Financial Performance - The net profit attributable to shareholders decreased significantly, primarily due to the impact of the pandemic on project construction progress and increased expenses related to strategic market layout and R&D investments, resulting in an increase of RMB 42.23 million [6]. - The company's operating revenue for 2021 was ¥548,950,478.69, a decrease of 2.94% compared to ¥565,554,978.83 in 2020 [23]. - The net profit attributable to shareholders for 2021 was ¥39,033,800.73, down 57.77% from ¥92,425,253.94 in 2020 [23]. - The net cash flow from operating activities was -¥177,660,121.92, an improvement of 6.63% compared to -¥190,281,031.67 in 2020 [23]. - The total assets at the end of 2021 reached ¥2,437,281,175.67, representing a 49.27% increase from ¥1,632,770,824.69 at the end of 2020 [23]. - The net assets attributable to shareholders increased by 50.42% to ¥1,044,700,609.45 at the end of 2021 from ¥694,508,220.65 at the end of 2020 [23]. - The basic earnings per share for 2021 was ¥0.23, a decrease of 67.14% from ¥0.70 in 2020 [23]. - The company reported a quarterly revenue of ¥70,890,935.98 in Q1, ¥211,431,521.22 in Q2, ¥140,673,395.07 in Q3, and ¥125,954,626.42 in Q4 of 2021 [25]. - The weighted average return on equity for 2021 was 4.12%, down from 14.26% in 2020 [23]. Expenses and Investments - Sales expenses increased by RMB 9.41 million due to the expansion of market development channels and increased marketing efforts, leading to higher personnel costs and promotional expenses [6]. - Management expenses rose by RMB 20.09 million, attributed to an increase in management personnel and corresponding salary costs [6]. - Financial expenses increased by RMB 6.55 million due to ongoing project investments and expanded financing, resulting in higher interest expenses [6]. - R&D expenses grew by RMB 6.18 million as the company intensified its investment in core technology and government research projects [6]. - The company plans to continue its strategic layout in new business areas and increase R&D investment to enhance core technology competitiveness [6]. Market and Industry Position - The company operates in the ecological protection and environmental governance industry, focusing on industrial wastewater treatment and quality water supply [32]. - The industrial wastewater treatment market in China grew from RMB 147.38 billion in 2016 to RMB 231.18 billion in 2020, with a compound annual growth rate (CAGR) of 56.9% [33]. - The market size for industrial wastewater treatment is expected to reach RMB 534.11 billion by 2025, with a projected CAGR of 131.0% [33]. - The company is committed to enhancing its market position through strategic expansions and technological advancements [6]. - The company is actively involved in the development of national industry standards related to drinking water quality and wastewater treatment technologies [41]. Technological Innovation - The company has achieved a reduction in electricity consumption of over 10% through refined intelligent control of wastewater treatment plants [36]. - The company has obtained 53 patents, including 4 invention patents, and has received multiple awards for technological innovation and environmental protection [40]. - The company has developed advanced technologies for treating high-salinity and high-organic-content industrial wastewater, significantly improving treatment efficiency [65]. - The company is focusing on integrating smart water management technologies to enhance operational efficiency and reduce energy consumption [42]. - The company is developing a "Hy-Smart" intelligent water management system to improve operational efficiency and risk control across its business segments [137]. Strategic Growth and Expansion - The company has signed contracts for multiple projects, including a 5,930 million CNY investment in the Klshan secondary water supply network and pump station renovation project [51]. - The company has secured projects in Hebei province with a total investment scale exceeding 600 million CNY, including the Huanghua wastewater treatment plant PPP project [51]. - The company aims to enhance market competitiveness by expanding its business footprint and increasing production capacity in the water environmental industry [52]. - The company has a strategic layout covering key regions such as Beijing-Tianjin-Hebei, Guangdong-Hong Kong-Macao Greater Bay Area, and Yangtze River Delta [51]. - The company is actively expanding its market presence and has made strategic layouts in new business areas within the water and environmental protection industry [75]. Governance and Management - The company maintained a governance structure compliant with relevant laws and regulations, with a board of directors consisting of 7 members, including 3 independent directors [155]. - The company has established a transparent performance evaluation and incentive mechanism for senior management, linking compensation to