() The business review of the Board of Directors in 2022 is as follows:

　　I. The industry in which the company is located during the reporting period.

　　1, the basic situation of the industry, development stage, cyclical characteristics.

　　During the "Tenth Five-Year Plan" period, China took "raising gas, reducing carbon, strengthening ecology, increasing water, consolidating soil and preventing risks" as the basic idea, and stressed that it was necessary to achieve new breakthroughs in key areas and key indicators such as industrial sewage treatment, industrial park management, high-end equipment and carbon neutrality, and continue to carry out various special actions to prevent and control pollution. Water, soil, solid and waste gas will continue to be under strict supervision. With the innovation of supervision means and mechanism, on the one hand, after the "Double Carbon Strategy" was put forward, traditional environmental protection developed into green environmental protection, and emerging fields such as clean energy, energy saving and low carbon, and green recycling, which are closely related to double carbon, were included in the category of green environmental protection, stimulating the green environmental protection industry to usher in major development opportunities; On the other hand, a large number of state-owned enterprises and central enterprises have entered the field of ecological environment by setting up environmental protection companies or participating in the mixed reform of private environmental protection enterprises. The environmental protection industry has entered the form of industrial collectivization and developed into a comprehensive service group with nationwide and whole industrial chain, and the industrial competition pattern has further intensified.

　　(1) Water treatment industry

　　The 19th National Congress of the Communist Party of China has made comprehensive arrangements for strengthening the construction of ecological civilization, fighting a tough battle against pollution and building a beautiful China. As the task of implementing the overall layout of "five in one" such as "ecological civilization construction" and winning the key plan of "fighting a tough battle against pollution" and "building a beautiful China", the battle for clear water has been promoted to a historic strategic height. In recent years, The state has successively issued a number of sewage treatment-related policies, such as the Master Plan for Major National Projects for the Protection and Restoration of Important Ecosystems (2021-2035), the Implementation Plan for the Shortcomings and Strengths of Urban Domestic Sewage Treatment Facilities, the Guiding Opinions on Promoting the Reuse of Sewage, the Opinions of the State Council City, the Central Committee of the Communist Party of China on Promoting Rural Revitalization in an All-round Way and Accelerating the Modernization of Agriculture and Rural Areas, and the Development Plan for Urban Sewage Treatment and Reuse in the Tenth Five-Year Plan, which involve the prevention and control of water pollution and the marketization mechanism of sewage treatment. During the "Tenth Five-Year Plan" period, sewage treatment and resource utilization have been steadily promoted, with county sewage treatment, urban sludge disposal and reclaimed water utilization as the main incremental space, and facilities construction focused on four major directions: pipe network, treatment facilities, recycling facilities and sludge disposal. In March 2022, four ministries and commissions, including the Ministry of Housing and Urban-Rural Development, jointly issued the "Implementation Plan for Deepening the Fight against Urban Black and Odor Water", and the Ministry of Ecology and Environment and the Ministry of Housing and Urban-Rural Development issued the "Environmental Protection Action Plan for Urban Black and Odor Water Remediation in the Tenth Five-Year Plan" to further refine the urban black and odorous water remediation work.The main battlefield of black and odorous water bodies extends to county-level cities. The action plan requires that by 2025, the proportion of black and odorous water bodies in county-level urban built-up areas will reach 90%; For the cities at or above the county level that have completed the treatment and realized that the water body is neither black nor smelly, it is necessary to consolidate the effect of urban black and odorous water body treatment and establish a long-term mechanism to prevent the black and odorous water body from returning. In June 2022, the Ministry of Industry and Information Technology and other six departments issued the Action Plan for Improving Industrial Water Efficiency, which pointed out that efforts should be made to break through the key common technologies of water saving such as treatment and recycling of high-concentration organic wastewater and high-salinity wastewater, high-performance membrane materials, high-efficiency catalysts, green chemicals, intelligent monitoring and optimal control. "peak carbon dioxide emissions" and "carbon neutrality", as one of the important targets of China’s "Fourteenth Five-Year Plan" pollution prevention and control, promote the industry to pay more attention to low-carbon and resource utilization, and the sewage treatment will develop in the direction of low-carbon operation and green transformation.

　　(2) Soil remediation industry

　　In order to thoroughly implement the Law of People’s Republic of China (PRC) on the Prevention and Control of Soil Pollution and the Action Plan for the Prevention and Control of Soil Pollution, in recent years, the relevant state administrative departments have successively promulgated a series of management policies and technical guidance documents for the soil remediation industry, mainly involving standardized management of the industry, financial support and technical upgrading. In December 2021, the Ministry of Ecology and Environment, together with the Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Housing and Urban-Rural Development and other departments, jointly issued the "Tenth Five-Year Plan" for Soil, Groundwater and Rural Ecological Environment Protection (hereinafter referred to as the "Plan").

　　The Plan sets targets in two stages. By 2025, the environmental quality of soil and groundwater in the whole country will remain stable, and the safe use of polluted cultivated land and key construction land will be consolidated and improved. By 2035, the national soil and groundwater environmental quality will be stable and good, the soil environmental safety of agricultural land and key construction land will be effectively guaranteed, and the soil environmental risks will be fully controlled. In February, 2022, the State Council issued the Notice on Carrying out the Third National Soil Survey, and decided to carry out the third national soil survey from 2022, with four years to comprehensively find out the soil quality of agricultural land, especially focusing on agricultural land soil survey. As the census work is rolled out in various places, the orders related to soil testing will continue to increase, opening up new development space for the third-party environmental testing service industry; On February 11th, 2022, the State Council issued the "14th Five-Year Plan to Promote Agricultural and Rural Modernization". Combined with China’s new development concept and the goal of basically realizing beautiful China in 2035, it is predicted that the soil remediation industry will enter a critical period of high-quality development during the 14th Five-Year Plan period.

　　(3) solid waste treatment and disposal industry

　　During the "Fourteenth Five-Year Plan" period, the construction of domestic waste classification and treatment facilities entered a critical period. In order to guide and promote the planning and construction of domestic waste sorting and treatment facilities in China, the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development organized and compiled the Development Plan of Urban Domestic Waste Sorting and Treatment Facilities in the Tenth Five-Year Plan. In terms of specific targets, by the end of 2025, the utilization rate of domestic waste resources in China will reach about 60%, and the sorting and transportation capacity will reach about 700,000 tons/day. In recent years, the state has successively promulgated policies and regulations such as Technical Policy for Urban Domestic Waste Treatment and Pollution Prevention and Control, National Construction Plan for Hazardous Waste and Medical Waste Disposal Facilities, and formulated a series of national and industrial standards such as Pollution Control Standard for Domestic Waste Landfills, Project Specification for Domestic Waste Treatment and Disposal, and Pollution Control Standard for General Industrial Solid Waste Storage and Disposal Sites, which has promoted the standardization and rapid development of this industry. The newly revised Law of People’s Republic of China (PRC) on the Prevention and Control of Environmental Pollution by Solid Waste and the National Hazardous Waste List (2021 Edition) were published to the public, which showed that the policy system of China’s solid waste industry has been continuously improved and the control measures and efforts have been continuously strengthened. In December 2021, the Ministry of Ecology and Environment and other departments jointly issued the Work Plan for the Construction of "Waste-free Cities" during the Tenth Five-Year Plan period to promote the construction of "Waste-free Cities" in about 100 cities at prefecture level and above; In June 2022, the "Implementation Plan for Pollution Reduction and Carbon Reduction Synergy" issued by the Ministry of Ecology and Environment and other seven departments proposed that in terms of solid waste treatment, by 2025,The comprehensive utilization rate of new bulk solid waste reached 60%, and the stock of bulk solid waste decreased in an orderly manner; Strengthen the reduction, recycling and harmless treatment of domestic waste, vigorously promote waste classification, optimize the treatment and disposal methods of domestic waste, and strengthen the resource utilization of recyclable materials and kitchen waste. The introduction of relevant policies will further promote the accelerated release of market space in various fields of the solid waste industry chain.

　　(4) Manufacturing of environmental protection equipment

　　Environmental protection equipment manufacturing industry is an important part of energy-saving and environmental protection industry. In recent years, the overall demand of environmental protection industry has increased rapidly, and environmental protection equipment manufacturing industry has broad market prospects. "Guiding Opinions of the Ministry of Industry and Information Technology on Accelerating the Development of Environmental Protection Equipment Manufacturing Industry" points out: "Guide the differentiated, clustered and integrated development of industries. Leading enterprises in environmental protection equipment are encouraged to develop into integrated service providers integrating system design, equipment manufacturing, engineering construction, commissioning and maintenance, and operation management. Small and medium-sized enterprises are developing in the direction of "specialization and novelty" with product specialization, intensive research and development, service characteristics and new formats, forming a number of gathering areas led by leading enterprises, supporting small and medium-sized enterprises and coordinated development of industrial chains. Guide the integrated development of environmental protection equipment manufacturing with the Internet and service industries, actively explore new models and new formats, and accelerate the improvement of service capabilities and investment and financing capabilities of manufacturing enterprises. " In January 2022, the Ministry of Industry and Information Technology and other three departments jointly issued the Action Plan for High-quality Development of Environmental Protection Equipment Manufacturing Industry (2022-2025), proposing that by 2025, the technical level of environmental protection equipment manufacturing industry will be significantly improved, and the output value of environmental protection equipment manufacturing industry will strive to reach 1.3 trillion yuan. This is the first time that the "Action Plan for High-quality Development of Environmental Protection Equipment Manufacturing Industry" has been issued at the national level, which has pointed out the direction for the development of environmental protection equipment manufacturing industry in the next few years.

　　2. The industry status of the company.

　　After years of leap-forward development, the company has achieved domestic leading and international leading position in many sub-sectors, won national and provincial-level honors for many core technologies, and listed many core equipment in the catalogue of major environmental protection technologies and equipment encouraged by the state, key new products, the first set of major technical equipment in China, Guangxi famous brand products, etc., forming a product promotion layout of "based on China, facing ASEAN and connecting with the world". Technology and products are exported to ASEAN, Eastern Europe, West Africa, South America and other overseas markets, becoming a leading environmental brand with strong international competitiveness in China, gradually infiltrating from the traditional water pollution control to all aspects of comprehensive environmental management, from the domestic single market to globalization and internationalization, from a single pollution source control index to the whole environmental management system effect, from the initial "equipment+engineering" business model to environmental technology services, environmental consulting services, environmental equipment manufacturing, environmental operation services and other industrial chains. Based on solving the key common technologies of industrial development, the company has continuously improved its independent innovation and R&D capabilities, and built a benign operation mechanism from technological achievements and products to industrial applications. At present, it has formed a technological innovation system of basic theoretical research on environmental protection, R&D and application of key environmental technologies, and integration of production and education, striving to become a leader in technological innovation and development of domestic environmental protection industries, and further consolidating its strategic positioning as a "comprehensive environmental service provider with sustainable innovation capabilities and independent core technologies".

　　

　　II. Main businesses of the Company during the reporting period

　　1. Overview of the company’s main business during the reporting period.

　　Guided by improving environmental performance and solving environmental problems, the company is committed to providing customers with comprehensive solutions for comprehensive environmental management in many fields and directions. Its core businesses mainly include comprehensive environmental management services focusing on industrial environmental management and clean production, municipal environmental management and ecological restoration, soil remediation, solid (hazardous) waste disposal and smart sanitation. Equipment manufacturing and sales business focusing on research and development, manufacturing and sales of multi-field environmental protection equipment; The operation business mainly includes waterworks, sewage treatment plants, sanitation integration, terminal operation of sludge and contaminated soil disposal, etc. Comprehensive environmental consulting services focusing on environmental impact assessment and environmental consultation, inspection and testing, engineering design and environmental monitoring. The service scope covers the whole industrial chain of environmental protection such as consultation, design, environmental assessment, testing, research and development, equipment manufacturing, engineering construction, investment and operation.

　　2. Main products of the company and their uses during the reporting period.

　　(1) Water environment control technology

　　In the field of industrial pollution control, during the reporting period, the company’s anaerobic, Fenton and sand filtration technologies were continuously optimized, and new anti-calcification anaerobic reactors were widely used. In view of the treatment of high-concentration organic wastewater such as landfill leachate, petrochemical wastewater and chemical wastewater, which is difficult to separate organic and inorganic components, the company independently developed UBEF biological enhanced filter, catalytic electrolysis, concentrated salt separation and other technologies. At present, UBEF biological enhanced filter technology has been put into operation in Guangxi and Guangdong, and its performance fully meets the design requirements. The technology for full quantitative disposal and concentrated evaporation of landfill leachate has been put into operation in many projects and has entered the equipment debugging link one after another; The catalytic electrolysis technology has completed the pilot test in the environment of high-concentration and high-salt chemical wastewater, chemical reuse membrane concentrated water and landfill leachate concentrated solution, and the test results have reached the expected goal.

　　(2) Key equipment and technology of clean pulp bleaching-large chlorine dioxide preparation system and related chemical technology.

　　After more than ten years of technology accumulation, the company’s self-developed "large-scale chlorine dioxide preparation system and key technology and application of chlorine-free bleaching of pulp" won the second prize of national technological invention in 2019. This technology has broken the monopoly of foreign technology, greatly reduced the investment cost, achieved zero breakthrough in the overseas export of this kind of products in China, effectively reduced the environmental pollution caused by pulp bleaching, and promoted clean production in the paper industry; The company has also developed the preparation technology of chlorine dioxide by double electrolysis, as well as clean and efficient production technologies of chemicals such as sodium chlorate, caustic soda, hydrogen peroxide, potassium chlorate, potassium perchlorate, chlorine-consuming products (trichloroisocyanuric acid, polyaluminum chloride, bleaching powder concentrate, ADC foaming agent, etc.), which provides strong technical support for the upgrading and transformation of papermaking and related chemical industries.

　　(3) Soil environmental restoration

　　Focusing on the disposal goal of "reduction, recycling and innocuity" of oily sludge, the technical bottlenecks of low thermal efficiency, small capacity, heavy recovered oil and low gas production rate of existing pyrolysis equipment were solved, and the technical route of "carbon reduction, carbon emission reduction and carbon recovery" was explored. During the reporting period, the company optimized the equipment process of the new pyrolysis system (OTTU), combined with the process of condensing and purifying pyrolysis gas to recover oil/gas. While ensuring that the oil content of the treated muck is lower than 0.3% (agricultural sludge grade B standard), fully optimize the thermal efficiency of the equipment and the oil sludge treatment capacity, and provide technical support for the production increase and efficiency increase of Xinjiang Aksu oil sludge disposal project and Ningbo Fuhai oil waste harmless disposal project.

　　In view of the contaminated soil in chemical industry, mining, dressing and metallurgy, the company continued to carry out research on technologies, equipment and processes such as soil synergistic bioleaching, eluent recovery and waste liquid purification in combination with the national key research and development plan "Antimony and arsenic pollution source blocking and ecological treatment technology in antimony mining areas". The developed green and efficient biological leaching agent can reach the first-class leaching efficiency of heavy metal contaminated soil above 90%. Through the developed solid-solid conversion process, more than 50% of the biological eluent can be recovered from the leaching waste liquid, which can further reduce the dosage and technical cost while ensuring the leaching efficiency, maintain soil microbial metabolism and organic and inorganic carbon pools to the greatest extent, and ensure soil carbon sink capacity; After purification, the waste liquid can meet the first-class B standard of urban sewage discharge, and finally reduce the amount of polluted earthwork, pollutants and pollution discharge.

　　In the field of comprehensive management and ecological restoration of mines and river basins, the company has developed in-situ blocking and in-situ purification technology of heavy metal pollution, multi-layer covering and strongly reducing microbial mineralization technology and carried out industrial application demonstration in combination with the national key R&D plan "Pollution Restoration Technology and Engineering Demonstration in the Affected Area of Southwest Nonferrous Metal Dressing and Smelting Slag Yard". At the same time, in view of agricultural non-point source pollution control, based on the national needs of rural revitalization, agricultural green development, bio-economic development, and combined with the national key research and development plan "New Functional Materials for Active Passivation of Cationic Heavy Metals in Site Soil", the microbial soil quality-enhancing and efficiency-improving materials were developed by using agricultural solid waste, meeting the technical indicators of Compound Microbial Fertilizer Standard (NY/T798-2015), simultaneously improving the soil structure and adjusting the soil pH value. Supplementing soil nutrition, enhancing crop disease resistance and stress resistance, promoting high yield and high quality of rice, vegetables and fruit trees, etc. At present, it has been demonstrated and popularized in Nanning, Chongzuo, Baise, Guigang and other places in Guangxi.

　　(4) Solid hazardous waste disposal

　　During the reporting period, in view of the comprehensive utilization of aluminum electrolysis overhaul slag, through the research of rapid and efficient detection technology of main elements in aluminum electrolysis overhaul slag treatment, cyanide breaking technology of complex cyanide, removal of complex fluoride and recovery of fluorine resources, evaporation crystallization and recycling technology of high-salt wastewater, and wet harmless and recycling technology of waste cathode carbon blocks from aluminum electrolysis overhaul slag, Solve the technical problems of chlorine-free and low-salt efficient removal and detoxification of complex cyanide, conversion, removal and recovery of complex fluoride in aluminum electrolysis overhaul slag under high salt and high alkali conditions, and realize efficient continuous countercurrent leaching, toxicity removal and long-term stabilization of harmless slag. At present, the small-scale experiment, pilot experiment and industrial application demonstration of resource utilization of overhaul slag have been completed, and a complete set of technology for harmless and resource treatment of overhaul slag has been successfully developed. At the same time, the company also carries out technical optimization research and industrial application promotion in the fields of carbon residue, carbon sludge and fluorine-containing wastewater treatment in aluminum electrolysis industry.

