金科环境(688466) - 2025 Q2 - 季度财报

Section I Definitions This section provides definitions for key terms used in the report, ensuring clear understanding of the content Definitions of Common Terms This chapter provides definitions for key terms used in the report, covering the company's core business, products, and technologies such as water treatment processes, AI agent systems, and productized water plants, ensuring clear understanding of the report content - Advanced Water Treatment: Processing organic micropollutants to improve drinking water quality beyond traditional methods, commonly using ozone-activated carbon and membrane separation technologies[11] - Wastewater Resource Recovery: Treating wastewater to meet standards for reuse as reclaimed water, replacing conventional water resources, and extracting other resources and energy[11] - Water Radish® AI Agent: The company's independently developed unattended operation and management AI agent system, replacing human functions in water plants with AI, integrating process optimization prediction and decision models, computer vision, auditory, infrared sensing models, and large language inference models[11] - New Water Island®: Revolutionizing traditional water plant engineering with an industrial product mindset, integrating all equipment, facilities, and structures into productized intelligent units for unattended, efficient operation[12] - GTMOST® Membrane Universal Platform Technology: Enabling universal interchangeability of most membrane elements from various manufacturers within a common platform and large-scale single-unit equipment, reducing water plant construction and operation costs[11] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance I. Company Basic Information This chapter outlines Jinko Environment Co., Ltd.'s basic registration information, including company name, legal representative, registered and office addresses, providing investors with a fundamental company overview - Company Chinese Name: Jinko Environment Co., Ltd., Abbreviation: Jinko Environment[15] - Legal Representative: Zhang Huichun[15] - Company Registered and Office Address: A1601, 16th Floor, No. 1 Wangjing East Road, Chaoyang District, Beijing[15] II. Contact Person and Contact Information This chapter provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating investor inquiries and communication - Board Secretary: Chen Anna, Contact Number: 010-64399965 (ext. 8003), Email: ir@greentech.com.cn[16][17] III. Information Disclosure and Location Change Overview This chapter details the company's semi-annual report disclosure channels and availability locations, ensuring investors can timely access public company information - Company's Selected Information Disclosure Newspapers: Shanghai Securities News, China Securities Journal, Securities Daily, Securities Times[18] - Website Address for Semi-Annual Report Publication: http://www.sse.com.cn[18](index=18&type=chunk) IV. Company Stock/Depositary Receipt Overview This chapter briefly introduces the company's stock listing status, including stock type, listing exchange and board, stock abbreviation, and code - Stock Type: A-share, Listing Exchange and Board: Shanghai Stock Exchange STAR Market[19] - Stock Abbreviation: Jinko Environment, Stock Code: 688466[19] VI. Company's Key Accounting Data and Financial Indicators In the first half of 2025, Jinko Environment continued to deepen its 'resource recovery, AI digitalization, and productization' strategy, achieving a 13.16% year-on-year increase in operating revenue, but net profit attributable to parent and non-recurring net profit declined, with negative net cash flow from operating activities primarily due to lower gross profit margin and reduced project collections. The company's order backlog decreased by 11.70% year-on-year Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 276,865,658.26 | 244,677,199.40 | 13.16 | | Total Profit | 32,042,522.93 | 38,719,480.04 | -17.24 | | Net Profit Attributable to Shareholders | 30,566,018.40 | 31,565,709.47 | -3.17 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 26,936,801.20 | 28,395,627.39 | -5.14 | | Net Cash Flow from Operating Activities | -32,271,319.02 | 10,424,788.72 | N/A | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.25 | 0.26 | -3.85 | | Diluted Earnings Per Share (yuan/share) | 0.25 | 0.26 | -3.85 | | Basic EPS (Excl. Non-recurring Items) (yuan/share) | 0.22 | 0.23 | -4.35 | | Weighted Average ROE (%) | 2.70 | 2.72 | Decrease of 0.02 percentage points | | Weighted Average ROE (Excl. Non-recurring Items) (%) | 2.38 | 2.45 | Decrease of 0.07 percentage points | | R&D Investment as % of Operating Revenue | 4.41 | 4.89 | Decrease of 0.48 percentage points | - In the first half of 2025, the company cumulatively delivered 8 sets of New Water Island® products and 9 Water Radish® AI agent projects[23] Operating Revenue by Business Type (Jan-Jun 2025) | Business Type | Revenue (million yuan) | Share (%) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | New Water Island & Water Plant O&M Services | 149.1869 | 53.88 | 16.21 | | New Water Island & Process Package Product Sales | 127.4134 | 46.02 | 