Zebra consumption model construction

Huawei’s energy is once again reflected in the new M7 and Cyrus.

After the 11-day holiday, the stock price of Celeste has been trading daily for two consecutive trading days, and its market value has once again stood at 100 billion.

At present, the question before Cyrus is, how to maintain stable sales after the release of the new M7? In the longer term, it is the overall profitability of the company.

　

Old bottle and new wine

Since the beginning of this year, due to the continuous sluggish sales of the series of cars in the world, the share price of Sailis (601127.SH) has generally fallen sharply, and once fell to a low of 24.75 yuan on June 8. After that, it briefly bottomed out and then continued to fall sharply.

Until September 12th, the new M7 series in the world was officially listed, which finally added a fire to Celeste. On September 14th and 18th, the company’s share price successively won two daily limit boards. And on September 28, the last trading day before the 11 th holiday, another daily limit was used to close the first three quarters.

The new M7 is really attractive to users in terms of both product and price. On the basis of the original 6-seat version, it adds 5-seat versions, giving users more choices.

Huawei said that it has invested 500 million yuan for the new M7, and has upgraded its safety, intelligence and battery life. The functions of seat ventilation, heating, etc., which were only available on the old M7 models, have become standard in all new models.

Information from all sides shows that the new M7 is sincere to users.

More importantly, while upgrading the product and configuration, the price is cheaper than the old one. There are five configurations of the new M7 in Wenjie, with a guide price of 249,800-329,800 yuan. The starting price is lowered by 40,000 yuan compared with the old M7, and with the limited time discount of 6,000 yuan, the entry threshold becomes lower.

Then, at a time when new energy automobile products are constantly innovating and choosing more diversification, will users pay for the new M7?

As soon as the 11-day holiday was closed, Yu Chengdong, Huawei’s managing director, terminal BG CEO and chairman of smart car solutions, couldn’t wait to report good news to the outside world: "The new M7 in the world was set to hit a new high of 7,000 units on October 6; It has only been listed for 25 days, and the cumulative number has exceeded 50,000 units. "

Stimulated by this, after the holiday, A shares opened for trading, and Cyrus’ share price went up for two consecutive trading days. The company had to make an emergency announcement and give a risk warning.

It is understood that since August 28 this year, Sailis shares have increased by 110.42%. In the same period, Shenwan Automobile Index has increased by 7.28% and Shanghai Composite Index has increased by 0.36%. In fact, the company’s fundamentals have not changed significantly, so there is an obvious risk of overheating market sentiment.

　

(of a doctor) bring the dying back to life

Asked about the hot sale of the new M7 in the world, Yu Chengdong couldn’t help sighing in his circle of friends that "it’s not easy to come back to life!"

In the past, Xiaokang Co., Ltd. (formerly known as Seles) spent several years developing a new energy vehicle, named SERES Seles. In April 2019, Cyrus made its debut at the Shanghai Auto Show, and many people didn’t know who it was.

The following year, Sellers’ first SUV model SF5 went on the market in mass production, and only 732 vehicles were sold in the whole year.

At this time, Huawei appeared, pointing out a new path for Cyrus to build a car together.

With Huawei’s blessing, it instantly became radiant. In 2022, the product was officially released by AITO, and after deep binding with Huawei, it became the fastest growing brand of new energy vehicles.

At the beginning of the release of AITO, it set a proud record of delivering more than 10,000 vehicles for several months in a row, and delivered 75,000 vehicles in 2022.

However, since the beginning of this year, the glory of the world of inquiry has ceased.

According to the production and sales report disclosed by Sailis, in the first half of this year, the cumulative sales of Sailis Automobile (actually a series of models) was only 25,800. Among them, the sales volume of M7 is extremely bleak. According to the data of car home, the monthly sales volume of M7 has been less than 1,000 vehicles since April this year, and it was as low as 432 vehicles in June this year.

The reasons for asking the world to go away are very complicated. Tesla cut prices at the beginning of the year to compete for the market, which triggered a new wave of price cuts for new energy vehicles, which is one of the important reasons.

In the early days, the HarmonyOS cockpit carried by the asking world really won a wave of goodwill from users. However, with the increase of users and the extension of actual use time, many users find that the product strength of the world is not as strong as expected.

The outside world has always had doubts about who AITO belongs to. At the beginning of March this year, the brand official once changed the "AITO asking the world" in the relevant promotional materials to "HUAWEI asking the world", but it was quickly changed back and slapped itself, which further aggravated users’ doubts.

It is in the context of the continuous collapse of sales volume that the press launched the new M7, hoping to make a turnaround.

　

Sustained loss

Formerly known as Xiaokang Co., Ltd., Cyrus used to produce mini commercial vehicles and low-end SUVs of Dongfeng Scenery brand, and its main target users were concentrated in low-tier cities.

In the era of traditional fuel vehicles, the company’s business is not sexy, and the market attention is not high, but with its leading position in the segmentation field, the small life is still good.

In 2016, the company launched the first SUV Scenery 580, with sales exceeding 10,000 for five consecutive months. The following year, the total sales volume of the company’s SUV reached 188,600 units, which directly promoted the annual sales volume of the whole vehicle to reach the peak sales volume of 404,200 units.

It was this year that the company’s operating income exceeded 20 billion yuan, and the net profit returned to the mother also achieved the best performance in history of 725 million yuan.

However, Xiaokang shares only caught up with the brilliant last bus of fuel passenger cars. Soon, the growth rate of passenger car market in China declined to negative growth, competition shifted from incremental to stock era, resources were further concentrated in the head car enterprises, and small and medium-sized car enterprises struggled to survive.