　　In order to promote the green closed-loop development of new energy materials and automobile industry, and explore a new route of full-quantified comprehensive utilization of waste lithium batteries, the company developed a "two-step recycling technology of low temperature reduction-gradient acid leaching" system to solve the technical problems such as low recovery rate of valuable elements extracted from waste lithium batteries and battery factory waste, incomplete impurity removal and purification of complex nickel-cobalt-manganese-lithium solution system, low recovery rate of lithium precipitation and poor full-quantified recycling path of three wastes. Efficient extraction of valuable metals from waste lithium batteries, selective recovery of metals by multi-stage extraction technology to form high value-added products such as cobalt sulfate, nickel sulfate, manganese sulfate, copper sulfate and lithium carbonate, and at the same time, efficient defluorination, fluoride precipitation and purification systems for lithium battery electrolyte fluoride are constructed to recover fluorine resources, recycle carbon powder and reuse iron resources. This technical system is used in the comprehensive recycling of waste lithium batteries. At present, the recovery rate of nickel and cobalt is over 99.3%, the recovery rate of lithium is over 90%, and the recycling rate of process wastewater is over 95%. At present, the small-scale and pilot-scale experimental research on the recovery and purification of high-priced metals has been completed, the recycling of solid waste, tail gas and wastewater is being tested and studied, and the recycling technology is being industrialized and applied.

　　(5) Civil and industrial disinfection technology and equipment

　　During the reporting period, the company developed a series of chlorine dioxide solid disinfectants and disinfection equipment with core technologies around the fields of drinking water safety, respiratory health and fruit and vegetable preservation that people pay close attention to. Among them, the series of chlorine dioxide solid disinfectants include high-content AB powder, compound unitary powder portable effervescent tablets and acid-base resistant degradable air purification gel; The series of disinfection equipment includes sodium hypochlorite generator, chlorine dioxide generator, intelligent disinfection dosing device, integrated sanitation, deodorization and disinfection machine, garbage deodorizer, low-temperature disinfectant and so on. Series chlorine dioxide solid disinfectants have the characteristics of good stability, green economy and convenient use. It can be used in public health and safety, air purification, sewage treatment, fruit and vegetable preservation and other fields, which greatly broadens the application scene of ClO2 disinfectant. Series disinfection equipment has the characteristics of safe and reliable operation, high conversion efficiency of raw materials, simple operation and maintenance, and wide application scenarios.

　　Up to now, the core technology products have been popularized and applied in more than 50 projects in hospitals and international health stations, such as sewage disinfection, industrial and municipal water supply and drainage disinfection, air disinfection and purification, and fruit and vegetable preservation, and achieved good application results.

　　(6) The field of smart sanitation

　　During the reporting period, the company further strengthened the forward research and development of sanitation equipment products and the ability to tackle key technologies, and continued to focus on the development direction of new energy, intelligence and miniaturization of sanitation equipment, and overcome core technologies such as three-electric system matching, energy management and collaborative control technology, and design simulation analysis of special devices for new energy vehicles. In the field of intelligent application of sanitation equipment, based on the research of small-scale sanitation equipment, we will further expand the technical research and development of wire-controlled transformation and intelligent control of small-scale equipment. During the reporting period, the company completed the research and development of new products such as new energy cleaning vehicle, new energy road maintenance vehicle, multifunctional dust suppression vehicle and intelligent road sweeper.

　　(7) Comprehensive environmental consultation

　　The company can provide customers with one-stop comprehensive consulting services in the whole process of environmental protection project consultation, environmental assessment, testing and design. At present, it has provided corresponding consulting services for many large and medium-sized petrochemical and paper-making enterprises such as (), China Petrochemical, Nine Dragons, Liwen and Taiyang, and provided overall environmental consulting services for local governments and industrial parks. With rich consulting experience and thousands of successful cases, it has become one of the industry enterprises with the most complete qualifications and the strongest comprehensive consulting services in the domestic environmental protection field.

　　The company’s environmental assessment and environmental consulting services cover planning environmental assessment, construction project environmental assessment, engineering consultation, water consultation, environmental stewardship, industrial energy conservation and green development, environmental emergency plan, ecological civilization construction research, environmental stewardship research, rural domestic sewage planning and operation and maintenance, soil and groundwater pollution investigation, effect evaluation and environmental supervision, mine whole process consultation, agricultural land safety utilization and three-in-one comprehensive pre-consultation and post-operation and maintenance services. The company has a third-party testing platform company with multiple qualifications such as CNAS, CMA and CATL, which can provide various comprehensive technical services such as environmental monitoring, food and agricultural products testing, online monitoring and operation services for environmental protection products, soil pollution investigation and environmental protection acceptance of construction projects.

　　3. Main business models during the reporting period

　　EP is the acronym of Engineering Procurement, which means "design-procurement". The core of this model is system design and equipment integration. In this business model, the company, as a provider, first carries out scheme formulation, system design, equipment design and selection, then purchases general equipment and materials, produces or customizes core equipment and key components, and outsourcing special hardware equipment, etc. Finally, it forms a system that can complete specific functions through system assembly and integration, and sells the whole set of integrated equipment to the customer as a whole.

　　EPC is an acronym for Engineering Procedure Construction, which means "design-procurement-construction". It means that the company is entrusted by customers to contract the whole process or several stages of project consultation, design, procurement, construction, installation, acceptance and trial operation in accordance with the contract, and is responsible to the owner for the quality, construction period and cost of the project in accordance with the contract, and at the same time, some of the contracted projects can be legally contracted.

　　EPC mode is an extension of engineering design business and equipment system integration mode, and its service scope covers the whole process of project construction, that is, from the preliminary work of project investment until it is completed, put into production or delivered for use, which is also the so-called "turnkey" mode of project general contracting.

　　PPP is an acronym for Public Private Partnership, which is a cooperation model between the government and social capital. It refers to the benefit sharing, risk sharing and long-term cooperative relationship established by the government with social capital through franchising, purchasing services and equity cooperation in order to enhance the supply capacity and improve the supply efficiency of public goods and services.

　　BOT is the acronym for Build Operation Transfer, which means "build-operate-transfer". It means that the customer signs a contract with the company, and the company undertakes the financing, construction, operation and maintenance of the project. During the contract period, the company will recover the investment and make a reasonable profit by collecting the use fee or service fee. After the contract expires, the project assets and related rights will be handed over to the customer.

　　Among the above business models, EPC model is an extension of EP model, which adds the civil installation process on the basis of the latter, while BOT model adds the investment in the project and the operation management process during the project operation period on the basis of EPC model.

　　O&M is the acronym of Operation & Maintenance, which means that the government department with the ownership of water facilities hands over the operation and maintenance of the facilities to the company by signing the entrusted operation contract; The company is responsible for the daily operation of the facilities, but does not bear the capital investment and risks. The government departments pay the company the service cost and entrusted management remuneration.

　　In addition, the company also adopts TOT (handover-operation-handover) and BOO (build-own-operate) modes to undertake business according to the specific conditions of the project and customer needs.

　　4. Main performance drivers during the reporting period

　　During the reporting period, the company realized an operating income of 2,223,804,900 yuan, and its main business income mainly came from comprehensive environmental management, professional technical services and operational services.

　　In the comprehensive environmental management business, the income from water treatment business was 1,144,016,000 yuan. It is mainly confirmed by EPC general contracting of sewage treatment plant and supporting pipe network project in Longzhou Industrial Zone, EPC general contracting of water supply project (water plant reconstruction and expansion) in the southeast part of Sihong County, EPC general contracting of domestic sewage treatment project in Tongdao Dong Autonomous County-sewage treatment plant and supporting pipe network construction project (EPC mode) in six towns, EPC general contracting of water supply security improvement project in Tiandong County (sub-project of Pingmagou ecological environment improvement project) and EPC general contracting of ecological restoration project in Beishahe River Basin (lighthouse section). The income from soil remediation business was 101,092,900 yuan, which was mainly due to the income impact of projects such as soil pollution control design and construction project of Nanning Jiangnan Center Project, soil remediation project of plot GS1302-04/14/15/26 of Hangzhou Iron and Steel Company and surrounding planned road areas.

　　Professional technical service income mainly comes from environmental protection scheme design, consultation, environmental assessment, testing, environmental protection housekeeper and other businesses. During the reporting period, the company’s professional technical service income was 212,948,200 yuan, mainly from the business income of its holding subsidiary Bohuan Environment’s EIA consultation and Hunan Boshiko’s environmental protection scheme design.

　　The company’s operating income mainly comes from sewage treatment plants, waterworks, water body restoration, sanitation integration, sludge and soil disposal terminal operations. In 2022, the company realized operating income of 672,917,500 yuan, up by 11.18% year-on-year, which was mainly due to the impact of confirmed operating income, such as the PPP project of urban inland river black and odorous water treatment project in Nanning, the PPP project of regional water supply project in the southeast of Sihong County, the market-oriented service project of environmental sanitation operation in Hezhou City, and the franchise project of domestic waste comprehensive treatment operation in Xiwuzhumuqin Banner. As the sanitation, sludge disposal and PPP projects undertaken by the company gradually enter the operation stage, the scale of the company’s operating assets will continue to expand and its operating income will increase year by year.

　　

　　Third, the core competitiveness analysis

　　Continuous technological innovation and service innovation are the core competitiveness of the company in the new competitive pattern of environmental protection industry with "strong competition and strict supervision". In recent years, by increasing investment in R&D, upgrading the technical level of equipment, and vigorously cultivating and introducing talents, the company’s technical strength has been continuously enhanced. With the adjustment and optimization of the company’s business model and business structure, it will continue to drive the company’s high-quality development.

　　(1) Technological innovation and product innovation.

　　By the end of the reporting period, the company and its subsidiaries had obtained 440 authorized patents, including 54 invention patents; More than 20 projects hosted or participated by the company and its subsidiaries at or above the provincial and ministerial levels; During the reporting period, the company newly issued 8 group standards, including "Technical Specification for Production of Wood Fiber-based Heavy Metal Treatment Materials", and led and participated in the issuance of 14 national and industry standards. During the reporting period, the company won the "Enterprise Science and Technology Innovation Award" in Guangxi in 2021, and the "Wood Fiber Modification and Its Application in Heavy Metal Pollution Remediation" jointly completed with Guangxi University and other units won the first prize of Guangxi Science and Technology Progress Award in 2021. The projects led by the company, such as "In-situ resistance and control technology and engineering demonstration of contaminated soil in typical antimony mining areas" and "Study on synthesis and application of ozone-based catalyst for fine chemical wastewater", were approved by Guangxi key R&D plan project and Changsha key R&D project respectively; The project of Guangxi Innovation-driven Special Project "Research and Development of Key Technologies for Pollution Control of Black and Odor Water Body and Improvement of Water Environment Quality" and "Development and Application Demonstration of Key Technologies for Industrial and Municipal Sludge Treatment, Disposal and Recycling" led by the company passed the acceptance test successfully. The company mastered the core technologies in the subdivision field, and some technology research and development realized the transformation of results and was constantly improved in practice. At present, the environmental protection equipment and related core technologies independently developed by the company have been widely used in industrial wastewater treatment, clean production, township domestic sewage treatment, river basin treatment, urban black and odorous water remediation, site and groundwater remediation, farmland remediation and sludge treatment, garbage disposal, disinfection and disinfection, etc.Stabilizing the market with technology, the projects are spread all over North China, Central China, South China, Northwest China and other places, and some equipment is exported overseas; The company implements refined, standardized and scientific management for each project undertaken by the company, puts safety first, strives to create excellent projects, establishes a good market reputation, and ensures the smooth implementation of projects in hand and realizes performance transformation; The company has all kinds of business qualifications, and has built a service system covering the whole industrial chain of environmental protection, such as environmental assessment, testing, consulting and design, research and development, equipment manufacturing, engineering construction and investment operation. By making full use of the mutual pull and promotion of all links in the industrial chain, a new pattern of coordinated development of related businesses has been formed.

　　(2) Major landmark scientific and technological innovations

　　1. The company broke the technological monopoly of foreign enterprises such as Canadian Erco, Chemetics and Swedish Eka, developed the engineering technology of chlorine dioxide preparation system with independent intellectual property rights, formed a series of products, solved the key technical and equipment problems in pulp clean bleaching, and turned China from an importer of pulp bleaching chlorine dioxide technology into a technology exporter in one fell swoop, achieving zero breakthrough in the export of chlorine dioxide preparation and pulp bleaching technology products in China, and becoming the major large-scale chlorine dioxide preparation equipment and equipment in the world. The related achievements won the first prize of technological invention of the Ministry of Education in 2018, the first prize of technological invention of China Light Industry Federation in 2018 and the second prize of national technological invention in 2019 respectively.

　　2. The company has constructed an up-flow multi-stage anaerobic-aerobic-heterogeneous catalytic oxidation wastewater treatment technical route, which has solved the common problems that papermaking wastewater such as waste paper pulping is easy to cause granular sludge calcification in anaerobic treatment, and the traditional biological treatment of papermaking wastewater is difficult to meet the standard, completely broke the monopoly of overseas enterprises in this field, and successfully applied to nearly 100 enterprises at home and abroad, successfully achieving the standard discharge of wastewater, avoiding the danger of being shut down, and adapting to stricter environmental protection standards. In addition, this technology is also applied to the industries of fermentation, food, pharmacy, etc., which ensures the healthy and stable development of enterprises. This technological achievement won the second prize of National Science and Technology Progress Award in 2016.

　　3. The company has developed a series of advanced and applicable products and technologies around urban and rural environmental governance. Aiming at the upgrading of urban sewage treatment plants, a light filter with low concentration denitrification and high efficiency denitrification was developed, which solved the technical problems of traditional deep bed denitrification filter, such as easy hardening, small biological load, low removal rate and high operating cost. Develop MCO and MCI reactor series products according to the rural sewage treatment standards promulgated and implemented one after another, and solve the common treatment problems of large water quality fluctuation, low organic matter concentration and uncoordinated carbon-nitrogen ratio in direct discharge sewage and rural domestic sewage; The developed high-efficiency magnetic separation system and integrated SBR reactor are applied to black and odorous water treatment projects, and are gradually introduced to the market. The developed technologies related to sponge city construction and water ecological restoration technologies in inner lakes and inshore areas are applied to water ecological restoration. The above-mentioned series of environmental protection equipment and technologies are widely used in major environmental protection construction projects such as the treatment of black and odorous water bodies, the treatment of domestic sewage in rural and urban areas, and the comprehensive improvement of urban and rural environment in Guangxi, Guangdong, Hunan, Hubei, Guizhou, Yunnan and other places, resulting in significant economic, ecological and social benefits.

　　4. The company developed a direct-heating chain plate thermal desorption system, which solved the double problems of low efficiency of thermal disposal of oil sludge and low compliance rate. The core process of the equipment is the staged thermal desorption technology of "direct heating with multi-point heat sources+static transmission of chain plates", which has the advantages of high yield, low residual oil, wide application, no coking, high thermal efficiency and less smoke and dust. This technical equipment has been manufactured domestically and independently, and has been certified by many patents for inventions and utility models. At the same time, it has been approved by the national key R&D plan project "Construction of technical system for remediation of high-concentration oil-contaminated soil and technical demonstration and verification". In 2019, it was successfully selected into the "First (set) Guidance Catalogue for Promotion and Application of Major Technical Equipment" of the Ministry of Industry and Information Technology.

　　(C) innovative research platform carrier construction

　　The company is a national high-tech enterprise, a national technological innovation demonstration enterprise and a national intellectual property demonstration enterprise. It has been recognized as the national enterprise technology center, the "Southern Shishan Mine Geological Environment Restoration Engineering Technology Innovation Center" of the Ministry of Natural Resources, the Guangxi Industrial Water Pollution Control Engineering Technology Research Center, the Guangxi Contaminated Site Remediation Engineering Technology Research Center, and the Guangxi Soil Remediation Technology and Equipment Engineering Research Center. During the reporting period, the company was recognized by four scientific research platforms, including Guangxi Key Laboratory of Environmental Pollution Control and Ecological Restoration Technology, Guangxi Science and Technology Innovation Cooperation Base, Guangxi Beibu Gulf Coastal Pollution Control and Restoration Engineering Research Center and Nanning Collaborative Innovation Center. The company has built more than 7,000 square meters of national CNAS and CMA R&D and analysis and testing laboratories, and has more than 300 sets of precision instruments and equipment such as gas chromatograph, high performance liquid chromatograph, Fourier infrared spectrometer and inductively coupled plasma emission spectrometer. More than 3,000 square meters of environmental protection pilot platform will be built, and nine pilot test platforms will be built, including high-concentration organic wastewater treatment test, soil and groundwater engineering test, clean production and chemical preparation test, solid hazardous waste treatment and disposal, and comprehensive utilization test of waste lithium batteries, which can simulate the whole process of pollutants such as water, gas and solid under different working conditions, realize the whole process docking of R&D-design-manufacturing-engineering-operation, and further accelerate the output rate and operation of environmental protection scientific and technological achievements.

　　(D) Industrial chain innovation, incubation and construction.

　　The company has built a development model of science and technology industry of "scientific and technological innovation-integrated demonstration-transformation and promotion-innovation incubation-industry driving", and has hatched or cultivated subsidiaries in environmental protection industries and business sectors such as environmental assessment consultation, analysis and testing, R&D and venture capital, industrial pollution control, disinfection products, intelligent sanitation integration, environmental protection equipment manufacturing and new material manufacturing, environmental protection facility operation and hazardous waste disposal. By the end of the reporting period, a total of 9 subsidiaries had been recognized by national high-tech enterprises, and 2 subsidiaries. During the reporting period, the company was selected into the list of Guangxi smart factory demonstration enterprises in 2022, and Hunan Boshike, a wholly-owned subsidiary, was recognized by provincial scientific research platforms such as "Hunan Province Certified Enterprise Technology Center" and "Hunan Province Refractory Industrial Wastewater Enhanced Oxidation Treatment Engineering Technology Research Center", and was awarded the upgraded version (AA level) of the integrated management system of the Ministry of Industry and Information Technology.