9.69 | - Net profit attributable to shareholders decreased by 3.17% year-on-year, primarily due to a decrease in the company's gross profit margin to 30.54%, a year-on-year reduction of 10.79 percentage points[25] - Net cash flow from operating activities was -CNY 32.2713 million, mainly due to reduced project collections during the reporting period[25] VIII. Non-recurring Gains and Losses Items and Amounts This chapter lists the company's non-recurring gains and losses items and their amounts for the reporting period, totaling CNY 3,629,217.20, primarily comprising government grants and fair value changes in financial assets Non-recurring Gains and Losses Items and Amounts (Jan-Jun 2025) | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Government grants recognized in current profit/loss | 3,299,500.81 | | Gains/losses from changes in fair value of financial assets/liabilities held by non-financial enterprises and disposal of financial assets/liabilities | 734,638.01 | | Other non-operating income and expenses apart from the above | 57,013.72 | | Less: Income tax impact | -74,282.04 | | Impact on minority interests (after tax) | 536,217.38 | | Total | 3,629,217.20 | - Value-added tax immediate refund of CNY 244,969.14 was recognized as recurring gain/loss due to annual fixed refund amounts[29] Section III Management Discussion and Analysis This section provides management's perspective on the company's operations, financial performance, and future outlook I. Description of the Company's Industry and Main Business During the Reporting Period This chapter elaborates on Jinko Environment's main businesses, products, and services during the reporting period, including AI agents, 'New Water Island®' intelligent water purification units, and various process package products, alongside an in-depth analysis of the industry's development stage, characteristics, technological barriers, and the company's industry position and competitive advantages - The company's core products include the 'Water Radish®' AI Agent intelligent operation management platform, 'New Water Island®' intelligent water purification units, and process package products for wastewater resource recovery and advanced drinking water treatment[31] (I) Main Business, Products, or Services Jinko Environment's main business revolves around the 'Water Radish®' AI Agent, 'New Water Island®' intelligent water purification units, and diverse process package products, aiming to solve water scarcity and pollution issues through technological innovation and productization, providing efficient and intelligent water treatment solutions - 'Water Radish®' AI Agent is an unattended operation management system that replaces human functions in water plants with AI, integrating self-developed models and the DeepSeekR1 large language inference model to achieve O2O closed-loop driven unattended water plant operation[32] - 'New Water Island®' is a new generation water island that revolutionizes traditional water plant engineering with an industrial product mindset, integrating all plant equipment into productized intelligent units for unattended, efficient operation, addressing issues like water scarcity and insufficient environmental capacity[40] - The company offers wastewater resource recovery process packages (e.g., HEZLD High-Efficiency Zero Liquid Discharge, COBF Concentrated Brine Discharge to Standard) and advanced drinking water treatment process packages (e.g., BioSecure Biological Safety, SlightPol Micropollutant Water Treatment), as well as high-quality city-wide homogeneous water supply network process packages[47][54][56] (II) Main Business Model Jinko Environment's business model encompasses diversified profitability, procurement, production, and sales strategies, centered on 'resource recovery, AI digitalization, and productization,' providing comprehensive water treatment solutions to clients through technological premium, efficient supply chain, industrialized production, and flexible business models - Profit models include New Water Island and process package product sales, Water Radish® AI Agent software sales, and New Water Island and water plant O&M services (wastewater resource recovery product production and sales, O&M technical services)[57][58][59][60][61][62][63] - The procurement supply chain management model is driven by technological innovation and process reengineering, building an efficient, collaborative, safe, reliable, and continuously innovative modern supply chain system, achieving cost reduction and efficiency improvement through integrating high-quality supplier resources and digital management platforms[64] - The equipment manufacturing model has established a membrane universal platform equipment manufacturing factory and a Taiyuan intelligent equipment production base, adopting assembly line production to achieve factory-based production, assembly, debugging, and inspection of New Water Island products, ensuring project quality and schedule[65] - Sales models include investment, equipment sales + O2O O&M services, and leasing for New Water Island®; process package products are sold through bidding/negotiation; Water