Financial Performance - The company's operating revenue for Q1 2021 was ¥40,334,819.18, a decrease of 0.32% compared to ¥40,463,109.95 in the same period last year[7] - Net profit attributable to shareholders was ¥8,579,301.35, representing an increase of 3.68% from ¥8,274,627.15 year-on-year[7] - The net profit after deducting non-recurring gains and losses was ¥7,708,575.50, up 3.44% from ¥7,452,103.07 in the previous year[7] - Basic and diluted earnings per share were both ¥0.090, down 25.00% from ¥0.12 in the previous year[7] - The company's net profit for the period was not explicitly stated, but the increase in undistributed profits rose to CNY 256,310,879.51 from CNY 245,842,767.22[38] - The total profit for the first quarter of 2021 was CNY 12,092,819.00, an increase from CNY 11,212,885.37 in the previous period[46] - The total comprehensive income for the first quarter of 2021 was CNY 10,468,112.29, compared to CNY 9,965,426.40 in the previous year[47] Cash Flow and Liquidity - The net cash flow from operating activities was -¥33,982,753.23, a decline of 25.91% compared to -¥26,990,592.26 in the same period last year[7] - Cash and cash equivalents increased significantly to 169.38 million yuan, a change of -425.60% due to the receipt of 25.8 million yuan from the public offering[18] - Cash and cash equivalents increased to CNY 289,385,887.50 from CNY 113,045,626.45 year-over-year[32] - The cash flow from operating activities included CNY 32,516,996.16 received from sales, compared to CNY 37,103,179.50 in the previous period[49] - The net cash flow from operating activities was -33,982,753.23 CNY, compared to -26,990,592.26 CNY in the previous period, indicating a decline of approximately 26.5%[50] - Total cash inflow from financing activities reached 272,420,000.00 CNY, significantly higher than 15,000,000.00 CNY in the previous period, marking an increase of 1,714.8%[51] - The total cash and cash equivalents at the end of the period amounted to 270,426,723.53 CNY, a significant increase from 27,583,828.14 CNY in the previous period[51] Assets and Liabilities - Total assets at the end of the reporting period reached ¥925,445,705.06, an increase of 31.89% from ¥701,656,679.29 at the end of the previous year[7] - Total assets rose to 925.45 million yuan, reflecting a year-on-year growth of 31.89% driven by the public offering funds[18] - The total liabilities decreased by 19.02% to 189.96 million yuan, primarily due to repayment of short-term loans[18] - The total liabilities decreased to CNY 179,326,228.30 from CNY 228,191,129.44, indicating a reduction in financial leverage[38] - Total assets as of Q1 2021 amounted to CNY 700,470,006.68, with total liabilities at CNY 228,191,129.44[61] - The total liabilities and owner's equity combined reached CNY 700,470,006.68, indicating stable financial structure[61] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,509[10] - The largest shareholder, Qingdao Guanzhong Investment Group Co., Ltd., holds 35.79% of the shares, totaling 33,410,500 shares[10] - Owner's equity increased by 57.46% to 735.49 million yuan, bolstered by the capital raised from the public offering[18] - The company's equity attributable to shareholders increased to CNY 742,572,954.83 from CNY 472,278,877.24, showing a robust increase in shareholder value[38] Investment and R&D - Research and development expenses surged by 160.38% to 1.80 million yuan, indicating increased investment in R&D projects[18] - Research and development expenses increased to CNY 1,801,629.37 from CNY 691,926.26, highlighting a commitment to innovation[41] - Long-term equity investments increased by 157.86% to 52.29 million yuan, with a new investment of 30 million yuan in a joint venture[18] - The company signed a major contract for an ecological restoration project in Qiqihar with a total investment of 858 million yuan, although construction has been delayed[20] Government Support and Compliance - The company received government subsidies amounting to ¥1,182,837.92 during the reporting period[8] - There were no violations regarding external guarantees during the reporting period[26] - The company reported no non-operating fund occupation by controlling shareholders during the reporting period[27] - The company has not encountered any significant changes in project feasibility or major deviations in expected benefits[24]

Financial Performance - The company's operating revenue for 2020 was ¥292,036,715.35, an increase of 5.04% compared to ¥278,036,712.11 in 2019 [20]. - The net profit attributable to shareholders for 2020 was ¥63,492,006.78, a decrease of 6.27% from ¥67,740,417.26 in 2019 [20]. - The net profit after deducting non-recurring gains and losses was ¥61,996,569.83, which represents a 4.11% increase from ¥59,548,247.36 in 2019 [20]. - The net cash flow from operating activities decreased by 22.97% to ¥78,269,007.66 from ¥101,610,470.47 in 2019 [20]. - The total assets at the end of 2020 were ¥701,656,679.29, reflecting a 4.18% increase from ¥673,516,686.69 at the end of 2019 [20]. - The net assets attributable to shareholders increased by 16.08% to ¥467,085,072.99 at the end of 2020 from ¥402,374,484.11 at the end of 2019 [20]. - The gross profit margin for the ecological protection and environmental governance industry was 42.87%, slightly down by 0.46% compared to the previous year [60]. - In 2020, the company achieved a revenue of 292.04 million yuan, representing a growth of 5.04% compared to the previous year, while net profit decreased by 6.27% to 63.49 million yuan [49]. Dividend Policy - The company plans to distribute a cash dividend of 0.8 RMB per 10 shares (including tax) and to increase capital by 5 shares for every 10 shares held [8]. - The cash dividend represents 11.76% of the net profit attributable to the parent company for the year 2020, which was RMB 63,492,006.78 [108]. - The company has