　　(V) Introduction of innovative talents and formation of core teams.

　　The company has built a core technical team with Academician Wang Shuangfei as the chief scientist, and built a talent team around the development and application of basic research platforms and scientific and technological achievements transformation platforms in the environmental protection industry. By the end of the reporting period, the company had 1,245 R&D personnel, accounting for 27.36% of the company’s total employees. Among the employees in the company, there are 136 senior titles, 465 intermediate titles, 30 doctors and 176 masters, 1 academician of China Academy of Engineering, 2 candidates for the National "Hundred Million Talents Project", 1 leading scientific and technological innovation talent in the National "Ten Thousand Talents Program", 1 leading young and middle-aged scientific and technological innovation talent in China, 2 experts enjoying special allowances from the State Council and 1 leading professional and technical talent in national ecological and environmental protection. There are 1 top-notch young professional and technical talent in national environmental protection, 1 advanced individual in intellectual property work of national enterprises, 2 scholars in Guangxi Bagui, 1 outstanding expert in Guangxi, 2 high-level talents in Guangxi and 100 high-level talents in Nanning. High-quality talent team has become the core productivity of the company, ensuring the competitive advantage of enterprises in technology research and development and business development.

　　During the reporting period, there was no serious impact on the company’s core competitiveness due to the resignation of the core management team or key technicians, upgrading of equipment or technology, and loss of franchise rights.

　　1, the participation of major scientific research projects

　　2. Patents and patent use rights

　　By the end of the reporting period, the company and its subsidiaries had obtained 440 authorized patents, including 54 invention patents, 367 utility model patents and 19 design patents.

　　3. Update and acquisition of major qualifications

　　4. Software copyright

　　5, the national enterprise technology center.

　　In 2019, according to the Notice on Issuing the List of Newly Recognized and All National Enterprise Technology Centers in 2018 (25th Batch) jointly issued by the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, the General Administration of Customs and State Taxation Administration of The People’s Republic of China (No.36 [2019] of the Development and Reform Commission), the company’s enterprise technology center was recognized as "National Enterprise Technology Center". The company’s enterprise technology center is mainly responsible for the overall grasp and implementation of the company’s technology research and development, technology development strategy, industrialization of achievements and intellectual property management. The identification of the national enterprise technology center will promote the company to attract high-end technical talents in the industry, build a high-end scientific research platform, obtain corresponding policy support, and continuously improve the company’s independent innovation ability.

　　6, the national integration of production and education enterprise identification

　　In 2021, the General Office of the National Development and Reform Commission and the General Office of the Ministry of Education issued the Notice on the List of Industry-Education Integration Enterprises and Pilot Cities for Industry-Education Integration (No.573 [2021] of the Development and Reform Office), and announced the first batch of 63 state-owned enterprises with industry-education integration. Dr. Bosch was selected as a national enterprise with industry-education integration, and it was the only one in Guangxi. This time, it is recognized that the company will continue to strengthen the leading and demonstration role of enterprises with integration of production and education, deepen the cooperation with universities and scientific research institutions at home and abroad in Industry-University-Research, focus on technical research of environmental protection industry, build a training base with integration of production and education around the cultivation of industrial innovative talents, strengthen scientific research investment and build a platform for the transfer of scientific and technological achievements, so as to promote the high-quality development of integration of production and education in enterprises with innovation.

　　7. Identification of National Intellectual Property Demonstration (Advantage) Enterprises

　　In 2022, China National Intellectual Property Administration announced the list of "a new batch of national intellectual property demonstration enterprises and advantageous enterprises that passed the review in 2022". The company was recognized as a national intellectual property demonstration enterprise in 2022, and its wholly-owned subsidiary, Hunan Boshiko, was recognized as a national intellectual property advantageous enterprise in 2022. The recognition of the National Intellectual Property Demonstration (Advantage) Enterprise marks a new step in the company’s intellectual property management, and is a high recognition of the company’s continuous implementation of the intellectual property management strategy. The company will continue to strengthen the support, promotion and leading role of intellectual property rights and technological innovation in enterprise development, maintain continuous innovation, and build an internationally influential environmental protection enterprise brand relying on technological innovation.

　　8, the provincial scientific research platform identification

　　In 2022, the company was recognized by the Science and Technology Department of Guangxi Zhuang Autonomous Region as "Key Laboratory of Environmental Pollution Control and Ecological Restoration Technology in Guangxi" (Guikeji Zi [2022] No.60) and "Guangxi Scientific and Technological Innovation Cooperation Base for Environmental Pollution Control and Ecological Restoration" (Guikewaizi [2021] No.135). Hunan Boshike, a wholly-owned subsidiary of the company, was recognized by Hunan Provincial Department of Industry and Information Technology as "Hunan Provincial Certified Enterprise Technology Center" (Xianggongxin Technology [2022] No.16) and by Hunan Provincial Department of Science and Technology as "Hunan Provincial Engineering Technology Research Center for Enhanced Oxidation Treatment of Refractory Industrial Wastewater" (Xiangkeji [2022] No.20). Guangxi Environmental Protection Industry Development Research Institute Co., Ltd., a wholly-owned subsidiary of the company, was recognized by the Development and Reform Commission of Guangxi Zhuang Autonomous Region as "Guangxi Beibu Gulf Coastal Pollution Control and Restoration Engineering Research Center" (Gui Fa Gai Gao Ji Han [2022] No.2312). The identification of the above-mentioned provincial-level scientific research platform will promote the company to gather environmental protection and build dual-innovation elements in upstream and downstream industrial chains, build public service platforms for environmental protection industries such as innovation, technology, talents and finance, form a dual-innovation ecosystem with outstanding innovation capability, high achievement conversion rate, strong market competitiveness and high-level talents gathering, and provide inexhaustible power for the high-quality development and ecological civilization construction of Dr.Bosch..

　　9. Identification of CMA qualification

　　Bose Testing, a wholly-owned subsidiary of the company, holds the certificate of qualification of inspection and testing institutions (CMA), and its laboratory has environmental monitoring area, food testing area, large-scale instrument area and microbial laboratory. Up to now, Bo-test has passed the qualification evaluation of inspection and testing institutions, and has been approved for more than 3,100 testing capabilities, including more than 1,600 environmental monitoring capabilities, with complete qualifications in the field of environmental monitoring; The food detection ability reaches more than 1,500 items, covering food physics and chemistry, food heavy metals, food pesticide residues, food additives, food additive products, food microorganisms, food vitamins and 31 kinds of food products. In December, 2022, the Ministry of Agriculture and Rural Affairs officially published the list of the third batch of testing laboratories in the third national soil survey, and the sampling test was successfully selected, becoming one of the four laboratories in Guangxi that can undertake both sample preparation and testing tasks.

　　10. CNAS accreditation

　　In December 2018, the company’s testing center obtained the laboratory accreditation certificate (registration number: CNAS L6627) issued by China National Accreditation Committee for Conformity Assessment. The company’s testing center meets the requirements of ISO/IEC 17025: 2017 General Requirements for Testing and Calibration Laboratories (CNAS-CL01 Accreditation Criteria for Testing and Calibration Laboratories) and has more than 20 testing capabilities for water and wastewater. The certificate is valid until December 26, 2024.

　　Bose Testing, a wholly-owned subsidiary of the company, obtained the laboratory accreditation certificate (registration number: CNAS L12306) issued by the National Accreditation Committee for Conformity Assessment in China in May 2019, which meets the requirements of CNAS CL01:2018 Standards for Accreditation of Testing and Calibration Laboratories and CNAS-CL01-A002:2018 Instructions for Application of Standards for Accreditation of Testing and Calibration Laboratories in Chemical Testing, and has environmental and food requirements. The certificate is valid until May 29th, 2025.

　　

　　Fourth, the main business analysis

　　1. Overview

　　In 2022, the company’s audited operating income was 2,223,804,900 yuan, a decrease of 16.29% over the same period of last year; The net profit attributable to shareholders of listed companies was-448,723,700 yuan, a decrease of 66,044,600 yuan compared with the same period of last year. The operating income was 672,917,500 yuan, an increase of 11.18%, and the operating cash flow was 153,440,300 yuan, an increase of 559,131,700 yuan. The main reasons for the company’s losses are as follows: firstly, during the reporting period, the company continued to optimize its business structure. YEATION strictly controlled the municipal engineering business, vigorously developed the industrial sector business, continuously increased the proportion of equipment sales revenue, and promoted the audit and settlement of completed projects. The order volume of the municipal engineering sector decreased, and the engineering output value of some completed projects was reduced, resulting in a year-on-year decline in engineering business income. Although the orders for the industrial sector increased rapidly, most of the industrial orders signed in 2022 were still under implementation due to the volume of the project and the implementation cycle, and the acceptance and handover work could not be completed within the reporting period and turned into output value. Under the comprehensive influence, the income scale of the company’s main business declined. Secondly, according to the requirements of accounting standards and internal control system, the company conducted impairment tests on all kinds of assets, and made individual provision for impairment losses on the accounts receivable of old municipal project customers with obvious signs of impairment and the inventory of engineering projects that were stopped due to abnormal reasons and the construction period was delayed, and made provision for impairment losses of all kinds of assets of RMB104,124,200 for the whole year. To sum up,The main reasons for the company’s operating performance loss in 2022 are the decline in income scale and the provision of some asset impairment losses.

　　At present, the company is in an important transition period. On the one hand, it continues to concentrate superior resources to develop industrial sector business; on the other hand, it speeds up the quality improvement and efficiency improvement of consulting and operational projects, and the business structure and income ratio structure of main business are continuously optimized. By increasing the business collaboration between the front and back ends of the industrial chain and business units of different business segments, the company has solidly promoted cost reduction and efficiency improvement and deepened reforms, focused on the settlement and payment of old projects, accelerated the revitalization of assets in hand, and strengthened risk and cost control, so as to promote the recovery of key business indicators and ensure the stable development of the company’s operations.

　　(1) Focus on high-quality orders in the industrial sector and achieve breakthroughs in overseas markets.

　　In 2022, the company actively adjusted its business focus, concentrated its superior resources, vigorously developed its industrial sector business, and further optimized its main business structure. During the reporting period, the company added 3.148 billion yuan in sales contracts, including 1.554 billion yuan in industrial water treatment contracts, accounting for 49.37%; The contract amount of municipal environmental management is 696 million yuan, accounting for 22.11%; The operating contract amount is 513 million yuan, accounting for 16.29%; The contract value of professional technical services such as consulting and testing was 219 million yuan, accounting for 6.96%. The overall quality of new orders and orders in hand was significantly improved, which laid a good foundation for subsequent revenue conversion and project payment. During the reporting period, the company and its subsidiaries participated in the bidding of about 332 projects, and about 214 projects won the bid, with a winning rate close to 64.46%, which fully reflected the company’s market competitiveness and sustainable operation ability.

　　As the core business of the company, the industrial sector takes selling equipment and providing technical services as its main business model, and its service areas cover industries such as papermaking, food, pharmaceuticals, semiconductors, chemicals and textiles. During the reporting period, the company relied on its leading edge in the field of industrial pollution control, such as waste water resource utilization and ultra-low emission key technologies, and the core technology of chlorine dioxide preparation system, and intensified the development of industrial environmental governance and pulp clean bleaching market at home and abroad. Four monomer orders of more than 100 million yuan and 26 monomer orders of more than 10 million yuan were successively signed, such as "Shouguang Meilun Chemical Pulp Factory General Contract for Chlorine Dioxide Preparation", "A Complete Equipment Supply and Technical Service Contract for Trichloroisocyanuric Acid", "A Supply Contract for 100t/d Comprehensive Chlorine Dioxide Preparation Project" and "A Complete Purchase Contract for 200,000 m3 /d Sewage Treatment Equipment". The industrial water treatment order was 1.554 billion yuan in the whole year, compared with the same period of last year.

　　Up to now, the company’s supply orders for handicraft equipment are about 2.286 billion yuan (including winning the bid), including overseas orders of 1.412 billion yuan. The main customers of such orders are leading papermaking enterprises at home and abroad. In the field of industrial water treatment and clean production of pulp drifting, the company basically achieved full coverage in Southeast Asia and maintained a high market share. At the same time, it focused on the North American and South American markets, and the layout in Russia, Turkey and other markets also achieved results one after another, further enhancing its overseas market share. In the future, the company will continue to focus on the main business of industrial environmental governance, continuously enhance the market share and industry influence at home and abroad, form an industrial cluster of industrial wastewater treatment, large-scale chlorine dioxide preparation and other chemicals production, and achieve near-zero industrial emissions, consolidate the leading position of domestic industrial pollution control industry, expand the market share of overseas industries, and further increase the business volume of industrial sectors and the proportion of business income in the company.

　　(II) Comprehensively promote project settlement and payment collection, and continuously optimize the business structure.

　　Actively promoting project settlement and payment collection is one of the most important annual business tasks of the company. In 2022, the company realized a sales rebate of 2.119 billion yuan, an increase of 11.23% year-on-year, and the rebate work achieved substantial results. During the reporting period, the company actively recommended the examination and approval of project settlement, and completed the completion and acceptance of 61 projects throughout the year, involving an effective contract amount of 2.298 billion yuan; 77 projects were submitted for review, with a total amount of 2.282 billion yuan; 90 projects (including process audit reports) have been approved, with an amount of 1.477 billion yuan, and the follow-up company will strive to make greater breakthroughs in the final settlement of old projects. Secondly, we will continue to strengthen the collection of old projects, give full play to the functions of special classes for collection of old projects, introduce incentive measures for collection of old projects, and incorporate the collection of old projects into the assessment indicators of business units. In 2022, nearly 900 million yuan was collected from old projects, which was significantly improved compared with previous years. Thirdly, with the double optimization of order structure and quality, the efficiency of industrial project equipment payment and project progress payment has been improved. With the PPP project of water operation gradually entering the stage of commercial operation, the project company has achieved relatively stable income, and the annual operating return reached 277 million yuan, showing an increasing trend year by year, which strengthened the company’s hematopoietic capacity. In addition, for projects with long aging, large amount and high payment difficulty,By actively planning and actively communicating with the owners to replace the payment with high-quality projects or assets, establishing a legal litigation mechanism for sending and receiving letters, directly linking the payment with the performance appraisal of senior executives and business divisions, and matching different incentive policies for accounts receivable with different aging, the company has taken many measures to comprehensively promote the payment work.

　　During the reporting period, the company further optimized the structure of orders in hand and the quality of newly signed orders. The orders in hand and newly signed orders are mainly EP, EPC and professional technical service orders, and most of them are projects with strong livelihood attributes such as industrial water treatment, municipal pipe network sewage treatment plant construction and water operation, which have strong payment ability, short cycle and guaranteed cash return. Secondly, actively adjust the income structure of main business, change the project implementation mode, further reduce the proportion of project income, and increase the proportion of equipment sales income and operating income. Third, continue to sort out and optimize the existing PPP projects and franchise projects, further improve the overall quality of the company’s PPP business, and gradually withdraw some projects that are ambiguous, or cannot be implemented or put into operation for a long time due to government reasons, further optimize the company’s business and debt structure, and reduce the financial pressure. Up to now, the company has withdrawn from seven PPP and franchise projects by means of equity transfer, asset transfer or changing the implementation mode, and signed the Agreement on Early Termination of Human Settlements Improvement Project in Chengjiang County, Yunnan Province with the government and the consortium leader. On the premise of ensuring the settlement and payment of the project funds, the company withdrew from Chengjiang Human Settlements PPP Project as a project shareholder and recovered the investment of 83,361,800 yuan. Fourth, the project operation was solidly promoted. During the reporting period, the company realized operating income of 672,917,500 yuan, up by 11.18% year-on-year. Up to now, the company has officially entered 23 franchise projects for commercial operation;Eight franchise projects entering the trial operation stage; 18 solid waste (integrated sanitation) operation projects; There are 5 terminal operation projects for sludge treatment and soil disposal. With the sanitation, oily sludge treatment and PPP projects undertaken by the company gradually entering the operation stage, the scale of operating assets will continue to expand, and the continuous and stable operating income and cash flow will further enhance the company’s hematopoietic function.

　　(C) actively expand the sub-sectors and further deepen the industrial layout.

　　As new energy vehicles enter a new stage of rapid development, power batteries will usher in the peak period of scrapping, and the demand for power battery reuse and recycling business is gradually increasing. Relying on the national enterprise technology center, Guangxi pilot research base for the transformation of scientific and technological achievements in environmental protection technology and equipment, the company has played a leading role in the research and development of industrial wastewater and solid hazardous waste treatment technology and equipment, and has formed a core technology system for comprehensive utilization of waste lithium batteries with independent intellectual property rights through small-scale and industrial tests. After deliberation and approval by the company’s board of directors, it is agreed that Keqing Environment, a wholly-owned subsidiary of the company, will be the main body of project implementation, and invest in a new 20,000-ton/year comprehensive utilization project of waste lithium batteries, with a total investment of about 141 million yuan. If the project is successfully implemented, it will help the company to further expand the solid waste treatment business segment, deepen the industrial layout, enhance the company’s industrial position and comprehensive competitiveness in the field of environmental protection, and help the company to thoroughly implement the national strategic deployment requirements of "carbon neutrality" and "peak carbon dioxide emissions", which is in line with the company’s long-term development strategy.

　　During the reporting period, the company successively signed cooperation framework agreements with Dongfeng Liuzhou Automobile Co., Ltd., Guangxi Automobile Group Co., Ltd., Liuzhou Guoxuan Battery Co., Ltd., the holding company of () Co., Ltd., and PT.YONG QING INDUSTRY(INDONESIA) of Indonesia, aiming at integrating superior resources and jointly promoting in-depth cooperation in the field of waste power battery recycling, so as to obtain good social benefits and return on investment. The signing of the above cooperation framework agreement will help the company to promote the industrialization transformation of basic research results, further expand the subdivision business in the field of solid waste treatment, and generate synergistic benefits with the company’s existing solid waste treatment and disposal sector.

