average return on equity for 2020 was 11.38%, an increase of 1.11 percentage points from 10.27% in 2019[16]. Business Expansion and Innovation - The company has expanded its main business from water treatment to include solid and hazardous waste management, flue gas treatment, and an innovation platform[26]. - The company’s sludge treatment design capacity is nearly 300,000 tons per year, which is expected to reduce carbon dioxide emissions by 77,200 tons annually[30]. - The company has developed a "zero discharge" technology for wastewater treatment, which has been successfully promoted in major industrial sectors[27]. - The company has transitioned its business model from system integration EPC to BOT and PPP investment models[26]. - The company’s wastewater treatment services include comprehensive solutions for industrial and municipal clients, focusing on resource reuse and environmental compliance[28]. - The company has established partnerships with major state-owned enterprises for sludge treatment solutions, aligning with national environmental policies[30]. - The company’s innovative technologies have been recognized as part of the "Belt and Road" initiative, enhancing its market position in the environmental sector[30]. - The company has developed a comprehensive pollution soil remediation technology system, including various advanced techniques for different types of contaminated sites[33]. - The company’s subsidiary, Zhongdian Environmental Technology, specializes in air pollution control and has developed integrated core technologies for flue gas treatment, contributing to carbon reduction efforts[32]. - The company is actively building an ecological environment industry innovation cluster to support technology research and talent introduction, enhancing its innovation capabilities[35]. - The company has nearly 500 patents and proprietary technologies, indicating a strong focus on innovation and technology development[36]. Market Trends and Government Policies - The "14th Five-Year Plan" aims to add and upgrade 80,000 kilometers of sewage collection networks and increase sewage treatment capacity by 20 million cubic meters per day by 2023[43]. - The solid waste industry is expected to see a significant market expansion, with a target of achieving a 90% harmless disposal rate for urban sludge[45]. - The government plans to establish a long-term sewage treatment fee mechanism that ensures reasonable pricing to cover operational costs and allow for profit[42]. - By 2025, the ecological environment governance system is expected to be fully established, enhancing the management of ecological protection funds and project reserves[40]. - The company anticipates that the environmental policy dividends will continue to be released, leading to a new development cycle for the environmental protection industry during the "14th Five-Year Plan" period[41]. - The market for wastewater resource utilization and treatment services is expected to grow due to favorable policies aimed at improving treatment standards and pricing[43]. - The company is positioned to benefit from the increasing focus on green finance and the establishment of ecological compensation mechanisms across regions[40]. - The government aims to achieve a 35% recycling rate for urban household waste within five years, promoting a comprehensive waste classification system[44]. - The company is likely to see growth opportunities in the flue gas treatment sector, with policies aimed at reducing coal consumption and enhancing VOCs management[46]. Project Development and Contracts - The company reported a 519.96% increase in construction projects compared to the same period last year, attributed to the new solid waste project in Haifeng Phase II[48]. - The company has established nearly 30 wastewater treatment projects across the country, including significant projects in Ningxia, Henan, and Shanghai, enhancing its market presence[57]. - The company has processed nearly 300,000 tons/year of sludge through coupling treatment projects, with the Shenzhen project being the largest sludge disposal base in China, processing 2,000 tons/day[57]. - The company has successfully implemented major projects in the nuclear power water treatment sector, solidifying its leading position in the market[56]. - The company aims to become a key player in sludge treatment in Nanjing, collaborating with local state-owned assets to enhance its brand influence and market reach[58]. - The company has integrated various resources through a national-level environmental industry innovation platform, enhancing its comprehensive solution capabilities and market competitiveness[50]. - The company has expanded its service capabilities in industrial water treatment, achieving a leading market share in specific segments such as power water treatment[56]. - The company has established a national-level environmental industry technology innovation strategic alliance, undertaking multiple scientific and industrialization projects[53]. Research and Development - The company is focusing on the development of new technologies and processes in water, solid waste, and flue gas treatment to meet rapidly growing market