[Important Notes](index=1&type=section&id=Important%20Notes) This report emphasizes the assurance of truthfulness, accuracy, and completeness by the board, supervisory board, senior management, and key financial personnel, noting that the quarterly report is unaudited - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report and assume legal responsibility[3](index=3&type=chunk) - The company's responsible person, chief accounting officer, and head of the accounting department declare to guarantee the truthfulness, accuracy, and completeness of financial information[3](index=3&type=chunk) - The first quarter report is unaudited[4](index=4&type=chunk)[30](index=30&type=chunk) [I. Key Financial Data](index=2&type=section&id=Section%201%20Key%20Financial%20Data) [1.1 Key Accounting Data and Financial Indicators](index=2&type=section&id=1.1%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's operating revenue increased by 6.17% year-on-year in Q1 2023, with net profit attributable to shareholders turning profitable, up 107.41%, while net cash flow from operating activities decreased by 19.27% 2023 Q1 Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 67,858,833.09 | 63,917,753.54 | 6.17% | | Net Profit Attributable to Shareholders of Listed Company | 637,590.58 | -8,609,986.87 | 107.41% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 419,856.25 | 175,677.75 | 138.99% | | Net Cash Flow from Operating Activities | -61,350,431.45 | -51,438,305.23 | -19.27% | | Basic Earnings Per Share (CNY/share) | 0.01 | -0.09 | 111.11% | | Diluted Earnings Per Share (CNY/share) | 0.01 | -0.09 | 111.11% | | Weighted Average Return on Net Assets | 0.07% | -0.91% | 0.98% | | **Period-end Indicator** | **Current Period-end (CNY)** | **Prior Year-end (CNY)** | **Period-end vs. Prior Year-end Change (%)** | | Total Assets | 1,496,404,478.05 | 1,584,997,401.40 | -5.59% | | Owners' Equity Attributable to Shareholders of Listed Company | 962,807,617.63 | 962,184,789.59 | 0.06% | [1.2 Non-recurring Gains and Losses](index=2&type=section&id=1.2%20Non-recurring%20Gains%20and%20Losses) Total non-recurring gains and losses for the current period amounted to 217,734.33 CNY, primarily comprising government subsidies and fair value changes, with VAT refunds classified as recurring due to their close relation to core business 2023 Q1 Non-recurring Gains and Losses | Item | Amount for Current Period (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -6,047.21 | | Government subsidies recognized in current profit and loss | 548,561.36 | | Gains and losses from changes in fair value and investment income from disposal of financial assets | -237,417.10 | | Other non-operating income and expenses | -24,170.03 | | Less: Income tax impact | 109,647.81 | | Impact on minority interests (after tax) | -46,455.12 | | **Total** | **217,734.33** | - The company classifies **VAT refunds of 1,861,132.32 CNY** as recurring gains and losses, as they are closely related to its main business and are expected to be continuously obtained, reflecting normal operating activities and profitability[9](index=9&type=chunk) [1.3 Changes in Key Accounting Data and Reasons](index=3&type=section&id=1.3%20Changes%20in%20Key%20Accounting%20Data%20and%20Reasons) Accounts receivable financing, prepayments, construction in progress, and contract liabilities significantly increased due to higher bank acceptance bills, increased prepaid engineering costs, and investment in the Wuhan Yihecheng technical renovation project; sales and R&D expenses rose due to increased employee compensation, while financial expenses decreased significantly due to higher interest income from accounts receivable; operating cash flow declined due to reduced cash from sales and services Major Changes in Balance Sheet Items | Item | March 31, 2023 (CNY) | December 31, 2022 (CNY) | Change Rate (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 4,789,649.06 | 290,000.00 | 1551.60% | Increase in bank acceptance bills with higher credit ratings | | Prepayments | 5,106,262.58 | 2,791,942.21 | 82.89% | Increase in prepaid engineering costs | | Construction in Progress | 4,507,587.54 | 3,316,119.51 | 35.93% | Increase in Wuhan Yihecheng technical renovation project | | Contract Liabilities | 13,888,066.81 | 5,192,086.69 | 167.49% | Increase in prepaid engineering costs received | | Other Non-current Assets | 241,519.00 | 833,873.83 | -71.04% | Decrease in prepaid long-term assets | Major Changes in Income Statement Items | Item | Jan-Mar 2023 (CNY) | Jan-Mar 2022 (CNY) | Change Rate (%) | Explanation | | :--- | :--- | :--- | :--- | | Sales Expenses | 6,545,409.49 | 5,021,808.03 | 30.34% | Increase in employee compensation, business entertainment, and travel expenses | | R&D Expenses | 3,694,623.80 | 2,068,906.03 | 78.58% | Increase in R&D personnel compensation | | Financial Expenses | -2,230,103.26 | 122,329.23 | 1923.03% | Increase in interest income from accounts receivable | | Other Income | 2,409,693.68 | 1,185,719.80 | 103.23% | Increase in VAT immediate refund received | | Gains/Losses from Changes in Fair Value | -455,060.29 | -8,877,068.65 | 94.87% | Decrease in share price of Salt Lake Co. Ltd | | Asset Impairment Losses (losses indicated by "-") | 1,807,998.38 | -2,069,525.18 | 187.36% | Decrease in contract assets, reversal of asset impairment provisions | Major Changes in Cash Flow Statement Items | Item | Jan-Mar 2023 (CNY) | Jan-Mar 2022 (CNY) | Change Rate (%) | Explanation | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -61,350,431.45 | -51,438,305.23 | -19.27% | Decrease in cash received from sales of goods and provision of services | | Net Cash Flow from Investing Activities | 10,169,074.05 | 52,869,049.86 | -80.77% | Decrease in wealth management investment activities | | Net Cash Flow from Financing Activities | -593,222.48 | -288,744.39 | -105.45% | Decrease in financing activities | [II. Shareholder Information](index=4&type=section&id=Section%202%20Shareholder%20Information) [2.1 Top Ten Common Shareholders and Voting Rights of Preferred Shareholders](index=4&type=section&id=2.1%20Top%20Ten%20Common%20Shareholders) As of the end of the reporting period, the company had 8,313 common shareholders, with Ge Fang, Kong Xiongjun, and Liu Qingsong as major individual shareholders, and Shenzhen Capital Group and its affiliates also among the top ten, with existing related party relationships - Total number of common shareholders at the end of the reporting period was **8,313**[13](index=13&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage (%) | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Ge Fang | Domestic Natural Person | 23.06% | 22,847,500.00 | 22,847,500.00 | | Kong Xiongjun | Domestic Natural Person | 13.73% | 13,601,500.00 | 13,601,500.00 | | Liu Qingsong | Domestic Natural Person | 11.13% | 11,025,000.00 | 8,662,500.00 | | Shenzhen Capital Group Co., Ltd. | State-owned Legal Person | 3.23% | 3,197,849.00 | 0.00 | | Shenzhen Zhonglan Futong Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 3.03% | 3,002,500.00 | 3,002,500.00 | | Kong Lijun | Domestic Natural Person | 2.78% | 2,750,000.00 | 2,750,000.00 | | Beijing Qingshan Zhengshi Investment Management Center (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.72% | 2,697,900.00 | 0.00 | | Shenzhen Guozhong SME Development Private Equity Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.71% | 2,690,000.00 | 0.00 | | Shenzhen Dingqing Venture Capital Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.16% | 2,138,000.00 | 0.00 | | Shenzhen Luohu Hongtu Venture Capital Management Co., Ltd. - Shenzhen Luohu Hongtu Venture Capital Co., Ltd. | Domestic Non-state-owned Legal Person | 2.15% | 2,132,151.00 | 0.00 | - Shenzhen Capital Group Co., Ltd. has related party relationships with Shenzhen Luohu Hongtu Venture Capital Co., Ltd., Shenzhen Hongtu Chuangke Venture Capital Partnership (Limited Partnership), and Shenzhen Guozhong SME Development Private Equity Investment Partnership (Limited Partnership)[14](index=14&type=chunk) [2.2 Preferred Shareholders](index=5&type=section&id=2.2%20Preferred%20Shareholders) The company has no preferred shareholders - The company has no preferred shareholders[15](index=15&type=chunk) [2.3 Changes in Restricted Shares](index=5&type=section&id=2.3%20Changes%20in%20Restricted%20Shares) During the reporting period, the total number of restricted shares remained unchanged, with major restricted shareholders including Ge Fang, Kong Xiongjun, and Liu Qingsong, primarily due to pre-IPO restrictions or executive lock-up, with most restrictions expected to be lifted on September 16, 2024 Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ge Fang | 22,847,500.00 | 0.00 | 0.00 | 22,847,500.00 | Pre-IPO restricted shares | September 16, 2024 | | Kong Xiongjun | 13,601,500.00 | 0.00 | 0.00 | 13,601,500.00 | Pre-IPO restricted shares | September 16, 2024 | | Liu Qingsong | 8,662,500.00 | 0.00 | 0.00 | 8,662,500.00 | Executive lock-up shares | End of executive lock-up period | | Shenzhen Zhonglan Futong Investment Partnership | 3,002,500.00 | 0.00 | 0.00 | 3,002,500.00 | Pre-IPO restricted shares | September 16, 2024 | | Kong Lijun | 2,750,000.00 | 0.00 | 0.00 | 2,750,000.00 | Pre-IPO restricted shares | September 16, 2024 | | Total | 52,801,500.00 | 0.00 | 0.00 | 52,801,500.00 | | | - The total number of restricted shares remained unchanged during the reporting period[16](index=16&type=chunk)[17](index=17&type=chunk) [III. Other Important Matters](index=6&type=section&id=Section%203%20Other%20Important%20Matters) The company disclosed two significant announcements during the reporting period: the signing of a major contract involving related party transactions and the change of certain raised fund special accounts, both published on Juchao Information Network - The company disclosed the "Announcement on the Company Signing a Major Contract and Related Party Transactions" on February 28, 2023[18](index=18&type=chunk) - The company disclosed the "Announcement on Changing Certain Raised Fund Special Accounts" on February 28, 2023[18](index=18&type=chunk) [IV. Quarterly Financial Statements](index=6&type=section&id=Section%204%20Quarterly%20Financial%20Statements) [4.1 Consolidated Balance Sheet](index=6&type=section&id=4.1%20Consolidated%20Balance%20Sheet) As of March 31, 2023, the company's total assets were 1.496 billion CNY, a 5.59% decrease from the beginning of the year, with total current assets at 1.073 billion CNY, non-current assets at 423 million CNY, total liabilities at 509 million CNY, and total owners' equity at 988 million CNY Consolidated Balance Sheet Key Data (March 31, 2023) | Item | Period-end Balance (CNY) | Year-start Balance (CNY) | | :--- | :--- | :--- | | Cash and Bank Balances | 117,921,010.83 | 165,493,838.84 | | Financial Assets Held for Trading | 60,716,769.44 | 70,971,829.73 | | Accounts Receivable | 265,106,953.16 | 303,614,712.88 | | Contract Assets | 506,580,338.93 | 513,245,162.77 | | Total Current Assets | 1,073,026,780.07 | 1,153,925,147.43 | | Total Non-current Assets | 423,377,697.98 | 431,072,253.97 | | **Total Assets** | **1,496,404,478.05** | **1,584,997,401.40** | | Accounts Payable | 343,085,965.74 | 427,102,880.65 | | Contract Liabilities | 13,888,066.81 | 5,192,086.69 | | Total Current Liabilities | 496,965,273.69 | 585,156,147.35 | | Total Non-current Liabilities | 11,724,512.22 | 12,580,711.42 | | **Total Liabilities** | **508,689,785.91** | **597,736,858.77** | | Total Owners' Equity Attributable to Parent Company | 962,807,617.63 | 962,184,789.59 | | Minority Interests | 24,907,074.51 | 25,075,753.04 | | **Total