Core Views - The report outlines the continuous supervision and guidance provided by Shenwan Hongyuan Securities for Sains Environmental Co., Ltd. during its initial public offering and subsequent listing on the Sci-Tech Innovation Board [1][2][3] Continuous Supervision Work - Shenwan Hongyuan has established and effectively implemented a continuous supervision work system, including a corresponding work plan [1] - A sponsorship agreement has been signed with Sains, clarifying the rights and obligations of both parties during the supervision period [1] - The supervision work includes daily communication, regular visits, on-site inspections, and due diligence [1][2] Compliance and Governance - During the first half of 2025, Sains and its directors, supervisors, and senior management did not have any violations of laws or commitments [2] - Sains has established and effectively executed its corporate governance system, including rules for shareholders' meetings, board meetings, and supervisory meetings [2][3] Financial Performance - For the first half of 2025, Sains reported a revenue of approximately 422.97 million, an increase of 18.81% compared to 356.01 million in the same period of 2024 [10] - The total profit for the same period was approximately 57.42 million, a decrease of 53.24% from 122.79 million in the previous year [10] - The net cash flow from operating activities was approximately -46.67 million, compared to -0.88 million in the previous year [10] Research and Development - The total R&D expenditure for the first half of 2025 was approximately 25.75 million, an increase of 26.34% from 20.39 million in the same period of 2024 [17] - R&D expenditure accounted for a higher proportion of revenue, indicating a commitment to innovation and technology development [17] Market Position and Competitive Advantage - Sains is recognized as a leading provider of comprehensive solutions for heavy metal pollution prevention, focusing on the treatment of wastewater and resource recovery [12][15] - The company has developed advanced technologies for heavy metal wastewater treatment, which are more efficient and cost-effective compared to traditional methods [13][14] Shareholder Structure - As of June 30, 2025, the controlling shareholder and actual controller of the company, Gao Weirong, increased his shareholding from 24,065,685 to 24,763,572 shares [21] - There were no pledges, freezes, or reductions in shareholdings by the controlling shareholders, actual controllers, directors, supervisors, and senior management [22]

Core Viewpoint - The company, Sains Environmental Co., Ltd., focuses on heavy metal pollution prevention and control, reporting significant growth in revenue and net profit for the year 2024, with a net profit of 180,757,969.30 yuan, representing a year-on-year increase of 100.11% [36]. Company Overview - Sains aims to be a leader in heavy metal pollution prevention, offering services in waste acid, wastewater, and waste residue treatment, resource utilization, environmental remediation, and environmental consulting [7][8]. - The company operates a "three-in-one" business model that integrates comprehensive solutions, product sales, and operational services for heavy metal pollution control [18]. Financial Performance - For 2024, the company achieved a total revenue of 927,193,400 yuan, with a net profit of 180,758,000 yuan, marking a 14.69% increase in revenue and a 100.11% increase in net profit year-on-year [36]. - The proposed cash dividend distribution is 6.30 yuan per 10 shares, amounting to a total of 60,055,492.77 yuan, which represents 33.22% of the net profit attributable to shareholders [5]. Business Segments - The main business segments include: - **Comprehensive Solutions**: Providing full-process or stage services for heavy metal pollution treatment, including design, equipment manufacturing, and engineering [9]. - **Product Sales**: Selling specialized environmental agents, copper extractants, and integrated wastewater treatment equipment [10][11]. - **Operational Services**: Managing clients' environmental pollution control facilities, enhancing treatment quality, and reducing operational costs [16]. Industry Context - The heavy metal pollution prevention industry in China is still developing, characterized by a fragmented market with high entry barriers and strong policy-driven demand [23]. - The industry faces challenges such as high treatment costs, complex technology requirements, and the long-term nature of pollution remediation [24][25]. Technological Advancements - The company has developed new technologies for waste acid resource recovery and arsenic slag detoxification, which address significant industry challenges and enhance operational efficiency [31]. - Future trends indicate a shift towards standardized and modular environmental equipment, as well as the integration of IoT and digital technologies in operational management [34][35].