demands[51]. - The company’s R&D investment in 2020 amounted to ¥35,296,167.02, representing 3.84% of total revenue, a decrease from 4.81% in 2019[90]. - The number of R&D personnel decreased to 130 in 2020, representing 22.53% of the total workforce, down from 28.09% in 2019[90]. - The company is currently in the pilot stage for several new technologies, including high-efficiency denitrification and desulfurization systems[90]. - Key projects include the development of zero discharge technology for high-salinity wastewater, aiming to reduce operational costs and support new market opportunities[87]. - The company is working on a new self-sustaining denitrification technology that can save over 60% in operational costs compared to traditional methods, suitable for low carbon-nitrogen ratio wastewater[87]. - A modular wastewater treatment device is in the pilot stage, designed for automated operation and standardization, with potential applications in rural and emergency wastewater treatment[87]. - The company aims to standardize parameters for tubular membrane electrode technology, targeting a treatment cost below 0.3 million CNY/m³ and an operational cost below 1.5 CNY/m³ for chemical wastewater[87]. - The company is developing an integrated smart environmental operation platform to address low network bandwidth and signal stability issues, currently in the research and development stage[6]. - A smart sludge scraper torque measurement device is being developed to enhance continuous operation, with key innovations including automatic torque tracking and high automation levels, currently in the conclusion stage[7]. - A drone gas sampling measurement system is under development, capable of monitoring multiple gas parameters and particulate matter, with real-time data transmission capabilities, currently in the conclusion stage[8]. - The company is researching intelligent control technology for municipal wastewater treatment, aiming to reduce manual operations and improve accuracy in executing wastewater process parameters, currently in the conclusion stage[9]. - A high-speed 5G wireless surveillance camera is being developed, with a target image transmission rate of no less than 1 Gbps and an average bandwidth reduction of at least 35%, currently in the conclusion stage[11]. - The company plans to create a "smart IoT environmental monitoring cloud platform" for real-time monitoring of wastewater treatment and water quality, with a target data collection capacity of up to 10,000 data points, currently in the conclusion stage[12]. - A sludge delivery system is being developed to automatically remove impurities from sludge with a moisture content of 60%, currently in the research and development stage[13]. - The company is working on a belt drying machine to enhance the filtration and granulation systems for sludge treatment, ensuring high impurity removal rates, currently in the research and development stage[14]. - A sludge incoming material management system is being developed to automate the unloading and distribution of sludge transport vehicles, aimed at reducing labor costs and improving unloading efficiency, currently in the pilot testing stage[15]. Shareholder and Dividend Information - The company reported a net profit attributable to shareholders of RMB 177,012,440.92 for the year 2020, with a legal surplus reserve of RMB 11,671,441.90 deducted[130]. - The total distributable profit available for shareholders as of December 31, 2020, was RMB 845,483,718.40, with a year-end capital reserve balance of RMB 200,168,060.28[130]. - The company proposed a cash dividend of RMB 0.50 per share (including tax), totaling RMB 26,035,527.50, which represents 14.71% of the net profit for 2020[131]. - The capital reserve conversion plan included a proposal to increase the share capital by 3 shares for every 10 shares held, resulting in a total of 156,213,165 new shares[131]. - The cash dividend distribution plan was approved at the 2019 annual general meeting, with a total cash dividend of RMB 26,097,500.00 for the year 2019, representing 18.26% of the net profit[132]. - The company maintained a consistent cash dividend policy, with no revisions made to the existing policy during the reporting period[125]. - The cash dividend distribution for the year 2020 was fully compliant with the company's articles of association and shareholder resolutions[126]. - The company’s cash dividend total (including other methods) accounted for 100% of the profit distribution total[127]. - The company is in a growth phase and plans to maintain a minimum cash dividend ratio of 20% in future distributions[128]. - The total cash dividend for 2020 was ¥26,035,527.50, representing 14.71% of the net profit attributable to ordinary shareholders[135]. - In 2019, the cash dividend amounted to ¥26,097,500.00, which was 18.26% of the net profit attributable to ordinary shareholders[135]. - The cash dividend for 2018 was ¥26,110,000.00, accounting for 21.36% of the net profit attributable to ordinary shareholders[135]. - The company reported a positive profit available for distribution to ordinary shareholders but did not propose a cash dividend distribution plan during the reporting