　　Considering the changes in the hazardous waste disposal market in the region and the customer’s demand, in order to effectively revitalize the project assets, it was approved by the second extraordinary shareholders’ meeting in 2022 that Keqing Environment, a wholly-owned subsidiary of the company, was allowed to carry out technical transformation on some facilities and equipment of the "Beibu Gulf Resource Recycling Project". On the basis of using the original equipment of the physicochemical treatment workshop, the original physicochemical treatment workshop was transformed into a resource utilization workshop with its own funds or self-raised funds, and 20,000 tons/year of equipment for resource utilization of electrolytic aluminum overhaul slag was added. Guangxi is a province rich in aluminum resources. As one of the few hazardous waste disposal enterprises with the qualification to dispose of overhaul slag in the region, Keqing Environment can quickly respond to the market demand, undertake the related business of overhaul slag disposal and resource utilization, and tap new profit growth points for the company.

　　(4) Pay attention to both management efficiency and quality, and comprehensively promote cost reduction and efficiency improvement.

　　Under the economic downturn and the pressure of performance, the company achieved cost reduction and efficiency improvement by reducing management costs, strengthening project dynamic cost control, optimizing organizational structure and personnel, and revitalizing hand assets. In terms of moving forward the risk port, we focused on strengthening pre-bid risk management and control, strengthening contract review around key business indicators, establishing and improving the project kick-off meeting procedures and project leader mechanism, and the quality of landing projects has been significantly improved. In terms of expenses, the company strictly controls the company’s payment-to-receipt ratio by means of controllable management of expenses linked to sales revenue or new orders, so as to ensure that the cash flow remains stable. In terms of project cost control, we started to promote the comprehensive budget mechanism, further strengthened the budget management, cost control, procurement control and cash flow audit of the project, and carried out the whole process tracking control of the project implementation. On the premise of ensuring that the performance and quality of equipment are not affected, the company has achieved cost reduction and efficiency improvement by optimizing equipment selection and material selection, adjusting equipment structure and improving production technology. In terms of improving management efficiency, the company takes the market, product, value and service as the main line, strengthens the linkage relationship among industry, specialty, region and customer, reconstructs the functional structure, and integrates resources and business of the business unit. In terms of information platform construction, the I8P project management system was officially launched, and the data integration and penetration of project information management, contract management, supply chain management, fund management and budget management were initially realized, and the project life cycle management level was improved.Comprehensively strengthen the response speed and management accuracy of the company’s operations. Strictly implement the performance appraisal of all employees, and establish a hierarchical appraisal system for business objectives and key tasks; According to the change of business form, on the basis of last year’s talent inventory, we will promote the work of personnel quota, quota and post, and investigate and optimize the employees who are incompetent and have poor performance through the optimization measures such as merging branches and implementing regional joint office; Further broaden the channels for talent promotion, promote the competitive recruitment mechanism for management cadres, provide an open, fair and just platform for more outstanding talents, and release organizational vitality.

　　(V) Adhere to scientific and technological innovation and lead the company to develop with high quality.

　　The company insists on technological innovation to drive development, and through continuous improvement of independent innovation and R&D capabilities, the company’s existing technical strength and service level are enhanced, and the competitiveness of technology and services is enhanced, so as to consolidate its leading position in the field of environmental protection segmentation. During the reporting period, the company added 66 patents, including 8 invention patents; By the end of the reporting period, the company and its subsidiaries had obtained 440 authorized patents, including 54 invention patents, 367 utility model patents and 19 design patents.

　　Based on solving the key common technologies of industrial development, the company has built a benign operation mechanism from technological achievements and products to industrial application. At present, it has formed a technological innovation system of basic theoretical research on environmental protection, research and development and application of key technologies of environmental protection, and integration of production and education. In terms of scientific research platform construction, in 2022, the company was selected as the national intellectual property demonstration enterprise certification, the list of Guangxi smart factory demonstration enterprises, "Guangxi Key Laboratory of Environmental Pollution Control and Ecological Restoration Technology" and "Guangxi Scientific and Technological Innovation Cooperation Base for Environmental Pollution Control and Ecological Restoration"; Hunan Boshiko, a wholly-owned subsidiary, was selected as the national intellectual property advantage enterprise certification, Hunan Provincial Certified Enterprise Technology Center, Hunan Provincial Certified Enterprise Technology Center, Hunan Provincial Certified Enterprise Technology Center, Hunan Provincial Refractory Industrial Wastewater Enhanced Oxidation Treatment Engineering Technology Research Center and other provincial-level scientific research platforms, and won the conformity assessment of the upgraded version (AA level) of the two-in-one integrated management system of the Ministry of Industry and Information Technology. In addition, the company has been on the list of top 100 enterprises in Guangxi, top 50 manufacturing enterprises in Guangxi, top 100 high-tech enterprises in Guangxi and top 10 innovative vitality in Guangxi for many years in a row, and has been recognized by platforms such as Guangxi new R&D institutions, Guangxi pilot research base for the transformation of scientific and technological achievements in environmental protection technology and equipment, Guangxi innovation consortium and Guangxi Shuangchuang demonstration base. In 2023, the company will adhere to the market-oriented scientific and technological innovation, focus on key issues in project expansion and production, let technology take the lead, effectively promote the "key variables" of scientific and technological innovation, and make achievements."Maximum increment", integrating scientific and technological innovation resources and continuously building an advanced, scientific, standardized and high-quality low-carbon environmental protection service system.

　　(VI) Strengthening Party building and continuously deepening internal reform.

　　In 2022, under the guidance of Socialism with Chinese characteristics Thought of the Supreme Leader in the New Era, the Party Committee of the Company effectively unified its thoughts and actions into the spirit of the 20th Party Congress, deepened the achievements of party building with "strong fortress and hard pioneer", strengthened ideological construction, gave full play to the party’s political core role, the fighting fortress of the party organization and the vanguard and exemplary role of party member, always adhered to the long-term co-construction mechanism of "Party building with workers and groups, and promoting party building with workers and groups", closely focused on the company’s business plan, and promoted.

　　The company’s Party Committee adheres to the idea of leading the Party building thought and serving the development and progress of enterprises, and makes great efforts to build a "three-first-class" Party building work idea. It is the first batch of demonstration sites for Party building work in two new organizations in autonomous regions, Nanning City and High-tech Zone, and the case of Party building work has been selected in Publicity Department of the Communist Party of China’s Selected Cases of Ideological and Political Work Innovation in Private Enterprises in the New Era. During the reporting period, focusing on "strengthening ideological guidance, giving full play to organizational advantages, and consolidating the foundation between the party and the masses", the Company established the Ninth Party Branch of Boshiko and the Temporary Party Branch of the Rural Sewage Comprehensive Treatment Project along Santang and Sitanghe River in Nanning, and jointly created a "red construction site" with the front-line project departments to further play the leading role of party building. At the same time, we will complete the general election of the first, fourth and sixth branches whose terms of office expire, formulate the Detailed Rules for the Annual Assessment of the Responsibility System for Ideological and Political Work of Branch Secretaries, and all staff will sign a letter of commitment on honesty, so as to create a good atmosphere of clean and honest atmosphere and help enterprises develop healthily and sustainably. The Party Committee of the Company gives guidance to the branches and subsidiaries that have established grass-roots party organizations and carried out the work of party building, concretizes and institutionalizes the party’s leadership into corporate governance, promotes the standardization and institutionalization of party organizations, and further grasps the work of "party building into chapters". The company strictly implements the spirit of the "eight regulations", takes effective measures to effectively change the work style, and runs internal control management and anti-corruption throughout the whole process of enterprise production, operation and management. By persistently grasping the work style, it constantly strengthens the construction of leading cadres and creates a healthy, harmonious and entrepreneurial atmosphere.Promote the internal reform and development of enterprises to a new level.

V. Prospect of the Company’s Future Development

　　1. The development prospect of the company’s industry.

　　According to the report of the 19th National Congress of the Communist Party of China, the construction of ecological civilization is a Millennium plan for the sustainable development of the Chinese nation, and the harmonious coexistence between man and nature is regarded as an important part of the basic strategy of adhering to and developing Socialism with Chinese characteristics in the new era, and the construction of beautiful China is regarded as a major goal of building a socialist modern power in an all-round way, so that the construction of ecological civilization and the protection of ecological environment are promoted to an unprecedented strategic height. Under the guidance of the important strategic thinking of the Supreme Leader’s General Secretary on ecological civilization construction, China’s ecological environment protection has achieved remarkable results from the realization of historical, turning and overall changes in practice, and the construction of beautiful China has taken important steps. The Central Committee of the Communist Party of China’s Proposal on Formulating the 14th Five-year Plan for National Economic and Social Development and the Long-term Goals for the Year 2035, which was deliberated and adopted by the Fifth Plenary Session of the 19th CPC Central Committee, regards "achieving new progress in ecological civilization construction" as one of the main goals of economic and social development during the 14th Five-Year Plan period, and regards "widely forming a green production and lifestyle, stabilizing and declining carbon emissions after reaching the peak, fundamentally improving the ecological environment, and basically realizing the goal of building a beautiful China" as the goal of basically realizing socialist modernization by 2035. The Party’s Report to the 20th CPC National Congress further clarified that "the urban and rural living environment has been significantly improved, and the construction of beautiful China has achieved remarkable results" is listed as the main target task in the next five years; He also stressed that it is necessary to promote the construction of beautiful China, adhere to the integrated protection and systematic management of mountains, rivers, forests, fields, lakes, grass and sand, coordinate industrial structure adjustment, pollution control, ecological protection, and respond to climate change, and jointly promote carbon reduction, pollution reduction, greening and growth.Promote ecological priority, conservation and intensive, green and low-carbon development. In recent years, the state and government have paid more and more attention to the development of advanced environmental protection industries, and have successively issued a number of policies to promote the development of the industries. For example, Guiding Opinions on Accelerating the Construction of Urban Environmental Infrastructure, Development Plan for Urban Sewage Treatment and Resource Utilization in the Tenth Five-Year Plan, Action Plan for Fighting Against Pollution in Agriculture and Rural Areas (2021-2025), Action Plan for Fighting Against Pollution in Agriculture and Rural Areas (2021-2025), Action Plan for Environmental Protection of Urban Black and Odor Water Remediation in the Tenth Five-Year Plan, and Action Plan for Promoting Wastewater Resource Utilization The catalogue of major environmental protection technologies and equipment developed and the implementation opinions on creating a better development environment to support the healthy development of private energy-saving and environmental protection enterprises have provided a good development environment for the development of advanced environmental protection industries.

　　2. Future business objectives

　　(1) Support enterprises with scientific and technological innovation to continuously improve the core competitiveness of equipment manufacturing.

　　The Guiding Opinions on Accelerating the Development of Environmental Protection Equipment Manufacturing Industry points out that it is necessary to strengthen the collaborative innovation and development of technology research and development, promote the intelligent and green transformation and development of production, promote the development of product diversification and branding, guide the differentiated and integrated development of industries, and encourage enterprises to develop internationally and openly. Under the increasingly strict requirements of national environmental protection inspectors and environmental monitoring, there is an urgent demand for environmental protection equipment products and technologies. The company will further optimize its business composition, stick to its main business, focus on innovation, increase the proportion of core technology and equipment sales in its business contribution, and actively expand environmental comprehensive services with emphasis on equipment manufacturing.

　　(2) Continue to maintain the core competitive advantage in the field of traditional industrial pollution control.

　　With the development of local economy and the need of environmental treatment, the demand for centralized pollution control and treatment of enterprise groups in industrial parks has increased, and water treatment services have also been systematically treated from the point source of a single enterprise to the whole park. Comprehensive utilization and development of water resources With the expansion of the number and scale of industrial parks and the improvement of industrial wastewater treatment standards, the comprehensive water treatment business in industrial parks will have a huge market space. Relying on its own core technology and engineering project experience, while continuously consolidating the leading position of wastewater treatment in sugar and paper industries, the company continues to maintain its core competitive advantages in the fields of anaerobic treatment of high-concentration organic wastewater and advanced treatment of refractory wastewater, preparation technology and system integration of clean and bleached chlorine dioxide in pulp and paper making, focusing on equipment manufacturing and vigorously expanding the wastewater treatment market in other industries such as semiconductor, pharmaceutical, chemical, textile and food.

　　(3) Focus on sewage treatment projects in villages and towns.

　　Treating rural sewage well is of great significance for improving the water source environment in China, promoting the construction of beautiful countryside and enhancing the happiness of rural people. In January 2021, the National Development and Reform Commission and other ten departments jointly issued the Guiding Opinions on Promoting the Reuse of Sewage Resources (No.13 [2021] of the Development and Reform Commission), which made important arrangements for comprehensively promoting the reuse of sewage resources. According to the opinion, by 2025, the national sewage collection efficiency will be significantly improved, the sewage treatment capacity of county towns and cities will basically meet the needs of local economic and social development, and the sewage treatment in water-sensitive areas will basically be upgraded; The utilization rate of reclaimed water in water-deficient cities at or above the prefecture level in China has reached more than 25%, and that in Beijing, Tianjin and Hebei has reached more than 35%; The reuse of industrial water, livestock manure and the utilization of fishery tail water have been significantly improved; The policy system and market mechanism of sewage resource utilization have been basically established. By 2035, a systematic, safe, environmentally friendly and economical pattern of sewage resource utilization will be formed. The company has developed a series of advanced and applicable products and technologies such as low-concentration denitrification and high-efficiency denitrification light filter, MCO, MCI reactor series products, high-efficiency magnetic separation system, integrated SBR reactor, etc. around urban and rural environmental governance, and will continue to develop and optimize products and technologies that meet market demand. Intensify efforts to expand water investment, construction and operation, urban water supply and drainage integration, reclaimed water reuse, urban inland river and black and odorous water treatment, sponge city construction, river basin water ecological restoration and other projects.

　　(4) Optimize the light asset business and actively promote the innovation of business model.

　　The company maintains the competitive advantage of the whole environmental protection industry chain, concentrates resources to consolidate the industry position of environmental services such as environmental assessment, consulting, testing, design and sanitation in Guangxi, Guangdong and Hunan markets, maintains the steady growth of business, and at the same time benchmarks the business model of similar enterprises to improve the profitability of the project. The company has changed from pursuing volume to pursuing quality, gradually reducing the proportion of engineering projects, shifting its business focus to high-quality EPC projects and equipment sales projects with profit as the guide, and unswervingly taking the road of light assets, thus achieving the "four reductions" goal of reducing capital occupation, reducing the accumulation of accounts receivable, reducing financing costs and reducing the loss of bad debts.

　　(5) Further expand the market of solid waste treatment and disposal.

　　During the "Fourteenth Five-Year Plan" period, it is more urgent to comprehensively improve the efficiency of resource utilization around the theme of promoting high-quality development. Domestic waste treatment, industrial solid waste treatment, hazardous waste treatment, construction waste treatment and other businesses set sail again. Judging from the performance of several sub-fields, China’s solid waste treatment industry is showing a brand-new development trend. With the horizontal expansion of the industrial chain of traditional sanitation enterprises and the vertical expansion of solid waste terminal disposal enterprises such as incineration, the competition of solid waste disposal projects has become increasingly fierce. Relying on the long-term accumulation of customer resources and related technical reserves in the field of water treatment, the company has developed key technologies and equipment such as harmless treatment of solid waste, recycling of resources, and disposal of solid hazardous waste through in-depth market development, so as to further expand the market of "harmless, reduced and recycled" disposal of solid waste.

　　Emerging sub-sectors such as "waste-free cities", garbage sorting, smart sanitation, intelligent upgrading, and unmanned sanitation vehicles began to rise in the sanitation sector, and continued to attract the attention of the industry and capital at a high growth rate. The company is engaged in multi-field sanitation industry chain business, has built an intelligent integrated service system for urban and rural sanitation, and has successfully explored a comprehensive service model for operational cleaning and garbage collection, transportation, treatment and terminal disposal in urban and rural areas. In order to adapt to the rapid development of the sanitation market, the company focuses on the research and development of special vehicles and the improvement of equipment manufacturing production capacity, and creates a smart sanitation cloud platform and intelligent driving technology for the company; Strive to reach the advanced level of domestic sanitation industry in the development of special sanitation vehicles, intelligent control technology, new energy technology, smart cloud platform and intelligent manufacturing.

　　At present, the company has successfully developed a complete set of technologies for harmless and resource-based treatment of overhaul slag. After applying the comprehensive treatment technology of the company’s overhaul slag, the harmless slag is identified as general industrial solid waste, which can truly "take off the hat" of hazardous waste and further utilize building materials as resources; The high-value carbon powder, fluorite balls and other products obtained by recycling waste cathode carbon blocks can meet the requirements of corresponding product standards, and can be used as raw materials for upstream and downstream industries such as refining and fluorine chemical industry, so as to realize multi-scene industrial application of resource products. As one of the few hazardous waste disposal enterprises in Guangxi, Keqing Environment, a subsidiary of the company, can quickly respond to the market demand, undertake the related business of overhaul slag disposal and resource utilization, and tap new profit growth points. New energy vehicles have been widely promoted and applied since 2013, and entered the accelerated growth stage in 2014, and they have been rapidly released since 2015. The New Energy Automobile Industry Development Plan (2021-2035) proposes that the proportion of new energy automobile sales in China will reach about 20% of new automobile sales in 2025, and the high production and sales of new energy vehicles will drive the loading capacity of power batteries to rise, and power batteries will face a large scale of retirement in the future. Relying on the national enterprise technology center, Guangxi pilot research base for the transformation of scientific and technological achievements in environmental protection technology and equipment, the company has played a leading role in the research and development of industrial wastewater and solid hazardous waste treatment technology and equipment, and has formed a core technology system for the comprehensive utilization of waste lithium batteries with independent intellectual property rights.The company will explore the recycling market of new energy power batteries, further expand the subdivision business in the field of solid hazardous waste treatment, and have a synergistic effect with the company’s existing solid hazardous waste treatment and disposal plate, which is in line with the company’s long-term development strategy and is conducive to the company’s in-depth implementation of the national strategic deployment requirements of "carbon neutrality" and "peak carbon dioxide emissions".

