Group 1: Investor Relations Activities - The company held an RWA Era High-end Agricultural Products Innovation Seminar on August 2, 2025, in Tianjin, where strategic cooperation agreements were signed with Costa and Zhongke Yuandian [2][3]. - Participants included representatives from various securities firms and investment funds, indicating a broad interest in the company's activities [3]. Group 2: Business Development and Strategy - The company is actively researching pathways to integrate high-end agricultural products with water resources assets, leveraging partnerships with brokers and relevant entities [4]. - The company has established a leading position in high-standard farmland construction and operation, with significant experience in agricultural water conservancy and intelligent irrigation systems [4]. Group 3: Disaster Prevention and Management - The company's disaster prevention systems, developed by Huitu Technology, are operational in over 20 provinces and 2000 counties, providing real-time data for flood and drought management [5]. - The Beijing flood prevention command platform, built by Huitu Technology, demonstrates the effectiveness of the company's technology in providing precise data support [5]. Group 4: Mergers and Acquisitions - The company is preparing to participate in the bidding for the Huai'an Design Institute, which has a strong track record in water conservancy design [6][7]. - Successful acquisition of the Huai'an Design Institute is expected to enhance the company's capabilities in complex project designs and facilitate participation in significant projects like the Yarlung Tsangpo River Hydropower Station [7]. Group 5: Policy and Market Outlook - Recent national policies supporting agricultural water conservancy are expected to drive future orders and revenue growth for the company [8][9]. - The company plans to expand its national footprint and leverage integrated solutions to capitalize on opportunities presented by national strategies such as "Water Conservancy Power" and "Rural Revitalization" [9]. Group 6: Technological Integration - The company aims to enhance its technological capabilities by integrating modern technologies such as IoT, cloud computing, and AI with traditional water conservancy and agriculture sectors [9].

Group 1: Policy and Market Environment - The Chinese government is increasing investment in agricultural water management, with plans to build 1.35 billion mu of high-standard farmland by 2030 and improve 280 million mu by 2035 [4] - The total investment in water conservancy construction has exceeded 1 trillion yuan annually for three consecutive years, reaching a historical high of 1.35 trillion yuan in 2024 [5] - The "soft construction" initiative is expected to significantly benefit private sector leaders in the industry, enhancing project organization and financing [5] Group 2: Company Performance and Financials - The company achieved a revenue of 4 billion yuan in 2024, benefiting from national policies promoting water conservation and agricultural modernization [6] - The company has maintained an order acquisition scale of 5 billion yuan for three consecutive years, ensuring revenue growth and performance certainty [6] - Operating cash flow for the company reached 597 million yuan, indicating strong financial health compared to industry peers [7] Group 3: Profitability Challenges - The average project gross margin has declined due to increased competition and a focus on market share over profit margins [6] - High operational costs, including sales and management expenses, have impacted net profit, although these costs are expected to stabilize [7] - The company anticipates a gradual recovery in industry gross margins, which will positively affect profitability [7] Group 4: Business Strategy and Future Outlook - The company plans to balance its revenue streams across three business segments: agricultural engineering, water information technology, and operational services, each targeting a one-third share [7] - The company is expanding its international presence, particularly in emerging markets along the Belt and Road Initiative, to mitigate risks and capture higher-margin opportunities [11] - The company is committed to technological innovation, with ongoing projects in smart irrigation and water resource management, including the development of a sound wave rain enhancement device [12]