Owners' Equity** | **987,714,692.14** | **987,260,542.63** | | **Total Liabilities and Owners' Equity** | **1,496,404,478.05** | **1,584,997,401.40** | [4.2 Consolidated Income Statement](index=8&type=section&id=4.2%20Consolidated%20Income%20Statement) In Q1 2023, the company achieved total operating revenue of 67.86 million CNY, a 6.17% year-on-year increase, with net profit of 468,912.06 CNY, a significant turnaround from a loss of 8.43 million CNY in the prior year, and net profit attributable to parent company owners of 637,590.58 CNY Consolidated Income Statement Key Data (Jan-Mar 2023) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 67,858,833.09 | 63,917,753.54 | | Total Operating Costs | 77,189,191.28 | 69,253,736.11 | | Sales Expenses | 6,545,409.49 | 5,021,808.03 | | Administrative Expenses | 15,652,917.22 | 13,633,738.14 | | R&D Expenses | 3,694,623.80 | 2,068,906.03 | | Financial Expenses | -2,230,103.26 | 122,329.23 | | Other Income | 2,409,693.68 | 1,185,719.80 | | Investment Income | 2,418,489.32 | 1,991,833.76 | | Gains/Losses from Changes in Fair Value | -455,060.29 | -8,877,068.65 | | Asset Impairment Losses (losses indicated by "-") | 1,807,998.38 | -2,069,525.18 | | Operating Profit (Loss) | -215,845.88 | -9,967,369.10 | | Total Profit (Loss) | -246,063.12 | -9,998,220.24 | | Income Tax Expense | -714,975.18 | -1,572,743.65 | | **Net Profit (Net Loss)** | **468,912.06** | **-8,425,476.59** | | Net Profit Attributable to Parent Company Owners | 637,590.58 | -8,609,986.87 | | Basic Earnings Per Share (CNY/share) | 0.01 | -0.09 | [4.3 Consolidated Cash Flow Statement](index=10&type=section&id=4.3%20Consolidated%20Cash%20Flow%20Statement) In Q1 2023, net cash flow from operating activities was -61.35 million CNY, a 19.27% year-on-year decrease; net cash flow from investing activities was 10.17 million CNY, a significant 80.77% decrease primarily due to reduced wealth management investments; net cash flow from financing activities was -593,222.48 CNY Consolidated Cash Flow Statement Key Data (Jan-Mar 2023) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -61,350,431.45 | -51,438,305.23 | | Net Cash Flow from Investing Activities | 10,169,074.05 | 52,869,049.86 | | Net Cash Flow from Financing Activities | -593,222.48 | -288,744.39 | | Net Increase in Cash and Cash Equivalents | -51,781,369.97 | 1,135,337.77 | | Cash and Cash Equivalents at End of Period | 101,122,437.45 | 101,188,967.18 | - Net cash flow from operating activities decreased by **19.27%**, primarily due to a reduction in cash received from sales of goods and provision of services[11](index=11&type=chunk)[28](index=28&type=chunk) - Net cash flow from investing activities significantly decreased by **80.77%**, mainly due to a reduction in wealth management investment activities compared to the prior period[11](index=11&type=chunk)[29](index=29&type=chunk) [4.4 Audit Report](index=11&type=section&id=4.4%20Audit%20Report) The company's 2023 first quarter report is unaudited - The company's first quarter report is unaudited[30](index=30&type=chunk)

Financial Performance - The company reported a significant increase in revenue, with total revenue reaching RMB 99,094,000 for the year 2022, marking a year-on-year growth of 15%[12]. - The company's operating revenue for 2022 was ¥722,842,023.92, representing a 3.43% increase compared to ¥698,880,444.69 in 2021[28]. - The net profit attributable to shareholders decreased by 72.36% to ¥28,133,163.41 in 2022 from ¥101,781,425.85 in 2021[28]. - Basic and diluted earnings per share dropped by 77.78% to ¥0.28 in 2022 from ¥1.26 in 2021[28]. - The company reported a significant decline in the weighted average return on equity, which fell to 2.92% in 2022 from 13.58% in 2021, a decrease of 10.66%[28]. - The cash flow from operating activities improved significantly, with a net amount of ¥1,829,438.70 in 2022, compared to a negative cash flow of -¥46,968,124.55 in 2021, marking a 103.90% increase[28]. - The company’s consolidated net profit for the year is 28,133,163.41 yuan, with cumulative undistributed profits of 358,727,609.36 yuan[181]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.5 per 10 shares to all shareholders, based on the aforementioned revenue figure[12]. - The total distributable profit at the end of the reporting period is 279,835,689.41 yuan[181]. Operational Challenges - The company is facing risks related to accounts receivable management, with an increase in accounts receivable corresponding to revenue growth, which may impact liquidity and operational efficiency[8]. - The company acknowledges the risk of raw material price fluctuations, particularly for geosynthetic materials, which are influenced by international oil prices[10]. - The company emphasizes the importance of timely collection of accounts receivable to improve cash flow and avoid bad debt losses[8]. - The company is expanding into renewable resource utilization and landfill comprehensive operation, facing potential cash flow pressures if project settlements or accounts receivable are delayed[136]. Strategic Initiatives - The company is committed to enhancing its core competitiveness through R&D and expanding into new business areas to mitigate intensified industry competition[7]. - The company is closely monitoring changes in industry policies and market conditions to adapt its strategies accordingly, ensuring compliance and responsiveness to potential risks[4]. - The company is actively pursuing market expansion opportunities while being cautious of uncertainties in the global economic recovery phase[9]. - The company is focusing on the steady development of biomass power generation, optimizing the layout for urban waste incineration power generation, and exploring the potential for biomass power generation combined with carbon capture, utilization, and