Zhang Xinghai, the head of the company, has a forward-looking strategic vision. Under his leadership, Xiaokang invested and established SF MOTORS in the United States as early as the beginning of 2016 to build new energy vehicles.

Helpless, the car was built and could not be sold. Until the emergence of Huawei. In 2021, the company changed its name, demonstrating the determination of strategic transformation.

Cooperating with Huawei to build a car, not only the products sold well, but also the company’s share price soared due to the blessing of Huawei concept. In June last year, it once reached a historical high of 90.50 yuan, and its market value exceeded 100 billion.

With the increase of product sales, the company’s operating income has increased significantly. From 14.30 billion yuan in 2020 to 34.10 billion yuan in 2022, the loss also further increased, from-1.729 billion yuan to-3.832 billion yuan.

In the first half of this year, the company’s growth momentum came to an abrupt end, and its operating income fell by 11.14% year-on-year to 11.03 billion yuan, and it continued to lose 1.344 billion yuan.

First financial news, AITO is speeding up the listing of new cars. Huawei Terminal announced on September 10th that it will release the new M7 five-seat car on September 12th. With the release of new cars, the matrix of AITO vehicles will include M5, M5 pure electric version, M5 intelligent driving version, M5 pure electric intelligent driving version, M7 and M7, and it is planned to release M9 in the fourth quarter.

AITO Wenjie is a brand jointly launched by Huawei and Cyrus. At present, there is a big gap between the sales volume of the industry and the new force of making cars on the head. As a representative of Huawei’s intelligent car selection model, Huawei urgently needs to prove its ability to ask for cars.

In August, the sales of nine new car-making forces, including Ai ‘an, Ideality, Weilai and Deep Blue, all exceeded 10,000, and the delivery volume of AITO was 5,018.

In the case of sluggish sales in the world, Huawei’s auto business has shown signs of being more enterprising recently. In addition to speeding up the listing of new cars, in June this year, Huawei also received 21 "Jiejie" trademarks, which was interpreted by the industry as that Huawei will have the leading role in Jiejie trademarks and become a unified brand name for Huawei’s smart car selection model in the future. In July, the "AITO Joint Working Group on Marketing and Service" set up by Cyrus Auto and Huawei began to be fully responsible for the end-to-end closed-loop management of marketing, sales, delivery, service and channels, marking the strengthening of cooperation between the two parties. From the perspective of products in the second half of the year, the new M7 and M9 models are undoubtedly the most concerned.

Cross-border sales are under pressure

Yu Chengdong, managing director of Huawei, CEO of BG and CEO of BU, a smart car solution, has previously revealed some information about the new M7 model. According to Weibo, the model has 3338mm interior space and 686L trunk volume. Yu Chengdong also highlighted the safety attributes of the new M7. In addition, the M9 full-size SUV will also be launched at the end of the year.

The launch of new cars is very important for the international community to boost sales. Since the beginning of this year, international sales have been under pressure. According to the production and sales data of Celestial, the sales of Celestial cars in July and August this year dropped by 45.69% and 67.52% year-on-year, which contributed to the year-on-year decline in sales in the first eight months of this year. The reporter learned from the Celestial Securities Department that in its production and sales express, the source of Celestial automobile sales is mainly from the world.

"In the first quarter, the promotion of the automobile industry caused users to have a wait-and-see mood. The user’s expectation that the M5 version will be released in the second quarter has a certain impact on the sales of existing models." Cyrus explained the reason for the decline in sales in the first half of the financial report.

AITO WeChat official account also stopped disclosing monthly delivery this year. According to the scattered data, AITO delivered 4,585 new cars in April this year, 5,629 in May and 5,018 in August, and there is no good news that the monthly delivery has exceeded 10,000. Compared with last August, the delivery volume of the industry exceeded 10,000 vehicles, reaching a peak of 12,000 vehicles in October.

According to the data of the Association, in the ranking of wholesale sales of new energy passenger cars in August this year, Sailis sold 5,018 vehicles, which did not rank among the 20, lagging behind the new car-making forces with monthly sales exceeding 10,000, such as Guangzhou Automobile Ai ‘an, Ideality, Weilai, Zero Run, Tucki and Nezha.

While the sales volume problem is anxious, Cyrus and Huawei have not tasted the sweetness in performance since the delivery. In 2022, thanks to the higher selling price of M5 and M7 and the increase in sales volume, the revenue of Cyrus doubled year-on-year. However, due to the increase in sales expenses and investment in R&D, the loss doubled year-on-year, reaching 3.832 billion yuan. In the first half of this year, Cyrus did not turn losses, and its revenue also decreased by 11.14% year-on-year.

It is also doubtful how much performance increment the car business can bring to Huawei. In 2022, Huawei’s smart car solution business revenue was 2.077 billion yuan, accounting for only 0.3% of the total revenue. If the cumulative investment of smart car solution BU is 3 billion US dollars, the business is still losing money. In the first half of this year, the smart car solution business revenue was 1 billion yuan, equivalent to half of last year’s annual revenue, and it seems to be standing still.

Yu Chengdong is under a lot of pressure whether it can bring the sales volume of the industry together and set a benchmark for Huawei’s car business. Since the beginning of this year, Yu Chengdong has been a frequent platform for the world, and its Weibo has twice mentioned that it has spent a lot of money on the new M7 model, saying that this model has "newly invested 100 million yuan to upgrade its interior and exterior" and "spent 500 million yuan to upgrade and build it". In July, Yu Chengdong warmed up the new M7 at the exchange meeting with distributors and suppliers, and in August, he appeared at Chengdu Station to promote the model.

