Financial Performance - Total revenue for Q1 2018 was ¥50,104,613.22, representing a 45.38% increase compared to ¥34,464,750.71 in the same period last year[8] - Net profit attributable to shareholders was ¥8,089,472.57, up 12.37% from ¥7,198,721.31 year-on-year[8] - Basic earnings per share decreased by 11.11% to ¥0.08 from ¥0.09 in the previous year[8] - The company reported a total revenue of CNY 50.10 million for the period, representing a year-on-year increase of 45.38% primarily due to increased revenue from environmental engineering projects[21] - In Q1 2018, the company achieved operating revenue of 50.10 million yuan, an increase of 45.38% year-on-year[22] - The net profit attributable to shareholders was 8.09 million yuan, representing a year-on-year growth of 12.37%[22] - The net profit for the period was CNY 8,739,161.60, compared to CNY 7,724,458.63 in the previous year, reflecting an increase of approximately 13.1%[46] - The profit attributable to the parent company's shareholders was CNY 8,089,472.57, up from CNY 7,198,721.31, marking a growth of about 12.4%[46] Cash Flow and Liquidity - The net cash flow from operating activities was -¥51,890,784.22, a decline of 25.60% compared to -¥41,313,194.48 in the same period last year[8] - Cash and cash equivalents at the end of the reporting period amounted to CNY 49.60 million, an increase of 79.64% compared to the end of the previous year, mainly due to the maturity of financial products during the period[20] - Cash inflows from operating activities totaled CNY 48,158,849.30, up from CNY 30,513,921.85 in the previous period, representing a growth of approximately 57.9%[53] - Cash outflows from operating activities amounted to CNY 100,049,633.52, compared to CNY 71,827,116.33 in the previous period, indicating an increase of about 39.4%[53] - The net cash flow from investment activities was CNY 77,142,314.20, compared to CNY 9,581,626.59 in the previous period, showing a substantial increase[54] - The ending balance of cash and cash equivalents was CNY 49,604,635.50, compared to CNY 23,276,056.40 in the previous period, reflecting a significant increase[54] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,056,723,986.26, down 1.35% from ¥1,071,138,166.91 at the end of the previous year[8] - The company's total assets decreased to CNY 716,776,602.22 from CNY 731,320,989.97, a decline of approximately 2.0%[42] - The total liabilities decreased to 286,911,425.27 yuan from 310,064,767.52 yuan, showing a reduction of approximately 7.5%[39] - The total liabilities decreased from CNY 143,725,598.13 to CNY 128,149,530.72, representing a reduction of about 10.9%[42] - The company's equity attributable to shareholders increased to 705,558,998.78 yuan from 697,469,526.21 yuan, marking a growth of about 1.6%[39] Operational Highlights - The company's operating costs increased by 92.73% to CNY 33.22 million, attributed to a higher volume of engineering project activities[20] - The total operating costs amounted to CNY 41,189,298.50, up from CNY 26,059,600.06, indicating a rise of about 58.2%[44] - The company recorded an investment income of CNY 0.77 million, a significant increase of 893.45% year-on-year, driven by higher returns from financial investments[20] - The company reported an operating profit of CNY 12,313,718.95, an increase from CNY 8,482,433.37, which is a growth of approximately 45.5%[45] Risks and Challenges - The company faces risks related to customer concentration, with a high dependency on a few major clients, which could impact revenue stability[11] - The company is exploring new business models such as PPP in the environmental sector, which carries inherent uncertainties and risks[11] - The company is facing risks related to project delays due to government land acquisition issues[22] - Management is focused on enhancing internal controls and risk management to mitigate potential risks associated with business expansion[12] Shareholder Information - The company announced a cash dividend of 0.5 yuan per 10 shares, totaling a distribution based on 10,667,000 shares, alongside a capital reserve conversion of 5 shares for every 10 shares held[28] - The company has not experienced significant changes in its top five suppliers, which will not impact operations[22] - Changes in the top five customers occurred due to the nature of project-based contracts, leading to a dynamic customer base[22] Fund Utilization - The company has invested a total of 14.67 million yuan from the raised funds, with 2.54 million yuan invested in the current quarter[25] - The total amount of raised funds is 200.07 million yuan, with no changes in usage reported[25] - As of March 31, 2018, the company had 54.83 million yuan of unutilized raised funds, with 30 million yuan invested in financial products[27] - The company has a commitment to replace self-raised funds with raised funds amounting to approximately 94.77 million yuan[27] Compliance and Audit - The report for the first quarter was not audited[58] - The company reported no non-compliance with external guarantees during the reporting period[30] - There were no significant changes in net profit or warnings of potential losses compared to the previous year[29] - The company did not report any non-operating fund occupation by controlling shareholders or related parties during the reporting period[31]