maintained a stable and continuous dividend distribution policy, ensuring that shareholders have clear expectations for future dividends [103]. - The company has not distributed dividends in the previous two years (2018 and 2019) due to the need for increased working capital for business expansion [107]. - The company plans to distribute cash dividends of no less than 10% of the distributable profits each year, with a cumulative cash distribution over the last three years amounting to at least 30% of the average annual distributable profits [116]. Risks and Challenges - The company faces risks related to inventory depreciation and contract asset impairment due to potential delays in project acceptance and settlement with government clients [8]. - The company acknowledges the uncertainty of the global pandemic and its potential impact on local government financial conditions and investment activities [5]. - The company’s business is significantly influenced by macroeconomic conditions and government policies, which could affect project funding and operational efficiency [5]. - The company’s operational performance may be adversely affected if local governments face funding shortages due to economic pressures [5]. - Potential risks include macroeconomic conditions, policy changes, and the impact of the pandemic on government funding and project timelines, which could adversely affect business expansion and cash flow [97]. Talent and Human Resources - The company has increased its recruitment efforts and established a comprehensive employee compensation and incentive system to meet the growing demand for professional talent [7]. - The company emphasizes the importance of professional talent in its industry, which requires a significant period for training and practical experience [7]. - The company has established a complete employee compensation and incentive system to attract and retain professional talent, although there may be a talent gap in the future due to rapid business growth [98]. - The company’s R&D personnel increased to 37, representing 14.29% of the total workforce [71]. Project Development and Innovation - The company has developed unique ecological restoration technologies, enabling rapid and large-scale afforestation [29]. - The company expanded its project scope to include water environment governance and comprehensive management, enhancing its capability to undertake large and complex ecological restoration projects [29]. - The company has shifted its order acquisition model towards EPC, focusing on large-scale ecological restoration projects to enhance business scale [33]. - The company has implemented several notable ecological restoration projects, including the ecological restoration project in Tibet and the environmental governance project in Yan'an New District [29]. - The company has developed a unique integrated business chain for ecological restoration, covering technology research and development, equipment manufacturing, material processing, project design, construction, and maintenance [45]. Market and Strategic Expansion - The company aims to become a world-class ecological restoration enterprise, leveraging favorable policies and market conditions to drive growth [33]. - The company plans to explore various project models, including PPP, EPC, and professional subcontracting, while strictly evaluating project feasibility and avoiding financially insecure projects [92]. - The company intends to expand its market presence in Northeast and South China by leveraging new projects in Qiqihar, Haicheng, and Zhuhai, aiming to increase the proportion of out-of-province business [93]. - The company is exploring market expansion opportunities in Southeast Asia, aiming to establish a presence in at least three new countries by the end of 2022 [128]. Corporate Governance and Compliance - The company’s financial report has been confirmed as true, accurate, and complete by its board of directors and management [3]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors [199]. - The governance structure of the company aligns with the regulatory requirements set by the China Securities Regulatory Commission [200]. - The company has established measures to reduce related party transactions, ensuring transparency and compliance with regulations [127]. Research and Development - The company has invested 50 million RMB in R&D for new technologies aimed at improving production efficiency and sustainability [128]. - The company’s R&D expenses increased by 10.35% to ¥14,569,695.62, reflecting a commitment to enhancing innovation [67]. - The company completed 11 key research projects in 2020, contributing to new profit growth points through successful technology development [54]. - The company applied for 17 national patents during the reporting period, including 4 invention patents and 13 utility model patents [70]. Shareholder Relations - The company has actively considered the opinions and demands of minority shareholders in its dividend distribution decisions [103]. - The company has committed to a share lock-up arrangement for 36 months from the date of listing, prohibiting the transfer or management of shares held prior to the issuance [110]. - The company will ensure compliance with all relevant laws and regulations regarding share transfers and reductions [113]. - The company emphasizes timely and accurate information disclosure in accordance with stock exchange regulations [114]. Environmental and Social Responsibility - The company emphasizes its commitment to social responsibility, including protecting investor rights and employee welfare [157]. - The company actively promotes environmental protection and sustainable development through its ecological restoration business [158]. - The company does not belong to the key pollutant discharge units as published by environmental protection authorities [160].