Core Viewpoint - Wuxi Delinhai Environmental Technology Co., Ltd. is holding its first extraordinary general meeting of shareholders in 2025, focusing on the approval of a restricted stock incentive plan and the election of the board of directors [1][2][3]. Meeting Guidelines - The meeting will verify the identity of attendees and requires shareholders to arrive 30 minutes early for registration [2]. - Only registered shareholders and their proxies can participate in the voting process, and latecomers will not be allowed to vote [2][3]. - Shareholders have the right to speak, inquire, and vote during the meeting, but must adhere to the established order and time limits for questions and comments [3][4]. Agenda and Proposals - The meeting agenda includes the election of the board of directors and the proposal for a restricted stock incentive plan [6][7]. - The restricted stock incentive plan proposes to grant 3.372696 million shares, with 2.732059 million shares for initial grants and 640,637 shares reserved [7][11]. - The plan aims to align the interests of shareholders, the company, and key personnel, enhancing long-term development [15][27]. Incentive Plan Details - The incentive plan will utilize second-class restricted stocks, with a grant price set at 11.42 yuan per share [20][27]. - The total number of shares granted represents 2.98% of the company's total share capital, ensuring compliance with regulatory limits [11][20]. - The plan includes a vesting schedule where 40% of shares will vest after 12 months, 30% after 24 months, and the remaining 30% after 36 months [21][24]. Compliance and Oversight - The plan will be managed by the board of directors and supervised by the remuneration and assessment committee to ensure compliance with relevant laws and regulations [16][17]. - The company has committed to not providing financial assistance for the acquisition of shares under this plan [14][29]. Strategic Importance - The implementation of this incentive plan is crucial for attracting and retaining talent, enhancing competitiveness in the environmental technology sector [27][28]. - The company aims to strengthen its position in the water environment governance field, aligning with national strategies for ecological development [27][28].

Core Viewpoint - The independent financial advisor report on Wuxi Delinhai Environmental Technology Co., Ltd.'s 2025 Restricted Stock Incentive Plan outlines the plan's compliance with relevant laws and regulations, its feasibility, and its potential positive impact on the company's sustainable operation and shareholder equity. Group 1: Incentive Plan Overview - The incentive plan aims to grant restricted stocks to a total of 38 individuals, accounting for 2.98% of the company's total share capital of 113 million shares [5][7][29] - The plan includes key personnel such as the actual controller, Hu Mingming, who holds multiple significant roles within the company, emphasizing his critical contribution to the company's operations [5][17] - The total number of restricted stocks to be granted is 3,372,696 shares, with 2,732,059 shares for the initial grant and 640,637 shares reserved for future allocation [7][29] Group 2: Granting and Vesting Conditions - The vesting schedule includes three phases: 40% after 12 months, 30% after 24 months, and 30% after 36 months from the grant date [10][30] - The grant price for the restricted stocks is set at 11.42 RMB per share, which is approximately 50.02% of the stock's trading average on the day before the announcement [14][29] - The plan stipulates that the granting of stocks is contingent upon meeting specific performance targets, including revenue thresholds for the years 2025 to 2027 [21][35] Group 3: Compliance and Feasibility - The plan complies with the relevant regulations, including the Management Measures and Listing Rules, ensuring that the total number of stocks granted does not exceed 20% of the company's total share capital [25][29] - The independent financial advisor confirms that the plan's execution will not harm the interests of the company or its shareholders, aligning the interests of employees with those of shareholders [29][30] - The funding for the stock purchase will come solely from the participants, with no financial assistance from the company [25][26] Group 4: Impact on Company and Industry - The implementation of the incentive plan is expected to enhance the company's competitive edge in the environmental governance sector, particularly in lake and reservoir management [16][28] - The plan is designed to motivate core personnel, thereby improving the company's ability to respond to industry challenges and market fluctuations [17][28] - The company aims to leverage its expertise in ecological restoration and water management to contribute to national environmental goals, aligning with the "dual carbon" objectives [16][28]

Core Viewpoint - The company, Wuxi Delinhai Environmental Technology Co., Ltd., reported a net loss of approximately 86.15 million yuan for the year 2024, while planning to distribute cash dividends to shareholders despite the loss [3][4]. Company Overview - The company specializes in comprehensive services for the internal governance of lake eutrophication, positioning itself as a leading enterprise in blue-green algae management and a practitioner of the Beautiful China initiative [5][22]. - The main business includes investigation, diagnosis, core technology research, and providing integrated solutions for lake eutrophication governance [5][6]. Financial Performance - The company achieved a net profit attributable to the parent company of -86,148,756.34 yuan for 2024, with a total distributable profit of 214,986,927.41 yuan at the end of the year [3]. - The proposed cash dividend distribution is 2.00 yuan per 10 shares, amounting to a total of 21,816,518.20 yuan, which is subject to approval at the annual shareholders' meeting [3][4]. Business Model - The company offers a range of integrated technical equipment for lake governance, including mobile and stationary algae separation devices, and provides operational and maintenance services for these technologies [6][7]. - The operational services include daily management, technical guidance, and maintenance, which help ensure efficient and stable operation of the algae treatment equipment [7][8]. Industry Context - The lake eutrophication governance industry is a rapidly developing sector within water environment management, addressing critical issues related to drinking water safety and aquatic ecosystem health [20][21]. - The industry faces significant challenges, including the need for effective governance of blue-green algae outbreaks and the reduction of nutrient pollution in lakes [20][21]. Development Opportunities - The company is positioned to benefit from strengthened environmental policies and regulations, which are creating new market opportunities for lake ecological governance [23][24]. - Recent government initiatives emphasize the importance of ecological restoration and sustainable management practices, aligning with the company's operational model [24]. Technological Innovation - The company has developed advanced technologies for blue-green algae control, including high-pressure in-situ control methods that have achieved international leading levels [30][25]. - The integration of AI and digital twin technologies is being explored to enhance the efficiency and precision of lake governance efforts [31][30]. Future Trends - The company plans to deepen its involvement in circular economy practices by developing a resource regeneration system based on "sludge-worm" ecological engineering [37]. - Collaborations with local governments and environmental agencies are being established to enhance water quality monitoring and management efforts [38].