Group 1: Wastewater Resource Utilization - Wastewater resource utilization is a core business area, focusing on membrane technology iteration and process innovation [2] - The fifth generation of MBR membrane modules has been developed, with significant breakthroughs in structure and nitrogen removal processes [2] - The Meixi Lake wastewater treatment plant, with a design capacity of 250,000 tons/day, is a representative project, recognized as a national green low-carbon benchmark [2] Group 2: Seawater Desalination - The company is expanding into seawater desalination, previously a minor focus, with current technology matching international leaders [3] - The reverse osmosis membrane products achieve a desalination rate of 99.8%, with annual production capacity reaching 3 million square meters [3] - The Bohai New Area integrated seawater utilization project has a total investment exceeding 500 million yuan, aiming to become a new model for seawater desalination in Hebei Province [3] Group 3: Salt Lake Resource Utilization - Salt lake resource utilization is a new focus area, with the development of specialized adsorbents and integrated technologies [4] - The company has launched projects in Tibet and Qinghai, including a lithium extraction project using titanium-based adsorbents [4] - Future plans include expanding from salt lakes to industrial resource recovery, addressing various raw materials [4] Group 4: Biopharmaceutical Applications - The company has entered the biopharmaceutical sector, developing membranes for protein concentration and virus removal [5] - A professional team has been established, achieving breakthroughs in hollow fiber membrane design and manufacturing [5] - Initial applications include projects in CAR-T cell therapy and traditional Chinese medicine, with high recovery rates reported [5]

Core Viewpoint - The company's performance in 2024 declined significantly due to poor operating conditions of its key associate company, resulting in a substantial drop in net profit and revenue [2][3] Financial Performance - In 2024, the company achieved operating revenue of 8.549 billion yuan, a year-on-year decrease of 5% [1] - The net profit attributable to shareholders was 59 million yuan, down 92% year-on-year [1][2] - The non-recurring net profit was 33 million yuan, also down 92% year-on-year [1][2] - The associate company, Yunnan Water, reported operating revenue of 2.798 billion yuan, a decline of 11% year-on-year, and a net loss of 1.739 billion yuan, a decrease of 153% [2] Business Segments - Water treatment and ecological business generated revenue of 7.230 billion yuan, down 13% year-on-year, with a gross margin increase of 0.23 percentage points to 30.45% [2] - Municipal and water supply, along with optical technology business, saw a significant revenue increase of 92% year-on-year, totaling 1.320 billion yuan, with a gross margin increase of 8.97 percentage points to 21.73% [2] Order Growth and Market Expansion - The company experienced continuous growth in new orders, with 178 new EPC orders amounting to 11.714 billion yuan, and a total of 334 orders on hand valued at 9.648 billion yuan [3] - The company is actively expanding into overseas markets, including Malaysia, Mauritania, and Namibia, while exporting industrial reverse osmosis membranes to Dubai and household reverse osmosis membrane components to Mexico, Russia, and Italy [3] Research and Development - The R&D expenditure for 2024 was 343 million yuan, with an R&D expense ratio of 3.51%, an increase of 0.01 percentage points from 2023 [4] - The company is focusing on strategic emerging industries, particularly in seawater desalination, industrial zero discharge, and salt lake resource utilization [4] - The company developed a new series of high desalination rate, low energy consumption, and low leaching ultra-pure water reverse osmosis membranes, accelerating the domestic replacement of high-end membrane materials [4] Profit Forecast - The company is projected to achieve operating revenues of 9.017 billion yuan, 9.531 billion yuan, and 10.098 billion yuan for 2025-2027, with year-on-year growth rates of 5.47%, 5.70%, and 5.95% respectively [5] - The net profit attributable to shareholders is expected to be 231 million yuan, 262 million yuan, and 295 million yuan for the same period, with growth rates of 294.78%, 13.24%, and 12.47% respectively [5]