Core Insights - The company's performance is under short-term pressure, but a solid order backlog lays the foundation for annual growth [2] - The company has achieved significant technological advancements and is exploring new business models to open up growth opportunities [3] - A recent legal victory may allow for the reversal of potential liabilities, positively impacting future earnings [4] Financial Performance - In the first half of 2025, the company reported revenue of 108 million yuan, a year-on-year decline of 47%, and a net profit attributable to shareholders of -3.09 million yuan, a year-on-year decline of 112% [2] - The decline in performance is primarily due to large pending orders that have not yet been recognized as revenue, including projects with pending acceptance amounts of 70.83 million yuan and 42.50 million yuan [2] - As of the report date, the company had a total order backlog of 527 million yuan, providing strong support for annual performance [2] Technological Advancements - The company has solidified its core technological advantages, with its self-developed "Deep Submersible High-Pressure Algae Control Equipment" becoming a benchmark in the algae treatment field [3] - The company has made breakthroughs in precision dredging technology, with pilot projects achieving significant dredging volumes [3] - The exploration of a new "Two Mountains Industry" model and the establishment of a circular economy model for organic waste processing are expected to create new growth paths [3] Legal Developments - The company won a lawsuit related to a contract dispute, confirming ownership of 63.52 million yuan in funds and relieving it of a 100.6 million yuan repayment obligation [4] - Although the funds have not yet been released due to regulatory issues, the potential reversal of a provision for 48.08 million yuan could positively impact future net profits [4] Earnings Forecast - The company is projected to achieve revenues of 503 million yuan, 576 million yuan, and 660 million yuan for 2025-2027, with year-on-year growth rates of 12.08%, 14.63%, and 14.55% respectively [4] - Net profits attributable to shareholders are expected to be 52 million yuan, 60 million yuan, and 86 million yuan for the same period, with significant growth rates of 159.97%, 16.93%, and 41.94% respectively [4]