Summary of the Conference Call for Sains Company Company Overview - Sains Company was founded by a research team from Central South University and transitioned from heavy metal wastewater treatment to a comprehensive solution provider, offering heavy metal pollution control engineering, operational services, and chemical sales. The company was listed on the Shenzhen Stock Exchange's Sci-Tech Innovation Board in 2022 [2][5]. Core Technologies and Market Position - The company possesses four core technologies: 1. Acid resource recovery 2. Deep treatment of heavy metal wastewater 3. Arsenic hazardous waste mineral detoxification 4. Heavy metal pollution environmental remediation - These technologies significantly reduce customer costs, achieving over 60% market share in new markets [2][5]. Business Expansion and New Projects - Sains is expanding its chemical business, including: - Copper extractant with a production capacity expected to reach 7,000 tons by the end of 2024 - High-purity sodium sulfide, projected to start production in 2026 with an initial capacity of 20,000 tons - Flotation agents, planned for production by the end of 2027 with an initial capacity of 80,000 tons [2][6]. - The company collaborates with Jilin Zijin on the Laisenan recovery project, which can produce 2 tons of high-purity products annually. The price of Laisenan has risen to 37 million yuan per ton, an increase of 86% year-on-year, enhancing project profitability [2][3][8]. Financial Projections and Growth Targets - Sains aims for a compound annual growth rate (CAGR) of 25% in revenue or 17% in net profit from 2025 to 2027. Specific targets include: - Revenue growth of no less than 30%, 50%, and 95% for the years 2025, 2026, and 2027, respectively - Net profit growth of no less than 20%, 45%, and 60% for the same years - Projected net profits for the next three years are 145 million yuan, 200 million yuan, and 279 million yuan, with corresponding PE ratios of 44x, 32x, and 23x [2][7]. Challenges and Considerations - Key challenges include monitoring the overall production status of new businesses and the contribution of rising Laisenan prices to overall performance. Additionally, attention is needed on the declining gross margin from engineering categories and the increasing gross margin from operational services and chemical sales, which may impact sustainability [4][9].