Regarding the sales volume, Yu Chengdong previously responded that the sales volume is only the result of a certain development stage, and what is reflected behind it is actually the relationship with users. Due to lack of experience and experience, I took some detours. At this time, I need to give full play to my own advantages, be determined, and insist on making the ultimate products. Yu Chengdong revealed that in the face of external shocks, the company will speed up improvement, such as optimization in retail, service, delivery and other fields this year, and at the same time optimize the mechanism, increase unannounced visits to stores and other means to enhance the overall service capacity.

Adjustment of cooperative relationship

Since the beginning of this year, it has been frequently speculated that Huawei is devoting itself to building cars, and there are even rumors that Huawei BU wants to seek independence. The root cause of the rumors is that Huawei’s car business has not brought obvious increase and its development prospects are still unclear. In fact, outside Celeste, which has the deepest cooperation with Huawei, many car companies are considering cooperation with Huawei, and the cooperation relationship has undergone adjustment.

At present, the cooperation between Huawei and car companies is divided into three categories, namely vertical parts supply, HI(HuaweiInside) and Huawei Intelligent Selection. HI mode provides full-stack smart car solutions for car companies, and Huawei Intelligent Selection mode is deeply involved in product definition, styling design, marketing and user experience. The cooperation depth of these three models is from shallow to deep.

In the cooperation between car companies and technology manufacturers, who has the "soul" is a controversial issue, especially for Huawei, which has always been strong in product control, car companies will inevitably choose carefully. Some auto industry analysts told reporters that with the competition of new energy vehicles entering the second half, profits will gradually tilt towards electronicization and intelligence, and automakers are wary of cooperation with technology manufacturers.

In March this year, Guangzhou Automobile Ai ‘an AH8 project changed its HI cooperation mode with Huawei and changed it into a component supplier mode. AH8 will be independently developed by Ai ‘an. Some car companies have made two preparations. In April this year, the cooperation mode between BAIC Extreme Fox and Huawei changed from HI mode to intelligent car selection mode. At the same time, BAIC started its own research. At the end of August, Beiqi polar fox koala opened for pre-sale, and this model is positioned as the world’s first smart parent-child car. The reporter learned from Beiqi Blue Valley Securities Department that koala has no cooperation with Huawei. In addition, Chery, Jianghuai and Huawei have cooperated in car selection. Among them, Chery and Huawei have jointly launched a number of smart electric vehicles, and Chery is also developing an independent new energy brand iCAR.

Huawei is aware of the challenges it faces. At the "China Electric Vehicle committee of 100 Forum 2023" in April this year, Yu Chengdong said frankly that among domestic partners, new forces are unlikely to choose Huawei intellectually, international giants will not choose it for some reason, and traditional car companies will not choose it if they are afraid of losing their souls, which makes Huawei face great challenges.

Even in the face of the dynamic adjustment of the cooperative relationship with car companies, in recent years, when Huawei emphasized the stability of cash flow and gave up heavy assets to enter the automobile production, Huawei still responded many times and denied the path of building cars independently. At the beginning of this year, Ren Zhengfei, founder and CEO of HUAWEI, issued a decision announcement, stressing that "Huawei" or "Huawei" should not be used in vehicle promotion and appearance, and the time limit of "Huawei does not build cars" should be extended by five years.

Under this circumstance, in the limited cooperation with car companies, how Huawei can achieve the maximum benefit and the most ideal commercialization goal has become a core issue. In August, it was reported that Huawei made strategic adjustments to its BU business to reduce investment in non-core business and put money to the cutting edge. However, Huawei officials did not respond to this news.

In terms of business strategy, in the foreseeable time, the high probability of asking the world will still be the most important force point of Huawei’s car business. The new M7 and M9, which will be released on the 12th, will become the biggest concern of the international community in the second half of the year.

Original title: Q will release the new M7 model. How long will Huawei "build a car" window?

　 　 Special feature of 1905 film network The constantly fermenting divorce in Wang Baoqiang is the first headline in the entertainment circle in 2016. It not only occupied the social media in China, but also "ended" the Rio Olympic Games in advance and even went to the BBC’s official website homepage — — According to BBC statistics, the topic of Wang Baoqiang’s divorce has been viewed more than five billion times. At present, the whole people are paying attention to the progress of Wang Baoqiang’s divorce, waiting for the day when the truth comes out.

Wang Baoqiang is very haggard recently.

Arrogant sprinkling salt　娱乐至死

　 　 But at this time, there are always people who want to make some money by taking advantage of the heat of this incident.

　 　 Just today, a group of movie scripts and boot photos called "Baby Don’t Cry" were exposed.There is not only the scene of rape in the script, but also the content of property distribution by lawyers, and even the names of several parties have not changed!

　 　 The move was met with indignation.Actor Gan Wei.Rage and boycott, and called on the whole network to boycott together. After all, this is Wang Baoqiang’s family affair, and it is really unconscionable and reprehensible to use it as a means of making profits regardless of the consequences.

　

Screenshot of Nandu Weibo

Screenshot of Gan Wei Weibo

　

　 　 Since Gan Wei,Letv videoAfter Weibo boycotted,YoukuIt also means that the film will not be played and the film will be banned.

　 　 A Mei once sang a lyric written by Taiwan Province lyricist Wu Yukang: Don’t let yesterday sprinkle salt on your wound — — Today, when everyone knows that you are injured, but someone has to put salt on your wound? Even before sprinkling salt, we should write a first draft of the salt sprinkling script, hold a "opening ceremony", and then call everyone to come and watch his "achievements" of sprinkling salt.

　 　 I can only send him this kind of person ↓

Follow the trend and get addicted to the cottage.

　 　 As the saying goes, even pigs can fly when standing on the tuyere. In recent years, some low-cost, short-term production and low-threshold online movies have become synonymous with "shanzhai" in addition to following the news hotspots.