storage[47]. Environmental Commitment - The company is involved in the construction of "waste-free cities," with 109 cities included in the initiative across 31 provinces and municipalities[47]. - The company is committed to the development of non-grain biomass liquid fuels, supporting advanced technology equipment for biodiesel and bio-aviation kerosene[47]. - The company is enhancing its capabilities in environmental risk management for toxic and harmful chemical substances, with a focus on new pollutant governance by 2025[47]. - The company is actively managing raw material procurement to mitigate risks associated with price volatility[136]. Research and Development - The company has increased its R&D personnel by 42.55%, from 47 in 2021 to 67 in 2022, with R&D personnel now accounting for 18.41% of the total workforce[99]. - Research and development expenses increased by 6.86% year-on-year, amounting to ¥27,506,084.27 in 2022[91]. - The company has successfully applied its core technology in over 600 projects across 31 provinces and regions in China and several countries along the "Belt and Road" initiative[76]. - The company has developed a high-efficiency garbage screening device, which has been patented (patent number 2022212785915), aimed at increasing the screening efficiency by 20%[97]. Governance and Management - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, ensuring a sustainable business model[142]. - The company has established a complete independent financial accounting system and does not share bank accounts with its controlling shareholders[143]. - The company has implemented a robust internal management and control system, ensuring compliance with corporate governance standards[140]. - The board of directors consists of 11 members, including 4 independent directors, and held 7 meetings during the reporting period, all conducted in accordance with legal requirements[141]. Market Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[160]. - The solid waste treatment industry in China is expected to grow significantly due to supportive government policies, including the prohibition of solid waste imports and the promotion of "waste-free cities"[125]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[160]. - The company aims to leverage its expertise in environmental engineering to capture new business opportunities in the growing green technology market[155].

证券代码：300854 证券简称：中兰环保 中兰环保科技股份有限公司投资者关系活动记录表 编号：2022-01 | --- | --- | --- | |-----------------------|-------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------| | | | | | 投资者关系活动 | 特定对象调研 | 分析师会议 | | 类别 | 媒体采访 | 业绩说明会 | | | 新闻发布会 | 路演活动 | | | 现场参观 | | | | 其他 | （请文字说明其他活动内容） | | 参与单位名称及 | | 通过全景网"投资者关系互动平台"参与公司 2021 年度网上 | | 人员姓 ...

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[Key Financial Data](index=2&type=section&id=Item%20I.%20Key%20Financial%20Data) This section presents the company's key financial data, including significant changes in revenue, net profit, and cash flow for the reporting period [Key Accounting Data and Financial Indicators](index=2&type=section&id=Item%20%28I%29.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first three quarters of 2022, the company achieved year-on-year revenue growth, but net profit attributable to shareholders of the listed company significantly declined by 79.67%, with the third quarter alone showing a 27.36% revenue decrease and a shift from profit to loss, indicating significant pressure on profitability Key Financial Indicators for the First Three Quarters of 2022 | Indicator | Year-to-Date | Year-on-Year Change from Beginning of Year to End of Reporting Period | | :--- | :--- | :--- | | Operating Revenue (Yuan) | 496,662,357.70 | 10.33% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | 15,304,130.72 | -79.67% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) (Yuan) | 33,701,975.85 | -6.83% | | Net Cash Flow from Operating Activities (Yuan) | -60,022,362.52 | -30.88% | | Basic Earnings Per Share (Yuan/share) | 0.15 | -85.15% | | Weighted Average Return on Net Assets | 1.60% | -9.36% | Key Financial Indicators for Q3 2022 | Indicator | Current Reporting Period | Year-on-Year Change from Prior Period | | :--- | :--- | :--- | | Operating Revenue (Yuan) | 135,850,238.33 | -27.36% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | -6,674,438.10 | -115.50% | [Non-recurring Gains and Losses and Amounts](index=2&type=section&id=Item%20%28II%29.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) The company's significant net profit decline in the first three quarters of 2022 was primarily due to non-recurring losses totaling **18.40 million Yuan**, with fair value changes from financial assets held for trading (Salt Lake Co. shares) accounting for **16.34 million Yuan** of this loss Non-recurring Gains and Losses Items from Beginning of Year to End of Reporting Period | Item | Amount from Beginning of Year to End of Reporting Period (Yuan) | Explanation | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 618,876.52 | - | | Government Grants | 1,033,035.62 | - | | Gains and Losses from Fair Value Changes of Financial Assets Held for Trading | -16,342,836.88 | Primarily due to the decline in share price of Salt Lake Co. (SZ.000792) shares | | **Total** | **-18,397,845.13** | **--** | [Analysis of Changes in Key Financial Data and Indicators](index=3&type=section&id=Item%20%28III%29.