Core Viewpoint - The "Dancing Water Droplet Exhibition" in Hong Kong celebrates the 60th anniversary of water supply from the Dongjiang River to Hong Kong, highlighting the importance of this water source for the region's development and prosperity [4][26]. Group 1: Water Supply and Infrastructure - The Dongjiang water supply project has been operational for 60 years, providing over 30 billion cubic meters of water to Hong Kong, meeting approximately 80% of its water needs [14][24]. - The project has undergone multiple expansions and improvements, increasing its supply capacity significantly since its inception [17][24]. - In 2024, the Pearl River Delta Water Resource Allocation Project will provide an emergency backup water source for Hong Kong, enhancing the reliability of water supply [18]. Group 2: Environmental and Community Impact - The Dongjiang water source area has seen significant ecological restoration, with vegetation coverage increasing from 10.2% to 95% and the number of plant species rising from 6 to over 100 [7][8]. - Local communities have made sacrifices, such as reducing agricultural land and relocating from protected areas, to ensure the preservation of water quality [11][12]. - The transformation of former mining areas into green spaces and sustainable agricultural practices reflects the community's commitment to environmental protection [6][7]. Group 3: Technological Advancements - The Dongjiang water supply system has integrated advanced technologies for monitoring and managing water quality and flow, including automated sampling and real-time data transmission [22][23]. - The implementation of smart water management systems has improved operational efficiency and environmental protection measures [22][23]. Group 4: Cultural Significance - The water supply from Dongjiang to Hong Kong symbolizes the deep connection between the two regions, fostering a sense of gratitude and shared identity among residents [26][28]. - Educational initiatives and community events emphasize the importance of water conservation and the historical significance of the water supply project [26][27].

Group 1: Policy and Market Environment - The Chinese government is increasing investment in agricultural water management, with plans to build 1.35 billion mu of high-standard farmland by 2030 and improve 280 million mu by 2035 [4] - The total investment in water conservancy construction has exceeded 1 trillion yuan annually for three consecutive years, reaching a historical high of 1.35 trillion yuan in 2024 [5] - The "soft construction" initiative is expected to significantly benefit private sector leaders in the industry, enhancing project organization and financing [5] Group 2: Company Performance and Financials - The company achieved a revenue of 4 billion yuan in 2024, benefiting from national policies promoting water conservation and agricultural modernization [6] - The company has maintained an order acquisition scale of 5 billion yuan for three consecutive years, ensuring revenue growth and performance certainty [6] - Operating cash flow for the company reached 597 million yuan, indicating strong financial health compared to industry peers [7] Group 3: Profitability Challenges - The average project gross margin has declined due to increased competition and a focus on market share over profit margins [6] - High operational costs, including sales and management expenses, have impacted net profit, although these costs are expected to stabilize [7] - The company anticipates a gradual recovery in industry gross margins, which will positively affect profitability [7] Group 4: Business Strategy and Future Outlook - The company plans to balance its revenue streams across three business segments: agricultural engineering, water information technology, and operational services, each targeting a one-third share [7] - The company is expanding its international presence, particularly in emerging markets along the Belt and Road Initiative, to mitigate risks and capture higher-margin opportunities [11] - The company is committed to technological innovation, with ongoing projects in smart irrigation and water resource management, including the development of a sound wave rain enhancement device [12]