period[135]. Risk Management and Compliance - The company emphasizes risk management, particularly in response to the ongoing COVID-19 pandemic, which has heightened the demand for urban public ecological environment services[116]. - The company is enhancing its internal control systems, including legal, procurement, quality, safety supervision, and auditing, to strengthen risk control and ensure healthy development[113]. - The company has implemented measures to manage accounts receivable risks, including contract management and increased collection efforts[121]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[136]. - There were no non-operating fund occupations by controlling shareholders or their related parties during the reporting period[139]. - The company has not made any profit forecasts for assets or projects during the reporting period[139]. - The company has committed to avoiding any competition with its subsidiaries and has provided a commitment letter to this effect[137]. - The company has established measures to ensure that any related party transactions are conducted under fair and reasonable conditions[137]. Share Structure and Stock Incentives - The total number of shares before the recent changes was 521,950,000, with a decrease of 1,239,450 shares, resulting in a total of 520,710,550 shares after the changes[187]. - The company repurchased and canceled a total of 1,104,600 restricted stocks due to the disqualification of certain incentive targets[188]. - The second lock-up period for 3,821,850 shares of the 2018 restricted stock incentive plan was approved for release, with 68 eligible incentive targets[189]. - The total share capital of the company is 520,710,550 shares, with 1,239,450 restricted stock units canceled in 2020[190]. - The number of stockholders holding more than 5% of shares includes Wang Zhengfu with 28.21% (146,912,004 shares) and Lin Huisheng with 4.49% (23,400,372 shares) as of the end of the reporting period[198]. - A total of 1,104,600 restricted stock units were repurchased and canceled at a price of 3.88 CNY per share due to the disqualification of 8 incentive recipients[195]. - The company’s total shares decreased from 521,950,000 to 520,845,400 shares after the cancellation of restricted stock units[195]. - The company repurchased and canceled an additional 134,850 restricted stock units at a price of 3.93 CNY per share due to the disqualification of 21 incentive recipients[196]. - The number of restricted shares at the end of the reporting period is 144,688,563 shares, down from 175,053,909 shares at the beginning[193]. - The company has 37,516 common stockholders at the end of the reporting period[198]. - The company’s stockholder structure includes significant holdings by key executives, with Wang Zhengfu holding 110,184,003 restricted shares[192]. - The company has implemented a stock incentive plan with a gradual unlocking mechanism for restricted shares, typically at a rate of 25% per year[192]. - The company’s stock repurchase and cancellation activities are in compliance with regulatory requirements and have been confirmed by the China Securities Depository and Clearing Corporation[195]. Financial Management and Investments - The company has engaged in cash asset management, with a total of CNY 135,775 million in entrusted financial management, including CNY 34,675 million in bank financial products and CNY 91,500 million in trust financial products[162]. - The company has no overdue amounts in its entrusted financial management[162]. - The company has ongoing major contracts, including a total contract amount of CNY 7,980 million with China Nuclear Engineering Corporation, currently in the design phase[160]. - The company has a contract with China Machinery Equipment Corporation amounting to CNY 6,431.85 million, currently in the warranty phase[160]. - The company has a contract with Jiangsu Debang Xinhua Chemical Co., amounting to CNY 6,615 million, currently in the equipment procurement stage[160]. - The company has a contract with Shandong Shouguang Luqing Stone Co., amounting to CNY 8,800 million, currently in the debugging phase[160]. - The company has a contract with Dongguan Lingyi Precision Manufacturing Co., amounting to CNY 6,550 million, currently in the civil construction phase[160]. - The total amount of trust financial products issued by AVIC Trust reached 1,800 million with a return rate of 7.00%[164]. - AVIC Trust also issued a trust financial product amounting to 5,000 million, achieving a return of 207.12 million, which corresponds to a 7.00% return rate[164]. - A trust financial product of 9,000 million was issued by AVIC Trust, generating a return of 403.89 million at a rate of 7.00%[164]. - The financial product from Ningbo Bank amounted to 2,000 million with a return of 0.5 million, reflecting a return rate of 3.06%[164]. - A total of 6,600 million was raised by Ningbo Bank, yielding a return of 0.54 million at a rate of 3.01%[164]. - AVIC Trust issued another financial product of 5,000 million, which generated a return of 211 million at a return rate of 7.30%[164]. - The financial product from Minsheng Wealth amounted to 1,000 million, achieving a return of 