%20Analysis%20of%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the significant decline in the company's net profit was primarily due to substantial fair value losses from the decline in Salt Lake Co. share price and increased credit and asset impairment losses caused by slower customer settlements and payments, alongside notable changes in balance sheet items like financial assets held for trading and long-term receivables - Net profit decreased by **82.03%** year-on-year, primarily due to: 1) Significant fair value losses from the decline in Salt Lake Co. share price; 2) Increased credit and asset impairment losses due to slower customer collections[10](index=10&type=chunk) - Fair value change income decreased by **153.68%** year-on-year, shifting from a **34.82 million Yuan** gain in the prior period to an **18.69 million Yuan** loss, mainly due to the decline in Salt Lake Co. share price[10](index=10&type=chunk) - Total credit impairment losses and asset impairment losses increased by approximately **12 million Yuan** compared to the prior year, primarily due to increased provision for bad debts on accounts receivable and contract assets[10](index=10&type=chunk) - Financial assets held for trading decreased by **78.43%** from the beginning of the year, mainly due to the redemption of bank wealth management products and the decline in share price of held stocks[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=Item%20II.%20Shareholder%20Information) This section provides an overview of the company's shareholding structure, including major shareholders and changes in restricted shares [Common Shareholding Information](index=4&type=section&id=Item%20%28I%29.%20Total%20Common%20Shareholders%2C%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) The company's equity structure is relatively concentrated, with the top three shareholders, Ge Fang, Kong Xiongjun, and Liu Qingsong, collectively holding over **48%** of shares, and Ge Fang and Kong Xiongjun, as spouses and concerted parties, exert significant control, while some institutional shareholders also have associated relationships Top Three Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Ge Fang | Domestic Individual | 23.06% | 22,847,500 | | Kong Xiongjun | Domestic Individual | 13.73% | 13,601,500 | | Liu Qingsong | Domestic Individual | 11.66% | 11,550,000 | - Shareholders Ge Fang and Kong Xiongjun are spouses and form a concerted action relationship with Shenzhen Zhonglan Futong Investment Partnership (Limited Partnership), which is effectively controlled by Kong Xiongjun[13](index=13&type=chunk)[14](index=14&type=chunk) [Changes in Restricted Shares](index=6&type=section&id=Item%20%28III%29.%20Changes%20in%20Restricted%20Shares) During the reporting period, **21,492,500** shares issued before the initial public offering were released from restriction on September 16, 2022, while shares held by major shareholders like Ge Fang and Kong Xiongjun remain restricted and are scheduled for release on September 16, 2024 - A total of **21,492,500** restricted shares were released from restriction in the current period, primarily shares issued before the initial public offering, with an unrestricted date of September 16, 2022[16](index=16&type=chunk) - Restricted shares held by controlling shareholders Ge Fang, Kong Xiongjun, and others are scheduled to be released from restriction on September 16, 2024[16](index=16&type=chunk) [Other Significant Matters](index=6&type=section&id=Item%20III.%20Other%20Significant%20Matters) The company plans to change the implementation method for its 'Engineering Test Center' fundraising investment project from self-construction to joint development through industry-university-research collaboration, aiming to integrate external resources, reduce construction costs, and concentrate funds on project R&D to enhance fundraising efficiency, pending shareholder approval - The company intends to change the 'Engineering Test Center' fundraising project from self-construction to joint development through industry-university-research collaboration to integrate resources, reduce leasing and renovation costs, and concentrate funds on R&D[18](index=18&type=chunk) [Quarterly Financial Statements](index=7&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) This section presents the company's consolidated quarterly financial statements, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=7&type=section&id=Item%201.%20Consolidated%20Balance%20Sheet) As of September 30, 2022, the company's total assets were **1.531 billion Yuan**, a slight increase of **0.13%** from the beginning of the year, with significant decreases in financial assets held for trading offset by increases in long-term receivables, inventories, and intangible assets, while the liability structure remained stable with a low overall asset-liability ratio Balance Sheet End-of-Period Data | Item | September 30, 2022 (Yuan) | Change from Beginning of Year | | :--- | :--- | :--- | | Total Assets | 1,530,775,790.26 | 0.13% | | Total Equity Attributable to Shareholders of Listed Company | 949,362,823.16 | 0.05% | [Consolidated Income Statement (Year-to-Date)](index=9&type=section&id=Item%202.%20Consolidated%20Income%20Statement%20%28Year-to-Date%29) The 2022 first three quarters' income statement shows that despite a **10.33%** year-on-year increase in operating revenue, significant fair value change losses and increased credit and asset impairment losses led to a substantial year-on-year decline of over **80%** in both operating profit and net profit Key Income Statement Data for the First Three Quarters of 2022 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 496,662,357.70 | 450,157,635.38 | | Operating Profit | 16,852,608.44 | 92,986,992.64 | | Total Profit | 16,075,466.35 | 92,993,319.67 | | Net Profit | 14,450,504.32 | 80,402,644.95 | [Consolidated Cash Flow Statement (Year-to-Date)](index=11&type=section&id=Item%203.%20Consolidated%20Cash%20Flow%20Statement%20%28Year-to-Date%29) In the first three quarters of 2022, net cash flow from operating activities was **-60.02 million Yuan**, an improvement from **-86.83 million Yuan** in the prior period, primarily due to increased sales collections, while investing activities generated **116.01 million Yuan** in net cash inflow, and financing activities resulted in a **21.25 million Yuan** net outflow due to dividend payments compared to prior year's IPO proceeds Key Cash Flow Statement Data for the First Three Quarters of 2022 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -60,022,362.52 | -86,834,164.55 | | Net Cash Flow from Investing Activities | 116,009,774.15 | 78,857,925.27 | | Net Cash Flow from Financing Activities | -21,245,199.47 | 217,437,696.88 |

