Core Viewpoint - The company held an online performance exchange meeting on August 26, 2025, to discuss its financial situation, performance, and future outlook, with participation from 23 institutions including various funds and banks [1][2]. Financial Performance - In the first half of 2025, the company achieved a stable operating revenue of 1.276 billion yuan, despite facing macroeconomic and industry cycle challenges [2]. - Total assets slightly decreased to 9.155 billion yuan due to temporary cash flow impacts, while cash balances were 1.202 billion yuan, showing a reasonable reduction [2]. - Net profit for the period was 5.7879 million yuan, with management expenses down by 8.76% and financial expenses down by 12% year-on-year [2]. - The company completed a convertible bond conversion amounting to 637 million yuan, with a conversion rate of 99.83%, increasing the share capital to 1.02 billion shares and reducing the debt-to-asset ratio to approximately 67% [2]. Performance Review and Outlook - Water conservancy investment accounted for about 30% of infrastructure investment, the highest among various sectors, with ongoing projects in Hainan, Ningxia, and Jiangxi [3]. - The company is focusing on enhancing the proportion of soft construction-related business while controlling costs, leading to a steady recovery in gross profit margins [3]. - Efforts to recover accounts receivable have been intensified, with over 40 million yuan recovered from accounts receivable over five years, and a nearly 10% year-on-year decrease in accounts receivable balance [3]. Strategic Focus - The company will concentrate on three main areas in the second half of the year: high-standard farmland, new construction and renovation of irrigation areas, and large-scale water diversion projects [4]. Investor Q&A Highlights - Order expectations indicate that orders in the first half were below expectations, but a significant increase is anticipated in the second half due to the issuance of national "two heavy" project lists [5]. - The "Xiao Hui" product series showcases the company's comprehensive solution capabilities, with a focus on government and related departments as primary customers [5]. - The company is progressing with the acquisition of a Class A design institute and has signed a strategic cooperation agreement with Huai'an Institute [5]. - The company is actively participating in the Yaxia project, establishing a subsidiary in Tibet, and aims to secure sub-contracting and supporting engineering orders [5]. Industry Insights - The company is committed to an international strategy, aiming to become a century-old enterprise in the irrigation sector, with a focus on brand building and marketing [7]. - The company emphasizes the importance of "soft construction" in driving the implementation of "two heavy" projects, which will enhance the competitive advantage of private enterprises [7].