[Report Overview](index=1&type=section&id=Report%20Overview) [Important Notice](index=1&type=section&id=Important%20Notice) The company's management guarantees the truthfulness, accuracy, and completeness of this unaudited quarterly report - The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report's content[2](index=2&type=chunk)[3](index=3&type=chunk) - This quarterly report is **unaudited**[4](index=4&type=chunk) [Financial Data and Analysis](index=2&type=section&id=Financial%20Data%20and%20Analysis) [Key Financial Indicators](index=2&type=section&id=Key%20Financial%20Indicators) In Q3 2022, revenue grew slightly while net profit fell sharply, but total assets and equity increased significantly due to an IPO Key Financial Data for Q3 2022 and Year-to-Date | Indicator | Q3 | YoY Change | Year-to-Date (YTD) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 160,497,238.53 | 6.24% | 410,247,990.46 | 5.12% | | Net Profit Attributable to Shareholders (CNY) | 11,821,502.53 | -53.81% | 36,020,074.58 | -25.00% | | Basic EPS (CNY/Share) | 0.0430 | -65.32% | 0.1346 | -42.16% | | **Indicator** | **End of Reporting Period** | **Change from Prior Year-End** | | | | Total Assets (CNY) | 2,225,846,095.61 | 43.37% | | | | Equity Attributable to Shareholders (CNY) | 1,488,299,507.14 | 81.97% | | | [Non-recurring Profit and Loss](index=2&type=section&id=Non-recurring%20Profit%20and%20Loss) Year-to-date non-recurring profit and loss totaled CNY 2.33 million, mainly from government grants and tax-related items Year-to-Date Non-recurring Profit and Loss Items | Item | YTD Amount (CNY) | | :--- | :--- | | Government grants included in current P&L | 2,673,632.44 | | Other P&L items defined as non-recurring | 617,780.80 | | Gains/losses on disposal of non-current assets | 108,247.73 | | Other non-operating income and expenses | -226,256.46 | | Less: Impact of income tax and minority interests | -840,590.39 | | **Total** | **2,332,814.12** | - Other items defined as non-recurring profit and loss mainly include personal income tax handling fee rebates (CNY 0.12 million) and VAT super-deductions (CNY 0.49 million)[8](index=8&type=chunk) [Analysis of Changes in Financial Indicators](index=3&type=section&id=Analysis%20of%20Changes%20in%20Financial%20Indicators) The sharp decline in net profit was due to pandemic impacts, while improved operating cash flow and asset growth were driven by increased tender deposits and IPO proceeds - **Net profit attributable to shareholders decreased by 53.81% YoY**, primarily due to lower gross margins in engineering supervision and testing businesses affected by the pandemic[9](index=9&type=chunk) - **Net cash flow from operating activities improved by 52.37%**, mainly due to an increase in tender deposits received from a higher number of bidding projects[9](index=9&type=chunk) - **Total assets and shareholders' equity grew by 43.37% and 81.97% respectively**, driven by the inflow of funds from the initial public offering[9](index=9&type=chunk) [Shareholder Information](index=3&type=section&id=Shareholder%20Information) [Shareholder Structure and Holdings](index=3&type=section&id=Shareholder%20Structure%20and%20Holdings) As of the period end, the company had 17,753 common shareholders, with the controlling shareholder holding 53.96% and several employee stock ownership platforms among the top ten - At the end of the reporting period, the total number of common shareholders was **17,753**[11](index=11&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | :--- | | Fujian Provincial Tendering & Purchasing Group Co, Ltd | State-owned Legal Entity | 53.96% | 148,500,000 | | Fujian SOE Reform and Reorganization Investment Fund (LP) | State-owned Legal Entity | 4.50% | 12,384,217 | | Fujian Zhanglong Investment Co, Ltd | State-owned Legal Entity | 3.75% | 10,320,181 | | Longhai State-owned Assets Investment & Operation Co, Ltd | State-owned Legal Entity | 3.75% | 10,320,181 | | Fujian Yongxu No. 1 Investment Partnership (LP) | Domestic Non-state-owned Legal Entity | 3.28% | 9,030,000 | - Fujian Yongxu No. 1, No. 2, and No. 3 Investment Partnership Enterprises are the company's employee stock ownership platforms[12](index=12&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=Changes%20in%20Restricted%20Shares) During the reporting period, 3,044,058 offline placement