Core Viewpoint - *ST Taihe, known as the "first stock in water ecological restoration," is focused on maintaining its listing status in 2025 after facing financial difficulties and being placed under special treatment due to regulatory standards [1][2]. Business Transformation Efforts - The company has attempted business transformation by acquiring Heilongjiang Haihe Beverage Co. in 2022 and entering the AI sector with a significant computing power leasing contract in 2024 [1][2]. - Despite these efforts, the short-term results have not been satisfactory, leading to a decline in financial performance [1]. Main Business Segments - As of 2024, *ST Taihe's main business segments include water environment ecological construction (46.30 million), water environment ecological maintenance (14.64 million), drinking water sales (23.98 million), and IT product sales (17.63 million) [2][3]. - The company plans to focus solely on its main business in 2025, postponing further transformation efforts [2]. Financial Performance - In the first quarter of 2025, *ST Taihe reported total revenue of 30.26 million, a year-on-year decrease of 22.29%, and a net loss of 5.81 million [9]. - The company's revenue has been declining over the past few years, with figures of 205 million, 183 million, and 103 million from 2022 to 2024 [9]. Accounts Receivable and Financing - The company has over 100 million in accounts receivable related to its computing power leasing contract, which has raised regulatory concerns [6]. - *ST Taihe plans to apply for a financing limit of up to 500 million RMB in 2025 to support its operations and business development [7][8]. Legal and Management Issues - The founder, He Wenhui, is involved in a legal dispute regarding unpaid performance compensation, which has led to a court ruling requiring him to pay 65.86 million in cash compensation and penalties [11][12]. - The company is actively working to resolve these legal issues and has applied for a retrial [12].

Core Viewpoint - Shanghai Taihe Water Technology Development Co., Ltd. is expected to report significant losses for the fiscal year 2024, with projected net losses ranging from approximately 321 million to 350 million yuan [2][4]. Performance Forecast - The company anticipates a total profit of approximately -320 million to -350 million yuan for 2024 [2]. - The expected net profit attributable to the parent company is projected to be around -321 million to -350 million yuan [2]. - The net profit after deducting non-recurring gains and losses is estimated to be between -330 million and -360 million yuan [2]. - The projected operating revenue for 2024 is expected to be between 100 million and 120 million yuan, with revenue after excluding unrelated business income estimated at 80 million to 110 million yuan, both below the 300 million yuan threshold [2]. Previous Performance Comparison - The previous forecast indicated a total profit of -270 million to -320 million yuan, with net profit attributable to the parent company expected to be -271 million to -321 million yuan [4]. - The previous operating revenue forecast was between 130 million and 170 million yuan, which has now been significantly revised downwards [4]. Reasons for Revision - The revision of the performance forecast is attributed to a comprehensive review of unsettled projects and adjustments to revenue estimates based on market conditions [5]. - The company has also considered impairment losses on goodwill due to macroeconomic impacts [5]. - Certain business revenues, although related to normal operations, were excluded due to their incidental and temporary nature [5]. Financial Status from Previous Year - In the previous year, the company reported a total profit of -234.51 million yuan and a net profit attributable to the parent company of -287.44 million yuan [6]. - The earnings per share were reported at -2.54 yuan, with operating revenue of 183.03 million yuan [6].