　

　 　 Take Wang Baoqiang’s works as an example. The cinema film "Taoist Down the Mountain" starring him and directed by Chen Kaige invested 200 million yuan and took 9 months to shoot. However, an online movie called "The Taoist Out of the Mountain" only took 280,000 yuan to write a script for a week, plus 10 days of preparation, 10 days of shooting and 10 to 12 days of post-production. It took only over a month before and after filming, and the cost was recovered in two days after it was launched. The whole network earned more than 3 million yuan, and the return on investment was nearly ten times. This is probably a million profits that traditional cinema films can’t imagine.

Wang Baoqiang starred in "Taoist Down the Mountain"

The online movie "Taoist Mountain" is shoddy.

　

　 　 On August 12th, the online video broadcast "Smiling Weird" was just like the popularity of "Love O2O" which was shown in the cinema on the same day. With pervert, murder, pleasure, orgasm and nudity as propaganda words, it tried every means to attract the audience’s attention.

"It’s weird to smile" rubs the heat of "Love O2O"

　

　 　 Such as Descendants of the Moon, Goodbye Mermaid, Aussie, Return of the Pen Fairy, Pan Jinlian is me, She is Pan Jinlian, I am Pan Jinlian … … With the title of the film, the following, ambiguity, misunderstanding and clinging of Chinese characters are exhausted, which simply rubs the last trace of heat.

The online movie "She is Pan Jinlian" and Xiaogang Feng’s work "I am not Pan Jinlian" both involve Pan Jinlian.

　

　 　 Fortunately, by this year, it has been difficult to replicate the miracle of "empty gloves and white wolves" by referring to online movies made with "low cost and short cycle". Many "players" who want to make quick money by gimmicks, scales and shanzhai have gradually lost their foothold in the market. This is undoubtedly something to be thankful for.

National carnival moral feast

　 　 Since Wang Baoqiang’s divorce, the major online media have become entertainment venues for gossiping for a while. You have been chasing after me all night to squeeze all relevant "r evelations", "insider" and "truth" into all visible places, just like a group of chefs who can’t find ingredients suddenly find fresh ingredients that are at their fingertips, and they all turn the "fire" to the most prosperous and set up a "table" for morality. As for the prizes of this entertainment Olympic Games, they are clicks, comments and reposts that are directly linked to the money gains.

　

　 　 诚然，就地取材烧火做菜是大厨的工作，正如跟踪报道娱乐八卦是记者的工作一样，无可厚非。但当酒席将散时，有个人突然站起身来，拿起碗里自己“吃剩”的“骨头”举到面前大声说，“我用这玩意给大家再蒸个排骨尝尝啊”时，估计只能倒人胃口。

　 　 毕竟，娱乐圈的事，就一定要娱乐至死吗？家里的事，就一定要跟风到家吗？

　 　 “低俗不是通俗，欲望不代表希望，单纯感官娱乐不等於精神快乐”；“有的是非不分、善恶不辨、以丑为美，过度渲染社会阴暗面；有的搜奇猎艳、一味媚俗、低级趣味，把作品当作追逐利益的‘摇钱树’，当作感官刺激的‘摇头丸’；有的胡编乱写、粗制滥造、牵强附会，制造了一些文化‘垃圾’”；“文艺不能当市场的奴隶，不要沾满了铜臭气。”

　

　 　 上面者段话是习大大在文艺座谈会上的发言，值得每个人读一读，每一个文艺工作者学一学。

The following are my opinions on several popular millet K series:

First, let’s take a look at Xiaomi (MI) Extreme Edition. This mobile phone is equipped with top-class Tianji 9200+ processor and independent display chip X7, which provides excellent running speed and image quality. With the combination of 1.5K direct screen and large storage capacity, it is an ideal choice for gamers. It is worth noting that this mobile phone has sold more than 5,000 units in the past month, showing strong market competitiveness.

Next, we will introduce the new mobile phone of Xiaomi Redmi K50 Pro 5G. With a 2K flexible straight screen and an oversized 12GB RAM+256GB ROM configuration, this device is first-class in visual effect and performance. The 100-megapixel rear camera and 20-megapixel front lens can meet the professional needs of photographers. At the same time, the fast charging function above 120W makes the power supply quick and convenient. In order to ensure a long-term and stable working environment, the mobile phone also uses a three-dimensional cooling solution.

Then let’s take a look at Xiaomi Redmi Redmi K60. As a brand-new 5G mobile phone, it features ink feather color matching and is equipped with Qualcomm Snapdragon 8+ Gen 1 processor, so its strength cannot be underestimated. It is worth mentioning that this mobile phone introduces liquid cooling technology, which can maintain good performance even in the face of high temperature. In addition, the 5000mAh battery with 30W wireless charging fully solves the user’s electricity anxiety problem.

Let’s pay attention to Xiaomi Redmi Redmi K60E again. Although there are some differences compared with the first two models, such as lack of liquid cooling technology and eye protection certification, the performance in other aspects is still remarkable. For example, it still continues the ink feather color matching, and its internal configuration has reached the standard of 12GB RAM+512GB ROM.

Finally, I want to mention the "quick spot" Xiaomi Redmi Redmi K50 Extreme Edition Ultra 5G mobile phone. The biggest selling point of this mobile phone is undoubtedly its luxurious hardware configuration: a large memory combination of 12GB RAM+512GB ROM and a 100-megapixel main camera, so that users don’t have to worry about being stuck or blurred when operating. More surprisingly, it also supports high-speed charging of 120-150W, which greatly reduces the time required for charging. To sum up, these products are quite competitive in the market. No matter whether you pay attention to performance or long-lasting battery life, you can always find your favorite choice.

