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].