　　(6) comprehensively enhance the service capability advantages of the whole industry chain.

　　The company will continue to focus on water treatment, soil remediation, clean production, solid waste disposal and other main businesses, implement the strategic concept of "whole industry chain service", adhere to the Industry-University-Research cooperation model, promote the commercialization of research results, and constantly improve the one-stop environmental management service platform integrating environmental assessment, monitoring, testing, environmental sanitation, engineering consulting, design, research and development, equipment manufacturing, engineering construction, facility operation and investment and financing operation, so as to broaden the income sources.

　　3, the future annual business plan

　　(1) Maintain the advantages of traditional business, tap the potential in depth, strive for progress steadily and explore new performance growth.

　　On the basis of maintaining the steady growth of traditional business, the company actively expands the industrial market (including the business of chemicals) and focuses on building the equipment manufacturing field. On the one hand, the internal industrial chain of the company develops in a coordinated and efficient way, improving the quality of products and services, reducing operating costs and achieving sustained growth in operating performance. On the other hand, we will gradually take petrochemical, food brewing and pharmaceutical as the main expansion direction, and actively lay out new performance growth points.

　　(2) Expand and strengthen overseas business and actively deploy the global market.

　　Focusing on the global strategic layout, the company continues to dig deep into the markets of Indonesia, India and the United States, and strive for more contracts. At the same time, it actively expands the markets of Russia, Southeast Asia and South America, further expands its overseas business and builds an influential international brand. While absorbing the technical experience of developed regions, it also further exports domestic advanced environmental protection treatment technologies and cooperates with international cutting-edge scientific research institutions to form an open, integrated and coordinated industrial innovation system. By building a North American R&D center, we will attract outstanding talents at home and abroad, focus on solving complex and systematic environmental problems, benchmark the international and domestic advanced level, select the right path, and concentrate on promoting major technological breakthroughs, thus providing a strong support for Bosch to lay out the global market.

　　(3) Accelerate the transformation and upgrading of business operations and strive to create new growth points for performance.

　　The company actively carries out the business of resource utilization of overhaul slag disposal and comprehensive utilization of power batteries. By adopting the core technical advantages of self-research, it opens up the closed loop of the high-priced metal industrial chain of "recycling of waste batteries-recycling of lithium and other high-priced metals-manufacturing products as battery raw materials", which can not only greatly improve the recovery rate and product purity of valuable metals in waste lithium batteries, but also realize near zero discharge of advanced treatment of wastewater. It can serve the resource utilization demand of waste lithium batteries outside the radiation zone in Guangxi, promote the sustainable development of Guangxi’s new energy automobile industry, form a closed-loop resource recycling of the power battery industry, and help the new energy to reduce carbon.

　　(4) Pay attention to forward-looking basic research and realize efficient achievement transformation.

　　Focusing on the key areas of environmental protection industry and future development, the company has built a high-level talent team and a high-level scientific research platform to lead forward-looking basic research and original innovation, achieve a major breakthrough in scientific research, and explore various ways to solve the bottleneck problem in applied basic research. The company pays attention to cultivating excellent R&D and management talents, popularizing advanced management experience and incentive mechanism, further stimulating innovation vitality, promoting the innovative development of "basic research, application development, achievement transformation and technology popularization", and constantly consolidating and enhancing the core competitiveness of enterprises.

　　The above development strategy and business plan do not constitute the Company’s substantial commitment to any investors and related parties. Investors and related parties should keep sufficient risk awareness and understand the differences between plans, forecasts and commitments.

　　4. Possible risks and countermeasures

　　(1) Risk of continued decline in business performance

　　In 2022, the company realized an operating income of 2,223,804,900 yuan, a year-on-year decrease of 16.29%; The net profit attributable to ordinary shareholders of listed companies was-448,723,700 yuan, a year-on-year decrease of 66,044,600 yuan, and the operating fundamentals were better than last year.

　　In 2022, influenced by changes in the domestic economic environment and intensified competition in the industry, the company insisted on optimizing its business structure. YEATION strictly controlled the municipal engineering business, vigorously developed the industrial sector business, continuously increased the proportion of equipment sales revenue, and promoted the audit and settlement of completed projects. The order volume of the municipal engineering sector decreased, and the engineering output value of some completed projects was reduced, resulting in a year-on-year decline in engineering business income. Although the orders for the industrial sector increased rapidly, most of the industrial orders signed in 2022 were still under implementation due to the volume of the project and the implementation cycle, and the acceptance and handover work could not be completed within the reporting period and turned into output value. Under the comprehensive influence, the income scale of the company’s main business declined. Secondly, according to the requirements of accounting standards and internal control system, the company conducted impairment tests on all kinds of assets, and made individual provision for impairment losses on the accounts receivable of old municipal project customers with obvious signs of impairment and the inventory of engineering projects that were stopped due to abnormal reasons and the construction period was delayed. In the whole year, the company made provision for impairment losses of all kinds of assets of RMB104,124,200. To sum up, the main reasons for the company’s operating performance loss in 2022 are the decline in income scale and the provision of some asset impairment losses.

　　In the future, if there are unfavorable factors such as shrinking downstream market demand, intensified industry competition and rising operating costs, or if the company fails to consolidate and enhance its competitive advantage in the market and its market development ability is insufficient, the growth rate of its revenue and profit will decrease, and there may also be a risk that its performance will continue to decline.

　　The company continued to improve internal control, strengthen financial and capital operation control, and strengthen the refined management of costs and budgets to promote the continuous improvement of the company’s operating quality and the steady recovery of operating benefits; By adopting the method of system supplemented by process control, we will strengthen the supervision of pre-bid control, project establishment, target cost calculation and procurement plan, take project profit as the core assessment element, deepen the relationship between benefit and performance assessment, and further promote the risk control of the whole project life cycle.

　　(2) risk of debt caused by the high debt scale and asset-liability ratio.

　　By the end of 2022, the company’s debt scale was 9,450,636,000 yuan, and its asset-liability ratio (consolidated statement) was 78.76%, which was at a high level. During the reporting period, in addition to its own business accumulation, the company mainly obtained the funds needed for operation through debt financing. The company is in the process of development. In the future, with the increase of the number of projects undertaken by the company and the amount of orders, the company’s demand for working capital will also increase. If there is a shortage of working capital in the future operation of the company, it will bring certain risk of debt to the company.

　　In order to cope with the impact of high asset-liability ratio on the company and ensure the smooth implementation of the project and business development, the company has formulated an efficient fund utilization plan, built a fund management and control platform and actively expanded various financing channels; Secondly, by strengthening supplier management and implementing centralized procurement, we can control the cost of raw materials, improve the R&D and processing capacity of core equipment products, and optimize the structure of production personnel to improve the gross profit margin and enhance the profitability of the company. At the same time, through self-management accumulation, increasing the collection of accounts receivable, making full use of high-quality projects to obtain special government subsidies and tax incentives, the sources of funds are continuously expanded, the cost of funds is saved, the working capital demand of the company is ensured, and the possible risk of debt is effectively reduced.

　　(3) Impairment risk caused by large balance of accounts receivable and contract assets.

　　At the end of 2020, 2021 and 2022, the book value of the company’s accounts receivable and contract assets totaled 2,673,775,500 yuan, 2,745,739,400 yuan and 2,981,610,800 yuan respectively, accounting for 51.00%, 55.48% and 64.24% of the total current assets at the end of the current period.

　　The balance of the company’s accounts receivable and contract assets is relatively large, mainly due to the continuous expansion of the company’s business scale. Due to the characteristics of phased collection, and the company’s customers are mainly large and medium-sized enterprises, listed companies, state-owned enterprises and government units in the industry, the payment procedures are more complicated, and some customers’ ability to pay is reduced, which leads to a large degree of capital occupation of the company by accounts receivable and contract assets, which makes the company face certain credit impairment risks. If the corresponding funds cannot be recovered in time according to the contract, it will have an adverse impact on the company’s operating conditions and cash flow.

　　The main engineering projects involved in the company’s accounts receivable and contract assets are in normal construction state or in the process of completion acceptance, audit settlement, etc., and the progress of some projects may be delayed due to economic downturn, land acquisition by local government and adjustment of implementation methods. In the future, if the company’s major engineering projects can’t be constructed normally, completed acceptance, audited settlement, etc., or there are other major uncertainties in further progress, it may lead to the risk that the company’s accounts receivable and contract assets can’t be recovered and a large amount of bad debt reserve is accrued, which in turn leads to the risk that the company will face a decline in operating performance.

　　On the one hand, the company regards payment collection as one of the most important business tasks of the year, matches different incentive policies for accounts receivable with different aging, and directly links payment collection with the performance appraisal of executives and various business divisions according to the newly formulated assessment method, so as to comprehensively strengthen the management of accounts receivable recovery; At the same time, we will focus on projects with strong payment ability and guaranteed financing, regard project payment as an important evaluation index for bidding selection, strengthen contract management and risk control, and ensure that the contract is fulfilled as promised. On the other hand, after years of great-leap-forward development, the company has achieved a certain industry position in a number of environmental protection sub-sectors. The company will adhere to sustainable high-quality development, continue to optimize its business model and order structure in the face of complex and changeable market environment and competitive pressure in the industry, intensify efforts to promote project settlement and payment of old projects, accelerate the franchise projects to enter commercial operation, and actively eliminate the risk of business performance decline that may be caused by credit impairment and asset impairment.

　　(4) Risk of 4)PPP business model

　　PPP projects usually have the characteristics of large investment, long construction and operation period, which makes the company have certain risks in implementing PPP business, such as macroeconomic risks, policy environmental risks, market environmental risks, legal change risks, financial risks, financing risks, construction risks, operational risks, risks that the overall project progress is not as expected, risks that the budget and settlement are greatly deviated, and risks that the handling capacity in the operation stage is not as expected, which may ultimately affect the feasibility and actual economic benefits of the company’s PPP projects.

　　During the reporting period, the company did not undertake new PPP projects. For the PPP project in hand, the company has set up a special working class, on the one hand, it actively promotes the project implementation, audit settlement and commercial operation, on the other hand, it further optimizes the operation management of the project in operation, enhances the profitability of the project, and lays the foundation for obtaining a stable return on investment in the future; Thirdly, the PPP projects in hand were further sorted out, and the PPP project evaluation and analysis report, PPP project investment income target tracking table, PPP project exit work plan tracking table and fixed assets investment realization plan tracking table were formulated, etc., and the status of PPP projects was dynamically analyzed, and the exit or transfer negotiations were initiated for projects that were difficult to advance. By the end of the reporting period, seven PPP project exit agreements had been signed.

　　(5) Risk of intensified market competition

　　In 2020, 2021 and 2022, the comprehensive gross profit margin of the company’s main business was 27.33%, 15.59% and 11.11% respectively. As a pillar industry of the national economy, the state has paid more and more attention to the development of environmental protection industry. Especially after entering the "14 th Five-Year Plan" period, the scale of environmental protection industry has steadily expanded, driven by favorable policies and accelerated release of orders, and industrial investment has been continuously enhanced.

　　While the environmental protection industry market presents great potential, the market competition is also increasing. In the market competition with environmental protection enterprises at home and abroad, if the company cannot maintain its advantages in technological innovation, product cost control and after-sales tracking service in the future, the market competition risk faced by the company will further increase.

　　In order to cope with the complex and changeable market environment and increasingly fierce market competition and ensure the smooth realization of the company’s business strategy, the company insists on building its core competitiveness, actively explores foreign markets based on the domestic market, enhances its marketing ability and technical service support, and enhances its ability to cope with market changes.

　　(6) the risk of technology being overtaken

　　In 2020, 2021 and 2022, the company’s R&D expenses were 193,026,300 yuan, 200,044,300 yuan and 170,669,500 yuan respectively. The company invested heavily in technology research and development. If the company cannot continue to maintain its advantages in technological innovation in the future, it will face the risk of being eliminated or overtaken, which will lead to the company being at a disadvantage in the future market competition.

　　In terms of technological innovation, the company will continue to strengthen R&D innovation and achievement transformation, expand key technology reserves, promote the application of scientific research achievements in production, actively build an industry-leading technology brands, and provide strong technical support and services for the development of the company’s business market.

　　(7) Risk of production safety

　　The environmental comprehensive treatment project undertaken by the company usually involves equipment manufacturing, assembly and integration, transportation and installation, project site construction and other links, which are dangerous and easily affected by various uncertain factors or unpredictable factors. Therefore, in the process of project implementation, the company has certain project implementation safety risks.

　　In order to scientifically prevent the safety risks in the project implementation process, the company implemented standardized management of on-site safety production, implemented occupational health and safety management system, applied PDCA cycle management mode, carried out hazard factor identification, and conducted closed-loop management of potential safety production hazards, effectively reducing all kinds of safety production risks, promoting the continuous improvement of on-site safety management level of the project, and ensuring the smooth and rapid implementation of the project.

　　(8) Environmental risks

　　In recent years, the national pollution emission standards have been continuously improved, environmental testing indicators and requirements have been continuously increased, and the daily supervision of environmental protection departments has also been continuously strengthened. The company mainly conducts business by undertaking environmental protection projects or investing, constructing and operating environmental protection projects. In daily operation, there are risks in environmental protection such as air pollution, harmful substances, sewage and solid waste discharge, and noise pollution.

　　Although the company has taken a number of measures to avoid or minimize the potential adverse impact on the environment in the process of project construction and operation, there are still certain environmental protection risks in the actual production and operation process. If environmental pollution incidents occur, it may have a certain adverse impact on the company’s management, brand reputation and profitability.

　　The company attaches great importance to the investigation and resolution of environmental risks, and has set up a professional operation team to formulate practical accident prevention measures for different types of projects, eliminate potential unsafe factors and management defects, continuously improve the emergency response capability of environmental emergencies and avoid major environmental incidents.

According to the official news, since the new M7 was officially launched and delivered on September 12th, it has exceeded 70,000 units in 45 days, which is half a month ahead of the time when it exceeded 60,000 units on October 15th. The new M7 in Wenjie has launched five models, with the price range of 249,800 yuan to 329,800 yuan.

As a modified model, the appearance of the new M7 has not changed much from that of the old model. The main change is that the MAX version updates and upgrades the AGS active intake grille, which optimizes the drag coefficient of the whole vehicle by 11%. In addition, the new car has added a side-looking camera at the front fender and adopted Huawei ADS 2.0 advanced intelligent driving system.

The body size of the new M7 is 5020mm (length) × 1945mm (width) × 1760mm (height), and the wheelbase is 2820mm. The rim is available in 20-inch and 21-inch specifications, and the body color has added ice crystal silver. In addition, the new car can also be equipped with electric pedals, electric suction doors and luggage racks with built-in network antennas. In terms of storage space, the trunk volume of the five-seat model is 686 liters, which can be expanded to 1619 liters at the maximum, and the trunk length of the six-seat model is increased by 46 mm.

In terms of interior, the overall design of the new M7 basically continues the old model, and only the color of the steering wheel is fine-tuned to keep it consistent with the theme color in the car. The new car is equipped with a 10.25-inch curved full LCD instrument panel and a 15.6-inch central control panel, with a built-in HarmonyOS intelligent cockpit system. In addition, the new car is also equipped with independent air conditioning in three temperature zones.

The new car comes standard with four seats and is equipped with ventilation, heating and massage functions. In addition, the new car is equipped with Huawei’s in-vehicle smart screen system, and the rear row can support two sets of Huawei’s in-vehicle smart screen systems, supporting functions such as front and rear multi-screen connection and interaction, car control, and supporting various scenes such as education, office, entertainment and games.

In terms of power, the new M7 in Wenjie is equipped with an extended-range power system consisting of a 1.5-liter four-cylinder turbocharged range extender and a Huawei drive motor, and offers two-wheel drive and four-wheel drive options. Among them, the maximum power of the range extender is 112 kW, and the maximum power of the rear axle drive motor is 200 kW; The four-wheel drive model also adds a driving motor with a maximum power of 130 kW to the front axle. The new car has a comprehensive cruising range of 1,300 kilometers under CLTC, a pure electric cruising range of 240 kilometers, a fuel consumption of 5.6 liters per 100 kilometers under feed condition, and an acceleration time of 4.8 seconds per 100 kilometers for the four-wheel drive model. In addition, the new car has also upgraded the chassis, equipped with front and rear suspension double FSD variable damping shock absorbers.

　　At the new product launch conference of Huawei’s autumn scene held on September 25th, the official launch date of M9 was determined to be December 2023. At the same time, it is confirmed that Zhijie S7 will be unveiled in November.

　　As the first full-size flagship SUV under the AITO brand, Wenjie M9 is the latest and most comprehensive technological achievement of Huawei. It will be the first to be equipped with Huawei’s mega-pixel smart headlights and equipped with a starlight digital matrix interactive system. Schroeder’s scattering acoustic technology is also the first time, with beautiful crystal design, emotional visual interaction and the help of AI big model. It is the strongest artificial intelligence so far, and the M9 will redefine the smart space, with ten screens full, bringing revolutionary experience upgrades for driving, entertainment and work.

