Core Points - The Qiong Northwest Water Supply Project has achieved overall connectivity, benefiting 630,000 residents in Danzhou and Baisha [2][3] - The project is a key national water network backbone project under the 14th Five-Year Plan and one of the 150 major water conservancy projects identified by the State Council [2] - The project aims to address agricultural irrigation and urban-rural water supply issues, ensuring water safety for both domestic and industrial use in the regions [2] Project Progress - As of now, the project has completed 91% of its overall progress, with a target to complete the main construction by 2025 [3] - The Longling Tunnel, a critical control node of the project, has successfully passed through complex geological conditions, marking a significant milestone [2][3] - The construction employs a layered step excavation method to enhance safety and efficiency, addressing various construction challenges [2]

Group 1 - The approval of construction land for the Guangxi Water Resource Allocation Project (Beihai Section) marks the completion of land approval for all five cities involved, with a total area of 2006 acres [1] - The project is part of the 150 major water conservancy projects deployed by the State Council, with a total investment of 27.839 billion yuan, and is a key component of the national water network [1] - The project will provide urban and industrial water supply for key cities such as Nanning, Beihai, Qinzhou, and Yulin, benefiting nearly 14 million people and supporting agricultural irrigation and ecological improvement [1] Group 2 - Since the construction mobilization meeting on September 8, 2023, all six main lines and twelve branch lines of the Guangxi Water Resource Allocation Project have commenced construction [2] - Key construction milestones include the completion of the first round of preliminary model testing for the main water pump model and the installation of TBM for the Zhoucun tunnel [2]

Group 1: Company Performance and Market Outlook - The company anticipates a stable growth trend in the pipeline industry due to increased national investment in water conservancy, with a projected investment of CNY 1.3529 trillion in 2024, a year-on-year increase of 12.8% [2] - The company aims to become a comprehensive service provider in the water-saving sector, focusing on quality, brand, and technological innovation across three main product lines: concrete pipes, composite steel pipes, and plastic pipes [2] Group 2: Stock Performance and Shareholder Returns - Despite strong performance, stock prices have not increased due to various influencing factors, including national policies and macroeconomic conditions [3] - The company has consistently prioritized shareholder returns, having distributed dividends for 15 consecutive years [3] Group 3: Financial Management and Project Execution - In 2024, the company adjusted its accounts receivable and payment strategies, implementing measures to enhance contract management and risk assessment [3] - The decline in Q1 2025 financial results was attributed to project delays in northern regions due to weather conditions, with expectations for increased shipments starting in Q2 [3] Group 4: Strategic Expansion Plans - The company is considering a simplified procedure for a private placement to support strategic projects that align with industry development and enhance capital structure [3] - The company has initiated a market strategy to expand into southern regions, with a significant contract won in 2023 for a CNY 400 million project in Guangdong, marking a key step in this strategy [3]