restricted shares were released from restriction, leaving no restricted shares at period end Details of Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released This Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Other Offline Placement Restricted Shareholders | 3,044,058 | 3,044,058 | 0 | Offline Placement Restriction | [Quarterly Financial Statements](index=5&type=section&id=Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets reached CNY 2.23 billion, driven by cash and new financial assets, while total equity surged due to IPO proceeds Key Balance Sheet Items | Item | Sep 30, 2022 (CNY) | Jan 1, 2022 (CNY) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 822,421,231.78 | 772,184,439.69 | 6.51% | | Trading Financial Assets | 549,696,661.65 | 0.00 | - | | **Total Assets** | **2,225,846,095.61** | **1,552,497,890.82** | **43.37%** | | **Total Liabilities** | **674,965,957.73** | **681,709,313.59** | **-0.99%** | | Share Capital | 275,204,820.00 | 206,403,615.00 | 33.33% | | Capital Reserve | 933,275,693.05 | 340,141,407.70 | 174.38% | | **Total Equity** | **1,550,880,137.88** | **870,788,577.23** | **78.10%** | [Consolidated Income Statement](index=7&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2022, total operating revenue grew by 5.12%, but net profit attributable to shareholders declined by 25.00% due to higher cost growth Year-to-Date Core Income Statement Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 410,247,990.46 | 390,279,056.22 | 5.12% | | Total Operating Costs | 357,383,307.32 | 327,504,328.06 | 9.12% | | Operating Profit | 53,137,236.42 | 63,477,745.80 | -16.29% | | Total Profit | 52,920,729.26 | 63,524,019.76 | -16.69% | | Net Profit Attributable to Parent Company Shareholders | 36,020,074.58 | 48,025,248.60 | -25.00% | [Consolidated Cash Flow Statement](index=9&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first three quarters of 2022, operating cash outflow improved, while significant investing outflows were offset by financing inflows from the IPO Year-to-Date Cash Flow Summary | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -63,394,068.39 | -133,087,706.52 | | Net Cash Flow from Investing Activities | -549,856,879.00 | -97,603,708.66 | | Net Cash Flow from Financing Activities | 616,342,197.81 | 697,376.97 | | Net Increase in Cash and Cash Equivalents | 3,301,236.92 | -230,235,518.65 | - Cash inflow from financing activities was mainly from **CNY 682 million received from investments**, representing IPO proceeds[25](index=25&type=chunk) - Cash outflow from investing activities was primarily **CNY 546 million paid for investments**, likely for wealth management products or other investments[25](index=25&type=chunk) [Audit Opinion](index=10&type=section&id=Audit%20Opinion) The company's third-quarter report for 2022 is unaudited - The company's third-quarter report is **unaudited**[26](index=26&type=chunk)

Financial Performance - The company's operating revenue for the current reporting period is ¥249,750,751.93, representing a 4.41% increase compared to ¥239,212,301.78 in the same period last year[23]. - The net profit attributable to shareholders for the current period is ¥24,198,572.05, which is a 7.88% increase from ¥22,430,902.66 year-on-year[23]. - The net profit after deducting non-recurring gains and losses is ¥22,302,018.57, reflecting an 18.51% increase from ¥18,818,616.85 in the previous year[23]. - The company's total assets have increased by 30.67% to ¥2,028,591,823.00 from ¥1,552,497,890.82 at the end of the previous year[23]. - The net assets attributable to shareholders have risen by 80.53% to ¥1,476,478,004.61 from ¥817,864,234.12 at the end of the previous year[23]. - The basic and diluted earnings per share decreased by 15.55% to ¥0.0918 from ¥0.1087 in the same period last year[23]. - The net cash flow from operating activities is negative at -¥199,296,278.70, which is an 18.14% decline compared to -¥168,698,391.88 in the previous year[23]. - The company reported a total revenue of approximately 295.78 million for its subsidiary, Jingwei Technology, with a net profit of around 30.28 million, reflecting a significant performance in the surveying services sector[86]. - The bidding service subsidiary, Bidding Center, generated revenue of approximately 62.06 million, with a net profit of about 12.74 million, indicating