Group 1: Company Overview - Shihpu Testing is a comprehensive third-party testing organization that started with soil and groundwater testing, expanding its services to various sectors including environmental, solid waste, agricultural products, consumer goods, cosmetics, dioxins, occupational health, and medical testing [2]. - The company has established multiple laboratories and liaison offices in key regions such as Jiangsu, Zhejiang, Shanghai, Tianjin, Shanxi, Guangdong, and Sichuan, covering 31 provinces, municipalities, and autonomous regions, including 1 special administrative region [2][3]. Group 2: Business Performance and Capacity - The company has successfully included 8 laboratories in the list for the third national soil survey, as announced by the Ministry of Agriculture and Rural Affairs [3]. - Soil and groundwater testing accounts for approximately 90% of the company's main business revenue [3]. Group 3: Future Development and Strategy - The company plans to extend its testing services to chemical products, materials, biology, and calibration, while also pursuing market expansion through mergers and acquisitions [3][4]. - The company is focused on talent acquisition and training, with a current workforce of over 1,200 employees, and plans to increase recruitment in line with business needs and future development expectations [4]. Group 4: Clientele and Financial Health - The main clients include government agencies, consulting firms, remediation companies, industrial enterprises, and educational institutions, with a strong credit profile and low bad debt risk [4]. - The company emphasizes a long repayment cycle with low credit risk, primarily relying on government financial resources for project funding [4].

Financial Performance - The company reported a revenue of RMB 100 million for the first half of 2022, representing a year-on-year increase of 20%[18]. - The net profit attributable to shareholders for the same period was RMB 15 million, up 25% compared to the previous year[18]. - Future guidance indicates a revenue target of RMB 220 million for the full year 2022, reflecting a growth rate of 15%[18]. - The company's operating revenue for the reporting period was ¥121,530,611.30, a decrease of 25.89% compared to ¥163,990,661.80 in the same period last year[24]. - The net profit attributable to shareholders was -¥32,059,814.24, representing a decline of 396.33% from ¥10,819,129.16 in the previous year[24]. - The net cash flow from operating activities was -¥36,691,393.59, a decrease of 661.09% compared to ¥6,539,344.06 in the same period last year[24]. - The company reported a significant increase in trading financial assets, totaling ¥370,000,000, which accounted for 33.41% of total assets, primarily due to the purchase of structured deposit financial products[53]. - The company reported a net profit of -18,457,579.64 yuan for the first half of 2022, compared to a net profit of 10,088,919.53 yuan in the same period of 2021, indicating a significant decline in profitability[161]. - The total comprehensive income for the period was -18,457,579.64 yuan, reflecting the overall financial challenges faced by the company[162]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2023[18]. - The company is exploring potential acquisitions to enhance its service offerings, with a budget of RMB 50 million allocated for this purpose[18]. - The company is actively expanding its services in occupational health, consumer products, medical devices, materials, metrology, radiation, ecological products, and carbon verification[34]. - The company is focused on expanding its market presence and enhancing its service offerings in the environmental testing sector[108]. - The company has established a strategic plan for market expansion and potential mergers and acquisitions in the future[108]. - The company is committed to ongoing research and development of new technologies and products to maintain competitive advantage[108]. - The company plans to enhance laboratory process reforms and improve testing efficiency to control costs and ensure data accuracy, thereby avoiding unnecessary expenses[78]. Research and Development - New product development includes a state-of-the-art testing technology expected to launch in Q4 2022, projected to increase revenue by 10%[18]. - The management highlighted ongoing research and development efforts, with an investment of RMB 8 million in new technologies during the first half of 2022[18]. - The company's R&D investment increased by 48.15% to CNY 26,448,933.47, up from CNY 17,852,522.62, reflecting a focus on enhancing research projects[47]. - The company emphasizes technological research and development, continuously optimizing testing methods and expanding its capabilities in environmental testing standards[43]. - The company has allocated resources for research and development of new products, aiming to enhance its competitive edge in the market[171]. Operational Challenges - The COVID-19 pandemic has significantly impacted the company's operations, with challenges in supply chain, logistics, and project implementation, leading to a risk of substantial performance decline for the year[80]. - The company faces risks of declining performance due to potential adverse changes in industry policies and increased competition, which could lead to lower order acquisition and higher costs[78]. - The company is closely monitoring industry policy changes and actively adapting to mitigate potential risks associated with regulatory shifts[79]. - The company is enhancing its collection efforts on aged receivables to mitigate the risk of bad debts, ensuring smooth financial operations[79]. Asset and Equity