Radish® AI Agent software is primarily bundled with New Water Island sales and gradually expanded to traditional water plants; wastewater resource recovery product production and sales are conducted through business negotiation/public bidding[66][67][68][69][70] (III) Industry Overview The water treatment industry is undergoing an AI-driven digital transformation, with continuous policy reinforcement for environmental equipment upgrades and reclaimed water utilization, alongside growing demand for high-quality drinking water, providing Jinko Environment with vast market space and development opportunities - AI+ industry integration is driving transformative innovation, with national policies supporting deep integration of data elements with the real economy, fostering the booming artificial intelligence industry, and projecting the global smart water solutions market to reach $65 billion by 2029[71][72][73][74][75] - Environmental equipment policies are intensifying, with the State Council issuing the 'Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in,' providing tax incentives and ultra-long-term special national bond funding to promote high-quality development of the environmental equipment manufacturing industry[76][77][78] - Reclaimed water utilization policies are continuously deepening, with the nation promoting water-saving society construction, upgrading water standards in emerging and traditional industrial sectors, and multiple regions initiating water price adjustments, boosting reclaimed water market activity and expanding the industrial wastewater treatment market[79][80][81][82][83][84][85][86][87][88][89] - Policies in the high-quality drinking water sector are strengthening pollution control, raising drinking water hygiene standards, with intensive action plans accelerating water supply network construction, small and medium-sized urbanization driving demand for distributed water treatment equipment, and resident demand and water price reforms boosting capacity release[90][91][92][93][94][95][96][97] (IV) Analysis of the Company's Industry Position and Changes As a national high-tech enterprise and a 'specialized, refined, unique, and innovative' 'Little Giant' enterprise, Jinko Environment holds a leading position in the water treatment industry, particularly in AI digitalization applications, New Water Island® product innovation, and advanced water treatment and resource recovery, continuously earning industry accolades - The company is a national high-tech enterprise and a national 'specialized, refined, unique, and innovative' 'Little Giant' enterprise, committed to solving water pollution and scarcity issues through advanced water treatment and wastewater resource recovery[98] - The company leads the development of AI digitalization applications in the vertical water treatment industry, launching the 'Water Radish® AI Agent' to achieve unattended smart operation management of water plants[99][100] - 'New Water Island®' creates a new market for high-quality water supply, transforming traditional water plant engineering with a product mindset to achieve modularization, standardization, and intelligence, addressing issues like water scarcity and insufficient environmental capacity[101] - In the field of wastewater resource recovery, the company's integrated technology and implementation scale are in a leading position domestically, providing high-quality reclaimed water as core process water for emerging and livelihood industries such as photovoltaics, electronics, chemical fibers, and printing and dyeing[102] - In advanced drinking water treatment, the company pioneered the large-scale application of nanofiltration membrane technology, undertaking China's first large-scale nanofiltration membrane drinking water plant and winning the '2022 GWI Global Water Award - Best Municipal Water Project of the Year'[103] - During the reporting period, the company received the 25th China Patent Excellence Award, the 'Water Radish® AI Agent' was certified as an 'AI Industry Innovation Scenario Application Case' by the Ministry of Industry and Information Technology, and won the Tianjin Science and Technology Progress Award Second Prize[105] II. Discussion and Analysis of Operations In the first half of 2025, Jinko Environment continued to advance its three core strategies of 'resource recovery, AI digitalization, and productization,' achieving a 13.16% year-on-year increase in operating revenue, but net profit attributable to shareholders decreased by 3.17%, and net cash flow from operating activities was negative. The company cumulatively delivered 8 sets of New Water Island® products and 9 Water Radish® AI agent projects, while actively expanding into overseas markets - In the first half of 2025, the company achieved operating revenue of CNY 276,865,658.26, a year-on-year increase of 13.16%; net profit attributable to shareholders was CNY 30,566,018.40, a year-on-year decrease of 3.17%[106] - Net cash flow from operating activities was -CNY 32,271,319.02, with a total order backlog of CNY 626.2408 million, a year-on-year decrease of 11.70%[106] - As of the disclosure date of this