strong demand for bidding services[86]. Capital and Shareholder Information - The company reported a registered capital increase from RMB 206.40 million to RMB 275.20 million after the public offering of 68.80 million shares[22]. - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company’s stock was listed on the Shenzhen Stock Exchange on January 11, 2022, marking its transition to a publicly traded entity[22]. - The total number of shares increased from 206,403,615 to 275,204,820, resulting in a dilution of earnings per share, which decreased by 15.55% to RMB 0.0918 for the first half of 2022[140]. - The largest shareholder, Fujian Provincial Bidding Group Co., Ltd., holds 53.96% of the shares, totaling 148,500,000 shares[144]. - The company’s shareholder structure includes 88.67% held by state-owned entities and 11.33% by other domestic investors[135]. - The total number of ordinary shareholders at the end of the reporting period was 21,837[143]. Investment and Projects - The company has established research departments in its subsidiaries, focusing on various scientific research projects, which enhances its technical competitiveness in the industry[47]. - The company has implemented over 7,000 projects, accumulating rich experience in engineering consulting and establishing a strong brand reputation[51]. - The company has received multiple industry awards, including being listed among the "Top 100 Comprehensive Strength Bidding Agencies" and "Top 50 Investment Consulting Firms" in China[43]. - The company has a strong market position in the engineering consulting sector, leveraging decades of experience from its subsidiaries[40]. - The company has received over 40 patents and more than 300 software copyrights, demonstrating its commitment to technological innovation and development[53]. - The company has not yet achieved the expected benefits from the committed investment projects as of the reporting period[76]. - The company plans to complete the committed investment projects by 2025[76]. Risk Management and Future Outlook - The company emphasizes the importance of risk awareness among investors regarding future plans and commitments[4]. - The company faces risks related to declining fixed asset investment growth, which could adversely affect business performance, particularly in engineering consulting services[87]. - To mitigate risks, the company aims to strengthen its brand influence in Fujian while expanding its national market presence through strategic projects and enhanced technology capabilities[87]. - Future guidance indicates a projected revenue growth of 3-5% for the next quarter, driven by increased demand in key markets[179]. - The company is focused on building a unified information platform to streamline operations and improve service delivery across its subsidiaries[90]. Corporate Governance and Compliance - The financial report is guaranteed to be true, accurate, and complete by the board of directors and management[4]. - The company has not reported any changes in its registered address or contact information during the reporting period[18]. - The company has not engaged in any derivative investments or entrusted loans during the reporting period[82][83]. - The half-year financial report was not audited[107]. - The company reported no significant related party transactions exceeding the approved transaction amounts[112]. - The company has no significant guarantees during the reporting period[125]. Human Resources and Internal Management - The company is implementing a comprehensive human resource management system to address talent retention and rising labor costs, ensuring a skilled workforce for its technical services[88]. - The company has a strong talent pool, with nearly half of its employees holding various professional qualifications, including registered architects and engineers[52]. - The company is enhancing its internal control systems to manage risks associated with its diverse engineering consulting services and complex project management[90]. Environmental and Social Responsibility - The company engaged in rural revitalization activities, including drone monitoring for red tide and water source ecological environment projects[101]. - The company reported no significant environmental penalties or issues during the reporting period[101].