Management - Total assets increased by 63.95% to ¥1,107,385,299.91 from ¥675,441,274.57 at the end of the previous year[24]. - The net assets attributable to shareholders rose by 110.68% to ¥895,171,643.46 from ¥424,897,989.06 at the end of the previous year[24]. - The company's total assets at the end of the reporting period amounted to ¥1,107,000,000, with cash and cash equivalents constituting 14.69% of total assets, a decrease of 1.05% from the previous year[53]. - The company's total liabilities decreased to CNY 192,860,979.41 from CNY 231,082,463.77, a reduction of about 16.5%[151]. - Shareholders' equity rose significantly to CNY 914,524,320.50 from CNY 444,358,810.80, marking an increase of approximately 105.5%[151]. Quality Control and Compliance - The company implemented a strict quality control system across all laboratory processes, ensuring the authenticity and objectivity of the reports issued[45]. - The company strictly adhered to environmental protection laws and did not face any administrative penalties related to environmental issues during the reporting period[91]. - The company emphasizes social responsibility and aims to become a benchmark in the inspection and testing industry, focusing on environmental protection and health safety[92]. Shareholder and Financial Structure - The company completed its initial public offering (IPO) of 30,000,000 shares, which began trading on January 28, 2022, on the Shenzhen Stock Exchange, resulting in a total share capital of 120,000,000 shares[122]. - The company distributed cash dividends of 2 RMB per 10 shares to all shareholders, totaling 24,000,000 RMB (including tax) based on the total share capital of 120,000,000 shares[122]. - The company’s shareholding structure includes 93,795,600 shares (78.16%) held by limited sale condition shares and 26,204,300 shares (21.84%) held by unrestricted shares[126]. - The company has not reported any significant changes in the measurement attributes of its major assets during the reporting period[57]. - The company has not engaged in any derivative investments during the reporting period[70].

Financial Performance - Revenue for Q1 2022 was ¥54,871,245.63, a decrease of 9.50% compared to ¥60,629,228.96 in the same period last year[3] - Net profit attributable to shareholders was -¥14,450,472.41, representing a decline of 368.13% from -¥3,086,830.82 year-on-year[3] - The company reported a net loss for the quarter, with a total loss of RMB 13,164,334.44, compared to a profit in the same period last year[17] - The net profit for the first quarter of 2022 was -14,687,406.57 CNY, compared to -3,438,874.48 CNY in the same period last year, indicating a significant increase in losses[19] - Operating profit for the first quarter was -19,086,184.00 CNY, which is a decline from -5,861,964.35 CNY year-over-year[19] - The total comprehensive income for the first quarter was -14,687,406.57 CNY, compared to -3,438,874.48 CNY in the previous year[19] Cash Flow and Liquidity - The net cash flow from operating activities was -¥33,206,985.75, a decrease of 167.82% compared to -¥12,399,194.08 in the previous year[3] - Cash flow from operating activities showed a net outflow of -33,206,985.75 CNY, worsening from -12,399,194.08 CNY in the previous year[21] - Total cash inflow from investment activities was 40,053,397.64 CNY, while cash outflow was 482,865,720.22 CNY, resulting in a net cash outflow of -442,812,322.58 CNY[21] - The company raised 549,196,000.00 CNY from financing activities, significantly up from 10,000,000.00 CNY in the previous year[21] - Cash and cash equivalents increased by 45.12% due to the issuance of new shares[6] - Cash and cash equivalents at the end of the quarter amounted to RMB 154,313,665.74, an increase from RMB 106,334,320.71 at the beginning of the year[13] - Cash and cash equivalents increased by 47,979,345.03 CNY during the quarter, contrasting with a decrease of -31,847,092.17 CNY in the same period last year[21] Assets and Liabilities - Total assets increased by 71.35% to ¥1,157,342,915.03 from ¥675,441,274.57 at the end of the previous year[3] - Total assets as of March 31, 2022, were RMB 1,157,342,915.03, up from RMB 675,441,274.57 at the beginning of the year, indicating a growth of 71.2%[16] - The company's total liabilities decreased to RMB 201,338,042.17 from RMB 231,082,463.77, a reduction of 12.9%[15] Shareholder Equity - Shareholders' equity attributable to the parent company rose by 120.47% to ¥936,780,985.29 from ¥424,897,989.06 at the end of the previous year[3] - The equity attributable to shareholders increased significantly to RMB 936,780,985.29 from RMB 424,897,989.06, reflecting a growth of 104.0%[16] Operating Costs and Expenses - The total operating costs increased to RMB 68,035,580.07, up from RMB 65,809,188.73, reflecting a rise of 3.3%[17] - Research and development expenses for the quarter were RMB 12,822,875.15, an increase of 26.4% compared to RMB 10,144,915.53 in the previous year[17] - The company reported a significant decrease in cash received from sales of goods and services, totaling 46,913,268.09 CNY, down from 80,795,869.78 CNY year-over-year[20] - The company incurred a credit impairment loss of -5,867,420.09 CNY during the quarter, reflecting ongoing challenges in asset management[19] Future Plans - The company plans to expand its market presence and invest in new technology development[3] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11] - The company successfully completed its IPO, issuing 30 million shares, and began trading on the Shenzhen Stock Exchange on January 28, 2022[11] Non-Operating Income - Non-operating income for the period was ¥280,892.92, primarily due to government subsidies and other income[5] Financial Assets - The company experienced a 100% increase in trading financial assets due to the purchase of structured deposits[6]