report, the company has cumulatively delivered 8 sets of New Water Island® products and 9 Water Radish® AI agent projects[106] (I) Company Mission and Strategy Overview Jinko Environment's mission is 'AI for water freedom,' aiming to achieve efficient utilization and sustainable development of water resources through its three core strategies of 'resource recovery, AI digitalization, and productization,' providing stable, efficient, and affordable high-quality water - Company Mission: 'AI for water freedom,' aiming for society to have sustainable, sufficient, reliable, and affordable high-quality water[107][110] - AI Digitalization Strategy: Replacing human functions in water plants with AI to achieve unattended, stable, reliable, efficient, and cost-optimized water plant operations[107] - Productization Strategy: Leveraging digital intelligence technology to highly integrate water treatment equipment into industrialized, modular products, achieving 'building water plants like manufacturing cars,' disrupting traditional engineering models[108] - Resource Recovery Strategy: Primarily focusing on water recycling and reuse, aiming to achieve 70% of water usage from high-quality reclaimed water through recycling, significantly reducing fresh water demand[108] - Core Carrier 'New Water Island®': Integrating multidisciplinary cutting-edge technologies in process, materials, and chemistry to comprehensively enhance safety, stability, efficiency, and flexibility, saving over 90% in construction period and land area, and significantly reducing full lifecycle costs[109] (II) New Water Island® is a Stable and Efficient Embodied Intelligent Water Plant, the Core Carrier of the Company's 'Resource Recovery, AI Digitalization, Productization' Strategy As the core carrier of Jinko Environment's strategy, 'New Water Island®' has achieved engineering productization and unattended operation of water plants through continuous iteration and multidisciplinary technological integration. Its AI agent system significantly enhances operational efficiency, reduces costs, and has been successfully implemented in multiple projects - 'New Water Island®' product iteration history: from 'Standard Membrane System' in 2014 to 'New Water Island® 1.0' in 2023, then to 'New Water Island® 2.0' in 2024, with continuous R&D for 3.0 products[112] New Water Island® Cumulative Deliveries | Cumulative Deliveries as of Report Disclosure Date (sets) | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | 8 | 2 | 5 | 1 | - 'New Water Island®' integrates multidisciplinary cutting-edge technologies such as AI algorithms, process technology, material technology, computing power, sensing technology, and manufacturing technology, transforming the company's 20 years of know-how into an 'automated intelligent operation system'[113] - During the reporting period, the company won and implemented the Beijing Wenquan Water Plant ultrafiltration membrane system complete equipment procurement project, applying the BioSecure biological safety process technology package to further expand the South-to-North Water Diversion water quality assurance network[114] - 'Water Radish® AI Agent' replaces human functions in water plants with AI to achieve unattended operation management, expected to achieve approximately 75% labor savings, 20% reduction in equipment failure rate, 15% reduction in chemical consumption, and 15% reduction in power consumption[119] Water Radish® AI Agent Cumulative Deliveries | | Cumulative Deliveries as of Report Disclosure Date (sets) | 2025 | | :--- | :--- | :--- | | Water Radish® AI Agent | 9 | 9 | (III) Policy Empowerment and Overseas Expansion Linkage to Broaden Market Development Space Jinko Environment benefits from the strong impetus of China's water-saving industry policies while actively expanding into overseas markets, through its own brands and innovative applications, achieving initial success in Thailand, UAE, and North America, effectively broadening its market development space - China's water-saving industry is accelerating its development under strong policy impetus and tightening water resource constraints, with the cost advantage of reclaimed water becoming prominent, bringing vast development space for New Water Island®[126] - In the Thai market, the company's own brand 'Haiwan Membrane' successfully secured membrane element sales orders for a direct drinking water project, achieving a complete replacement of the original supplier's products[127] - In the UAE region, the company innovatively conducted experimental applications of New Water Island®, supporting local soil remediation and ecological governance projects, and successfully completed the pilot phase in June 2025[127] - The company signed a cooperation agreement with E&E Consulting Inc for New Water Island promotion in the North American market and established deep connections with companies like Medisun and Nijhuis in the Middle East and Europe[127] (IV) Deepening Cooperation to Continuously Expand Brand Influence Jinko Environment has effectively enhanced its brand recognition and influence in the market through in-depth exchanges and cooperation with global water