　　[car home domestic spy photos] Recently, we got a set of interior spy photos of Haval’s brand-new plug-in hybrid SUV "(|)" from netizens. From the photos, we can see that this car will have three central control screens, and its configuration and sense of technology are very good.

---

　　Friendly reminder:I hope enthusiastic netizens can photograph the spy photos of your new car and send them to our corresponding mailbox: diezhao@autohome.com.cn. I look forward to your letter and become a member of the "spy".

---

　　The interior of this car is photographed in black and white, and the overall look is quite simple and refreshing. And as can be seen from the picture, there is a huge screen on the center console, which we expect will bring a good entertainment experience to the co-pilot position.

　Below the center console, the physical buttons of new cars are mainly concentrated here, and the number is also small, which is consistent with the design trend of "big screen, few buttons" of current models. In addition, you can also see two mobile phone wireless charging areas. Similarly, according to the current trend, these two charging panels may support 50 watts of wireless fast charging.

　　When you come to the back row, you can see that there is an air conditioning air outlet in the back row of the car, but it is not a version with adjustable independent temperature zone, and a USB charging interface configuration will be placed under the air outlet. In addition, judging from the pictures taken, the performance of the rear space of the car should also be good, and the floor is relatively flat.

　　According to the declaration map we obtained from the Ministry of Industry and Information Technology, the design of the new car is different from that of the current Haval model. The 7-shaped headlights are very unique, with a borderless front grille, which highlights the sense of technology. In addition, the new car has a more wild front face to choose from, and the style is more changeable. In terms of body size, the length/width/height of the new car are 4758(4771)/1895/1725mm respectively, and the wheelbase is 2800mm, or it is positioned as a medium-sized SUV.

　　In terms of power, the new car is equipped with a plug-in hybrid system consisting of a 1.5L engine and a motor, in which the maximum power of the engine is 85kW. The battery is the ternary lithium battery of Guoxuan Hi-Tech. From the tail mark, the new car or lemon DHT technology equipped with the Great Wall is expected to have a good performance in fuel consumption. We will continue to pay attention to more news about the new car. (Text/car home Luo Aoyu)

() 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.

On April 17, Cyrus announced that the company had been informed that Zhou Changling, the director of the company, had recently increased his holdings of the company’s shares by means of centralized bidding, which violated the relevant regulations that it was not allowed to buy or sell the company’s shares during the window period. After receiving the notice, the board of directors of the company immediately checked this matter. Mr. Zhou Changling bought 1,000 shares of the company on April 15th, 2024, and this increase was in the window of annual report, which violated the Rules for the Management of Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes.

In addition, Zhou Changling, the director, declared that there was no case of trading the company’s shares because of insider information, and there was no case of using insider information to seek benefits, and there was no subjective violation. I have deeply realized the seriousness of the above-mentioned illegal transactions, and I sincerely apologize to the company and investors for the adverse impact on the company and the market!

Jin and Liu Cuiping are discussing how to make a video with traffic.

After 6 o’clock in the morning on September 27, just after picking figs, gold was broadcast live.

　　"Have you increased your powder recently?" They greet each other like this.

　　Gold grows figs and Liu Cuiping raises peacocks. The base of the two people is on a hill, less than 1 km apart, but they rarely see each other.

　　At noon on September 27th, they met unexpectedly in Zhangfei North Road and sat down for lunch by the roadside.

　　Both of them were born in 1986. Two years ago, Gold was the senior operation manager of the glory of the king Mobile Games, with an annual salary of one million. Three years ago, Liu Cuiping was still engaged in real estate sales in Beijing and opened a real estate sales company in Guangyuan, Sichuan, which also earned a lot of money.

　　Then, why did they suddenly transform and return to their hometown to become farmers? To this end, Chengdu Business Daily-Red Star journalists conducted an in-depth interview with them.

　　run

　　Using short video platform overhead path

　　I am most concerned about "Is it getting pink recently?"

　　Seven or eight kilometers away from Langzhong City, Sichuan Province, National Highway 212 passes through a mountain pass, to the left is Liu Cuiping’s peacock farm, and to the right is the golden fig base.

　　On September 27th, Jin got up at 4am and picked figs with his brother and sister-in-law and four villagers invited. The weather is cold and the dew is heavy. You must wear rain boots when going to the fields. But the grass is deep and leafy, and the trouser legs are still wet with dew.

　　As soon as the fruit was picked, it was immediately repackaged and sent to more than 10 stalls in the city at 7 o’clock on time. After 9 o’clock, he drove the van to send the figs ordered online to the courier company for delivery.

　　On Zhangfei North Road, it was Liu Cuiping who stepped on the brake and opened the door. Liu Cuiping is preparing a PPT for a speech. When she meets gold, she wants to "ask for help".

　　But when they met, they first asked, "Is it pink?"

　　"It has risen by more than 10,000 this month. What about you?"

　　Liu Cuiping plays Tik Tok, and Gold plays Aauto Quicker, and they all shoot short videos. The video of Liu Cuiping holding a peacock for praise has more than 2 million clicks. This is her most "hot" video. It has only been three or four months since she officially updated the vibrato video. At present, there are 30,000 fans, and her goal is to reach 300,000 fans in two years.

　　Gold’s Aauto Quicker account has also been opened for several months, but its popularity is much slower, but he thinks his fan conversion rate is better. Gold also posts in forums such as Aika and Tianya, which are updated every day and broadcast live in Aauto Quicker. The fans of several platforms add up to tens of thousands.

　　"The conversion rate is high because my figs are cheaper." Gold says that a box of figs costs only tens of yuan, while a peacock egg costs 100 yuan, and a peacock costs 2,000 yuan. Not everyone can afford it.