performance assessments [155]. - The company ensures financial independence with a dedicated financial management center and a complete accounting system, adhering to national accounting standards [158]. - The company has a robust internal control system in place to prevent any misuse of funds or assets by controlling shareholders [158]. - The company emphasizes the importance of balancing the interests of shareholders, employees, and other stakeholders to promote sustainable development [156]. Future Outlook and Goals - The company aims to achieve an output value of 1.3 trillion yuan in the environmental equipment manufacturing industry by 2025 [132]. - The company is committed to a sustainable development strategy that aligns with national low-carbon and environmental standards, focusing on resource recycling and energy efficiency [134]. - The company plans to enhance R&D investment and deepen collaborations with institutions like Harbin Institute of Technology and the Chinese Academy of Sciences to drive innovation [135]. - The company is focused on expanding its market presence while ensuring high-quality development, transitioning from scale expansion to quality improvement [61]. - The company anticipates continued growth in the environmental water service industry due to favorable government policies and the push for ecological civilization [129].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 105,773,793.96, representing a 49.21% increase compared to CNY 70,890,935.98 in the same period last year[3]. - The net profit attributable to shareholders for Q1 2022 was CNY 6,155,195.44, up 52.87% from CNY 4,026,400.15 year-on-year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 5,357,612.39, an increase of 44.18% from CNY 3,715,926.17 in the previous year[3]. - Net profit for Q1 2022 reached CNY 6,587,351.77, compared to CNY 4,304,857.92 in the same period last year, reflecting an increase of approximately 53.1%[21]. - The company reported a basic and diluted earnings per share of CNY 0.03 for Q1 2022, unchanged from the previous period[21]. Assets and Liabilities - The company's total assets at the end of Q1 2022 were CNY 2,399,316,176.11, a decrease of 1.56% from CNY 2,437,281,175.67 at the end of the previous year[3]. - Current assets decreased to CNY 651,648,011.72 from CNY 735,924,748.09 at the beginning of the year, reflecting a decline of approximately 11.4%[15]. - The company's non-current assets totaled CNY 1,747,668,164.39, up from CNY 1,701,356,427.58, reflecting an increase of approximately 2.7%[16]. - The total liabilities decreased from CNY 1,378,498,182.78 in the previous period to CNY 1,334,513,413.49 in Q1 2022, a reduction of approximately 3.2%[20]. Cash Flow - The net cash flow from operating activities for Q1 2022 was negative CNY 91,099,589.06, a decline of 8.39% compared to negative CNY 84,045,665.02 in the previous year[3]. - Cash inflows from operating activities totaled CNY 65,849,823.49, down from CNY 172,597,939.44 in the previous period, a decrease of approximately 61.8%[24]. - Cash outflows from operating activities were CNY 156,949,412.55, compared to CNY 256,643,604.46 in the previous period, a decrease of about 38.9%[24]. - The net cash flow from investment activities was -17,488,924.03, indicating a decrease compared to the previous period[25]. - The net increase in cash and cash equivalents was -119,718,159.95, a significant decline from the previous period[25]. - The ending balance of cash and cash equivalents was 100,655,663.99, down from 220,373,823.94 at the beginning of the period[25]. Shareholder Information - The company had a total of 17,279 common shareholders at the end of the reporting period[8]. - The company reported a total of 9,014,000 shares held by the Shenzhen Small and Medium Enterprises Development Fund[9]. - The company has 24,700,000 shares under lock-up until March 30, 2024, as part of the initial public offering restrictions[10]. - The total number of shares held by major shareholders includes 19,166,231 shares by Tibet Haina Bochuang, also under lock-up until March 30, 2024[11]. - The company has released 17,783,120 shares from lock-up as of March 30, 2022, following the initial public offering[11]. Operational Insights - The company reported a significant increase in other income, which rose by 441.58% to CNY 2,319,675.16, primarily due to government subsidies related to daily activities[6]. - The company experienced a 70.23% increase in operating costs, amounting to CNY 66,618,257.87, in line with the rise in operating revenue[6]. - The company is focusing on enhancing its operational efficiency and exploring new market opportunities to drive growth[16]. - Future strategies include potential market expansion and investment in new technologies to improve service delivery[16]. Audit and Reporting - The company did not undergo an audit for the first quarter report[26]. - The report was released by the board of directors on April 27, 2022[27].