Financial Performance - The company's operating revenue for the first half of 2022 was ¥360,812,119.37, representing a 37.11% increase compared to ¥263,146,311.78 in the same period last year[21]. - The net profit attributable to shareholders decreased by 31.74% to ¥21,978,568.82 from ¥32,200,323.78 year-on-year[21]. - The net profit after deducting non-recurring gains and losses increased by 21.80% to ¥30,752,373.67 from ¥25,249,187.05 in the previous year[21]. - Basic and diluted earnings per share fell by 48.84% to ¥0.22 from ¥0.43 year-on-year[21]. - The weighted average return on equity decreased to 2.29% from 4.84% in the previous year[21]. - The company reported a total revenue of 1.5 billion RMB for the first half of 2022, representing a year-on-year increase of 20%[126]. - The company reported a total revenue of 288.48 million CNY for the first half of 2022, with a year-on-year growth of 15%[136]. - The company reported a net profit margin improvement, with net profit for the first half of 2022 reflecting a positive trend compared to the previous year[183]. Cash Flow and Assets - The net cash flow from operating activities improved by 37.14%, reaching -¥24,590,139.65 compared to -¥39,116,974.48 in the same period last year[21]. - The company reported a significant increase in cash and cash equivalents of ¥51,801,765.40, a 122.93% increase year-on-year, attributed to improved sales collections[59]. - Cash and cash equivalents increased to ¥158,906,644, representing 10.16% of total assets, up from 7.11% last year, a 3.05% increase[66]. - The total assets at the end of the reporting period were ¥1,563,712,904.83, a 2.28% increase from ¥1,528,792,194.63 at the end of the previous year[21]. - The company's total current assets amounted to CNY 1,204,299,639.40, a slight decrease from CNY 1,236,166,069.37 at the beginning of the year[176]. - The total cash and cash equivalents at the end of the period reached CNY 151,855,394.81, compared to CNY 37,738,208.91 at the end of the first half of 2021, reflecting a significant increase[192]. Investments and R&D - Research and development investment amounted to ¥8,827,454.23, a decrease of 6.82% from the previous year[59]. - The company has allocated 200 million RMB for research and development in 2022, focusing on sustainable technologies[126]. - Research and development expenses increased by 30% to 50 million CNY, focusing on innovative environmental technologies[136]. - The company has initiated research and development for new products aimed at sustainability and environmental protection[199]. Market and Business Strategy - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company aims to enhance operational efficiency by implementing new digital management systems, projected to save 50 million RMB annually[126]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[126]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 300 million RMB allocated for potential deals[128]. - The company is exploring potential mergers and acquisitions to strengthen its market position[199]. Environmental and Social Responsibility - The company operates in compliance with various environmental laws and regulations, focusing on solid waste pollution prevention and resource utilization[104]. - The company has implemented measures to control dust pollution and manage solid waste during its operations[104]. - The company has constructed renewable resource utilization projects that comply with national environmental standards, with all projects obtaining pollution discharge permits[108]. - The company donated 75,000 yuan to the "Renewal Paradise" public welfare project to support women's and children's development in Zhejiang Province[120]. - Zhonglan Environmental has committed to enhancing its social responsibility and will continue to focus on rural revitalization initiatives in the future[120]. Risks and Challenges - The company faces risks from industry policy changes that could affect order acquisition and implementation[87]. - Increased competition in the environmental protection industry may lead to customer loss and reduced market share if the company does not enhance its competitive strength[88]. - The company is closely monitoring the impact of the ongoing COVID-19 pandemic on its operations, with potential risks including project delays and payment slowdowns[90]. - The prices of key raw materials, such as geotextiles and geogrids, are subject to fluctuations based on international oil prices, which could affect profitability if procurement costs exceed expectations[91]. - The company is experiencing pressure on working capital due to high accounts receivable and inventory levels as it expands its operations in waste pollution control and ecological restoration[93]. Corporate Governance - The company adheres to strict corporate governance and shareholder rights protection, ensuring compliance with relevant laws and regulations[116]. - There were no non-operating fund occupations by major shareholders during the reporting period, reflecting good corporate governance[133]. - The company has not engaged in any external guarantees that violate regulations, maintaining financial integrity[134]. - The management emphasized the importance of compliance with regulatory commitments to protect investor interests[129].