Dividend Distribution - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares to all shareholders, based on a total of 120,000,000 shares [4]. - The company distributed a cash dividend of 24,000,000.00 CNY, which is 2.00 CNY per 10 shares, representing 100% of the total profit distribution [108]. - The company plans to distribute cash dividends of 2 RMB per 10 shares, totaling 24 million RMB, based on 120 million shares [109]. Financial Performance - The company's operating revenue for 2021 was CNY 424,866,246.46, representing an increase of 18.05% compared to CNY 359,899,907.24 in 2020 [5]. - The net profit attributable to shareholders for 2021 was CNY 50,432,176.02, a growth of 5.47% from CNY 47,817,939.87 in 2020 [5]. - The net cash flow from operating activities surged by 123.29% to CNY 86,525,116.26 in 2021, compared to CNY 38,749,966.29 in 2020 [5]. - The total assets at the end of 2021 reached CNY 675,441,274.57, marking a 12.96% increase from CNY 597,964,578.17 at the end of 2020 [5]. - The company reported a basic earnings per share of CNY 0.56 for 2021, up 5.66% from CNY 0.53 in 2020 [5]. - In 2021, the company achieved a revenue of CNY 424.87 million, representing a year-on-year growth of 18.05% [40]. - The net profit attributable to shareholders was CNY 50.43 million, with a year-on-year increase of 5.47% [40]. Operational Highlights - The company operates in the third-party testing service industry, which is experiencing significant growth due to government policies promoting environmental testing and regulation [28]. - The company has established multiple laboratories and liaison offices in key regions such as the Yangtze River Delta and the Pearl River Delta since its inception in 2013, leading to rapid business growth [34]. - The company focuses on soil and groundwater testing, which is critical for environmental protection and pollution control, providing essential data for remediation projects [35]. - The company’s gas and water quality testing services are essential for regulatory compliance and environmental monitoring, catering to both government and corporate clients [36]. Market Trends - The environmental testing industry in China has seen significant growth, with market size increasing from RMB 137.70 billion in 2015 to RMB 373.69 billion in 2020, representing a compound annual growth rate (CAGR) of 22.10% [30]. - The water quality testing market has grown from RMB 43.10 billion in 2015 to RMB 68.10 billion in 2020, achieving a CAGR of 9.58% [32]. - The food safety testing market expanded from RMB 100.69 billion in 2015 to RMB 169.07 billion in 2020, with a CAGR of 10.92% [33]. Governance and Compliance - The company has established a comprehensive governance structure, including a board of directors and supervisory board [4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management [3]. - The company maintains an independent operational structure with complete control over its assets, personnel, and financial management, ensuring no reliance on the controlling shareholder [84]. - The company has not faced any penalties from securities regulatory agencies in the past three years [95]. - The company has not engaged in any related party transactions that could harm its interests, ensuring asset integrity [84]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report, indicating potential operational risks [4]. - A risk assessment team has been formed to analyze and evaluate potential risks related to management practices and external economic policies [112]. - The company faces risks related to brand reputation, market competition, and potential declines in gross margin due to increased competition and operational costs [73][74]. Research and Development - The company is developing new analytical methods for environmental testing, enhancing its market competitiveness and service quality [55]. - Research and development expenses increased by 17.32% to ¥31,505,167.95, driven by new project developments and an increase in R&D personnel [53]. - The company increased its R&D personnel from 91 in 2020 to 123 in 2021, representing a growth of 35.16% [56]. - The company is investing 200 million RMB in R&D for new technologies over the next three years, focusing on automation and AI [136]. Internal Controls - The company has established a comprehensive internal control system to ensure the effectiveness of business activities and the integrity of financial reporting [110]. - An independent internal audit department has been established to oversee the execution of internal control systems and ensure compliance [114]. - The company has implemented a dual-level transaction authorization system to ensure that transactions are conducted within authorized limits [113]. Shareholder Relations - The company aims to enhance its investor relations through various communication channels, ensuring equal opportunities for all investors [130]. - The company has developed an investor relations management system to protect shareholder rights and ensure transparent information disclosure [129]. - The company will review its shareholder return plan every three years, with adjustments made based on significant changes in the operating environment or business conditions [141]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 25% for the next fiscal year, aiming for 1.875 billion RMB [136]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years [136]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q3 2022, expected to increase market penetration by 15% [137].