Financial Performance - The net profit attributable to shareholders decreased significantly, primarily due to the impact of the pandemic on project construction progress and increased expenses related to strategic market layout and R&D investments, resulting in an increase of RMB 42.23 million [6]. - The company's operating revenue for 2021 was ¥548,950,478.69, a decrease of 2.94% compared to ¥565,554,978.83 in 2020 [23]. - The net profit attributable to shareholders for 2021 was ¥39,033,800.73, down 57.77% from ¥92,425,253.94 in 2020 [23]. - The net cash flow from operating activities was -¥177,660,121.92, an improvement of 6.63% compared to -¥190,281,031.67 in 2020 [23]. - The total assets at the end of 2021 were ¥2,437,281,175.67, representing a 49.27% increase from ¥1,632,770,824.69 at the end of 2020 [23]. - The net assets attributable to shareholders increased by 50.42% to ¥1,044,700,609.45 at the end of 2021 from ¥694,508,220.65 at the end of 2020 [23]. - The basic earnings per share for 2021 were ¥0.23, a decrease of 67.14% from ¥0.70 in 2020 [23]. - The company reported a weighted average return on equity of 4.12% for 2021, down from 14.26% in 2020 [23]. Expenses and Investments - Sales expenses increased by RMB 9.41 million due to the expansion of market development channels and increased marketing personnel, leading to higher salaries and promotional costs compared to the previous year [6]. - Management expenses rose by RMB 20.09 million, attributed to the increase in management personnel and corresponding salary expenses [6]. - Financial expenses increased by RMB 6.55 million due to ongoing project investments and expanded financing, leading to higher loan interest payments [6]. - R&D expenses grew by RMB 6.18 million as the company intensified its investment in core technology and government key research projects [6]. - The company received government subsidies amounting to ¥3,381,091.68 in 2021, compared to ¥4,275,487.18 in 2020 [28]. Strategic Focus and Future Plans - Future operational plans and strategic developments are outlined, with a focus on risk management and compliance with regulatory requirements [7]. - The company plans to focus on expanding its industrial wastewater treatment and quality water supply services in the future [32]. - The company emphasizes the importance of technology-driven strategies to enhance core competitiveness and address market challenges [6]. - The company aims to achieve carbon neutrality for both employees and the enterprise itself, contributing to national carbon reduction goals [43]. - The company is actively pursuing market expansion and high-quality development, transitioning from scale expansion to quality improvement [62]. Market and Industry Insights - The industrial wastewater treatment market in China grew from RMB 147.38 billion in 2016 to RMB 231.18 billion in 2020, with a compound annual growth rate (CAGR) of 56.9% [33]. - The market size for industrial wastewater treatment is expected to reach RMB 534.11 billion by 2025, with a projected CAGR of 131.0% [33]. - The urban public water supply leakage rate was 13.3% in 2020, with some areas exceeding 20%, indicating significant room for improvement [37]. Technological Advancements - The company has achieved a reduction in electricity consumption of over 10% through refined intelligent control of wastewater treatment plants [36]. - The company has obtained 53 patents, including 4 invention patents, and has received multiple awards for technological innovation and environmental protection [41]. - The company is focusing on smart water management and the development of new technologies to enhance operational efficiency and reduce carbon emissions [34]. - The company focuses on industrial wastewater treatment and high-quality water supply, integrating smart equipment, new materials, and water treatment agents into a systematic solution [46]. Governance and Management - The company has a complete financial management system, ensuring independent financial operations and compliance with accounting standards [158]. - The board of directors consists of 7 members, including 3 independent directors, complying with relevant laws and regulations [155]. - The company has established a transparent performance evaluation and incentive mechanism for senior management, aligning with legal requirements [155]. - The company actively communicates with investors, enhancing transparency and information disclosure [156]. Employee and