Zhejiang Haiyan Power System Resources Environmental Technology Co. Ltd. A

Liyuan Technology disclosed its reply to the Shanghai Stock Exchange's inquiry letter regarding its 2025 annual report, addressing issues such as declining revenue, a sharp drop in nuclear power gross margin, and frequent changes in major clients. The company's 2025 revenue was 285 million yuan, down 23.89 percent year-on-year. The nuclear power gross margin fell from 37.88 percent to 18.83 percent, while thermal power and industrial gross margins recovered. The company explained that its business is project-based, and thermal and nuclear power water treatment equipment are durable fixed assets. Clients have no continuous repurchase demand, and the list of top five clients rotates with project acceptance schedules, so there is no risk of client loss. Clients each year are non-related state-owned enterprises obtained through bidding. The decline in nuclear power gross margin was due to low pricing on projects accepted in 2025, while the recovery in thermal power gross margin was due to the implementation of high-margin projects.