utilities giants and industry organizations, and active participation in various industry conferences - Global water utilities giants Nijhuis Saur Industries, Everbright Environment, South Korean HMT Group, Shougang International, and other institutions visited the company for in-depth exchanges on the engineering productization practice of New Water Island® and technological innovation of Water Radish® AI Agent[128] - The company actively participated in industry conferences such as the Beijing-Tianjin-Hebei Membrane Industry Innovation Cooperation and Development Conference, the 2025 Environmental Entrepreneurs Media Meeting, and the Fifth High-Quality Water Supply Seminar, continuously enhancing brand market recognition[128] III. Analysis of Core Competitiveness During the Reporting Period Jinko Environment's core competitiveness lies in its continuously iterating 'resource recovery, AI digitalization, and productization' strategy, strong R&D advantages, leading market position and brand influence in the water treatment industry, and experienced professional team. These advantages collectively support the company's leadership in advanced water treatment and wastewater resource recovery - The company continuously researches and iterates existing technologies around its 'resource recovery, AI digitalization, and productization' strategy, maintaining industry leadership[130] - The company has established a comprehensive R&D management system and technical R&D team, possessing qualifications such as Beijing Enterprise Technology Center and Post-doctoral Research Workstation, and forming an 'industry-university-research' cooperation route relying on universities and research institutions[133] - The company is a national high-tech enterprise and a national 'specialized, refined, unique, and innovative' 'Little Giant' enterprise, with a leading market position and brand advantage in advanced water treatment and wastewater resource recovery[135][152] - The company's core management team, with deep industry accumulation and forward-looking strategic vision, gathers senior industry experts, technical elites, and innovative talents, building a cohesive and combative team[137] (III) Core Technologies and R&D Progress Jinko Environment continuously advanced the R&D and iteration of core technologies during the reporting period, achieving significant progress particularly in AI digitalization, resource recovery, and productization, including original AI algorithm models, intelligent agent technical architecture reengineering, multiple process package technological innovations, and the R&D of New Water Island® 3.0, along with obtaining multiple intellectual property rights and R&D honors - Advanced AI Digitalization Technology: Original design of dual-membrane process optimization prediction and decision models, computer vision, auditory, infrared multi-modal perception models, introducing large language models to reshape the intelligent agent technical architecture, achieving unattended water plant operation[139][140][141] - AI Digitalization Technology Progress During Reporting Period: Deeply upgraded process optimization prediction and decision models, enhancing visual recognition accuracy; introduced RAG technology and MCP protocol technology to establish Jinko Environment's operation management knowledge base, achieving product transformation towards a water plant operation intelligent agent system[142][143][144] - Advanced Resource Recovery Technology and Progress: Centered on membrane filtration technology, strengthening R&D in pretreatment, concentrated water treatment, and membrane anti-fouling technologies, forming core technologies such as high-efficiency ozone-hydrogen peroxide catalytic oxidation and self-induced crystallization for hardness removal, and systematically integrating them into process package products like HEZLD High-Efficiency Zero Liquid Discharge and COBF Concentrated Brine Discharge to Standard[145][146][147] - Advanced Productization and Progress: Based on over 20 years of project experience, disrupting traditional water plant engineering models with an industrial product development mindset, innovatively launching 'New Water Island®' to achieve highly modular design, factory prefabrication, standardized cost reduction, and intelligent upgrades, and further developing coupled processes to enhance product integration[148][149][150][151] R&D Investment (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (yuan) | Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 7,346,738.52 | 8,951,984.05 | -17.93 | | Capitalized R&D Investment | 4,856,238.44 | 3,021,289.07 | 60.73 | | Total R&D Investment | 12,202,976.96 | 11,973,273.12 | 1.92 | | Total R&D Investment as % of Operating Revenue | 4.41 | 4.89 | Decrease of 0.48 percentage points | | Proportion of Capitalized R&D Investment (%) | 39.80 | 25.23 | Increase of 14.57 percentage points | - The increase in the proportion of capitalized R&D investment in the current period is primarily due to the company's increased R&D efforts on the Water Radish® AI Agent[158] R&D Projects in Progress (Partial) | No. | Project Name | Estimated Total