Organizational Development - The company has established a comprehensive training program to enhance employee skills and management capabilities [188]. - The employee composition includes 342 production personnel, 243 sales personnel, 98 technical personnel, 25 financial personnel, and 133 administrative personnel [186]. - The company emphasizes a performance-based salary policy, aligning compensation with job value, market levels, and employee performance [187]. Risk Management - Investors are advised to pay attention to the risks associated with the company's future development and operational strategies [7]. - The company recognizes risks related to industry policies and macroeconomic fluctuations, which could negatively impact future operations [145]. - The company is aware of potential risks from changes in guaranteed water volumes or pricing, which could affect its operational agreements [146]. - The company is actively monitoring the ongoing COVID-19 pandemic, which poses risks to its operations and supply chain [149].

Revenue and Profitability - Revenue for Q3 2021 reached ¥140,673,395.07, an increase of 16.65% compared to the same period last year[3] - Net profit attributable to shareholders decreased by 24.66% to ¥14,917,495.60 in Q3 2021[3] - Basic earnings per share fell by 46.67% to ¥0.08, while diluted earnings per share also decreased by 46.67% to ¥0.08[3] - The company reported a decrease in net profit after deducting non-recurring gains and losses by 21.94% to ¥14,975,294.30 in Q3 2021[3] - The net profit for Q3 2021 was CNY 52,005,871.29, a decrease of 3.3% compared to CNY 54,415,271.06 in Q3 2020[18] - Operating profit for Q3 2021 was CNY 59,302,927.01, down from CNY 62,203,063.88 in the same period last year, reflecting a decline of 4.5%[18] - The total comprehensive income for Q3 2021 was CNY 52,005,871.29, compared to CNY 54,415,271.06 in the same quarter last year[19] Assets and Liabilities - Total assets increased by 56.26% to ¥2,551,383,025.34 compared to the end of the previous year[3] - Accounts receivable increased by 42.47% to ¥264,264,851.64, attributed to increased project settlements and operational services[5] - Total liabilities increased to RMB 1,480,673,218.23 from RMB 937,225,476.94, representing a rise of 57.9%[15] - The company's equity attributable to shareholders reached RMB 1,056,678,699.38, up from RMB 694,508,220.65, an increase of 52.2%[15] - Non-current assets totaled RMB 1,635,540,962.31, compared to RMB 1,263,628,888.68 at the end of 2020, reflecting a growth of 29.4%[14] - Total current assets amounted to 369,141,936.01, with cash and cash equivalents at 50,452,930.18[25] - Total assets of the company were 1,632,770,824.69, showcasing a robust asset portfolio[27] Cash Flow - Cash flow from operating activities showed a negative net amount of ¥-207,950,855.50, a decrease of 55.08% year-to-date[3] - Cash flow from financing activities improved by 351.15% to ¥798,149,356.00, driven by funds raised from the initial public offering and increased borrowings[6] - The net cash flow from operating activities decreased by 55.08% to -¥207,950,855.50, mainly due to higher cash payments for project construction and employee compensation[6] - Cash flow from operating activities showed a net outflow of CNY 207,950,855.50, worsening from a net outflow of CNY 134,096,242.51 in Q3 2020[22] Financing and Borrowings - Short-term borrowings increased by 45.64% to ¥282,213,865.96, indicating a rise in financing scale[5] - Long-term borrowings surged by 464.38% to ¥488,191,496.55, primarily due to increased financing activities[6] - The company raised CNY 387,880,390.40 from new investments, a significant increase from CNY 147,000.00 in the previous year[23] Expenses - Research and development expenses rose by 84.33% to ¥17,621,778.78 as the company intensified its investment in technology and talent acquisition[6] - Sales expenses increased by 51.10% to ¥20,553,258.20, reflecting the company's strategic expansion in market promotion and personnel[6] - The company incurred financial expenses of CNY 22,833,641.18, which is an increase from CNY 13,996,292.78 in Q3 2020[18] Other Financial Metrics - Contract liabilities increased by 34.06% to ¥62,093,716.03 due to advance payments received during the reporting period[6] - The company reported a 505.83% increase in credit impairment losses, amounting to ¥7,540,107.78, attributed to higher provisions for bad debts[6] - Deferred income rose by 31.09% to ¥48,778,175.36, reflecting an increase in government subsidies received during the period[6] - Total operating revenue for Q3 2021 reached RMB 422,995,852.27, an increase of 17.5% compared to RMB 359,811,515.64 in the same period last year[17] - Total operating costs for Q3 2021 were RMB 360,403,191.73, up 21.3% from RMB 297,204,112.79 in Q3 2020[17] Shareholder Information - Total shareholders reached 24,730, with the largest shareholder holding 13.93% of the shares[9] - The company did not classify any non-recurring gains or losses as regular income, adhering to disclosure regulations[7] Regulatory and Reporting - The company has not yet audited its third-quarter report, which may affect investor confidence[28] - The company is implementing new leasing standards, which could impact future financial reporting[28]

Financial Performance - The company reported a strong performance in the first half of 2021, with significant growth in revenue and net profit compared to the same period in 2020[3]. - The company achieved operating revenue of CNY 282,322,457.20, representing an increase of 18.02% compared to the same period last year[29]. - The net profit attributable to shareholders was CNY 36,094,395.06, reflecting a year-on-year growth of 3.60%[29]. - The company reported a basic earnings per share of CNY 0.23, down 14.81% from the previous year[29]. - The net cash flow from operating activities was negative at CNY -135,513,881.56, a decline of 134.70% compared to the previous year[29]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2021, representing a year-on-year growth of 20%[158]. - Revenue from high-quality water supply operations reached CNY 39.99 million, with a gross margin of 43.42%, reflecting a year-on-year increase of 15.48% in revenue and 6.36% in gross margin[98]. - The industrial wastewater treatment segment generated CNY 72.72 million in revenue from operational activities, with a gross margin of 58.08%, marking a 64.95% increase in revenue year-on-year[98]. Market Expansion and Strategy - The company has established 23 subsidiaries across key regions including Beijing-Tianjin-Hebei, Guangdong-Hong Kong-Macao Greater Bay Area, and Yangtze River Delta, indicating a robust market expansion strategy[7]. - The company plans to actively expand its business to mitigate customer concentration risks and stabilize its market position[6]. - The company is focusing on expanding its market presence in regions such as Beijing, Guangdong, and Jiangsu, forming a strategic layout that covers major urban clusters[40]. - The company aims to enhance its technological innovation and optimize processes, expanding its core business into smart water management and sludge treatment[75][76]. - The company plans to explore various business models such as DBO and joint investments to create provincial and municipal environmental platforms, focusing on key regions like the Pearl River Delta and Yangtze River Delta[78]. - Over the next three years, the company will deepen its presence in key markets like Beijing-Tianjin-Hebei and the Guangdong-Hong Kong-Macao Greater Bay Area, leveraging its project operation experience[79]. Research and Development - The company invested 12.5152 million yuan in R&D during the reporting period, representing a 104.64% year-on-year increase, and now holds a total of 48 patents, with 13 new patents added[47]. - The company has developed core technologies in wastewater treatment, including non-homogeneous catalytic ozone oxidation and multi-stage aeration biological filter technology, which have been successfully applied in various projects[87]. - The company has established partnerships with institutions like Harbin Institute of Technology and Peking University to advance research in water resource management and ecological restoration[88][89]. - The company is implementing a smart digital management solution at the Cao County Chemical Industry Park wastewater treatment plant, aiming for precise aeration and dosing, with full rollout expected in the second half of the year[43]. Environmental Compliance and Sustainability - The company is committed to complying with increasingly stringent environmental regulations, which may lead to higher operational costs[11]. - The company is focusing on optimizing wastewater treatment processes to achieve carbon neutrality, with estimates suggesting that the wastewater treatment industry could account for 2.95% of national greenhouse gas emissions by 2030[66]. - The company has