　　Wen Jie M9 continues the aesthetic principle of "extreme, simple and pure" of Wen Jie brand, and introduces a brand-new family design language. The M9 has a very recognizable "skyline" and adopts a two-color body design. The blue body and the silver roof show a calm charm and a sense of suspension. Wen Jie M9 is equipped with iconic smart headlights, which integrate many functions into the same element, forming a highly integrated design; Moreover, the head-tail design echoes back and forth, further strengthening the recognition. The body dimensions of the M9 are: length 5230mm, width 1999mm, height 1800mm and wheelbase 3110mm；; It provides 6-seat layout and is equipped with 265/45 R21 and 285/45 R21 tires. In horizontal comparison, as a full-size flagship SUV, the car body length of the car body M9 is dominant among the D-class luxury models. It is also at the mainstream level in width, height and wheelbase.

　　Wen Jie M9 has achieved the same flat floor riding experience as MPV. All the seats in the car are provided with electric sliding rails and adjustable adjustment, allowing three rows to enter and leave the stairs, greatly improving the adjustable space in front and back of the second row, and making the ride more spacious and comfortable. Based on the design concept of equal rights for six seats, Wen Jie M9 has also provided an ever-changing luxury experience beyond MPV level through innovative space layout, so that every passenger in the car has the same comfortable first-class experience. Three rows and six seats in the car all support electric adjustment, and can also provide 3, 4, 5 and 6-seat changeable seat modes according to user’s needs, which can be switched at will in different scenes to improve the flexibility of the interior space.

　　At the level of intelligent experience, the M9 in the world has put Huawei’s smart car full-stack technology solution into the car. On the basis of intelligent cockpit and intelligent driving, all the black technologies such as Huawei Intelligent Car Control, Huawei Megapixel Smart Headlights, Huawei AR-HUD, Light Field Screen, Huawei SOUND, and AI Big Model are collected, bringing unprecedented full-scene intelligent interactive experience to users.

　　In the future, Huawei’s ecosystem will be upgraded to "car" +8+N, which will bring more extreme super terminal experience of multi-scene collaboration. Combined with the new sensor federation, more scenes will be linked. For example, AR-HUD will be deeply integrated with intelligent driving for the first time, bringing a subversive intelligent driving experience; At the same time, the on-board big screen will also be redefined, so that the screen can be as big as it wants, and there are as many as it wants, bringing users a smart travel experience beyond imagination.

　　All the M9 models in Wenjie are equipped with four-wheel drive system as standard, which covers both extended range and pure electric power, and all of them use high energy density batteries, bringing stable and long battery life. At the same time, the M9 also adopts all-aluminum chassis, and the whole system comes standard with air spring and CDC damping system. With unique technologies such as HUAWEI DATS 2.0, it will bring leading intelligent driving control.

　　Wenjie M9 pure electric version is equipped with dual-motor power, with peak power of 160kW (front) and 230kW (rear), rated power of 62kW (front) and 88kW (rear), and maximum speed of 200 km/h. The battery type is ternary lithium-ion battery, which is produced by Jiangsu Times New Energy Technology Co., Ltd., and with the support of HUAWEI DriveONE electric drive intelligent platform, the power consumption of the whole vehicle is 17.4 kilometers. The extended range version of Wenjie M9 is equipped with a 1.5T range extender (model H15RT), with rated power of 112kW (maximum net power of 110kW), maximum speed of 200km/h and fuel consumption of WLTC of 0.88L/100km. Equipped with double motor drive, the peak power is 165kW (front) and 200kW (rear), and the rated power is 42kW (front) and 72kW (rear); And the ternary lithium battery pack provided by Contemporary Amperex Technology Co., Limited. With the help of HUAWEI DriveONE electric drive intelligent platform, the energy consumption of the whole vehicle is 6.9L/100km and 24.3KWh/100km.

　　Zhijie S7 is the first new car of LUXEED (Chinese name: Zhijie) brand jointly built by Huawei and Chery. Like Zhijie, the new brand adopts the form of intelligent car selection, and Huawei will deeply empower this brand product in terms of intelligent driving, intelligent cabin and three electricity.

　　The design of Zhijie S7 is very young, and the headlight group looks like Wenjie M9. The three-dimensional front and rear wheel bags, through waistlines, Brembo brake calipers, perforated brake discs, and multi-spoke lightweight wheels create a strong sense of movement. Equipped with lidar on the top of the car body, it will be equipped with the same Huawei ADS 2.0 intelligent driving system as the M5/M7, and the HarmonyOS 4 system will be connected with the car. The car has a length, width and height of 4971×1963×1474mm and a wheelbase of 2950mm, and is positioned as a medium and large pure electric car. (Photo: provided by Wen Jie and Zhi Jie)

On April 12th, iCAR brand, a new force of Chery Group, held a grand brand night in Beijing in 2024, which clarified the brand positioning of "cars for young people" and the latest vision of "building excellent cars for young people with young hearts". The brand-new product iCAR V23 was unveiled simultaneously, and the brand was upgraded with new designs, technologies and products. At the same time, iCAR brand also previewed X25, the first model of X series, further demonstrating the brand’s strategic planning for the future new energy era.

Yin Tongyue, Party Secretary and Chairman of Chery Holding Group, said at the event: "iCAR is a" new special zone "created by Chery Group. The Group will spare no effort to support the development of iCAR, with no upper limit on investment, and help iCAR enter the first camp of new energy." Yin Tongyue emphasized that the Group will gather the best resources and cutting-edge technologies for young users and iCAR brands to ensure the coolest and best cars.

At the press conference, Chery Automobile announced that it has reached a strategic cooperation with Contemporary Amperex Technology Co., Limited, a leading global enterprise in new energy batteries. The two sides will further strengthen cooperation in technology and capital to jointly help the growth of iCAR brand. Zeng Yuqun, Chairman and General Manager of Contemporary Amperex Technology Co., Limited, said that Contemporary Amperex Technology Co., Limited will provide strong innovative energy guarantee for iCAR brand, and the two sides will work hand in hand to make products excellent and reduce users’ burden, so as to make users affordable and use them well with full sincerity.

At the press conference, Dr. Su Jun, CEO of Zhimi Technology and chief product officer of iCAR brand, appeared. He will lead the entrepreneurial team hatched by Zhimi Technology to integrate into iCAR brand, and form the "strongest CP" together with Zhang Hongyu, deputy general manager of Chery Automobile Co., Ltd. and general manager of iCAR brand division. With rich experience in industrial design, product definition and innovative marketing, combined with Chery Automobile’s technical development, supply chain and quality management capabilities, it will inject new potential energy into iCAR and bring new experiences to young users.

Icarv23-Young People’s First Car

Under the background that the automobile industry has entered the era of "super product manager", Dr. Su Jun said that iCAR firmly believes in the value of users and the power of products. He will lead the team to build a cool and valuable car for young people with the concept of "single model, high quality, mass and long cycle".

As the first product of brand upgrading, iCAR V23 is positioned as "style off-road electric city SUV". Its exterior design is full of strength and fashion sense, and the off-road style square box shape pays tribute to the classics. The four-wheel four-corner design, ultra-short front and rear suspension and large wheelbase have brought strong visual impact. At the same time, it gives a huge space for the car, and upgrades the driving experience with super comfortable seats and "high-profile" vision.

In terms of intelligence, V23 also performed well. Thanks to L2+ intelligent driving and the application of 8155 mainstream chip car, users can easily master the road conditions and enjoy the pleasure of "on the road".

ICAR V23 accurately meets the core value needs of young users. With its high value, high taste, high texture, super practicality and reliability, it has become an ideal choice for "the first car for young people". As Su Jun promised at the press conference, the upgraded brand iCAR will continue to stride forward on the new energy track, and finally realize "let everyone enjoy the fun of exquisite technology", so that young people can, should and must drive the coolest and most fun car right now.

Brand-new product matrix-the first choice for young people

At the event site, iCAR previewed X25, the first model of X series.

X25, which is positioned in medium and large off-road MPV, is an innovative work of iCAR for the future new energy era. Its body design combines classic off-road elements with single-car design to show the sense of future science fiction. Relying on the technological advantages of the new energy platform, X25 has better maneuverability and stability, and the fully flat floor design can realize transparent interior space and flexible seat combination to meet various travel needs.

In the future, iCAR brand will continue to enlarge the core value of users based on the explicit needs of users, which is embodied in the joint efforts of its 0, V and X series to create a rich product matrix. Among them, 0 series focuses on exquisite technology and pursues equal rights in science and technology; V series features off-road style, emphasizing differentiation, high value and super practicality; X series is committed to becoming a "new species of single-compartment car". ICAR brand will continue to show its strength and innovation ability in different fields, meet the diversified needs of more young users, and accompany them to start a wonderful travel life together.

“Spare no effort "powerful resources-the first" trust "of young people

A good product cannot be separated from a good system support. Chery, as a model of technological enterprise, has been insisting on self-research of technology since its inception, deeply ploughing into the field of automobile technology and constantly overcoming technical difficulties. Technology Chery will rely on the "Eta Ursae Majoris 2025" technology system, invest no less than 100 billion yuan in the next five years to build a 300+ Eta Ursae Majoris laboratory, and continuously develop various new technologies in the five core technology fields of Mars architecture, Kunpeng Power, Lion Intelligent Cabin, Great Wisdom Driving and Galaxy Ecology. Zhang Hongyu, deputy general manager of Chery Automobile Co., Ltd. and general manager of iCAR brand, said that Chery’s strong technical reserve is like a treasure chest, with everything.

ICAR brand relies on this treasure chest to accurately find out the suitable technology needed by young users. ICAR’s first product, iCAR 03, sold 5,487 vehicles in March and 2,113 vehicles in the first ten days of April, an increase of 81% from the previous month, and the sales trend was unstoppable.

At present, iCAR 03 has completed the first OTA upgrade, and the functions such as high-speed NOA and cross-floor memory parking have been fully "boarded", adopting a pure visual route, leading the technology and being close to the people, making it the first choice for this price segment. In addition, iCAR can continue to iteratively upgrade the electric four-wheel drive through technical means such as software upgrade and front and rear axle decoupling, making driving more flexible and interesting.

Backed by Chery’s strong technical strength, iCAR is full of confidence in the security field, providing users with all-round security protection. For the car body, it adopts multi-cavity, cage and steel-aluminum mixed structure, and the strength of B-pillar is as high as 1800Mpa. Combined with the embracing force transmission structure, it can cope with all kinds of collisions in all directions.

Battery safety is the most important thing. Chery has accumulated more than 30 test items in battery system safety standards, far exceeding the national standard and industry standards. It only uses battery cells from large factories, adopts sandwich structure, has strong impact resistance at the bottom, and combines with the early warning system of big data platform to identify risks in advance and ensure battery safety.

In the future, all the capabilities of Chery can be applied to other iCAR products, so that users can enjoy a more intelligent, safe and convenient travel experience. ICAR will also continue to rely on Chery’s strong technical support to continuously extract more "treasures" that meet the needs of young users and create a better travel experience for them.

Summary:

Facing the future, iCAR will empower products with Chery’s technical strength, open up the last mile with users with Internet thinking, continuously satisfy young people’s dreams and aspirations for affordable and cool use, and move forward with China new energy vehicles.

About iCAR brand:

ICAR is a brand of new energy under Chery, which is committed to creating cool and outstanding new energy vehicles for young people. Since its establishment, the brand has emphasized openness and innovation, integrated Internet thinking with the strength of Chery, and operated independently. ICAR 03 was launched as the first model in early 2024, and its market performance was strong. In the future, iCAR will lay out three series of 0, V and X, and plans to launch eight models before 2026 to expand the brand ecology and become a label brand of young lifestyle.

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After the vibrato burst into flames, the importance of the video number of WeChat in the interior also soared, asking for money, giving money and resources to resources. But up to today, there is still a big gap between the two: it is estimated that the gap between the video number and Tik Tok is between 3.3 times and 6.6 times. The second half of Touteng War will still be very exciting, please move the small bench ~

There is no doubt that video number, as a rising star, has already become one of the top three short video tracks in China after several years of catching up.

However, it is difficult for the industry to give a comprehensive and accurate data on how far the video number has developed and how far it is from Tik Tok.

The direct reason behind this is that WeChat is only a business group of Tencent, a listed company, and the video number is only a sub-product of WeChat, so there is no obligation to publicly disclose detailed data in the financial report. In addition, unlike independent apps, video is only a function of WeChat, which also makes it more difficult for third-party data monitoring.

Similarly, as the leader of short video industry, Tik Tok is also a non-listed company at present, so it is difficult for us to see the whole picture of Tik Tok data.

However, this does not mean that the video number and Tik Tok are completely two data black boxes. We can still make reasonable guesses from the limited public data at present, and then draw some meaningful conclusions-

In the business world, absolute data is important, while at other times, relative data is just as important or even more important.

Let’s take a look at two important absolute data of the video number-according to Tencent’s financial report and conference call, the advertising revenue of the video number Q2 in 2023 is 3 billion, and at the same time, the current advertising adsload of the video number is less than 3%.

Let’s look at some data from Tik Tok-

According to The Information, ByteDance’s Q2 revenue in 2023 was $29 billion, of which 20% came from overseas.

I think this data is relatively credible. On the one hand, The Information has disclosed the revenue of Byte many times before, including the revenue of Byte China of $69 billion last year, etc. These data are basically recognized and quoted by the industry.

On the other hand, if the data gap is large or untrue, bytes will jump out to refute or clarify. (For example, regarding the data of e-commerce GMV in 2022, bytes have been specifically denied. )

OK, based on the above data, we can actually make some relatively reasonable calculations-

Byte Q2 earned $29 billion, 20% of which came from overseas, that is, 80% came from China, and the domestic income was $23.2 billion.

Note: This $23.2 billion does not mean that it is all advertising revenue from Tik Tok. Only Tik Tok, a single product, also involves live broadcast revenue and e-commerce fee income (different from e-commerce advertising revenue).

In addition, Byte also has the income from a series of other businesses, such as today’s headlines, car owners, watermelon videos, tomato novels, flying books, games, Volcano Engine and so on. (You know, in 2017, when Tik Tok was just born, today’s headline income was as high as 15 billion)

So what is the proportion of advertising revenue in Tik Tok’s total domestic revenue?

This is a mysterious data, but fortunately, we also have some reference objects. Let’s take a look at the income composition of Aauto Quicker, a short video track listed company.

According to Aauto Quicker’s Q2 financial report this year, in Aauto Quicker’s income structure, advertising revenue accounts for 52.5%, live broadcast revenue accounts for 34.7%, and other income (including e-commerce) accounts for 12.6%;

Of course, we can’t directly use the proportion data of Aauto Quicker, because there is still a big difference between Tik Tok and Aauto Quicker.

Compared with Aauto Quicker, which started with the realization of live broadcast, Byte has been engaged in advertising business since 2013, and has formed a set of extremely strong tactics in advertising algorithm, product, operation and sales, so the proportion of natural advertising revenue will be higher. After all, live broadcast and e-commerce are the businesses that come later. (Although the fast-growing e-commerce GMV has surpassed Aauto Quicker)

I take Aauto Quicker as an example to illustrate that the revenue of Bytes is not all from advertising in Tik Tok. Compared with the early advertising revenue in ByteDance, which accounted for more than 90%, the proportion of advertising has dropped significantly now.

Therefore, when we estimate the advertising revenue, we need to make a discount. Considering the advantages of Byte in advertising and the existence of other huge business lines, we roughly give this discount a 60% discount.

At this time, we can calculate the income of Tik Tok’s advertising business-29 billion * 80% * 60% = 13.9 billion US dollars, or 99.5 billion RMB.

The reason why we have to calculate the advertising revenue of Tik Tok is because we have to compare it horizontally with the advertising revenue of the video number in the same period-

The revenue of video number Q2 this year is 3 billion, and the estimated revenue of Tik Tok Q2 advertising this year is 99.5 billion, which is 33 times.

Does this mean that the gap between video number and Tik Tok in user data is 33 times?

Of course not. We also have to consider two factors: the advertisement loading rate Adsload and the advertisement unit price ECPM.

Obviously, there are many advertisements in Tik Tok, but there are few advertisements for video numbers. According to the data disclosed by Tencent at present, the adsload of video numbers is less than 3%.

So, what is the advertising Adsload in Tik Tok?

This is also a mysterious data.

But we can still reasonably guess—

James Mitchell, chief strategy officer of Tencent, said: the competitor’s adsload exceeds 10%, and this competitor naturally includes Tik Tok;

According to a research report of Huachuang Securities, Tik Tok’s Adsload in 2019 has exceeded 12%;

In addition, according to the daily sense of body, it is very common for Tik Tok to insert five videos into one advertisement, which does not include the content-heated advertising product of Dou+ without advertising logo, and it is already 20% for five videos to insert one advertisement.

In fact, the advertisement Adsload of a product itself is not static, and it will be dynamically adjusted according to many factors such as supply and demand, time nodes and so on.

Based on the above data and some three-party calculations in the industry, we take Tik Tok’s Adsload as 15%;

At this time, we can work out the difference of the service volume of the video number on the user side, that is, the volume relationship between them needs to be divided by the multiple of their Adsload on the basis of the revenue multiple, that is, the above 33 times need to be divided by 5, which equals 6.6 times, that is, the current broadcast volume of the video number has a greater probability of being 6.6 times that of Tik Tok.

Of course, strictly speaking, this caliber is not entirely the amount of play, which can be roughly understood as the number of times the video information stream is refreshed, that is, the space for inserting advertisements.

Compared with the fuzzy process indicators such as daily activity, duration and duration of a single video, the total broadcast volume directly calculated above is obviously more meaningful. After all, the process indicators ultimately serve the result indicators.

It must be noted that our calculation is still rough, because there is a hidden assumption-the advertising unit price ECPM of video number and Tik Tok is the same;

This assumption and premise itself also have enough room for discussion-

In essence, ECPM reflects the efficiency of advertising.

In fact, the competition between Byte’s huge engine and Tencent’s advertisement in the whole advertising market is an extremely wonderful comprehensive combat of China Internet.

