Group 1 - The company has successfully lifted the freeze on part of its fundraising account, amounting to RMB 58,611,513.85 [2][3] - The freeze was related to a contractual dispute with Xi'an Lanyao Technology New Materials Co., Ltd., which has now been resolved [3] - The unfreezing of funds will facilitate the company's normal production and operational activities [3] Group 2 - Shareholder Qingyuan (China) Co., Ltd. has reduced its stake in the company from 25.81% to 25.00%, following a previously disclosed share reduction plan [8][9] - The reduction involved selling 2,679,333 shares between October 29, 2025, and November 13, 2025 [9] - The share reduction does not trigger a mandatory tender offer and will not change the company's controlling shareholder or actual controller [10]

Core Viewpoint - Shanghai Second Industrial University has officially launched a joint laboratory focused on non-homogeneous separation ultrafiltration technology for industrial wastewater treatment, aiming to enhance environmental protection and promote clean production in the chemical industry [1][2]. Group 1: Technology and Applications - The non-homogeneous separation ultrafiltration technology effectively removes heavy metals, organic substances, and suspended solids from industrial wastewater, ensuring compliance with discharge standards and reducing environmental pollution [1]. - This technology is also applicable in air purification, water treatment, and pharmaceuticals, contributing to improved drug purity and activity [1]. Group 2: Collaboration and Innovation - The research center is a collaborative effort between Shanghai Second Industrial University and Shanghai Hongli Purification Technology Co., Ltd., designed to integrate industry and academia for technological innovation and application [1][2]. - The center employs a "dual mentor system" for graduate training, combining industry and academic mentors to align educational outcomes with industry needs [2]. Group 3: Project Development and Future Plans - Several key environmental projects have been executed this year, including the development of wastewater treatment processes and polymer filtration technology, which have advanced the industrialization of related technologies [2]. - The research center plans to expand its team by adding 10 graduate students and 5 undergraduates by 2026, aiming to inject new talent into the field of scientific research [2].

Financial Data and Key Metrics Changes - Revenues for the first quarter of 2025 rose 29% to $6,400,000 from $5,000,000 in the prior year period, primarily driven by the robust performance of the FUEL CHEM business segment [17][6] - Consolidated gross margin improved to 46% from 41% in the prior year, reflecting a higher proportion of FUEL CHEM segment revenue [18] - The operating loss narrowed to $952,000 from $1,700,000 in the previous year, indicating improved financial performance [22] - The net loss for the quarter was $739,000 or $0.02 per share, compared to net income of $281,000 or $0.01 per share in the same period last year [22] Business Line Data and Key Metrics Changes - FUEL CHEM segment revenue increased by 92% to $5,100,000 from $2,600,000 in the prior year, comprising nearly 80% of total revenues for the quarter [17][8] - APC segment revenue declined to $1,300,000 from $2,300,000 in the previous year, primarily due to the timing of project execution [17][9] - APC backlog improved significantly, reaching $10,300,000 as of March 31, 2025, up from $6,200,000 at the end of 2024 [19] Market Data and Key Metrics Changes - The company is encouraged by the global landscape of business development activities, driven by manufacturing expansion and growing demand for power generation [6][7] - The demand for emissions control solutions is increasing due to the need for compliance with environmental regulations [7][12] Company Strategy and Development Direction - The company aims to maintain revenue guidance for 2025 at approximately $30,000,000, with expectations that both business segments will exceed their performance in 2024 [14] - The focus remains on pursuing additional FUEL CHEM opportunities domestically and internationally, with plans for new demonstrations of technology [8][9] - The company is actively engaging in discussions regarding the expansion of its chemical technology in Mexico, aligning with the new government's environmental policies [9][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current business environment, noting that uncertainties in the market have not significantly deterred business activity [31] - The company is not expecting any specific tailwinds from new regulations but is confident in capturing opportunities driven by general business expansion [30][31] - The management highlighted the potential for growth in the data center market, driven by increasing energy demands [11][35] Other Important Information - The company has no long-term debt and maintains a strong financial position with cash and investments totaling approximately $31,200,000 [22][24] - Research and development expenses increased due to ongoing investments in water and wastewater treatment technologies [20][21] Q&A Session Summary Question: Current political environment and its impact - Management indicated that the new administration is not deterring business opportunities, and general market drivers are favorable for growth [30][31] Question: Data center partnerships - While specific names could not be disclosed, management confirmed collaboration with OEM suppliers and large tech companies in the data center market [32][33] Question: Mexico opportunity and funding - The Mexican government needs to allocate funds for pollution remediation systems to facilitate order placements [39] Question: Environmental regulations and data center opportunities - Management noted that opportunities are not solely driven by new regulations but are influenced by existing EPA regulations [46][47] Question: DGI sales representatives - The company is engaging sales representatives to enhance market access for DGI technology, with positive feedback from recent shows [50][51] Question: Stock buyback considerations - Management discussed the potential for stock buybacks but emphasized confidence in organic growth as a better use of cash at this time [68]