implemented an environmental self-monitoring plan in accordance with national emission standards[150]. - The company is committed to ongoing research in carbon neutrality technologies, focusing on carbon utilization and storage in wastewater treatment plants[153]. - The company has achieved energy and material consumption reduction in production processes, promoting green and low-carbon production[153]. Financial Risks and Challenges - The company is facing potential financial risks due to rising interest rates, which could increase its financing costs as its asset-liability ratio has risen in recent years[9]. - The company acknowledges the risks associated with changes in baseline water volumes or prices due to potential alterations in industrial park planning[6]. - The company faces risks from industry policies and macroeconomic fluctuations, which could negatively impact future operations[131]. - Financial risks may arise from rising interest rates due to increased asset-liability ratios, impacting the company's financing costs[134]. Corporate Governance and Shareholder Matters - The company did not distribute cash dividends or issue bonus shares for the first half of 2021[142]. - The company held its first extraordinary general meeting on March 28, 2021, with 100% investor participation[140]. - The company has made commitments regarding share transfer restrictions for its actual controllers and shareholders, ensuring compliance with regulations[157]. - The company has not reported any significant changes in the feasibility of the projects or issues in the use and disclosure of raised funds[121]. Future Outlook - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 25% year-on-year, driven by new product launches and market expansion strategies[158]. - The management emphasized the importance of sustainable practices, with a goal to reduce carbon emissions by 20% by 2025 as part of its corporate social responsibility strategy[159]. - The company plans to enhance energy recovery from wastewater, potentially achieving energy self-sufficiency by optimizing treatment processes[66].

Financial Performance - The company's operating revenue for Q1 2021 was ¥70,890,935.98, representing a 44.19% increase compared to ¥49,163,399.13 in the same period last year[8] - Net profit attributable to shareholders was ¥4,026,400.15, a significant turnaround from a loss of ¥3,418,692.22 in the previous year, marking a 217.78% increase[8] - The net profit after deducting non-recurring gains and losses was ¥3,715,926.17, compared to a loss of ¥3,678,929.81 last year, reflecting a 201.01% improvement[8] - The basic earnings per share for the quarter was ¥0.03, compared to a loss of ¥0.03 in the same period last year, indicating a 200.00% increase[8] - The total operating revenue for Q1 2021 was CNY 70,890,935.98, an increase of 44% compared to CNY 49,163,399.13 in the same period last year[46] - Net profit for Q1 2021 reached CNY 4,304,857.92, compared to a net loss of CNY 3,517,558.36 in Q1 2020, marking a significant turnaround[48] - Owner's equity rose to CNY 887,314,045.33, up from CNY 577,941,843.05, indicating a 54% increase year-over-year[47] Assets and Liabilities - The company's total assets increased by 29.00% to ¥2,106,219,553.84 from ¥1,632,770,824.69 at the end of the previous year[8] - The company's total liabilities increased to CNY 747,796,714.73 from CNY 690,291,619.28, representing an 8% rise[47] - The total assets of the company increased to CNY 1,635,110,760.06 from CNY 1,268,233,462.33, reflecting a growth of 29%[47] - The total liabilities of the company as of March 31, 2021, were CNY 1,083,814,820.92, compared to CNY 937,225,476.94 at the end of 2020, reflecting an increase of about 15.6%[40] Cash Flow - The net cash flow from operating activities was negative at -¥84,045,665.02, worsening from -¥14,261,061.91 in the same period last year, a decline of 489.34%[8] - Cash inflow from operating activities totaled 172,597,939.44 CNY, significantly up from 74,226,316.41 CNY in the previous year, representing an increase of approximately 132.5%[56] - Cash outflow from operating activities was 256,643,604.46 CNY, compared to 88,487,378.32 CNY in the previous year, resulting in a net cash flow from operating activities of -84,045,665.02 CNY, worsening from -14,261,061.91 CNY[56] - Cash flow from financing activities generated a net inflow of 537,144,630.60 CNY, compared to 38,694,548.64 CNY in the previous year, indicating a substantial