Customer Concentration and Revenue - The top five customers accounted for 63.88% of the total revenue, indicating a high customer concentration risk [4] - The wastewater treatment business accounted for 50.44% of total revenue, while the environmental engineering business contributed 49.49% [47] - The Anhui region contributed 70% of total revenue, with a significant year-on-year growth of 58.68% [52] - In Anhui region, revenue was ¥162,764,163.88, up 34.03% year-on-year, while Shandong region saw a 52.94% increase to ¥69,768,718.07 [55] Financial Performance - The company's operating revenue for 2017 was CNY 232,532,881.95, representing a 30.72% increase compared to CNY 177,891,397.43 in 2016 [23] - The net profit attributable to shareholders for 2017 was CNY 50,688,840.99, a 9.74% increase from CNY 46,187,847.24 in 2016 [23] - The net cash flow from operating activities was negative CNY 92,453,543.85, a decline of 216.36% compared to positive CNY 79,455,116.27 in 2016 [23] - The total assets at the end of 2017 amounted to CNY 1,071,138,166.91, a 32.48% increase from CNY 808,533,929.60 at the end of 2016 [23] - The net assets attributable to shareholders increased by 56.13% to CNY 697,469,526.21 at the end of 2017 from CNY 446,712,424.84 at the end of 2016 [23] Cash Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares, with a capital reserve conversion of 5 shares for every 10 shares held [10] - The total distributable profit for the year 2017 is reported at 168,124,395.36 CNY [107] - The cash dividend policy stipulates that at least 10% of the distributable profit must be distributed as cash dividends annually, contingent on positive distributable profits and sufficient cash flow [105] - The company has a policy to distribute at least 20% of profits as cash dividends when in a growth phase with significant capital expenditures [108] - The company’s profit distribution decision-making process involves consultation with independent directors and requires a two-thirds majority approval from the board [106] Risk Management and Operational Challenges - All operating income is generated from Anhui and Shandong provinces, which may impact profitability and hinder business expansion in other regions [4] - Investment projects are subject to risks from changes in national policies and macroeconomic conditions, potentially delaying project completion and cash flow [6] - The company recognizes risks associated with investment projects, including potential delays and financial impacts due to changes in national policies and market conditions [98] - The company is committed to managing risks related to the new PPP business model, including policy uncertainties and project profitability concerns [98] Growth Strategies and Market Expansion - The company aims to enhance its competitive edge by expanding its market presence and investing in technology innovation in the wastewater treatment and environmental engineering sectors [34] - The company plans to accelerate market expansion across China, currently concentrated in Anhui and Shandong provinces, by enhancing team building and increasing R&D investment [96] - The company is actively exploring new strategies to enhance its market position and operational scale through potential mergers and acquisitions [94] - The company aims to expand its water treatment business, focusing on urban sewage and industrial park wastewater treatment, to establish a foundational revenue stream and connect with clients [95] Research and Development - Research and development (R&D) investment amounted to 8,104,494.95 yuan, accounting for 3.49% of operating revenue, up from 2.23% in 2016 [63] - The number of R&D personnel increased to 43, representing 14.53% of the total workforce, compared to 8.39% in 2016 [63] - The company is investing 50 million RMB in research and development for sustainable technologies over the next two years [185] Environmental and Technological Focus - The company is actively exploring PPP business models in the environmental sector, but faces uncertainties related to policy and project profitability [7] - The company has established a strong position in the wastewater