In the past few years, the two have competed in technology, products, operation, market, sales and ecology, and the two sides have come back and forth in the constant game;

Objectively speaking, after a long-term struggle, Tencent’s technical level, professionalism and comprehensive strength have reached the level of the first echelon in the Internet advertising industry, not only at home but also at the international level.

Of course, the overall efficiency of Byte advertising system is one of the best at present because of its relative advantages in algorithm and crowd level objectively. Many advertising agencies told me that in most cases, the ECPM of effect advertising Tik Tok is indeed higher than other advertising platforms.

I heard an unconfirmed data in the industry is that the advertising ECPM in Tik Tok is twice as high as that in Aauto Quicker. (Again, this data is unconfirmed)

I have every reason to believe that Tencent’s advertising, which has been deeply rooted in efficiency for a long time, will not have a gap of twice as large as that of Tik Tok. If we take twice as the lower limit, the ECPM of the two will be equal and twice.

Then according to the above calculation, the most important conclusion of this paper comes-The difference between the video number and Tik Tok is estimated to be between 3.3 times and 6.6 times.

OK, so the question is coming-how about the video number?

In my opinion, this is undoubtedly an excellent performance.

You know, according to Tencent’s latest financial report, the number of Q3 video numbers has surged by 50% this year, while the total duration of Q2 video numbers has nearly doubled this year.

That is to say, the video number is still growing at a high speed, which means that the gap of 3.3-6.6 times will continue to narrow in the context of the objective slowdown of Tik Tok’s growth momentum.

As a late-developing product, as the only remaining fruit after Tencent’s various short video products held high and played high, and as the "hope of the whole village", the video number achieved this order of magnitude in less than four years under the difficult background that the industry generally believed that the pattern had been set, and abruptly completed the task of playing the short video table.

Zhang Xiaolong and his WeChat team once again proved their strong strength as a latecomer, and the depth of Tencent’s bench was also vividly displayed in this campaign.

Going to the table doesn’t mean you can sit back and relax. Sustainable growth is the eternal theme of this infinite game. How will the video number cope with the competition at the table?

I noticed that in the conference call of Tencent Q3, Tencent talked about the following four logics when explaining the future potential of video number-

1. Growth of traffic:This means that the data on the user side is still growing. According to the financial report, the total duration of Q2 video number nearly doubled year-on-year, and the number of Q3 plays increased by 50% year-on-year.
2. Promotion of advertising Adsload;This means that the current Adsload of video number is indeed lower than that of competitors;
3. The increase of click-through rate of AI-blessed advertisements;This means that the big model is used in advertising algorithms. For example, Tencent’s mixed-element big model was originally built for advertising.
4. Closed-loop opportunities:This refers to the internal circulation growth space including enterprise WeChat, applet, payment and e-commerce.

From a logical point of view, there is nothing wrong with these four angles, but what I want to say is that there is actually a big logic in the opposite direction behind these four small logics, that is, the overall scale of Internet advertising-

According to Questmobile’s data, the total scale of domestic Internet advertising market will increase by 4% in 2022, and only by 2.3% in Q1 2023.

In view of the current economic situation, the Internet advertising market has objectively bid farewell to high-speed growth, and will enter the new normal of micro-growth.

At the same time, the substitution effect of short video advertisements preempting other types of advertisements is also disappearing. According to Questmobile’s data, the market share of short video advertisements has stabilized in the past year.

Under this premise, the increase of user-side growth, Adsload, click-through rate and closed loop mentioned by Tencent will certainly increase advertising revenue, but the increase of total supply and the constant total demand mean that this increase ratio will be discounted.

Simply put, your advertising volume will increase by 50%, and your advertising revenue will inevitably not increase by 50%, which is an important supplementary factor that restricts the imagination of video number revenue.

Indeed, personal struggle is very important, but we must also take into account the historical process.

Therefore, for the video number, the internal circulation revenue it emphasizes becomes quite important. The strong rise of e-commerce in Tik Tok and the simultaneous surge of advertising revenue fully prove the strategic significance of internal circulation.

In essence, the core of doing closed-loop e-commerce lies in two points-

The first is that the complete data link based on transaction brings efficiency improvement, that is, its advertisement is more accurate, and it knows what characteristics those people who place orders have;

Second, the extension of the value chain, including performance, makes it possible for the platform to collect taxes, and merchants are willing to contribute fees to the closed loop.

Obviously, Tencent is also greedy for the business increment brought by the closed loop. A new formulation of this financial report is "Pan-internal circulation advertising revenue linking WeChat applets, video numbers, WeChat official account and corporate WeChat landing pages", which increased by 30% year-on-year.

However, this is a difficult challenge for the video number, which is genetic in a sense-

The WeChat team is famous for its elitism within Tencent, and its prominent feature is its high human efficiency. It has been committed to doing things with fewer and more efficient people. For example, the team members of WeChat Pay are much smaller than Alipay in scale.

One of the drawbacks of elitism and focusing on human efficiency is that the WeChat team has not done dirty work.

In the past, the typical style of play was that Zhang Xiaolong launched a small team, made hard efforts and thought clearly from the top-level architecture and product mechanism, and used the super base of social interaction to pry a business sector, such as WeChat payment, applet and video number.

However, the internal circulation like e-commerce is very heavy, its chain is very long, there are many aspects of performance, the cost is extremely high, and the information flow, logistics and capital flow are intertwined and complicated, so it is difficult to solve the battle only by relying on the top-level design at the product level or the strategic level.

In a word, the video number is doing dirty work such as e-commerce and local life, and the long-term product leverage of the WeChat team will be discounted.

To get rid of this hard bone, WeChat must really sink, take the initiative to do some hard work that it didn’t want to do before, and change the tactics of promoting business based on products and strategies that have always been advantageous in the past.

So, does WeChat have this level of consideration?

The answer is that there is no very clear signal yet.

Why do you say that?

Let’s cut in from a small perspective. As an industry observer, I have a small habit when studying Tencent, that is, I go to its recruitment website to see the latest recruitment positions of various business departments. The types and quantity of these positions reflect the work focus and tendency of the business group to a certain extent from a unique angle.

I have seen 51 non-technical posts related to business in the posts recently released by WeChat business group, among which 13 are related to video numbers, which are not too many. There are many posts such as "senior strategic product manager for live broadcast with video numbers" and "senior product manager for business operation of small shops with video numbers".

It can be seen that, at least from the perspective of recruitment, the video number team has no idea of focusing on the business for the time being, and still plans to continue to promote the business through its product strategy advantages.

However, my view is different from that of the industry. I think Zhang Xiaolong is by no means a product defender who sticks to some so-called obsession.

On the contrary, his figure is quite soft, facing the business reality and being thoroughly remoulded at the business level many times-

From Foxmail to QQ mailbox, it is a change from software thinking to internet thinking, from QQ mailbox to WeChat is a change from PC thinking to mobile genes, and from the minimalist rule in the early days of WeChat to the hug algorithm now is a change in product logic.

Any one of these changes is actually a "sudden change" level, but each turn is quite silky.

Therefore, in this sense, as long as it is really necessary in business judgment, it is not an unexpected thing for WeChat and video number to change their long-standing strategies and focus on business in the next short video amount competition.

At the same time, we should also see that WeChat has its own advantages objectively.

This advantage lies in the fact that it has a set of interwoven components established by WeChat official account, applet and enterprise WeChat, which has been imperceptibly embedded in various business links of many advertisers to some extent.

This kind of embedding has a moat effect, and the migration cost is very high. For example, an education company uses enterprise WeChat as its private domain, so the link in WeChat must be the smoothest in the advertising process, which has become an important advantage of video number advertising.

In the future, VideoNo. and Tik Tok will definitely meet each other in heavier businesses such as e-commerce and local life, and the victory or defeat of the battle depends on their traffic utilization efficiency.

Tik Tok has always been data-rational, and the distribution of traffic depends on the cold ROI. Behind the inclination of traffic to e-commerce, the profit-making efficiency of e-commerce is indeed high. Tik Tok has also poured a lot of traffic into games and hardware Pico, but it turns out that the ROI of the latter two is not ideal, so it is cut off cleanly.

The traffic of the video number is the same logic. Today, the landing page is a relatively large proportion of enterprise WeChat and small programs, and if the ROI of e-commerce and local life continues to improve, it will inevitably get a traffic share that matches its efficiency.

The distribution and center of gravity of video number in the future will determine its commercial competitiveness, and it will also be an important point of competition between video number and Tik Tok in the future.

At this time today, the competition in the short video market has already entered the deep water area, and the competition on the track has become an incomparably real mixed fighting, which is worse than physique, skill, endurance and logistics, and at the same time, it has fewer mistakes than anyone.

In the short video business, the user’s migration cost is actually not as big as expected. In the end, it is based on the long-term retention and realization of content ecology and user habits.

In this sense, how far the video number can go on the short video track, what kind of ceiling it can reach, and how to differentiate itself from Tik Tok and Aauto Quicker are still the most anticipated challenges for China Internet in the next few years.

Under the background that the Internet in China has changed hands, the second half of Touteng War will still be extremely exciting. Please move the small bench ~

　　Beijing, Jan. 23 (Yu Wang): "Swimming, fitness, find out." I don’t know when, you can always hear such a voice at street intersections. Behind it, in addition to countless gyms springing up like mushrooms after rain in recent years, it also reflects the rise of the national fitness boom. However, correspondingly, although more and more people walk into the gym, it is more common to give up halfway. Why on earth is this happening?

　　According to the White Paper on Fitness Industry in China in 2016-2017 published by relevant institutions, the fitness population in China has increased at an average annual rate of 10% in recent years, and the awareness of national fitness has become stronger and stronger. Fitness has gradually become one of the public’s concerns at present and in the future, and national fitness has become a trend.

　　At the same time, the gym has become the choice of more people with fitness needs. According to the Report on Market Demand Forecast and Investment Prospect of Gym Industry in China from 2017 to 2022 released by Zhiyan Consulting, the size of China’s gym market will approach 90 billion in 2017, and it is expected to maintain a compound annual growth rate of 12% in the next five years, reaching 123 billion yuan in 2020. In addition, according to statistics, there are currently 37,627 gymnasiums in China, the number of which has surpassed that of the United States.

　　Why do gyms get more and more people’s favor? Some experts said: On the one hand, gyms provide rich equipment to meet the needs of different groups of people, and can provide different choices for different body parts that need exercise; On the other hand, commercial gyms are generally equipped with professional coaches for guidance. While enhancing physical fitness, you can gain a good figure and get the maximum effect in limited leisure time, which is in line with the pain points of the current urban population.

　　However, when people apply for a fitness card at a high price after careful choice, how to develop the habit of continuous fitness has become an oncoming problem for many newcomers in the gym. In the face of day-to-day exercise, strict diet control, laziness or even giving up has become a common phenomenon of this group of people. Some insiders revealed to the reporter of Zhongxin. com: "At present, 70% members of the gym can’t develop the habit of continuous fitness."

　　Wang Qian, who works in Beijing, is one of these 70%. A year ago, she was attracted by the gym leaflets distributed downstairs by the company, and she applied for a fitness year card not far from the company. However, after insisting on going there several times, Wang Qian found that fitness was something that she found hard to accept. "The process of fitness is very boring and tiring, and it has a high control over diet."

　　Wang Qian, a company project, has been very busy for a month, and she finds it hard to summon up the courage to go into the gym. Every time after work, Wang Qian will rush through the gym, and in her spare time, she will find various reasons to convince herself. Over time, Wang Qian completely lost interest in the gym.

　　Wang Qian told reporters that if she hadn’t tidied up her purse some time ago, she would have forgotten that she had ever had a fitness card. As for why she wanted to go to the gym at the beginning, she had already thrown it away, so without any hesitation, she threw this fitness card into the depths of the drawer.

　　Although friends around me mentioned this matter, they all felt sorry for her money hitting Shui Piao, but Wang Qian, who has always claimed to be a "Buddhist youth", said: "Why do you have to embarrass yourself and do things you don’t want to do?" After the fitness card expired, she naturally did not choose to renew it.

　　As the owner of a gym with thousands of people in Beijing, Qiao Liang believes that the reason why many people give up is that their beliefs are not firm enough. "In fact, fitness will not only bring about qualitative changes to the body, but also temper the mind." He said, "To be able to walk into the gym and stick to it, this person’s will and mentality must be very good. Relatively speaking, if he can’t stick to it, there are impetuous factors in it, except subconsciously."

　　Qiao Liang revealed that according to statistics, the annual renewal rate of the gym he runs is less than 20%. Apart from factors such as changes in the living environment of members, this data also reflects that there are still many people who lack long-term fitness plans. "The number of people who can persist in one year is even less." Qiao Liang said that this situation is widespread in Beijing.

　　To measure whether a gym is professional, besides the number and types of equipment and the variety of courses, the professionalism of fitness instructors is also the most important thing to inspect. Undeniably, the fitness instructor not only plays a multiplier role for the bodybuilders, but also provides them with the function of accompanying and supervising. There are also more than one bodybuilder who told reporters that their ability to keep exercising has a lot to do with the fitness coach.

　　"Fitness is to eat better things." Yang Jing said that what the coach said to her on the first day of fitness became the biggest motivation for her to grit her teeth and enter the gym every day.

　　As a new media editor, Yang Jing, who graduated only two years ago, not only developed the habit of sedentary due to work, but also "swelled up" at a speed visible to the naked eye. "My salary has not risen much, but my weight has risen a lot. Every time I go home on holiday, my family will sigh that I am fat again."

　　At the same time, knowing that she doesn’t have strong enough perseverance, whenever she makes up her mind to step into the gym, how to stick to it has repeatedly become the main reason why she flinches before "getting a foot in the door". Finally, six months ago, following the advice of a friend, Yang Jing got his first fitness card and hired a personal trainer.

　　But in the first class, the strictness of the coach made Yang Jing, who didn’t like sports since childhood, suffer enough. It never occurred to her that a coach who usually looks polite can almost be described as "heartless" in every class. "There are 20 opening jumps in each group, and I have to do four groups. I have no strength when I sit in the third group, but the coach will only let me rest for a while and then finish the rest." Yang Jing said that "being lazy" became a forbidden area that she couldn’t reach in the gym.

　　High-intensity training courses often make Yang Jing ache all over the next day and can hardly get out of bed. But what made her collapse even more was that when she told the coach about this and hoped that the coach could reduce the workload of the next training as appropriate, all she got was "just practice more." So she had to bite the bullet and walk into the gym again as planned.

　　Nevertheless, Yang Jing has to admit that the existence of the coach has benefited him a lot. "If there is no coach, I can’t complete these movements at all, and I may give up halfway." Yang Jing said frankly that the coach’s company and encouragement can eliminate her fatigue and boredom during exercise.

　　At the same time, the coach also told Yang Jing to write down her progress and the whole fitness process, because it can give you a sense of accomplishment, and help you understand how far and how fast she ran or walked, how much calories she burned, and how much progress she made. Use these to challenge herself and set new goals.

　　Today’s Yang Jing will consciously go to the gym to exercise even if there is no coach’s supervision. "Sometimes I don’t go to the gym for a few days, and I always feel uncomfortable without anything." After every party, Yang Jing would go to the gym for a run and sweat, which she said would reduce her "guilt".

　　On the question-and-answer platform of Zhihu, one question asked, "How do you stick to fitness after you get a fitness card?" The Q&A has been read by nearly 500,000 people and caused extensive discussion. Some netizens said, "If it’s so painful to insist, don’t go." Some netizens also said: "I have gained attitude and courage to face life from fitness. So I insist and hope that I will pursue it to the end. " "It is worthwhile to plan ahead for health, no matter how difficult it is."

　　Some people think that the gym exists to meet those who need to exercise but have no equipment and suitable environment, so they should become a bodybuilder first, and then they will become a bodybuilder who needs a gym. Qiao Liang is deeply impressed by this.

　　He believes that bodybuilders should change their cognition from "I have to go to the gym" to "I want to go to the gym". The key to "insisting on going to the gym" is not whether to go to the gym or not, but whether you think it is important to improve your physical fitness from the bottom of your heart and actively adopt different training methods to strengthen yourself. "

　　Five years ago, when Jia Xuan first stepped into the gym, he was shocked by the intense atmosphere in front of him and countless muscular bodybuilders. Since he was weak, he also hoped to become healthier through fitness.

　　In order to avoid exercising aimlessly in the gym like a headless fly, he made a rigorous fitness plan for himself from the first day and approved it every 4-6 weeks. "The information is all found online, and setting a plan and goal can help me stick to it better."

　　Jia Xuan believes that it is also very important to have a "comrade-in-arms" who fights side by side during the fitness process. "Going to fitness with friends will help to better implement the fitness plan and support and encourage each other." Jia Xuan said, "There will be situations where friends compete secretly, but this is also a competition with themselves. Over time, they have developed the habit of continuous breakthrough."

　　What impressed Jia Xuan most was that the gym at that time was not large, and when there were many people, there would be many people queuing to use one equipment. When he lamented that there were so many people, an "old gun" in the gym told him, "Nothing, you will never see most people again in a few weeks." Sure enough, most of them went every other day to every three days, then every five days, and never showed up again.

　　"I don’t think that the so-called insistence on going to the gym and running can really bring me a sense of superiority or enhance my attractiveness. For me, when the novelty of fitness fades, it is more a lifestyle and habit that is naturally formed for health." Jia Wei said. (At the request of the interviewee, some characters in the text are pseudonyms) (End)

　　Beijing has started the high-temperature roasting mode, followed by a series of rumors about "heat" — — Sunscreen clothes are not sunscreen after washing, heat stroke is a large heatstroke, and drinking mineral water that has been exposed to the sun in the car will cause cancer, etc., which are concentrated in the latest scientific rumor list.