Financial Performance - The company's operating revenue for Q1 2022 was ¥98,771,856.75, representing an increase of 11.41% compared to ¥88,655,119.29 in the same period last year[2] - Net profit attributable to shareholders was ¥8,864,811.97, up 9.11% from ¥8,124,821.04 year-on-year[2] - Basic earnings per share decreased by 10.91% to ¥0.0351 from ¥0.0394 in the same period last year[2] - The weighted average return on equity was 0.70%, down from 1.05% in the previous year, indicating a decline of 0.35%[2] - Net profit for Q1 2022 reached CNY 10,549,765.84, representing a 30.3% increase from CNY 8,096,832.62 in Q1 2021[19] - Total operating costs for Q1 2022 were CNY 87,076,766.18, up 8.7% from CNY 79,985,543.16 in the same period last year[18] Cash Flow - The net cash flow from operating activities was -¥197,606,529.49, a decrease of 57.88% compared to -¥125,160,649.07 in the previous year, primarily due to the return of large bid deposits[5] - Cash inflow from operating activities totaled CNY 151,943,945.48, compared to CNY 147,621,116.05 in the previous year[22] - The company reported a significant increase in capital reserve to CNY 933,275,693.05 from CNY 340,141,407.70[18] - The company experienced a net cash inflow from other operating activities of CNY 37,593,338.68, up from CNY 25,729,004.71 in Q1 2021[22] - The total cash inflow from financing activities reached 692,464,977.24 CNY, significantly higher than 10,000,000.00 CNY in the previous year, reflecting strong capital raising efforts[23] - The net cash flow from financing activities was 675,169,542.47 CNY, compared to 9,810,132.55 CNY in the same period last year, showing a substantial increase[23] - The company reported a total cash outflow from operating activities of 349,550,474.97 CNY, compared to 272,781,765.12 CNY in the previous year, indicating increased operational costs[23] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,051,893,930.14, an increase of 32.17% from ¥1,552,497,890.82 at the end of the previous year[2] - Shareholders' equity attributable to the parent company was ¥1,488,664,536.44, reflecting an increase of 82.02% from ¥817,864,234.12 at the end of the previous year, mainly due to funds raised from the initial public offering[5] - Total liabilities decreased to CNY 508,620,096.72 from CNY 681,709,313.59 year-over-year[18] - The total current liabilities decreased from RMB 41,335,704.37 to RMB 41,335,704.37, remaining stable with no change[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,167[6] - The total number of restricted shares at the end of the period was 218,953,376, with 12,549,761 shares added during the period[12] - The company issued 68,801,205 shares at an initial price of RMB 10.52 per share during its IPO on January 11, 2022[13] Inventory and Receivables - The accounts receivable stood at RMB 174,503,382.04, slightly down from RMB 177,994,052.51, reflecting a decrease of approximately 2.8%[15] - The company's inventory increased to RMB 64,142,848.81 from RMB 43,893,924.64, marking a rise of about 46.0%[15] Investment Activities - The cash outflow from investing activities was 93,537,269.17 CNY, slightly lower than 103,247,132.29 CNY in the previous year, indicating a reduction in investment expenditures[23] - The net cash flow from investing activities was -93,446,370.17 CNY, compared to -91,892,732.29 CNY in the same period last year, reflecting ongoing investment challenges[23] Audit and Adjustments - The company did not undergo any retrospective adjustments or restatements of prior year financial data[2] - The company did not conduct an audit for the first quarter report, which may affect the reliability of the financial data presented[24]

Financial Performance - The company's operating revenue for 2021 was ¥666,608,137.66, representing a 2.76% increase compared to ¥648,678,165.17 in 2020[18]. - The net profit attributable to shareholders decreased by 7.28% to ¥77,165,817.76 in 2021 from ¥83,223,467.54 in 2020[18]. - The net cash flow from operating activities significantly improved by 205.73%, reaching ¥66,825,845.54 in 2021 compared to ¥21,857,681.55 in 2020[18]. - The total assets increased by 14.36% to ¥1,552,497,890.82 at the end of 2021, up from ¥1,357,556,475.29 at the end of 2020[18]. - The basic earnings per share decreased by 7.27% to ¥0.3739 in 2021 from ¥0.4032 in 2020[18]. - The total net assets attributable to shareholders increased by 6.56% to ¥817,864,234.12 at the end of 2021 from ¥767,531,941.18 