increase[57] Shareholder Information - The company reported a total of 54,780 common shareholders at the end of the reporting period[12] - The top shareholder, Li Haibo, holds 13.93% of the shares, amounting to 24,700,000 shares[12] Debt and Financing - Short-term borrowings rose by 40.36% to approximately 271.97 million yuan, attributed to increased financing activities[17] - Long-term borrowings increased by 128.32% to approximately 197.50 million yuan, also due to expanded financing[17] - The company faces financial risks due to increased debt levels, which may lead to higher financing costs if interest rates rise[25] Business Operations and Strategy - The company continues to focus on industrial wastewater treatment and high-quality water supply, aiming for steady growth in annual operating performance[19] - The company signed 21 new energy-saving and environmental protection engineering orders worth approximately 2.12 million yuan during the reporting period[18] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[48] Risks and Challenges - The company faces risks related to industry policies and macroeconomic fluctuations, which could negatively impact future operations[21] - There is a risk of changes in guaranteed water volume or pricing during the operational period, which could adversely affect the company's operations[22] - The company is focusing on expanding its business while managing risks associated with customer concentration[24] Miscellaneous - The first quarter report for Deepwater Haina Water Group Co., Ltd. is unaudited[64] - The report does not provide specific financial performance metrics or user data for the first quarter[64] - There are no details on future outlook or performance guidance included in the report[64] - The company has not disclosed any new product or technology developments in the first quarter[64] - The report lacks any mention of new strategies being implemented by the company[64]

Financial Performance - The company's operating revenue for 2020 was approximately ¥565.55 million, a slight increase of 0.23% compared to ¥564.27 million in 2019[21]. - The net profit attributable to shareholders decreased by 3.68% to approximately ¥92.43 million from ¥95.95 million in 2019[21]. - The net cash flow from operating activities was negative at approximately -¥190.28 million, a decline of 120.11% compared to -¥86.45 million in 2019[21]. - The total assets at the end of 2020 increased by 33.86% to approximately ¥1.63 billion from ¥1.22 billion at the end of 2019[21]. - The net assets attributable to shareholders rose by 15.35% to approximately ¥694.51 million from ¥602.08 million in 2019[21]. - The basic earnings per share for 2020 was ¥0.70, down 5.41% from ¥0.74 in 2019[21]. - The company achieved a net profit attributable to shareholders of RMB 92,425,253.94 for the year 2020[132]. - The total distributable profit for the company at the end of 2020 was RMB 162,076,320.65[132]. - The company reported a significant increase in operating income, reaching 53,428,451 million, reflecting a robust growth trajectory[116]. Dividends and Shareholder Returns - The company reported a cash dividend of 0.53 RMB per 10 shares (including tax) and no bonus shares for a total of 177,280,000 shares[9]. - The company plans to distribute cash dividends of RMB 0.53 per 10 shares, totaling RMB 9,395,840.00, which represents 10.17% of the net profit[134]. - The company aims to maintain a cash dividend policy that distributes at least 30% of the average annual distributable profit over the next three years[129]. Business Expansion and Strategy - The company is actively expanding its business to mitigate customer concentration risks and stabilize market presence[6]. - The company has established 23 subsidiaries across key regions including Beijing-Tianjin-Hebei, Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, and Central China Economic Zone[8]. - The company is focusing on expanding its market presence in regions such as Jiangsu, Hebei, and Shanxi, while increasing investment in technological innovation[74]. - The company plans to enhance its market presence by exploring various business models, including DBO and joint investments, to expand its operations in key regions such as the Beijing-Tianjin-Hebei area and the Guangdong-Hong Kong-Macau Greater Bay Area[118]. - The company has expanded its business model from a single EPC model to include BOT, ROT, and other flexible service models to meet diverse project