　　The monthly "scientific" gossip list is guided by Beijing Science and Technology Association, Beijing Municipal Committee Network Information Office, Capital Internet Association, and jointly released by Beijing Science and Technology Journalists Editors Association and Beijing regional website joint rumor platform.

　　Rumor has it that heatstroke is heatstroke

　　truth Some people think that heatstroke is heatstroke, not serious. In fact, it is not exactly the same as heatstroke, and it should not be taken lightly. Generally, the body temperature of heatstroke patients often exceeds 38℃, accompanied by facial flushing, profuse sweating, burning skin, nausea and vomiting, or cold limbs, pale face, decreased blood pressure, rapid pulse and other symptoms.

　　Heat stroke is the most serious emergency related to high temperature, that is, "severe heatstroke", which is a serious and fatal disease with skin burning, consciousness disorder (such as delirium, convulsion, coma) and multiple organ dysfunction. Once it happens, the death rate will be high.

　　Heat stroke does not happen suddenly. Before heatstroke develops into heat stroke, it will first experience "threatened heat stroke" and "mild heat stroke". To prevent heat stroke, we must first avoid heat stroke. Try to avoid staying in high temperature (high humidity) and unventilated environment, and avoid high temperature when traveling and do a good job of sun protection. In addition, some heatstroke prevention drugs can be prepared appropriately. When you have to do homework or activities outdoors, you should pay attention to your physical condition, drink plenty of water and rest in time. If you travel by car, don’t leave children and pets in the car. Pay attention to avoid dehydration and ensure adequate sleep.

　　Rumor has it that the sunscreen will be invalid once it is cleaned.

　　truth Is it true that sunscreen clothes can’t be washed with water? Excessive cleaning of sunscreen clothing will indeed lead to a decline in the anti-ultraviolet performance of clothing, but normal cleaning is no problem. Sunscreen clothing can enhance the anti-ultraviolet effect of clothes by adding ultraviolet absorbent and anti-ultraviolet agent to the cloth or adding sunscreen coating on the surface of the fabric, just like coating a lot of sunscreen on the surface of clothes.

　　Professional sun protection clothes usually indicate the sun protection index on the tag, which is the result of the standard inspection of national professional institutions. Only when UPF is greater than 40 and T (UVA) is less than 5%, can they be called "anti-UV products" and "sun protection clothes".

　　Under normal circumstances, the sunscreen effect will not be significantly reduced when the cleaning times of sunscreen clothing are less than 30 times. After more than 30 times, it depends on the water resistance of anti-ultraviolet agents and the processing level of sunscreen clothing. There are two main processes for adding ultraviolet shielding agent to clothes: one is to add it to spinning raw materials, and the other is to soak or coat the fabric. Generally speaking, the ultraviolet shielding agent added during spinning can be better combined with raw materials, and the ultraviolet resistance is still considerable after repeated washing; However, the ultraviolet shielding agent attached to the fabric after weaving is easier to be peeled off when washing.

　　The service life of sun protection clothing is usually several months to one year, and the sun protection ingredients may be damaged to varying degrees, and the sun protection effect is definitely worse than when it was just bought. Replacing a new sunscreen suit every year can ensure a good sunscreen effect.

　　Gossip exposed mineral water can cause cancer.

　　truth Qualified mineral water bottles in the market are usually made of food-grade plastics, namely polyethylene terephthalate (PET). PET is not only acid-resistant, alkali-resistant and grease-resistant, but also can withstand the corrosion of most solvents. At the temperature below 120℃, PET is non-toxic and tasteless, and it is safe to pack drinks. However, at high temperature, it will slowly dissolve and release some organic solvents harmful to human health.

　　The temperature in the car, even in summer, is generally difficult to reach 120℃, so there is no scientific basis for the statement that "mineral water exposed in the car can cause cancer".

　　Gossip astronauts can’t be nearsighted

　　truth People have been circulating this statement — — Astronauts can’t be nearsighted, let alone wear glasses, because wearing glasses in space may bring accidental injuries. Indeed, the selection criteria for astronauts are indeed very high. However, at present, low myopia is also allowed to enter space.

　　In the ascending phase of the mission, there are complicated situations such as rocket vibration and overload. If astronauts wear frame glasses, it may lead to collision and other problems, so astronauts will not wear frame glasses (wearable contact lenses) at this stage. The environment of the space station is relatively stable, and you can wear frame glasses normally.

　　Over the years, aerospace engineering technology has made great progress, and the mission environment is no longer strict with astronauts’ physical fitness requirements; On the other hand, in the future, we need more front-line researchers to "go to heaven" for scientific research. Obviously, it is not appropriate to use myopia as a hard standard to select researchers, so low myopia is now allowed to enter space. It is worth mentioning that people with high myopia are still unable to travel in space. After all, people with high myopia may fall off their retinas when riding a roller coaster, and it is even more impossible to bear the huge acceleration when the rocket is launched.

　　Yang Liwei, deputy chief designer of China’s manned spaceflight project, once said that the selection criteria for astronauts are different with different tasks. "From the perspective of vision, high myopia is not good, and low myopia is ok. Several of our non-professional load expert astronauts wear glasses. "

　　Gossip moles should be removed or they will become cancerous.

　　truth Does the mole on our body really have a chance to develop into melanoma, a deadly malignant tumor, if it is not removed? In fact, nevus is a benign tumor of the skin. Most nevus are formed in response to sun exposure, and it is extremely unlikely that they will develop into melanoma.

　　It is also possible to remove these moles for aesthetic reasons, or to observe them regularly (monthly) for life, and pay attention to their color changes and texture changes (such as increased thickness). Some moles may develop into melanoma more easily and need to be paid attention to, including: congenital giant moles, dysplasia moles, multiple moles (more than 50), moles at the ends of limbs, moles or pigmentation in digestive tract and genitourinary tract, moles exposed to sunlight for a long time, etc. If the mole is suspected to be bad, it must be completely removed under the guidance of an experienced doctor and sent to biopsy for pathological diagnosis.

　　Myth "conjoined" cherries blame pesticides

　　truth In life, cherries we buy sometimes appear "twins" phenomenon, that is, there are two fruits on a fruit stalk. But this has nothing to do with medication. The incidence of abnormal fruit of cherries is closely related to the high temperature weather last year, not caused by pesticides.

　　From the botanical point of view, the abnormal fruit is caused by the appearance of multiple pistils during the flower bud differentiation of cherries. Studies have shown that if cherries encounter high temperature above 30℃ during flower bud differentiation (especially during sepals and petals differentiation), the incidence of deformed fruits will greatly increase in the second year without human intervention, and the proportion of conjoined double fruits will be higher with the increase of temperature. However, during this period (mid-July), the temperature in warm areas in China often exceeds 30℃, which easily leads to the formation of double pistils or even multiple pistils.

　　Gossip dry eye drops work

　　truth It is circulated on the Internet that "dry eye is ‘ Lack of water in eyes ’ As long as more drops of eye drops can be effectively relieved. This kind of practice is wrong, and it is likely to be counterproductive.

　　Dry eye, also known as dry eye, refers to a series of diseases caused by various factors, such as abnormal quality and quantity of tears or abnormal dynamics, which leads to the decline of tear film stability, accompanied by eye discomfort or ocular surface tissue lesions.

　　On the surface of our eyeball, there is a thin layer of liquid, that is, the "tear film". It consists of oil layer, tear layer and mucin layer. Although it is only a few microns thick, it is like the "lubricating oil" of eyes, which can keep the cornea and conjunctiva moist and improve the refractive performance of eyes.

　　When dry eye is not too serious, patients just need to take a rest and drop some artificial tears, and it seems that they can see things clearly again, so it is easy to take it lightly. In fact, dry eye is a manifestation of the disorder of tear film secretion, not just "water shortage". Although it sounds strange, a considerable number of patients are easy to stimulate the lacrimal gland and produce a lot of tears because the balance of the tear film is destroyed. However, the extra tears that flow out cannot effectively exist on the surface of the eye to moisten the cornea in the form of tear film.

　　External means can only help it gradually recover its physiological function, so we must pay attention to it at an early stage, get rid of bad habits in time, and don’t use eye drops indiscriminately to avoid getting worse. If there are symptoms of dry eyes, such as dry eyes, dry eyes and difficulty in opening eyes, please go to the ophthalmology department of a regular hospital immediately to determine the type of dry eyes and treat them symptomatically.

　　Rumor has it that the green peel is not ripe litchi.

　　truth This is a misunderstanding of fresh litchi. Litchi with green skin in the market is not picked before it is ripe. There are more than 300 kinds of lychees, many of which are not full of bright red. For example, the characteristic of "princess smile" is that the skin is green and red.

　　The characteristic of hanging green litchi is that the peel is red and purple, and there is a green line running straight through it, so it is named "hanging green". Good quality "Guanyin Green" litchi, even the peel is green when it is mature. It is best for consumers to determine whether the peel color is normal according to the variety of litchi. The fresh litchi peel is cracked, flat and regular, and feels tight and elastic; There are also some lychees with blue color, which may belong to insufficient light or undercooked, so it is best not to eat them.

　　Rumors are better absorbed by eating fruit before meals.

　　truth In fact, eating fruits before or after meals will not affect the digestion and absorption of both nutrients.

　　The main component of fruit is water, followed by a small amount of carbohydrates, protein, fat and a small amount of water-soluble vitamins and minerals. There is no direct correlation between the digestion and absorption of these nutrients and eating dinner. Therefore, you can choose the order of eating fruits according to your personal situation and habits. It should be noted that you should not be greedy or eat more than one kind of food in your diet, let alone overeat.

　　Text/reporter Li Jie

Fantastic Beasts and Where to Find Them’s main creation.

Special feature of 1905 film network There may be such a "Harry Potter fan" around each of us: they are obsessed with the mysterious wand and cool spell used by the protagonist, and have been longing for a magical broom or a snow-white owl pet that flies into the sky, and even look forward to receiving the admission notice of Hogwarts School of Witchcraft and Wizardry year after year … … After the endings of seven original Harry Potter novels and eight adapted movies, many fans cherish that wonderful memory with reluctance and look forward to meeting the wizarding world again as soon as possible.

　

Finally, five years after bidding farewell to the Harry Potter series, a new magician was born in J·K· Rowling’s works, the magical zoologist Newt Scarmand. Although he also graduated from Hogwarts School of Witchcraft and Wizardry, Newt’s legendary experience actually happened in another historical time and space far away from Harry Potter. And this movie, named Fantastic Beasts and Where to Find Them, will also become the door for the audience and the vast number of "fans" to enter a brand-new magical world.

　

In addition to director david yates, the other four masters of this film — — "Little Freckles" Eddie Redmayne, katherine waterston, dan fogler and alison sudol are all newcomers to the wizarding world. Can they Hold this parallel magical world without the "legendary" Harry Potter? 1905 Movie Network chatted with these new magicians, Muggles and david yates, the helm behind the scenes, during the promotional tour of Fantastic Beasts and Where to Find Them in China.

　

"Little Freckle" Eddie Redmayne & katherine waterston

"Little Freckle" Eddie Redmayne & katherine waterston

"As a fan of Harry Potter, acting in Fantastic Animals makes me very stressed."

　

A long time ago, Eddie Redmayne, a newcomer, had hoped to get a role as the Weasley son in Harry Potter through an audition. Although he was not selected in those years, he is now lucky to be the next focus of the wizarding world. Newt, the protagonist of Fantastic Beasts and Where to Find Them, is a magical zoologist who is a bit rash. Eddie admits that he is not very similar to this character: "I am a man with a heavy heart, and Newt’s famous saying is’ Worrying is equal to suffering twice’, and now this sentence has become my motto."

　

Although many years have passed, there are still many people who like Harry Potter. As a work to restart the wizarding world in J·K· Rowling, Fantastic Beasts and Where to Find Them bears many people’s expectations. As the hero of this series, Eddie naturally took on a lot of pressure. However, he said that the differences between Newt and Harry Potter are the attraction of this role, and he hoped that all the unexpected details in the story would eventually become surprises for the audience.

　

1905 Movie Network: As a Muggle, did you experience anything beyond imagination during the filming of Fantastic Beasts and Where to Find Them? Will it be difficult to play a wizard?

　

Katherine waterston: That’s right. If we were magicians, everything would be easy to shoot.

　

Eddie Redmayne: If you can do magic, your whole life will be easy, okay? (Laughter) Shooting "Fantastic Beasts and Where to Find Them" really requires us to use a lot of imagination, but fortunately, the director david yates gave us a lot of help. He and the crew provided many auxiliary tools for the actors, which saved us from worrying too much about imagination. For example, there are many magical creatures in our movies that need CGI post-production, and when shooting, David will find a big dog or a small dog to cooperate with us to complete these scenes.

　

"Fantastic Beasts and Where to Find Them" stills

1905 Movie Network: What is your favorite magic or spell in the movie?

　

Katherine waterston: What I like is actually a very simple magic, that is, my sister Queenie and I prepare dinner for the boys at home. The scene on the day of shooting was actually very magical. We put on aprons hanging in the air in front of the stove, the dining table was decorated by ourselves, and everything really moved in the room. It felt like magic really came. What Alison (the actor who plays Queenie) has done is also very interesting. We can light candles without hands, open the tin foil of the package and taste the food made by "magic" together, which impressed me deeply. I like the teleport spell very much, too. The two of us just like dancing in a country dance, holding hands and disappearing together.

　

1905 Movie Network: Why do you think you were chosen to play this role? Are there any similarities between you?

　

Eddie Redmayne: What every movie wants to convey should have some resonance with your inner thoughts, but many times the characters are not necessarily similar to yours. For example, when I played the wizard Newt, I found that I was actually a person with a heavy heart and often worried, and Newt famously said in Fantastic Beasts and Where to Find Them that "worrying too much is equal to suffering twice". Now this sentence has become my motto, and Newt’s lines have guided my life direction. So it seems that Newt and I are actually quite different.

　

1905 Movie Network: Many fans all over the world still love the story of Harry Potter. As the protagonist of the new magical world, are you worried that people will compare your role with Harry Potter?

　

Eddie Redmayne: Most people in the cast of "Fantastic Beasts and Where to Find Them" should also be fans of the Harry Potter series, so in fact, we are also under great pressure, because as fans, you certainly don’t want to influence or destroy a classic. I think that’s what makes J.K· Rowling great. In Fantastic Beasts and Where to Find Them, she created a magical world that can evoke many past memories, but she also created a completely different new timeline. My character is very different from Harry Potter. Harry Potter is a magical boy chosen by fate and becomes an extraordinary wizard in the story. Newt, however, is just a magician who is very enthusiastic and loves magical animals, which is very different. This is also an important reason why Fantastic Beasts and Where to Find Them and the role attract me, because he is a character who is very unexpected to the audience.

　

"Fantastic Beasts and Where to Find Them" stills

1905 Movie Network: Do you have any expectations for the next sequel to Fantastic Beasts and Where to Find Them?

　

Eddie Redmayne: We have many ideas and even dreams about the sequel! The director and screenwriter have revealed some small details to us, but … … (Can’t spoil the face)

Katherine waterston: Yes, but we haven’t read the script yet, so we don’t know exactly what happened … …

　

1905 Movie Network: So will there be more big magic battles and action scenes?

　

Two people: there will definitely be! We are also looking forward to the upcoming story.

　

1905 Movie Network: Before Fantastic Beasts and Where to Find Them, Eddie was more involved in realistic biographies. Which kind do you like better than the two themes? Which is more difficult to play, the aerial role or the real person?

　

Eddie Redmayne: At first, I thought that this role, because it is fictional in science fiction, may require me to use a lot of imagination to enrich it. In fact, J.K. Rowling described Newt in great detail, which made me feel like I was playing a character in a biopic. In the process of communication with her, she can tell me many little things in Newt’s life in great detail, so I didn’t continue to explore too much in the end, as long as I performed as she outlined. So at present, it seems to me that these characters actually feel quite similar when performing.

Editing/Ren Jiewen/Zhang Yuning

CCTV News:Following Wuxi, Jiangsu Province, cherries imported from a vegetable wholesale market in Shijiazhuang have also tested positive for nucleic acid recently. Shijiazhuang Municipal Market Supervision Administration issued the "Emergency Notice on Suspending Imported Fruits in the City". From January 24th, the food production and business operation units in Shijiazhuang suspended the purchase of imported fruits. The county market supervision and management bureaus carry out comprehensive investigations on the enterprises that store, process, produce and sell imported fruits within their respective jurisdictions, and all the imported fruits sold on shelves in the whole city shall be sealed off the shelves, and all the imported fruits in existing stocks shall be sealed on the spot.

Although Shijiazhuang officially announced on January 25th that after re-inspection of relevant products and personnel, the test results were all negative, and no COVID-19 virus was found. As soon as the news that many imported cherries were positive came out, many consumers were worried that imported cherries could still be eaten with confidence. What does it mean that its nucleic acid test is positive?

Wu Zunyou, chief epidemiologist of China CDC, said that nucleic acid positivity is not the same as infectivity: on the one hand, the temperature of preserved fruits is higher than that of frozen fish and other foods, and the virus has a short survival time at the temperature of preserved fruits; On the other hand, the nucleic acid test is positive, which may be a live virus or a dead virus or virus fragment, and it is not necessarily contagious. Wu Zunyou reminded that as long as you pay attention to hand hygiene and wash with running water before eating fruit, there should be no risk of infection.

Feng Zijian, deputy director of the China Center for Disease Control and Prevention, also said that positive detection does not mean infection with the virus. "It depends on the amount of pollution, and whether the polluted virus is active." Take Wuxi as an example. The imported cherries in Wuxi are positive for nucleic acid, and the virus load is very low, which will not cause too much infection risk to consumers. Feng Zijian said that people engaged in food processing or handling were infected before because they had been exposed to the virus for a long time and many times. For consumers, imported fruits generally do not cause infection, and they can be safely eaten after cleaning.