41.42 million with a return rate of 7.20%[165]. - A trust financial product from AVIC Trust raised 3,300 million, yielding a return of 105.82 million at a rate of 7.70%[165]. - The total amount of financial products issued by AVIC Trust in 2020 reached 7,500 million, generating a return of 278.26 million at a return rate of 7.40%[165]. - The financial product from Huaren Trust amounted to 500 million, achieving a return of 0.08 million with a return rate of 3.07%[165]. - The company reported a total of 2,000 million in self-raised funds with an interest rate of 7.20% for a financial product maturing on September 7, 2020[166]. - Another financial product raised 5,000 million with a 7.30% interest rate, maturing on November 19, 2020, showing strong investor interest[166]. - The company issued a financial product of 3,500 million at a 7.00% interest rate, maturing on December 8, 2020, indicating continued growth in trust products[166]. - A financial product from Minsheng Wealth raised 2,000 million with a 7.20% interest rate, maturing on February 25, 2021, reflecting ongoing market confidence[167]. - The company has consistently offered competitive interest rates, with products ranging from 1.75% to 7.80% across various financial instruments[166][167]. - The total amount raised through various financial products in 2020 reached approximately 20,000 million, demonstrating robust fundraising capabilities[166]. - The company plans to expand its product offerings and enhance market penetration through strategic partnerships and innovative financial solutions[166]. - The average interest rate across the financial products offered was approximately 6.50%, indicating a strong yield for investors[166]. - The company is focusing on increasing its market share in the trust and banking sectors through targeted marketing strategies and product diversification[167]. - Future outlook includes a commitment to maintaining high interest rates and expanding the range of financial products to attract more investors[166]. Social Responsibility and Compliance - The company emphasizes its commitment to social responsibility, aiming to improve the environment and maintain transparency with investors[177]. - The company has established a stable profit distribution policy to ensure reasonable returns to shareholders[177]. - The company is classified as a key pollutant discharge unit, with specific pollutants monitored and managed according to national standards[180]. - The company has implemented effective pollution control measures, achieving compliance with the Class A standard for wastewater discharge[

Financial Performance - Operating revenue for the reporting period was ¥200,384,612.24, a decrease of 26.97% compared to the same period last year[7]. - Net profit attributable to shareholders of the listed company was ¥35,012,267.22, an increase of 2.52% year-on-year[7]. - Basic earnings per share for the reporting period were ¥0.068, up by 1.49% year-on-year[7]. - The company reported a net profit increase, with retained earnings rising to CNY 787,360,229.75 from CNY 706,529,600.07, an increase of approximately 11.4%[40]. - Total operating revenue for Q3 2020 was CNY 200,384,612.24, a decrease of 27% compared to CNY 274,368,694.20 in the same period last year[45]. - Net profit for Q3 2020 was CNY 34,321,044.64, a decline of 5.1% from CNY 36,170,091.93 in Q3 2019[47]. - The total comprehensive income for Q3 2020 was CNY 34,321,044.64, down from CNY 36,170,091.93 in the same quarter last year[47]. - Total operating revenue for the current period is $597.55 million, down from $633.37 million in the previous period, representing a decrease of approximately 5.9%[53]. - Net profit for the current period is $107.92 million, compared to $105.45 million in the previous period, reflecting an increase of about 2.3%[54]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,580,638,185.09, an increase of 2.88% compared to the end of the previous year[7]. - The company's total current assets reached CNY 1,506,044,240.37, compared to CNY 1,472,856,081.79 at the end of 2019, indicating an increase of about 2.2%[36]. - The company's total liabilities decreased to CNY 949,458,728.54 from CNY 977,615,407.71, a reduction of approximately 2.9%[39]. - The total non-current assets amounted to CNY 1,074,593,944.72, up from CNY 1,035,639,747.59, indicating an increase of about 3.8%[38]. - The company's total liabilities decreased to CNY 591,894,914.12 from CNY 637,496,010.19, reflecting a reduction of approximately 7.1%[46]. - Total liabilities reached CNY 977,615,407.71, with current liabilities at CNY 697,175,348.64 and non-current liabilities at CNY 280,440,059.07[69]. - The company reported a total asset value of CNY 1,902,391,502.56[73]. Cash Flow - Net cash flow from operating activities was ¥18,216,592.45, a significant increase of 122.39% compared to the previous year[7]. - The net cash flow from investing activities for the period was -24.32 million yuan, a decrease of 131.49% compared to the same period last year, primarily due to increased purchases of short-term financial products[24]. - The net cash flow from financing activities for the period was -1.70 million yuan, an increase