Financial Performance - The company's operating revenue for 2021 was approximately ¥698.88 million, representing a 1.50% increase compared to ¥688.56 million in 2020[21]. - The net profit attributable to shareholders for 2021 was approximately ¥101.78 million, a 2.82% increase from ¥98.99 million in 2020[21]. - The net profit after deducting non-recurring gains and losses decreased by 34.88% to approximately ¥56.95 million in 2021 from ¥87.44 million in 2020[21]. - The total assets at the end of 2021 were approximately ¥1.53 billion, a 35.91% increase from ¥1.12 billion at the end of 2020[21]. - The net assets attributable to shareholders increased by 46.12% to approximately ¥948.87 million at the end of 2021 from ¥649.36 million at the end of 2020[21]. - The basic earnings per share for 2021 was ¥1.26, down 5.26% from ¥1.33 in 2020[21]. - The weighted average return on equity for 2021 was 13.58%, a decrease of 2.66% from 16.24% in 2020[21]. - The company reported a negative net cash flow from operating activities of approximately -¥46.97 million in 2021, a decline of 160.22% compared to ¥77.99 million in 2020[21]. - The company's total financial assets at fair value increased to 244.55 million yuan, with significant transactions in bank wealth management products during the reporting period[86]. - The company reported a total revenue of 361.4 million for the period, with a year-on-year growth of 56.36%[91]. Dividend and Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 1.50 RMB per 10 shares (including tax) based on a total of 99,094,000 shares[7]. - The company proposed a cash dividend of CNY 1.50 per 10 shares, totaling CNY 14,864,100, which represents 100% of the profit distribution[158]. - The cumulative undistributed profits available for distribution to shareholders as of December 31, 2021, were CNY 255,472,552.32[160]. Environmental Commitment and Initiatives - The company has a commitment to environmental and social responsibility, which is outlined in its annual report[5]. - The company is focused on developing a circular economy, promoting resource conservation and efficient recycling to support national resource security[37]. - The company aims to achieve a comprehensive utilization of 4 billion tons of major solid waste by 2025 and 4.5 billion tons by 2030[40]. - The company is committed to reducing the direct landfill of plastic waste significantly, aiming for a substantial decrease in environmental leakage[38]. - The company emphasizes the importance of safety and environmental protection in its operations, particularly in the management of hazardous waste[42]. - The company is actively involved in the development of low-carbon processes and digital transformation in the industrial sector[38]. - The company has established effective pollution control measures in compliance with national environmental laws and standards[171]. - The company’s ecological restoration business contributes to carbon reduction efforts in the solid waste disposal sector[173]. Research and Development - The company has filed for 5 new patents related to environmental technology innovations in the past year[136]. - The company has established partnerships with three major universities for collaborative research on sustainable waste management solutions[136]. - The company has successfully applied its core technologies in over 500 projects across 31 provinces and several countries along the Belt and Road Initiative[57]. - The total R&D expenditure for 2021 was ¥25,739,553.35, accounting for 3.68% of operating revenue, slightly down from 3.73% in 2020[77]. - The company applied for a new utility model patent related to landfill gas collection technology, indicating ongoing innovation efforts[77]. Market Position and Growth Strategy - The company is positioned in an expanding phase of the solid waste treatment industry, benefiting from national policies promoting environmental governance[47]. - The solid waste treatment industry is expected to maintain a compound annual growth rate (CAGR) of approximately 10% during the 14th Five-Year Plan period, with environmental governance revenue projected to exceed 3 trillion CNY by 2025[108]. - The company aims to enhance its capabilities in solid waste management, focusing on landfill monitoring, resource recovery from waste incineration, and expanding into medical waste disposal[111]. - The company plans to invest in research and development, particularly in the full industrial chain application of wet waste treatment under the waste classification system[112]. - The company is actively expanding its market presence through strategic acquisitions and investments in new technologies[91]. Governance and Management - The board of directors consists of 12 members, including 4 independent directors, and held 8 meetings during the reporting period, all in compliance with legal requirements[123]. - The company maintains independence in assets, personnel, finance, institutions, and business from its controlling shareholders and actual controllers, ensuring sustainable operations[125]. - The company has a stable main business and management team, with no significant adverse changes in the last two years, and the actual controller's ownership remains clear[126]. - The company has established a tripartite supervision agreement for the management of raised funds[96]. - The company has a complete and independent procurement, research and development, and sales system, ensuring no competition or unfair transactions with controlling shareholders[126]. Risks and Challenges - The company faces risks related to industry policy changes, which could significantly impact order acquisition and implementation[115]. - The company is at risk of intensified competition as more strong enterprises may enter the market due to increased government investment in environmental protection[115]. - The company is exposed to raw material price fluctuations, particularly for geosynthetic materials, which are influenced by international oil prices[118]. - The company is experiencing operational risks due to the ongoing global pandemic, which may affect project timelines and client payments[117]. Community Engagement and Social Responsibility - The company actively participates in social responsibility initiatives, including donations for COVID-19 prevention efforts, demonstrating its commitment to community support[179]. - Future plans include enhancing rural revitalization efforts and contributing to poverty alleviation through industry support and environmental restoration projects[181]. - The company aims to improve ecological environments and land value by addressing landfill site issues and promoting green initiatives[181].

