BOW(SZ:300070)2023-06-12 10:21Group 1: Company Overview and Strategic Direction - The company is focusing on wastewater resource utilization and membrane technology, preparing for the implementation of the national water network construction plan [1] - After two years of collaboration with China Communications Construction Company, the company's performance has started to recover, indicating a stable development phase with increasing operational water volume [1] - The company aims to expand the application scenarios of membrane technology, including projects in lithium extraction from salt lakes and industrial zero discharge [1] Group 2: Financial Performance and Growth - The company secured nearly 100 million RMB in orders for lithium extraction membrane products last year and has signed a 150 million RMB order for lithium adsorption agents this year [1] - The return on equity (ROE) is expected to improve as more projects enter stable operation, with current low ROE attributed to many projects being in trial operation or testing phases [1][4] - The gross profit margin for environmental solutions improved from 26% in 2021 to 31% in 2022, while the gross profit margin for drainage engineering increased from below 7% to 12% [4] Group 3: Market Opportunities and Challenges - The company is actively exploring overseas projects in collaboration with China Communications Construction Company, particularly in the context of the Belt and Road Initiative [5] - The national water network construction plan aims to enhance funding sources for water treatment projects, potentially increasing project opportunities for the company [3] - The company faces challenges in the market, including the need for stable funding sources for public-private partnership (PPP) projects, which have historically been a concern in the industry [3] Group 4: Technological Advancements and Product Development - The company is developing small-scale treatment facilities for rural areas, capable of processing 10-500 tons per day, achieving surface water quality standards [5] - The membrane treatment technology is expected to have a larger market space in the future, as it aligns with national policies promoting wastewater resource utilization [4][5] - The company is working on enhancing the competitiveness of its membrane products in various water quality requirements, aiming for broader market penetration [4]