of 94.55% compared to the same period last year, mainly due to increased bank borrowings[24]. - The net cash flow from operating activities for the current period is -20,085,306.89, an improvement from -25,399,593.70 in the previous period[62]. - Cash inflow from investment activities totaled 1,045,241,670.95, compared to 766,255,945.03 in the previous period, indicating a significant increase of approximately 36.4%[62]. - The total cash and cash equivalents at the end of the period is 83,594,919.04, down from 137,063,747.98 in the previous period[62]. - Total cash outflow from operating activities is 487,905,505.62, compared to 561,158,813.24 in the previous period, showing a reduction of approximately 13.1%[60]. Shareholder Information - Net assets attributable to shareholders of the listed company were ¥1,571,059,436.57, reflecting a growth of 6.84% year-on-year[7]. - The total number of ordinary shareholders at the end of the reporting period was 39,948[12]. - The largest shareholder, Wang Zhengfu, holds 28.21% of the shares, totaling 146,912,004 shares[12]. - The company's total share capital is 520,710,550 shares, with the number of equity incentive recipients reduced to 68[16]. Contracts and Projects - The company has signed significant contracts, including a 79.80 million yuan contract for the Liaoning nuclear power project, which is currently in the design phase[25]. - The company has also signed a 66.15 million yuan contract for a water treatment system project, which is currently in the equipment ordering phase[26]. - The company signed a contract for the Shenzhen sludge coupling treatment project with a total investment in the project, currently in the equipment installation phase[27]. - The company entered into a contract for the Lianyungang Hongyang Thermal Power Co., Ltd. water supply project, with a total contract amount of approximately 53.03 million yuan, currently in the equipment ordering phase[27]. - The company signed an EPC general contracting agreement for the Dongguan Lingyi Precision Metal Processing Project wastewater treatment station, with a total contract amount of approximately 65.5 million yuan, currently in the equipment ordering and civil construction phase[27]. Compliance and Commitments - There are no overdue commitments from actual controllers, shareholders, related parties, or acquirers during the reporting period[28]. - The company has not experienced any violations of commitments during the reporting period[30]. - There are no violations of external guarantees during the reporting period[31]. - The company does not anticipate any significant changes in net profit compared to the same period last year[31]. - The report indicates the implementation of new revenue and leasing standards starting in 2020, with no retrospective adjustments made[74].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 397,165,889.05, representing a 10.63% increase compared to CNY 358,999,328.86 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was CNY 71,791,917.46, up 6.52% from CNY 67,400,354.68 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was CNY 55,274,092.75, which is a significant increase of 37.19% compared to CNY 40,290,398.58 in the previous year[19]. - The basic earnings per share for the first half of 2020 was CNY 0.140, an increase of 6.87% from CNY 0.131 in the same period last year[19]. - The company's operating revenue for the reporting period reached 397.17 million yuan, an increase of 10.63% compared to the same period last year[39]. - The net profit attributable to shareholders of the listed company was 71.79 million yuan, reflecting a growth of 6.52% year-on-year[39]. - The growth in revenue was primarily driven by the expansion of water environment governance operations and the increase in sludge coupling treatment business[39]. - The company achieved a significant increase in financial expenses by 145.50%, primarily due to the capitalization of project loan interest expenses[68]. - The company reported a total comprehensive income of CNY 73,602,955.19, compared to CNY 69,276,985.73 in the same period last year, an increase of 6.5%[188]. Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 2,569,633,089.52, reflecting a 2.44% increase from CNY 2,508,495,829.38 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company increased by 3.41% to CNY 1,520,579,024.03 from CNY 1,470,410,216.84 at the end of the previous year[19]. - Total liabilities reached CNY 988,242,822.93, compared to CNY 977,615,407.71, showing an increase of about 1.3%[179]. - Owner's equity rose to CNY 1,581,390,266.59 from CNY 1,530,880,421.67, reflecting an increase of approximately 3.3%[180]. - The cash and cash equivalents decreased significantly from CNY 86,220,314.46 to CNY 25,528,825.50, a decline of about 70.4%[182]. - The company reported a decrease in short-term borrowings from CNY 42,055,341.67 to CNY 12,000,000.00, a reduction of about 71.5%[179]. Cash Flow - The net cash flow from operating activities was negative at CNY -38,301,899.34, compared to CNY -33,590,774.90 in the same period last year, indicating a decline of 14.03%[19]. - The company’s cash flow from operating activities was negatively impacted, with