The environmental protection industry is currently facing multiple difficulties, including tightened local fiscal policies, extended project payment collection cycles, and intense market competition, leading many listed environmental companies to undergo passive transformations. Confronted with these challenges, ZEHO ECO has not retreated or avoided them. In August 2025, ZEHO ECO's leadership team formulated plans around the themes of "Focusing on Core Business, Embracing Challenges, Uniting Together, and Starting a New Journey." Emphasizing green development, distinctive features, and innovation, the company optimized its layout in ecological infrastructure business and comprehensively advanced the "Strategy Formulation and Execution for Ecological Water Infrastructure (BLM)," officially releasing it on October 20.

Through gap analysis, the company accurately identified its core issues and proposed targeted solutions. It aims to break through technological barriers, reconstruct its business model, and unite efforts to achieve its goals.

Based on in-depth market insights across five dimensions—"trends, industry, competition, customers, and self-assessment"—the company conducted a comprehensive analysis of the industry's current state. Leveraging the consecutive three-year trillion-scale investment in China's water sector and national strategies oriented towards water security and water resource utilization, ZEHO ECO decisively focused on its core business of "Ecological Infrastructure." It targeted the markets of the "Beijing-Tianjin-Hebei region and nearshore marine area management," established phased goals, and ultimately aims to realize its development strategy of becoming "the leading enterprise in the domestic ecological infrastructure industry."

Regarding innovation focus, the company is building a foundation layer based on water security, concentrating on major public safety projects such as flood control and water resource utilization. It aims to break through technological bottlenecks in water security and disaster prevention/mitigation capacity building, collaborating with central and state-owned enterprises to expand the market.

Using "Water Ecology + Water Landscape" as the enhancement layer, and relying on three national key laboratories jointly established with the Chinese Academy of Sciences, the Chinese Research Academy of Environmental Sciences, and the Third Institute of Oceanography, the company focuses on river-lake-wetland restoration, marine ecological restoration, and waterfront/marine landscapes. It is increasing R&D investment to improve the quality of ecological infrastructure projects.

With "Water Economy + Water Technology" as the leadership layer, driven by the dual engines of "Vertical Model + Embodied AI," the company aims to solidify the core competitiveness of its water security business, achieve intelligent upgrades for its water ecology and water landscape businesses, and realize AI's key supportive role in national strategies. The business model has been upgraded from the previous EPC to a full lifecycle service of "R&D-Design-Construction-Operation" (EPCO).

In terms of market layout, the company focuses on the Beijing-Tianjin-Hebei region and deploys resources in the nearshore marine area management market. Using Beijing as its base, it prioritizes major national projects like the National Water Network Construction Project and the Happy Rivers and Lakes initiative. For nearshore marine management, centered around ecological seawall modification, marine ecological restoration, and beach restoration projects, it employs Nature-based Solutions (NbS) to enhance marine disaster prevention and mitigation capabilities.

While focusing on its core business, the company actively promotes the vertical application of artificial intelligence in the field of ecological water infrastructure. It has developed and sequentially released "Large Models for Oceans, Rivers, and Lakes," focusing on promoting the practical implementation of water inspection robotics scenarios. Through the linkage mechanism of "Model Driving Entities," it not only enhances the intelligence level of industry scenarios but also provides a technical paradigm for the application of AI in the field of ecological restoration.

Regarding payment collection, the company continues to intensify its efforts to secure payments, strengthening the cornerstone for enterprise development. Building upon the current full-scope collected payments of 591 million RMB, the company will further enhance collection efforts for the Tangshan and Taiyuan projects, ensuring the achievement of the annual target of 900 million RMB in collections. It will increase order expansion in its main business market, while continuing to maintain investment in technological R&D and new ventures like AI, ensuring the stable operation of the company's business.

For key initiatives, internally, the company clarifies tasks, implements responsibilities, and strengthens reward and punishment mechanisms to ensure strategic goals are met. Externally, it is reintegrating the supply chain, enhancing communication, and encouraging and establishing long-term partnerships oriented towards quality and interest communities.

By increasing investment in water conservancy and municipal qualifications, the company strengthens the core competitiveness of its ecological infrastructure business. It introduces professional water conservancy design and construction talent, adopts strategies of internal cultivation and external recruitment, along with regular training, to forge a high-quality workforce.

Through organizational and cultural safeguards, the company promotes the striving spirit of "Adhering to Craftsmanship and Pursuing Progress through Research." Using methods like project reviews and joint inspections/job rotations, it fosters a quality consciousness of "making it right the first time, as if it were the last," adhering to its original corporate ethos of "The Great Path Originates from Harmony, Integrity is Eternal," to achieve the company's sustainable development.