　　In addition to shooting short videos, Liu Cuiping also does live broadcasts. Compared with gold, she is fully equipped, bought a tripod and a live microphone that can fill the light.

　　When she broadcast live, she introduced her own farm, peacock and pheasant. Some netizens left a message in the live broadcast room, "Sister Peacock, sing a song." She giggled and told people that "Sister Peacock doesn’t sell art, she only sells peacocks". She is sweet and lovely, and 80% of the live broadcast rooms are male netizens.

　　Just after picking, the gold was also broadcast live, eating figs live, how to sort and package, how to plant them, and introducing that the orchard with weeds has not used herbicides and fertilizers. A netizen entered the live broadcast room, and he greeted him next to him. "Come, welcome the old irons … …”

　　On the morning of September 27th, there were only more than 10 online viewers in the live broadcast room. He said that it was very touching that someone came to watch my live broadcast so early. In the live broadcast room, some people asked to buy fruit, and some people asked to buy seedlings … … He answered patiently one by one.

　　After a little leisure, he would sit on the ridge and look up at the sky, lost in thought. In this state, he also made his own Aauto Quicker video, and he often posted it late into the night in the forum, recording in detail his own figs in the past two years. He said that he "sucked powder" by sincerity and hard work.

　　In this regard, Liu Cuiping has another view. She said that she should be "new, strange and unique, and she should seize the audience in the first three seconds" and "sometimes she has to be thick-skinned" … … As soon as she shook her hair, she acted like a wait for a while, then turned and walked into the pheasant pen and went to catch the pheasant with open arms. She told Jin, who was holding a mobile phone, that she must shoot a feeling of "very dragging".

　　one’s original intention

　　I’m afraid I won’t have the strength to re-plan the future in a few years.

　　Under the hill, it is Jingu Village in Shaxi Street. Grapes and peaches are planted in the village, which has long been a piece of scale, and some people have invested in building luxurious farmhouses. The local government is also trying to build the village into a cultural tourism project with drainage ability around the ancient city of Langzhong.

　　At first, Gold "quietly returned to the village", and contacted a familiar village cadre for consultation. The other party directly advised him not to come back.

　　When Jin was a child, his family was poor. He was the first college student in the village to be admitted to an undergraduate course, and he made a fortune in a big city. He worked in Tencent with an annual salary of one million, so everyone should give a thumbs up.

　　Come back to farm, everyone thinks this choice is unwise. In April 2017, he began to come back to see the land. It was not until October that he officially signed a 100-mu land transfer contract with Murakami that he told his brother and sister-in-law who were working outside. Brother Huang Jun became angry with his younger brother, but it was too late to stop him.

　　Gold left five years’ living expenses for his wife and children, and returned to the village with 2 million savings and a quilt. He said that if he couldn’t do it in five years, he would admit it and then go back to Chengdu to continue to find a job.

　　In fact, at that time, he was planning to start a technology company with several partners. Deng Jia, his former colleague in Tencent, told the reporter that he was shocked when Jin told him that he was going to plant fruit. This colleague, who runs games and deals with data and players every day, "crossed the border too much". But now he sees the marketing of gold to his orchard, and he still feels the shadow of his Internet days.

　　Liu Cuiping started to do real estate sales in Beijing. After resigning, she ran a real estate sales company in Guangyuan, Sichuan for several years, and the income was very good.

　　In 2016, she came back to raise peacocks. Its farm, located in Wufeng Village, Shaxi Street, was the house and land that my uncle bought when raising silkworms. When my uncle stopped raising silkworms, she took the site from my uncle.

　　Over the past three years, Liu Cuiping’s peacock farm has invested more than 2 million yuan. At present, it is far from returning to the original, and the monthly income and expenditure can only be basically the same. Liu Cuiping said that she has suffered a lot in recent years. Last time a TV station interviewed her and talked about these bitterness, she cried herself.

　　Speaking of the original intention of starting a business, Liu Cuiping laughed and said that it was "hot head" at that time. Gold’s understanding of "fever" is that he is about 30 years old and wants to re-plan his future. "A few years later, I am afraid that I will not have this strength."

　　future

　　Representatives of new professional farmers hope to lead more villagers to find a good way out.

　　In April 2017, Jin resigned from the game company, took his wife and children for a trip, and then officially returned to his hometown to bury his head in farming. He is extremely low-key and afraid to contact his colleagues and friends in the past. For a whole year, his circle of friends has not updated his movements. He is afraid of failure and "criticism", which many people don’t understand and he doesn’t want to explain to others.

　　It was not until the end of May 2018 that the orchard began to bear fruit that he took a group of photos in the circle of friends and introduced himself as "one year of silence, intensive cultivation in October, 100 acres of orchard … …” Friends just "watched", and there were more than 200 comments and praises at once.

　　A neighbor wanted to invest in planting with him, but he refused. "At that time, he had no bottom in his heart." He was afraid of losing money. "All this money was saved by their frugality." In the Spring Festival of 2019, he began to introduce his orchard and his long-term planning to the villagers. At present, he has received phone calls from seven villagers, saying that he will plant figs this winter and ask him for seedlings.

　　Liao Youjun, who works in Shenzhen, is a primary school classmate of Gold. He said that when Gold came back, it was hard for him to understand that he had to give up such a good job and come back to farm as a farmer. When he came home for the Spring Festival this year, he saw Jin "pulling branches and tying strings" alone in the field. He really looked like a farmer, but he was impressed. He has been working in Shenzhen for more than 10 years, but he feels that he will return to his hometown sooner or later, so he is considering planting figs with gold. "Just next to his orchard, start with a few acres of land and step by step."