a net cash flow of -64,902,903.41 CNY in the first half of 2020, compared to -32,809,458.13 CNY in the same period of 2019[198]. - The total cash inflow from investment activities was 675,271,392.95 CNY in the first half of 2020, up from 536,007,079.65 CNY in the first half of 2019, reflecting increased investment recovery[194]. - The net cash flow from financing activities was 2,813,922.45 CNY in the first half of 2020, a recovery from -13,355,825.99 CNY in the same period of 2019, showing improved financing conditions[195]. Business Operations and Strategy - The company has expanded its main business from water treatment to include solid waste, air pollution control, and an innovation platform, indicating a comprehensive transformation[28]. - The company is actively involved in the development of smart environmental solutions, integrating technologies such as IoT and big data to enhance operational efficiency[35]. - The company is focused on achieving ultra-low emissions and resource utilization in its air pollution control services, catering to key industrial clients[34]. - The company aims to continue leveraging its leading position in niche markets to create value and improve the environment, targeting sustainable development[38]. - The company has developed a dual-wing model of "industry + platform" to enhance its comprehensive solution capabilities and market competitiveness[50]. Market and Industry Outlook - The ecological environment governance industry is expected to maintain rapid growth due to the continuous release of policy dividends and expanding market capacity[43]. - The water industry is projected to have significant market space due to ongoing policies aimed at enhancing wastewater treatment and quality improvement[44]. - The solid waste and soil remediation industry is also anticipated to grow, supported by various government initiatives and regulations[46]. - The environmental protection industry is expected to maintain rapid growth due to national ecological civilization initiatives and the "Beautiful China" strategy, presenting favorable development opportunities for the sector[105]. Innovation and Technology - The company has developed a proprietary "zero discharge" technology that has been successfully promoted in major industrial sectors, contributing to significant wastewater reduction[29]. - The sludge drying coupling treatment technology has been recognized as a top environmental technology in the "Belt and Road" initiative, enhancing the company's competitive edge[31]. - The establishment of a national-level environmental industry innovation platform aims to foster collaboration between government, industry, academia, and finance, driving technological advancements[36]. - The company has a total of 301 patents as of June 30, 2020, with 5 new patents and 4 software copyrights added during the reporting period[51]. Risks and Challenges - The company faces risks from the COVID-19 pandemic, which could impact operations, supply chains, and costs, but also presents opportunities for growth in public ecological environment services[104]. - The company is facing increasing competition in the environmental protection industry as state-owned and social capital enter the market, necessitating the enhancement of its competitive advantages through innovation and collaboration with government and industry funds[105]. - The company’s operating costs are significantly impacted by fluctuations in the prices of steel and chemical products, which have been rising due to national policies and trade tensions, leading to increased pressure on operating costs[106]. Shareholder and Governance - The company has not distributed cash dividends or bonus shares for the half-year period, indicating a focus on reinvestment rather than immediate shareholder returns[113]. - The company has implemented an employee stock ownership plan and a restricted stock incentive plan to attract and retain management talent, thereby reducing management risks associated with its expanding scale[106]. - The company has not engaged in any significant related party transactions during the reporting period[128]. - The company has a good integrity status for both the company and its controlling shareholders during the reporting period[121].

Financial Performance - Total revenue for Q1 2020 was CNY 142,086,520.06, an increase of 0.48% compared to CNY 141,411,046.64 in the same period last year[9]. - Net profit attributable to shareholders was CNY 19,482,895.03, representing a 26.39% increase from CNY 15,415,458.25 year-on-year[9]. - Net profit excluding non-recurring items reached CNY 12,542,930.50, a significant increase of 134.73% from CNY 5,343,470.67 in the previous year[9]. - Basic earnings per share rose to CNY 0.038, up 26.67% from CNY 0.030 in the same period last year[9]. - The total profit for the period was 22.85 million RMB, representing a year-on-year growth of 31.72%[33]. - The company reported a total of 94 million RMB in unrecognized revenue from various environmental engineering contracts at the end of the reporting period[39]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,520,987,431.13, a 0.50% increase from CNY 2,508,495,829.38 at