Group 1: Investor Relations Activity Overview - The investor relations activity was an earnings briefing held on May 15, 2025, from 15:00 to 17:00 at the Shanghai Securities News Roadshow Center [3] - Participants included investors engaging in an online exchange, with key company representatives present: Chairman and President Wei Yantian, Vice President and CFO Liu Ling, and Board Secretary Lin Zhimei [3] Group 2: Company Transformation and Technology Development - In 2024, the company initiated a major technology project in Chongqing focused on smart sanitation systems, collaborating with Chongqing University of Posts and Telecommunications [4] - The project aims to develop smart cleaning technologies and a cloud control platform, enhancing digital management in sanitation operations [4] Group 3: Investment in Resource Utilization Project - The company has invested CNY 110 million in a resource utilization project in Xinjiang, with a construction timeline of 1-2 years, currently progressing as planned [5] - As of now, the project has secured land and environmental approvals, and construction work has commenced [5] Group 4: Accounts Receivable Management - As of December 31, 2024, the company reported accounts receivable of CNY 638 million, with aging distribution: CNY 99 million (within 3 months), CNY 145 million (4-12 months), CNY 124 million (1-2 years), CNY 89 million (2-3 years), and CNY 180 million (over 3 years) [6] - Bad debt provisions amount to CNY 172 million, representing 27.03% of total accounts receivable, with specific provisions detailed for various aging categories [6] Group 5: Debt Collection Efforts - The company is actively managing accounts receivable through a structured approach, implementing a "four-category" management system and legal measures for debt recovery [7] - The government has introduced regulations to facilitate the payment of debts owed to small and medium enterprises, which the company is leveraging to enhance its collection efforts [7]

Company Overview - In 2024, the company achieved a revenue of CNY 7.203 billion, a year-on-year increase of 16.93% [3] - The net profit attributable to shareholders was CNY 575 million, up 10.40% year-on-year [3] - The company's return on equity (ROE) stood at 14.83% [3] - Urban operations accounted for 85% of total revenue with a gross margin of 26.22% [3] Main Business Segments - The company operates in two main segments: urban operations and property management [3] - Urban operations are the primary revenue driver, while property management contributes 15% of revenue with a gross margin of 10.08% [3] Key Achievements - The company secured new contracts totaling CNY 8.34 billion in 2024, with an annualized new contract amount of CNY 2.071 billion, reflecting a 43.10% increase year-on-year [7] - The company has been recognized as a leading enterprise in the environmental sanitation sector, receiving multiple awards for its ESG performance [4][8] Strategic Focus Areas Digital Transformation - The company is enhancing its digital capabilities through the "Smart Brain + Big Model" strategy, aiming to establish a benchmark for smart urban sanitation services [5][12] - Over 100 patents have been applied for in the field of intelligent equipment, with successful product launches like the "Sunshine S200 Cleaning Robot" [5][13] Market Expansion - The company is expanding its market presence with a focus on a "City Steward" strategy, covering 17 provinces and adding 60 new projects [6][7] - The company has established a network layout of "dense points in the eastern coastal areas + strategic nodes in the central and western regions" [10] ESG Practices - The company integrates ESG principles into its operational strategy, focusing on employee care and green operations [8] - It has been recognized in various ESG rankings, including being listed in the top 20 for ESG performance in the public utility sector [8] Financial Performance - The company has maintained a cash dividend policy, with cumulative cash dividends reaching CNY 489 million from 2021 to 2024 [11] - The net profit margin is reported at 9.32%, with a consistent compound annual growth rate (CAGR) of 13.67% since its listing [11] Future Growth Directions - The company plans to drive growth through smart upgrades and business diversification, focusing on high-value areas such as waste classification and smart municipal services [15][16] - It aims to enhance operational efficiency by reducing reliance on manual labor through automation and smart equipment [15][21]

Group 1: Company Performance and Financials - In 2024, the company achieved a revenue of 7,203.25 million CNY, representing a year-on-year growth of 16.93% [10] - The net profit attributable to shareholders reached 575.35 million CNY, an increase of 10.40% compared to the previous year [10] - The net profit after deducting non-recurring gains and losses was 564.54 million CNY, up by 10.61% year-on-year [10] Group 2: Strategic Development and Future Plans - The company aims to enhance its smart city management strategy and upgrade its smart sanitation service model by 2025 [4] - Key growth drivers include the industrialization of smart equipment, platformization of service models, and capitalization of data assets [4] - The company plans to invest heavily in smart sanitation equipment and develop a digital simulation system for sanitation operations [4] Group 3: Technological Advancements and Innovations - The company has made significant investments in smart sanitation construction, including the procurement of new energy sanitation vehicles and the deployment of IoT terminals [3] - The "Smart Sanitation Cloud Platform" has been developed, integrating intelligent algorithms for route planning and real-time quality monitoring [3] - The company has applied for over 100 patents in the smart equipment field, with products like the "Sunshine S200 Cleaning Robot" already in use [11] Group 4: Market Position and Industry Outlook - The company is recognized as a leading urban environment service provider, actively participating in national bidding activities [13] - The industry is experiencing a transformation towards mechanization, new energy, and automation, driven by policies and market demands [14] - The company is focused on balancing technological innovation with risk management to maintain a competitive edge in the evolving urban service landscape [14]