needs[67]. Financial Risks and Management - The company faces financial risks due to rising interest rates as its asset-liability ratio has increased with more investment projects[9]. - The company emphasizes the importance of aligning its management systems and internal controls with its rapid growth to avoid operational constraints[8]. - The company acknowledges potential negative impacts from changes in industry policies and macroeconomic conditions on its future operations[5]. - The company is focused on optimizing its capital structure to control financial costs and maximize shareholder value[9]. - The company’s asset-liability ratio has increased due to the expansion of investment projects, exposing it to financial risks from interest rate changes[124]. Research and Development - The company is committed to diversifying its technology and business models to enhance operational efficiency[8]. - The company is focused on R&D in areas such as green and efficient production technologies for high-energy-consuming and heavily polluting industries[55]. - The company has established a comprehensive R&D mechanism to ensure continuous innovation and technological advantages in the wastewater treatment sector, leveraging core technologies such as non-homogeneous catalytic ozone oxidation and MBBR series technologies[61]. - The company is actively investing in R&D for industrial wastewater and high-quality water supply technologies, including research on online detection methods for biological toxicity in industrial wastewater[61]. - The number of R&D personnel increased to 81, representing 10.76% of the total workforce[97]. Environmental Compliance and Social Responsibility - The company operates under significant government regulation due to its involvement in public utilities and environmental protection[5]. - The company has established and operates pollution prevention facilities, ensuring stable operation and compliance with environmental standards since inception[173]. - The company has completed environmental impact assessments and holds necessary environmental protection permits for all key pollutant discharge units[173]. - The company has implemented emergency response plans for environmental incidents, detailing rescue principles and procedures[173]. - The company has actively fulfilled its social responsibilities, ensuring stable operations and employee health during the pandemic[167]. Market Trends and Industry Insights - The industrial wastewater treatment market in China is projected to reach RMB 135.75 billion by 2023, with a compound annual growth rate (CAGR) of 7.7% from 2021 to 2023[47]. - The demand for high-quality drinking water is rapidly increasing among residents, driven by rising living standards and consumption upgrades[51]. - The industrial wastewater treatment market is becoming more concentrated as companies with advanced technologies gain a competitive edge[49]. - The market for pipeline direct drinking water is significant, as most water treatment plants still rely on traditional processes that require upgrades to meet quality standards[52]. Corporate Governance and Shareholding Structure - The company has a stable core team with an average industry experience of over 20 years, enhancing its competitive edge in the environmental water service sector[63]. - The company has maintained a stable leadership structure with no changes in key management positions during the reporting period[196]. - The largest shareholder, Li Haibo, holds 18.58% of the shares, totaling 24,700,000 shares[180]. - The second largest shareholder, Tibet Haina Bochuang Investment Co., holds 14.42% of the shares, totaling 19,166,231 shares[180]. - The company has a total of 54,780 common stock shareholders as of the end of the reporting period[180]. Operational Efficiency and Cost Management - The company is focused on optimizing its business and asset structure while ensuring sustainable development[117]. - The gross profit margin for the environmental protection industry was 37.69%, a decrease of 5.67% from the previous year[84]. - The gross profit margin for the operating business in the industrial wastewater treatment segment improved by 7.40% to 58.74%[84]. - The company’s labor subcontracting and professional subcontracting costs increased by 15.11% to CNY 14.38 million, representing 40.80% of total costs[89]. - The company’s electricity costs increased by 4.79% to CNY 1.79 million, reflecting rising operational expenses[89].