at the end of 2020[18]. - The gross profit for the company was CNY 268.02 million, with a gross margin of 40.21%, a decrease of 1.21 percentage points year-on-year[56]. - The company achieved operating revenue of CNY 666.61 million in 2021, an increase of 2.76% compared to the previous year[56]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total share capital of 275,204,820 shares[5]. - A cash dividend of ¥1.00 per 10 shares will be distributed to shareholders, totaling ¥27,520,482.00, with no stock dividends or capital reserve transfers[154]. - The total cash dividend amount (including other methods) was ¥27,520,482.00, which accounted for 100% of the profit distribution total[153]. Risk Management - The company emphasizes the importance of risk management and outlines strategies to address potential risks in the future development outlook section[5]. - The company is addressing risks related to declining fixed asset investment growth, which could negatively impact its performance, by strengthening its brand influence in Fujian and expanding its national presence[97]. - The company has identified a risk of rising accounts receivable and contract assets due to longer payment cycles in certain service areas, and it plans to enhance its accounts receivable management[100]. Corporate Governance - The company’s financial report has been confirmed for accuracy and completeness by the board of directors and senior management[4]. - The company has established a governance structure that complies with legal requirements, ensuring transparency and fairness for all shareholders[110]. - The company has implemented a performance-based compensation system that links executive pay to the company's operational performance[109]. - The company has established a comprehensive internal control system that effectively prevents and corrects operational deviations, ensuring the safety and integrity of company assets[156]. Market Position and Strategy - The company is positioned as a leading engineering consulting service provider in Fujian Province, leveraging its comprehensive qualifications and high professional standards[33]. - The company is focusing on the development of full-process engineering consulting services, which is a rapidly growing sector in the construction industry[91]. - The company aims to enhance its engineering consulting service capabilities and expand its market presence nationwide, leveraging its high-level qualifications in various consulting fields[94]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[135]. Research and Development - The company’s R&D investment amounted to ¥29,119,890.13 in 2021, representing 4.37% of total revenue, an increase from 3.73% in 2020[72]. - The company has received multiple awards for its technological innovations, including over 20 patents and 200 software copyrights[54]. - The company is investing 50 million RMB in R&D for new technologies aimed at improving operational efficiency[135]. Subsidiaries and Acquisitions - The company has subsidiaries involved in various sectors, including construction, consulting, and engineering services[12]. - The company established a new subsidiary, Longyan Wenhui Xing Project Management Co., Ltd., with a registered capital of ¥10 million, in August 2021[64]. - The company absorbed and merged Fujian 618 Information Technology Co., enhancing management efficiency and resource integration[90]. Social Responsibility - The company has actively participated in social responsibility initiatives, donating 35 boxes of anti-epidemic supplies to support local pandemic control efforts[170]. - The company has established a long-term support mechanism for key poverty alleviation projects, providing financial aid and supplies to three categories of party members, including veterans and families of martyrs[171]. - The company is committed to enhancing rural revitalization efforts by deepening cooperation between government and enterprises, focusing on developing characteristic advantageous industries[171]. Compliance and Regulatory Matters - The company has not reported any penalties from regulatory authorities for its directors, supervisors, or senior management in the past three years[137]. - The company has not engaged in any non-operational asset occupation by its controlling shareholder or provided any asset guarantees during the reporting period[112]. - The company has confirmed that all commitments made are genuine and will be strictly adhered to[190].