Core Viewpoint - The recent market focus on the Yarlung Tsangpo River downstream hydropower project (referred to as "Yaxia Project") has led to unusual stock trading fluctuations for Dayu Water-saving (300021) [1] Company Overview - Dayu Water-saving holds first-class qualifications for water conservancy and hydropower general contracting, as well as top-level qualifications in water conservancy design and engineering consulting [1] - The company primarily engages in water conservancy engineering construction, modern irrigation area construction, high-standard farmland construction, water environment governance, rural sewage treatment, non-point source pollution control, and various agricultural water conservancy infrastructure operations [1] - It provides integrated solutions for project planning and design, investment financing, research and manufacturing, construction delivery, digital intelligence, and operation maintenance [1] Business Development - Since 2015, the company has expanded its water conservancy business in Tibet, gaining experience in the construction of hydropower stations in the region [1] - Dayu Water-saving has been involved in water-saving irrigation and related projects in Lhasa, Shigatse, and Nagqu [1] Project Status - The company places significant importance on the Yaxia Project, which is currently in the early stages of construction [1] - The project is characterized by a large investment scale, long construction period, and high technical requirements [1] - As of the announcement date, the company's related business undertakings do not currently involve the Yaxia Project, and there is uncertainty regarding the potential orders and specific amounts that may be obtained in the future [1]

Summary of Dayu Water Saving Conference Call Company Overview - **Company**: Dayu Water Saving - **Industry**: Water conservation and hydropower engineering Key Points and Arguments Industry and Market Opportunities - Dayu Water Saving has extensive experience in hydropower engineering construction in high-altitude areas, having completed over 1.3 billion orders in confidential high-altitude subcontracting projects, showcasing its construction capabilities under complex geological conditions [2][5] - The surrounding infrastructure investment for the Yaxia Hydropower Station totals 1.2 trillion, providing numerous participation opportunities for Dayu Water Saving [2][6] - The high-value rural construction sector has significant prospects, with increased investment in irrigation modernization. The national goal for agricultural infrastructure over the next decade is nearly 600 million acres, with a total market space exceeding 1.5 trillion [2][8] Financial Performance and Cash Flow - Dayu Water Saving's engineering revenue is primarily supported by central government funding, ensuring reliable cash flow. The expected operating cash flow for 2024 is approximately 4.3 billion, with recent cash amounts nearing 700 million [2][10] - The company plans to expand into national key projects, which are expected to have high cash return rates due to strong central funding support [10] Strategic Initiatives - The company is establishing a subsidiary to engage with the Yaxia project and leverage its market mechanisms and deep experience [2][6] - Dayu Water Saving is exploring the application of Real World Assets (RWA) in agricultural products, aiming to digitize the planting process and enhance commercial value [4][11] - The company has engaged in discussions with major institutions like Ant Group and JD.com to advance RWA applications, targeting to become the first listed company to issue agricultural RWA [4][12] Competitive Advantages - Dayu Water Saving holds a first-class engineering qualification in the water conservancy and hydropower industry, a rare qualification among private enterprises, and has participated in numerous large and medium-sized hydropower projects [3][5] - The company plans to further expand its capabilities through acquisitions and is developing digital twin models and flood prediction models to enhance its service offerings [3] Future Growth and Expansion - The Yajiang project, with a total investment of 1.2 trillion, is a significant milestone for the industry, and Dayu Water Saving aims to leverage this to drive overall performance and profit release over the next three to five years [9] - The company is optimistic about the future demand in high-value rural construction and irrigation modernization, supported by national policies and increased investment [8][9] Collaboration with State-Owned Enterprises - Dayu Water Saving has established long-term partnerships with state-owned enterprises like China Electric Power Construction and China Energy Construction, demonstrating strong collaboration capabilities [5][20] - The company has been involved in various projects in Tibet since 2015, showcasing its ability to work effectively in challenging environments [5][20] Technological Integration - The company is focused on integrating blockchain technology with agricultural practices to enhance asset digitization and traceability, aiming to improve the commercial value of agricultural products [14][15] - Dayu Water Saving is exploring innovative financing models and digital finance to support its business development and expand its market reach [18] Other Important Insights - The company is considering the implications of tokenization and the potential for overseas financing in the agricultural sector, which remains largely untapped [17][18] - Dayu Water Saving's strategic focus on digital transformation and RWA applications positions it well for future growth in both domestic and international markets [11][12][14]