　　Jin said that he expects to recover the cost next year, but the goal is far from being achieved. His ideal is that the whole village will plant figs, so he desperately does online marketing. Langzhong City can digest 1,000 Jin of figs a day, and its own 100 mu can be sold locally, but if more villagers plant them, he will try to sell them to distant places.

　　Liu Cuiping also sells her own pheasant seedlings and peacock seedlings online. Recently, she is preparing to open a peacock noodle restaurant in Langzhong ancient city, where peacock handicrafts and peacock eggs are displayed and sold offline. She spared no effort to "raise the powder", but also felt that with more fans, she could "bring goods" and drive other villagers to raise them.

　　Tan Chaolin, the stationmaster of the Science and Education Station of Langzhong Agriculture and Rural Bureau, is familiar with gold. He said that gold moved him and made him admire. This young man has confidence, determination and ways. His internet work experience made him do a very good job in marketing. The Agricultural and Rural Bureau specially invited him to give lectures. He was sent to Sichuan Agricultural University to study before. As a result, when he introduced his experience, he suddenly became a "lecturer".

　　In Tan Chaolin’s view, under the background of rural revitalization strategy, gold is a typical representative of new professional farmers. Tan Chaolin said that he is also very confident in the fig of gold, and the relevant government units will also give strong support to this project, so that gold can play a leading role in the local area.

　　Regarding online marketing, Liu Cuiping is also deeply touched. In the past six months, she has traveled to three provinces and five cities, all of which are for investigation and study, some at her own expense, and some are organized by the government. She said that in Yiwu, you can find various anchors and online celebrity by searching people nearby on WeChat, but in Langzhong, the marketing of traditional industries is still in the traditional routine.

　　At the gate of Liu Cuiping’s farm, there are several government-made signs, and the local government also strongly hopes that they will take the lead and lead more villagers to find a good way out.

Original taoran AI lanmeihui

Author | Tao Ran Wei Xiao

Finally, with the familiar Xiaomi BGM ringing, Lei Jun in a suit and tie went to the center of the stage of Xiaomi SU7 conference.

In the audience, the front row are the heads of five automobile companies-Li Bin, He Xiaopeng, Li Xiang, Wei Jianjun and Zhang Jianyong.

Of course, there is also the concern of the rim and even the whole network-the three-year period has arrived, and Lei Jun has to hand in his homework.

The highlight is that everyone guessed the price for several months: Xiaomi SU7 standard version is 215,900 yuan, PRO version is 245,900 yuan, and MAX version is 299,900 yuan.

The audience exclaimed.

However, Lei Jun is still a little careful. He made so many preparations in the early stage and asked everyone to spray lightly if they have any opinions.

The logic of benchmarking with Tesla Model 3 and Porsche Taycan is very millet and honest.

Insufficient places, do not shy away. But at the same time, I am very confident. When talking about core competitiveness such as intelligent ecology and other higher configuration performance, the platform shouted "far ahead" and then quickly "floated, floated".

However, the sales data undoubtedly gave Xiaomi and Lei Jun a shot in the arm: only 27 minutes after the sale, Xiaomi SU 7 has exceeded 50,000 units.

Lei Jun is still the Lei Jun who lived up to expectations.

After the release of SU7, his last venture also entered a new chapter.

It is certainly difficult to achieve the goal that Xiaomi Automobile will hit the top five global car companies in 15-20 years, but Lei Jun has already taken the first step.

And this first step is a long-lost bombing of the car circle.

Lift the table

Lei Jun was very straightforward on the stage: Xiaomi SU7 was made according to Tesla Model 3.

But in fact, it only includes the standard version and the Pro version: the former configuration is basically the same as the Tesla Model 3 rear-drive version, but the price of 215,900 is 30,000 lower than that of Tesla (245,900), and the parameters of the latter are almost all-round. Rolling the rear-drive Model 3, the price is completely equal to it.

As for the Xiaomi SU7 Max version with a price of 299,900 yuan, Lei Jun said that he wanted to target Porsche Taycan and "leapfrog the benchmark".

Without the 300,000+previously speculated, after the momentum of the rim rushing to lift the millet table passed, Lei Jun used a set of pricing of 21.59-29.99 to lift the biggest one.

In the series of "Lei Jun answers questions from netizens" released some time ago, the top leader of Xiaomi Automobile said that he is a Tesla owner and a Porsche owner, and called the two car companies "time benchmarks" in the history of electric vehicles and sports cars.

However, he also stressed that if Xiaomi wants to build a car, it must be compared with these best car factories in the world: "There must be some places where they do well, and some places where we do well."

Today’s press conference, after pricing and configuration overwhelmed Model 3, Lei Jun mentioned Porsche and once again stressed that dare to compete is to win, and it will definitely surpass it in the future.

Very excited and confident.

Xiaomi SU7 is positioned as a "pure electric luxury car", and Lei Jun’s goal is to become "the best looking, best driving and most intelligent car within 500,000". In addition to Model 3 on PPT, there are actually P7 from Tucki and ET5 from Weilai.

Judging from the official pricing, the current dealer quotation of the latest Model 3 is 245,900-285,900, with 245,900 rear drives and 285,900 long-life four-wheel drives. The price ranges of Tucki P7 and Weilai ET5 are 20.99-339,900 and 298-356,000 respectively, which are almost overlapping.

As for the configuration and performance, as Lei Jun said, it is far ahead-taking the comparison between the new version of Model 3 and the standard version of SU7 as an example, in terms of performance, Model 3 has an acceleration of 6.1s, a peak power of 194kW, a total torque of 340N·m, and a pure electric cruising range of CLTC of 713km. The four data of Xiaomi SU 7 standard edition are 5.28s, 220kW, 400N·m and 700km, which are almost completely beyond the parameter level.