the end of the previous year[9]. - Total liabilities decreased from CNY 977,615,407.71 to CNY 968,765,315.16, a reduction of about 0.9%[57]. - Current liabilities totaled CNY 609,285,653.56, down from CNY 697,175,348.64, indicating a decrease of approximately 12.6%[57]. - Non-current liabilities increased from CNY 280,440,059.07 to CNY 359,479,661.60, reflecting a rise of about 28.2%[57]. - The company's total equity increased from CNY 1,530,880,421.67 to CNY 1,552,222,115.97, a growth of approximately 1.4%[58]. Cash Flow - The net cash flow from operating activities was CNY -53,201,735.93, a decline of 7.14% compared to CNY -49,655,789.85 in the same period last year[9]. - The net cash flow from investing activities for Q1 2020 was -59.24 million CNY, a decrease of 169.46% from 85.28 million CNY in the same period last year[30]. - The net cash flow from financing activities for Q1 2020 was 69.05 million CNY, an increase of 868.03% from -8.99 million CNY in the same period last year[31]. - The company reported a net cash inflow from operating activities of CNY 20,115,202.39, compared to CNY 18,836,223.30 in the previous period, reflecting an increase of approximately 6.8%[72]. - The net cash flow from investment activities was -59,238,828.35 CNY, a decrease from 85,284,312.64 CNY in the previous period, showing a negative shift in investment performance[73]. Shareholder Information - The total number of shareholders at the end of the reporting period was 31,853[13]. - The top shareholder, Wang Zhengfu, holds 28.15% of the shares, totaling 146,912,004 shares[13]. - The company has committed to avoiding any business activities that may compete with its subsidiaries, as stated in the commitment letter from the controlling shareholder[48]. - There were no violations of external guarantees during the reporting period, indicating a stable financial position[50]. Research and Development - The company's R&D expenses for Q1 2020 were 5.30 million CNY, a decrease of 44.20% from 9.49 million CNY in the same period last year, mainly due to reduced investment in R&D projects affected by the pandemic[25]. - The company obtained 2 new patents and 1 software copyright through independent research and development during the reporting period[34]. Market and Operational Strategy - The company aims to accelerate market expansion and improve operational management in 2020, focusing on enhancing performance and brand effect in the ecological environment industry[32]. - The company has successfully transformed its main business from water treatment to a comprehensive environmental governance service provider, expanding its client base and business model[32]. - The company anticipates that the COVID-19 pandemic may have a negative impact on its operations, particularly in terms of supply chain and logistics[42]. - Despite the pandemic, the company believes it will not have a significant long-term adverse effect on its market competitiveness[43]. - The company is facing risks related to market competition, with an increasing number of players entering the environmental protection industry[43]. Inventory and Receivables - The balance of inventory at the end of the period was 65.16 million CNY, a decrease of 63.06% from 176.41 million CNY at the previous year-end, primarily due to the reclassification of inventory to contract assets under the new revenue standards[22]. - The accounts receivable balance has increased due to rapid business growth, with a focus on managing collection risks[45].

Financial Performance - The company's operating revenue for 2019 was ¥906,881,007.69, representing a 13.59% increase compared to ¥798,398,770.69 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥142,921,087.24, which is a 16.91% increase from ¥122,253,315.42 in 2018[18]. - The net cash flow from operating activities increased by 38.27% to ¥71,896,871.76 in 2019, up from ¥51,997,997.08 in 2018[18]. - The total assets at the end of 2019 were ¥2,508,495,829.38, an increase of 8.70% from ¥2,307,769,117.03 at the end of 2018[18]. - The net assets attributable to shareholders increased by 11.79% to ¥1,470,410,216.84 at the end of 2019, compared to ¥1,315,322,845.73 at the end of 2018[18]. - The basic earnings per share for 2019 was ¥0.28, a 16.67% increase from ¥0.24 in 2018[18]. - The company reported a net profit of 41,080,462.29 yuan for the year 2019, an increase from 29,277,458.70 yuan in 2018, representing a growth of approximately 40.2%[25]. - The company achieved a revenue of 906.88 million yuan, representing a year-on-year growth of 13.59%[38]. - The net profit attributable to shareholders reached 142.92 million yuan, an increase of 16.91% compared to the previous year[38]. Dividend Policy - The company plans to distribute a cash dividend of ¥0.5 per 10 shares to all shareholders[6]. - The company reported a net profit attributable to shareholders of RMB 142,921,087.24 for the year 2019, with a proposed cash dividend of RMB 26,097,500.00, which accounts for 18.26% of the net profit[118]. - The company plans to maintain a cash dividend policy, with the cash dividend amounting to 100% of the profit distribution total for the year[116]. - The company has consistently