Financial Performance - The company's revenue for Q1 2022 was ¥63,917,753.54, a decrease of 31.11% compared to ¥92,784,193.84 in the same period last year[3]. - The net profit attributable to shareholders was a loss of ¥8,609,986.87, representing a decline of 192.75% from a profit of ¥9,282,681.27 in the previous year[3]. - The net loss for the period was ¥8,425,476.59, a decrease of 189.10% from a profit of ¥9,456,346.99 in the same period last year[8]. - The total comprehensive income attributable to the parent company was -8,617,936.88 CNY, down from 9,284,993.72 CNY in the previous period[22]. - The basic and diluted earnings per share were both -0.09 CNY, compared to 0.12 CNY in the previous period[22]. Cash Flow - The net cash flow from operating activities was -¥51,438,305.23, a significant decrease of 1,284.57% compared to -¥3,715,097.80 in Q1 2021[3]. - Cash inflows from operating activities totaled 149,561,443.24 CNY, a decrease from 159,129,587.77 CNY in the previous period[24]. - The net cash flow from investing activities was 52,869,049.86 CNY, an increase from 13,412,818.96 CNY in the previous period[25]. - The net cash flow from financing activities was -288,744.39 CNY, compared to 921,802.36 CNY in the previous period, indicating reduced financing activity[25]. - The ending cash and cash equivalents balance was 101,188,967.18 CNY, down from 25,125,129.96 CNY in the previous period[25]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,415,031,069.06, down 7.44% from ¥1,528,792,194.63 at the end of the previous year[3]. - Current assets total CNY 1,105,150,609.83, a decrease from CNY 1,236,166,069.37 at the beginning of the year[16]. - Non-current assets amount to CNY 309,880,459.23, up from CNY 292,626,125.26 at the beginning of the year[17]. - Total liabilities are CNY 444,736,378.48, down from CNY 550,087,559.20 at the beginning of the year[18]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 11,697[10]. - The largest shareholder, Ge Fang, holds 23.06% of the shares, amounting to 22,847,500 shares[10]. - The second-largest shareholder, Kong Xiongjun, holds 13.73% of the shares, totaling 13,601,500 shares[10]. - The third-largest shareholder, Liu Qingsong, owns 11.66% of the shares, which is 11,550,000 shares[10]. - The total number of shares held by the top 10 shareholders is 75,574,349 shares, with a significant portion being subject to lock-up agreements[14]. Expenses - Research and development expenses decreased by 58.72% to ¥2,068,906.03 from ¥5,012,382.79 in the same period last year[8]. - The company experienced a 40.02% increase in management expenses, totaling ¥13,633,738.14, primarily due to increased intermediary fees and personnel costs[8]. - Total operating costs for the current period amount to CNY 69,253,736.11, down from CNY 89,180,816.40 in the previous period[21]. Investment and Income - The investment income increased by 129.62% to ¥1,991,833.76, attributed to improved profit levels from associated enterprises[8]. - The company recorded a significant loss in fair value changes of financial assets, amounting to -¥8,877,068.65, a decline of 1,760.29% compared to the previous year[8]. - The company reported a tax refund of 863,751.29 CNY, compared to 611,565.51 CNY in the previous period, showing an improvement in tax recovery[24].

Financial Performance - The company's revenue for Q3 2021 was ¥187,011,323.60, representing a 3.23% increase year-over-year[4] - Net profit attributable to shareholders for Q3 2021 was ¥43,074,084.80, a significant increase of 110.07% compared to the same period last year[4] - Basic earnings per share for Q3 2021 were ¥0.58, reflecting a 107.14% increase year-over-year[5] - Total operating revenue for the third quarter reached ¥450,157,635.38, an increase of 10.3% compared to ¥409,260,836.23 in the same period last year[29] - Operating profit for the period was ¥92,986,992.64, up 67.1% from ¥55,606,734.28 year-on-year[30] - Net profit attributable to the parent company was ¥75,274,408.58, representing a 70.4% increase from ¥44,208,883.14 in the previous year[30] - The company recorded a total comprehensive income of ¥80,397,220.28, an increase from ¥49,025,123.17 year-on-year[31] Assets and Liabilities - Total assets as of September 30, 2021, reached ¥1,423,205,512.50, marking a 26.52% increase from the end of the previous year[5] - The total liabilities stood at RMB 473,678,482.78, up from RMB 454,435,311.01 at the end of 2020[26] - The total assets amounted to ¥1,423,205,512.50, an increase from ¥1,124,842,534.00 year-on-year[30] - The company's total equity attributable to shareholders reached ¥922,375,219.93, up from ¥649,363,710.09 in the previous year[30] - The total cash and cash equivalents at the end of the period reached CNY 223,956,962.41, an increase of CNY 209,456,032.93 from the beginning of the period[35] Cash Flow - The company reported a net cash flow from operating activities of -¥86,834,164.55, indicating a significant decline of 429.24% year-over-year[5] - Operating cash flow for the first nine months of 2021 was -86,834,164.55, a decrease of 429.24% compared to 26,374,024.48 in the same period of 2020, primarily due to project completion delays caused by the pandemic[13] - Investment activities generated a net cash inflow of ¥78,857,925.27, a significant recovery from a net outflow of ¥79,245,853.59 in the previous year[34] - The net cash flow from financing activities was CNY 217,437,696.88, a decrease of CNY 38,785,542.62 compared to the previous period[35] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,454[15] - The largest shareholder, Ge Fang, holds 23.06% of shares, totaling 22,847,500 shares[15] - The second-largest shareholder, Kong Xiong Jun, holds 13.73% of shares, totaling 13,601,500 shares[15] - The third-largest shareholder, Liu Qingsong, holds 11.66% of shares, totaling 11,550,000 shares[15] - The company plans to release the lock-up on shares held by major shareholders on September 17, 2024[18] Investment and Expansion Plans - The company plans to continue expanding its market presence and developing new technologies to enhance operational efficiency[4] - The company plans to acquire 100% equity of Wuhan Haosheng Jielv Environmental Technology Co., Ltd. to enhance market expansion and resource integration[22] Financial Adjustments and Standards - The company has implemented new leasing standards starting from January 1, 2021, which required adjustments to the financial statements[36] - The report for the third quarter was not audited[41]