The only two shortcomings that have been circled are: first, the power consumption of 100 kilometers, Xiaomi’s 12.3kWh/100Km lags behind Tesla’s 11.3kWh/100Km, but Lei Jun said that the SU7 battery is bigger and the cruising range is longer when actually used; The other is intelligent driving and computing power, which Tesla leads by a wide margin, but Lei Jun thinks that Xiaomi’s intelligent driving system will be more suitable for the drivers’ physique in China and the domestic road system.

Obviously, Lei Jun is well prepared for the pure electric car market in the range of 200,000-300,000. Just, I don’t know how He Xiaopeng and Li Bin sitting in the audience feel now, where is the way out for P7 and ET5, and how to play the next generation products.

And, Musk on the other side of the ocean will take a look at Xiaomi SU7 with the time difference.

Create another millet

With the release of SU7, Xiaomi also officially entered the new energy track.

The role of Lei Jun has also changed significantly. It used to be Reebs, but now it is Reske. Looking around the world, only Lei Jun has managed to personally grasp the two mainstream smart consumer goods "mobile phone" and "car".

There are no tricks in the process.

In three years, 3,400 engineers spent more than 10 billion yuan on research and development, and of course, the model worker Lei Jun went all out.

The financial report shows that in 2023, Xiaomi invested as much as 19.1 billion in research and development, and it is expected to reach 24 billion in 2024. In innovative businesses such as automobiles, Xiaomi invested 6.7 billion yuan last year. In the words of Lei Jun, he used real money to express his attitude of seriously building cars.

Yes, only by building a car seriously can we get admission tickets. Lei Jun has a clear understanding of this.

Now that Xiaomi Automobile has officially entered the market, Xiaomi has formed a pattern of two-wheel development of the original Xiaomi basic disk and Xiaomi Automobile.

For Xiaomi, this is a brand-new stage of development, and it can even be said that it is an opportunity to recreate a millet.

More than a decade ago, Lei Jun stood on the cusp of smart phones and built a millet with a market value of 100 billion. In the new decade, Lei Jun has put all his accumulated achievements and reputation in life to catch up with the new energy vehicles.

This is Lei Jun’s last venture, and the imagination space is also on the scale of 100 billion.

There are opportunities as well as challenges, depending on whether Xiaomi SU7 can make the first shot.

Lanmeih/ Today’s Topic

Xiaomi SU7, do you have a crush?

Original title: "Xiaomi SU7 21.59, Lei Jun became the man who smashed the table"

Read the original text

Dutch brother, Jake Gyllenhaal and Jacob Bartrand laughed heartily.

The main creative team of the film Spider-Man: Heroic Expedition, jointly produced by American Columbia Pictures and Marvel Pictures, recently appeared at CCXP in Sao Paulo, Brazil. Actors Tom Holland, Jake Gyllenhaal and Jacob Bartrand attended the event. There was not only close interaction between the main creator and the fans, but also a number of movie materials were released. The new version of Spider-Man’s battle dress was cool and exquisite, and the first trailer was full of material. During the trip to Brazil, the filmmakers were full of sincerity.

Dutch brother, Jake Gyllenhaal and Jacob Bartrand danced live.

Spider-Man’s surprise at the comic exhibition continued, and Dutch brother’s impromptu dance smashed the audience.

The movie Spider-Man: Heroic Expedition recently appeared in the Comic-Con in Sao Paulo, Brazil. This time, the official sent three important roles-Tom Holland, the new version of Spider-Man, Jake Gyllenhaal, the secret guest, and Jacob Bartrand, Spider-Man’s friend Ned. The three leading actors interacted closely with fans at the press conference, and performed an impromptu dance with the famous song September by the famous band Earth, wind&fire, and the atmosphere was instantly ignited.

It is worth mentioning that Tom Holland released a selfie video during the exhibition. At the end of the video, he actually caught Jake Gyllenhaal practicing Spider-Man’s spinning, as if he was playing a spider but was discovered by the owner. Tom froze for a few seconds, then smiled smugly, while Jake Gyllenhaal on the other side closed the door awkwardly. Jake Gyllenhaal is a well-known movie star in Hollywood. He has starred in many blockbusters, including Brokeback Mountain and Source Code. In Spider-Man: Heroic Expedition, he will play the mysterious guest in Spider-Man’s sworn enemy "The Evil Six".

Spider-Man new battle suit

Heavy notice, on-site release of new battle clothes, surprise appearance

In addition to the interaction of the creative team, the film also released two new versions of Spider-Man battle clothes. The first edition is a classic red and blue color matching suit, which is more refined and slim than the first one, and the color tone is darker than the original one, which looks more mature. The other version of the black suit, known as the "stealth suit", is dark and equipped with a pair of special glasses. The most surprising thing is that the suit is wearing a S.H.I.E.L.D. badge, and the identity of Spider in the second part is expected.

In addition to two new battle suits, the first trailer carried a lot of shocking materials and was released. In the trailer, Spider and his classmates came to Europe to play along the Venice Canal. However, the good times did not last long. European cities were suddenly attacked, and Spider-Man stepped forward again. The live fans responded enthusiastically after watching it. It is reported that the new version of the preview will be released globally next week, and the mystery of Spider-Man: Heroic Expedition will be officially unveiled.

Dutch brother and Jacob Bartrand made a surprise appearance.

Spider-Man: The Heroic Expedition is directed by Jon Watts and co-starred by Tom Holland (Spider-Man: The Return of Heroes, Captain America: Civil War), michael keaton (Focus, Bird Man), Jake Gyllenhaal (Source Code, Brokeback Mountain), samuel jackson (Pulp Fiction, Inglourious Basterds) and Zandaya. The film will be held on July 5, 2019.