Core Viewpoint - The company, Fulongma, focuses on creating a sustainable living environment through technology and innovation, emphasizing a collaborative development strategy in the environmental industry, particularly in smart equipment manufacturing and ecological operations [5][6][8]. Company Overview - Fulongma has over 20 years of experience in the environmental sanitation sector, with a complete industrial chain layout that includes smart equipment manufacturing and ecological operations [5]. - The company’s main business includes the manufacturing of sanitation equipment and the development of urban service robots, with a strong emphasis on technological innovation and market trends [6][7]. Business Model Smart Equipment Manufacturing - The company manufactures a wide range of sanitation equipment, including 701 models across 38 series, with a focus on mid-to-high-end and innovative products [6]. - The sales network covers the entire country, primarily using direct sales and participating in government procurement activities [6][7]. Environmental Industry Ecological Operations - Fulongma has been deeply involved in sanitation services for over two decades, providing various services such as urban property management and waste recycling [8]. - The company operates under three main business models: single project contracting, franchise operation (including PPP), and integrated project management [8][10]. Industry Situation Sanitation Equipment Industry - In 2024, the total sales of sanitation vehicles in China reached 69,998 units, a decrease of 8.50% year-on-year, while innovative and mid-to-high-end models saw a 3.29% increase [14][15]. - The penetration rate of new energy sanitation equipment reached 13.66%, with significant growth expected due to government initiatives promoting electric vehicles [15][16]. Sanitation Service Industry - The total annualized contract amount for newly opened sanitation service projects in 2024 was 955 billion yuan, maintaining a year-on-year growth trend [17]. - The industry is transitioning from single services to comprehensive solutions, with a focus on waste classification and recycling, driven by government policies [17][18]. Development Factors - The sanitation equipment and service industries are influenced by government policies, population growth, urbanization, and increased public awareness of environmental issues [19][20]. - The government has significantly increased investment in sanitation services, with 516.7 billion yuan allocated for urban public facility construction in 2023 [21].

Investment Rating - The report maintains a "Buy" rating for Yingfeng Environment, indicating a positive outlook for the company's stock performance in the coming months [4][6]. Core Insights - Yingfeng Environment achieved a revenue of 13.118 billion yuan in 2024, a year-on-year increase of 3.85%, and a net profit attributable to shareholders of 514 million yuan, up 3.04% year-on-year [1]. - The company's smart service business revenue grew by 14.41% to 6.441 billion yuan in 2024, with a gross margin increase of 1.35 percentage points to 18.03% [2]. - The company has maintained its leading position in the sanitation equipment market for 24 consecutive years, with a market share of 19.3% [2]. - In Q1 2025, the company reported a revenue of 3.182 billion yuan, a year-on-year increase of 6.15%, and a net profit of 181 million yuan, up 4.74% year-on-year [1][3]. - The report projects net profits for 2025-2027 to be 686 million, 736 million, and 798 million yuan respectively, with a downward adjustment of 9% and 16% for 2025 and 2026 [4]. Summary by Sections Financial Performance - In 2024, Yingfeng Environment's revenue was 13.118 billion yuan, with a growth rate of 3.85%. The net profit was 514 million yuan, reflecting a growth of 3.04% [1][5]. - For Q1 2025, the company achieved a revenue of 3.182 billion yuan, marking a 6.15% increase year-on-year, and a net profit of 181 million yuan, up 4.74% [1][3]. Business Segments - The smart service business generated 6.441 billion yuan in 2024, with a gross margin of 18.03%, while the intelligent equipment business saw a revenue of 5.187 billion yuan, with a gross margin of 25.87% [2]. - The company signed 76 new urban service projects in 2024, with an annual contract value of 1.486 billion yuan, maintaining the highest annual contract value in the industry [2]. Market Position - Yingfeng Environment continues to lead the sanitation equipment market with a sales volume of 14,368 units in 2024, despite a 3.59% year-on-year decline in sales volume due to an overall industry downturn [2]. - The company has a market share of 35% in pure electric environmental vehicles, with a significant year-on-year increase of 117% in sales [3]. Future Outlook - The report anticipates steady growth in the company's performance, supported by a robust pipeline of urban service projects and a strong position in the new energy sector [4].

Core Insights - The event "Yingfeng Leads the Intelligent Future" was held in Changsha, showcasing Yingfeng Environment's commitment to innovation and sustainability in the urban sanitation industry [1][3]. Group 1: Market Position and Performance - Yingfeng Environment's average market share is projected to be 31% from 2022 to 2024, with an expected increase to 35% in the first quarter of 2025 [3]. - The company emphasizes its commitment to technological innovation and product quality, with a 16% reduction in energy consumption for its newly launched products compared to traditional ones [3]. Group 2: Product Innovations - The new product lineup includes multi-functional vehicles that enhance operational flexibility and efficiency, addressing core industry pain points [5]. - The introduction of the "Small Spirit System" and "Bee Swarm Unmanned Operation Group" significantly improves operational efficiency through intelligent equipment collaboration [5]. - The unmanned driving smart cloud platform enhances equipment management and collective operation efficiency by 60%, while reducing energy consumption by 18% compared to traditional sanitation vehicles [5]. Group 3: Industry Recognition and Future Direction - Industry leaders praised Yingfeng Environment for its transformation from basic sanitation tools to a "smart sanitation ecosystem" [6]. - The event featured the launch of the "Yingfeng Green" coating, smart cleaning robot systems, and a comprehensive new product matrix, highlighting the company's innovations in new energy and smart sanitation equipment [6]. - Yingfeng Environment aims to continue driving technological innovation and addressing customer needs, thereby creating greater value in the evolving industry landscape [6].