treatment sector, focusing on urban sewage and industrial wastewater treatment, and has developed core technologies for efficient treatment processes [39] - The wastewater treatment industry in China is experiencing rapid growth, with a significant increase in the number of treatment plants and urban coverage, yet it remains in its early stages [38] Governance and Compliance - The company has established a clear and transparent decision-making mechanism for profit distribution, ensuring the protection of minority shareholders' rights [107] - The company has committed to maintaining transparency and accountability in its financial reporting practices [121] - The company has a clear governance structure with independent directors ensuring oversight and strategic guidance [178] Shareholder and Management Information - The total remuneration for directors, supervisors, and senior management during the reporting period was 1.5245 million CNY [195] - The company employed a total of 296 staff, including 127 production personnel, 11 sales personnel, 100 technical personnel, 24 financial personnel, and 34 administrative personnel [198] - The management team includes professionals with advanced degrees and significant industry experience, contributing to the company's operational effectiveness [180]

Financial Performance - Operating revenue for the reporting period was ¥53,697,020.59, representing a year-on-year growth of 37.99%[7] - Net profit attributable to shareholders was ¥15,661,228.06, up 9.49% compared to the same period last year[7] - The net profit after deducting non-recurring gains and losses was ¥15,632,103.14, reflecting a 9.75% increase year-on-year[7] - Operating profit for the current period was ¥19,521,629.43, compared to ¥12,307,137.89 in the previous period, reflecting a growth of approximately 58.8%[38] - Net profit for the current period was ¥16,918,616.22, an increase from ¥14,535,105.53, which is a growth of around 16.4%[38] - Total comprehensive income for the current period was ¥16,918,616.22, compared to ¥14,535,105.53, indicating an increase of about 16.4%[39] - The company's total operating revenue for the year-to-date reached ¥130,065,805.61, up from ¥101,512,360.68, representing a growth of approximately 28.2%[44] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,028,544,145.93, an increase of 27.21% compared to the previous year[7] - Net assets attributable to shareholders increased by 52.50% to ¥681,216,543.88 from ¥446,712,424.84[7] - Total current assets increased to CNY 361,788,256.71 from CNY 189,898,725.61, representing an increase of approximately 90.5%[29] - Total non-current assets amounted to CNY 666,755,889.22, up from CNY 618,635,203.99, indicating a growth of approximately 7.1%[30] - The total liabilities decreased to CNY 289,864,396.16 from CNY 313,017,407.52, reflecting a decline of about 7.4%[31] - Total current liabilities decreased to CNY 139,159,779.43 from CNY 162,874,505.73, a reduction of approximately 14.5%[31] Cash Flow - The net cash flow from operating activities was negative at -¥21,788,462.55, a decline of 128.03% compared to the previous year[7] - Net cash flow from investing activities increased by 303.81% to CNY 13.19 million, due to reduced fixed asset investments[19] - Net cash flow from financing activities increased by 306.69% to CNY 163.95 million, primarily from funds raised during the period[19] - The company reported a net cash outflow from operating activities of CNY -21,788,462.55, contrasting with a net inflow of CNY 77,732,368.89 in the previous year[53] - The net cash flow from financing activities was 185,396,302.70 CNY, a substantial improvement from -26,155,679.96 CNY year-over-year[56] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,743[11] - The top ten shareholders held a combined 72.56% of the company's shares, with the largest shareholder holding 21.56%[11] - The company issued 26.67 million shares, which began trading on the Shenzhen Stock Exchange on August 21, 2017[20] Inventory and Prepayments - Prepayments increased by 389.6% to CNY 6.75 million, attributed to increased advance payments for ongoing environmental projects[18] - Inventory rose by 338.46% to CNY 45.52 million, primarily due to the increase in unsettled environmental project costs[18] - Inventory surged to CNY 45,517,477.96 from CNY 10,381,313.24, reflecting an increase of about 338.5%[29] Earnings Per Share - The basic earnings per share remained at ¥0.18, unchanged from the previous year, while diluted earnings per share also stood at ¥0.18[7] - Earnings per share (EPS) remained stable at ¥0.18 for both the current and previous periods[39] - Earnings per share (EPS) for Q3 2017 was CNY 0.42, compared to CNY 0.33 in Q3 2016, reflecting a 27.3% increase[47]