Core Viewpoint - The company Jin Dalai has filed a lawsuit against the Wan'an County People's Government for unpaid project compensation, amounting to approximately 40.8 million yuan, which includes both compensation and interest [1][2]. Group 1: Legal Action - Jin Dalai's subsidiary, Wan'an Jin Yuan Water Industry Co., Ltd., has initiated administrative litigation against the Wan'an County People's Government due to the latter's failure to pay project compensation [1]. - The lawsuit is based on a 2016 agreement where the government guaranteed compensation for losses incurred due to insufficient wastewater treatment [1][2]. - The government has only paid compensation for the years 2017, 2018, and part of 2019, leaving the remaining amounts from 2019 to 2024 unpaid [1]. Group 2: Financial Performance - In 2024, Jin Dalai reported a revenue of 409 million yuan, a year-on-year decrease of 19%, and a net profit attributable to shareholders of 137 million yuan, down 25.3% [2]. - The company recorded a net cash flow from operating activities of 182 million yuan, a decline of 40.4% compared to the previous year [2]. - As of the end of 2024, the total accounts receivable reached 1.192 billion yuan, with over 800 million yuan aged over one year, and 341 million yuan of this amount has been provisioned as bad debt [3]. Group 3: Cash Flow Management - To address the risks associated with accounts receivable, the company has strengthened its management processes across all project phases, from initiation to completion [3]. - In the first quarter of 2025, Jin Dalai achieved a revenue of 84.7 million yuan, a slight increase of 1.55%, and a net profit of 49.1 million yuan, up 25.56% year-on-year [4]. - The increase in cash flow from operations in the first quarter of 2025 was attributed to a rise in collection amounts, leading to a 171.62% increase in net cash flow to 88.6 million yuan [4].