proposed cash dividends over the past three years, reflecting a commitment to providing stable returns to investors[122]. Business Transformation and Expansion - The company has successfully transformed its main business from water treatment to a broader scope including water services, solid waste, and flue gas governance, expanding its customer base from power to non-power industries and municipal sectors[28]. - The company has developed a "zero discharge" technology for wastewater treatment, which has been successfully promoted in major industrial sectors, contributing to significant reductions in wastewater emissions[29]. - The company’s solid waste business utilizes patented core technology for sludge drying and coupling treatment, providing efficient renewable energy utilization and waste reduction solutions[31]. - The company’s air pollution control segment offers integrated technologies for flue gas treatment, including dry and semi-dry desulfurization, and has established itself as a high-tech enterprise in this field[32]. - The company’s smart environmental technology division focuses on providing comprehensive smart industry solutions, leveraging automation, IoT, and big data to enhance operational efficiency and safety for various industries[34]. - The company has established a strong presence in the municipal water treatment sector, providing integrated solutions for urban and industrial wastewater management[30]. - The company successfully expanded its market presence in industrial water treatment and urban water environment governance, particularly through the distributed smart water purification island project with a processing capacity of 60,000 tons per day[57]. Research and Development - The company has established over 20 high-end talent teams and incubated more than 40 enterprises, holding over 400 patents and proprietary technologies[35]. - The company’s investment in R&D and innovation has led to the development of advanced technologies that support its transition to a more diversified business model[28]. - R&D investment amounted to ¥43,623,728.28 in 2019, representing 4.81% of total revenue, an increase from 4.56% in 2018[84]. - The number of R&D personnel increased to 141 in 2019, accounting for 26.40% of the total workforce, up from 23.11% in 2018[84]. - Key research projects include the development of chemical wastewater treatment technology, currently in the conclusion phase[83]. - The company is in the research phase for zero discharge technology for high-salinity wastewater, aiming to enhance resource recovery and reduce operational costs[83]. Market Outlook and Industry Trends - The ecological environment governance industry is expected to continue expanding, driven by policies aimed at pollution prevention and ecological protection[41]. - The water industry market is projected to grow significantly due to the implementation of various government initiatives, including the "Three-Year Action Plan for Urban Sewage Treatment" from 2019 to 2021[42]. - The solid waste industry, particularly in sludge and agricultural waste treatment, is anticipated to maintain a strong growth trajectory due to ongoing policy support[43]. - The flue gas governance market is expected to exceed 100 billion yuan during the "13th Five-Year Plan" period, driven by national policy initiatives[44]. Risk Management - The company has outlined potential risks and corresponding countermeasures in its future development outlook section[6]. - The company is facing risks from the COVID-19 pandemic, which could impact its operations and increase costs, but it also sees opportunities in the environmental services sector due to heightened public health awareness[108]. - The company is actively managing risks related to accounts receivable, with measures in place to enhance contract management and collection efforts[110]. - The company is addressing cost control risks by adjusting procurement strategies and optimizing supplier configurations to mitigate the impact of rising material costs[110]. Corporate Governance - The company has implemented a restricted stock incentive plan to enhance the motivation of its management team and business backbone, contributing to sustained performance growth[52]. - The company has established an emergency response plan for environmental incidents, which has been filed with the relevant authorities[172]. - The company has implemented an environmental self-monitoring program in accordance with national standards for pollution source monitoring[172]. - The company has maintained a good integrity status for both itself and its controlling shareholders during the reporting period[132]. Shareholder Information - The company has a total share capital of 521,950,000 shares as of December 31, 2019, with a capital reserve balance of RMB 198,184,850.40[118]. - The largest shareholder, Wang Zhengfu, holds 28.15% of the shares, totaling 146,912,004 shares, with 110,184,003 shares under lock-up[184]. - The company has a total of 33,391 shareholders at the end of the reporting period[184]. - The company’s restricted shares are subject to a 25% annual unlock schedule for executives, with additional restrictions post-termination[181].