Core Viewpoint - The company has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, highlighting significant declines in revenue and the need for detailed explanations on various operational aspects [1]. Group 1: Business Performance - The company's revenue from high-end solid-liquid separation equipment was 117 million yuan, accounting for 62.70% of total revenue, which represents a year-on-year decline of 67.08% [1]. - Revenue from operational services and waste gas purification technology equipment was 12.72 million yuan, showing a year-on-year growth of 44.49% [1]. - The revenue contribution in the fourth quarter of 2024 was 28.18%, down from 39.14% in the same period last year [1]. Group 2: Client and Revenue Details - The company provided detailed information on its top five clients, including project names, sales amounts, and historical cooperation status, indicating significant changes in client relationships [2]. - The total revenue from the top five clients amounted to 115.17 million yuan, with varying contributions from each client [3]. - The company highlighted that its spare parts and maintenance services are primarily driven by past high-end solid-liquid separation equipment projects, leading to a mismatch in revenue trends compared to other business segments [5][6]. Group 3: Revenue Recognition and Accounting Policies - The company confirmed that its revenue recognition policies comply with relevant accounting standards, with income recognized upon completion of service obligations or delivery of goods [9][19]. - The average revenue recognition cycle for spare parts and maintenance services is predominantly within one year, accounting for 99.65% of projects [18]. - The company has not identified any significant discrepancies in the timing of revenue recognition over the past two years, indicating accurate income reporting [19]. Group 4: Market and Competitive Analysis - The company’s business model includes selling technical equipment, providing operational services, and offering customized energy-saving solutions, which are affected by market demand and competition [19]. - The significant decline in 2024 performance is attributed to macroeconomic fluctuations, industry downturns, and financial pressures on clients [19].

Core Viewpoint - The company has implemented a "Quality Improvement and Efficiency Enhancement" action plan for 2025 to enhance operational efficiency, strengthen market competitiveness, and protect investor interests amidst significant challenges in the traditional environmental protection industry [1][2]. Group 1: Financial Performance - In 2024, the company achieved operating revenue of 186.8961 million yuan, a decrease of 67.56% year-on-year [2] - The net profit attributable to shareholders was -50.3817 million yuan, down 150.36% from the previous year [2] - Total assets at the end of the reporting period were 1.3742299 billion yuan, a decline of 10.38% from the beginning of the period [2] Group 2: Market Development - The company has focused on key domestic markets such as the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing brand recognition and optimizing product structure [2][3] - New orders and backlog orders at the end of 2024 showed significant growth, including a successful contract for the Shenzhen Futian Water Purification Plant Phase II project [2] Group 3: Research and Development - The company employed 98 R&D personnel, accounting for 42.06% of total staff, with R&D investment of 33.896 million yuan, a year-on-year increase of 5.55% [4] - The company obtained 10 invention patents during the reporting period, marking a historical high for annual patent grants [4] Group 4: Technological Innovation - The company established the "NICE-Revive Environmental Protection Joint Innovation Center" to focus on key technologies in the green low-carbon field [5] - The company has developed advanced technologies such as high-temperature water source heat pumps and solid-state hydrogen storage technology, which are expected to become new profit growth points [6] Group 5: ESG and Sustainability - The company integrates ESG principles into its development strategy, focusing on green low-carbon business and enhancing R&D investment in green products [6] - The company’s subsidiary, Jie Carbon Technology, has assisted multiple enterprises in obtaining green factory certifications and has been involved in various carbon reduction projects [8] Group 6: Internal Management and Governance - The company has strengthened internal controls and compliance management, enhancing its governance structure to protect investor rights [9][12] - The company received multiple awards for its governance practices, reflecting its commitment to high-quality development and compliance [13] Group 7: Investor Relations - The company emphasizes transparent communication with investors, providing updates through various channels and maintaining a stable cash dividend policy [14][15] - A share repurchase plan was executed to enhance investor confidence, with 2.66 million shares repurchased, accounting for 1.80% of total shares [14] Group 8: Future Outlook - The company plans to focus on core business areas, enhance operational efficiency, and leverage technological innovation to drive growth in the green low-carbon sector [28] - The 2025 action plan includes strategies for cost management, asset efficiency, and market expansion, particularly in international markets [16][17]