Investment (10,000 yuan) | Current Period Investment (10,000 yuan) | Cumulative Investment (10,000 yuan) | Progress or Phased Achievements | Target Objectives | Technical Level | Specific Application Prospects | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Process Research on RO "One Stage, One Branch" and Gas-Liquid Two-Phase Cleaning Technology | 341.00 | 9.19 | 92.85 | Applied research phase | Form a complete set of skid-mounted equipment for efficient membrane fouling delay technology | Domestic leading | Widely applied in RO project renovation and new project construction | | 2 | Research on Advanced Water Treatment Process Based on Hollow Fiber Nanofiltration Membrane | 764.78 | 80.98 | 666.92 | Applied research phase | Form a complete process feasibility evaluation system for hollow fiber membrane elements in drinking water treatment | Internationally advanced | Widely applied in advanced water treatment | | 14 | Research on Ⅲ Generation Digital Twin System (Water Radish AI Agent) | 1,515.85 | 485.62 | 2,377.42 | Applied research phase | Improve water system operational stability and economics, further realize the system concept of unattended water plants | Domestic leading | Policy-driven technological innovation, leveraging big data and AI, the traditional membrane water treatment industry will usher in new development opportunities | | 16 | Industrial Application Research of Assembled Modular Water Plants | 1,260.00 | 133.34 | 1,017.84 | Applied research phase | Improve installation efficiency, shorten design and construction cycles; achieve equipment-based, productized water plant engineering, and intelligent O&M management of modern water plants | Domestic leading | Low cost, fast speed, intelligent O&M, with good application prospects | IV. Risk Factors Jinko Environment faces multiple risks, including operational risks such as technology upgrade and iteration, project execution, fluctuating revenue from wastewater resource recovery business, customer changes, and uncertified property rights for the Yuanping Manufacturing Center, as well as financial risks like increasing accounts receivable and rising financing costs. Intensified industry competition and changes in the macroeconomic environment also pose challenges - Core Competitiveness Risk: The water treatment industry is technology-intensive; if the company fails to adapt in time or if breakthrough new technologies emerge, its technological level may fall behind, leading to a loss of product competitiveness[169] - Operational Risks: Project execution cycles are long and complex, potentially leading to project delays or cost overruns due to civil engineering delays or substandard influent water quality; revenue from wastewater resource recovery business is affected by industrial enterprise capacity; customer changes may cause gross profit margin fluctuations; the Yuanping Manufacturing Center has not yet obtained property certificates[170][171][172][173] - Financial Risks: Risks of increasing accounts receivable (totaling CNY 449 million as of June 30, 2025, a 16.64% increase from year-end 2024) and decreasing cash flow; financing costs may rise to obtain debt financing for investment projects[174][175][176] - Industry Risks: Changes in local government infrastructure project expenditures may lead to payment delays; intensified competition in advanced water treatment and wastewater resource recovery sectors[177][178] - Macroeconomic Environment Risks: Changes in the international political and economic environment and trade frictions may affect the prosperity of downstream industries and the company's overseas sales[179] V. Major Operating Conditions During the Reporting Period This chapter provides a detailed analysis of Jinko Environment's financial performance during the reporting period, including changes in main business revenue and costs, shifts in asset and liability structure, investment activities, and the operating conditions of major controlled and associate companies, revealing the company's financial characteristics and business development dynamics during its strategic transformation (I) Main Business Analysis During the reporting period, Jinko Environment's operating revenue increased by 13.16% year-on-year, primarily driven by the growth in New Water Island and water plant O&M services and process package product sales. Operating costs rose with increased revenue, also affected by fluctuations in raw water quality for individual operating projects Analysis of Changes in Financial Statement Items (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period (yuan) | Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 276,865,658.26 | 244,677,199.40 | 13.16 | | Operating Cost | 192,317,662.06 | 149,898,618.70 | 28.30 | | Selling Expenses | 10,320,978.52 | 7,906,952.90 | 30.53 | | Administrative Expenses | 31,635,915.29 | 35,619,990.35 | -11.18 | | Financial Expenses | 8,302,911.36 | 3,655,461.88 | 127.14 | | R&D Expenses | 7,346,738.52 | 8,951,984.05 | -17.93 | | Net Cash Flow from Operating Activities | -32,271,319.02 | 10,424,788.72 | N/A | | Net Cash Flow from Investing Activities | -60,972,865.34 | -219,524,