Financial Performance - Revenue for the year ended December 31, 2022, was RMB 109,275 thousand, a decrease of 59% compared to RMB 267,498 thousand in 2021[14] - Gross profit for the same period was RMB 25,396 thousand, down 68% from RMB 80,259 thousand in 2021[14] - The company reported a loss before tax of RMB 482,776 thousand, compared to a profit of RMB 11,716 thousand in 2021, representing a decline of 4,221%[14] - Net loss attributable to equity holders of the parent was RMB 422,794 thousand, a significant drop from a profit of RMB 4,542 thousand in the previous year[14] - Total assets as of December 31, 2022, were RMB 2,939,193 thousand, down from RMB 3,358,341 thousand in 2021, a decrease of RMB 419,148 thousand[14] - Total equity attributable to equity holders of the parent decreased to RMB 563,118 thousand from RMB 1,016,282 thousand in 2021, a decline of RMB 453,164 thousand[14] - The company's gross margin for 2022 was 23.2%, down from 30.0% in 2021[16] - The total revenue for the group reached approximately RMB 109.3 million, with an operating profit of about RMB 25.4 million, and a net loss attributable to the parent company of approximately RMB 422.8 million, resulting in a gross margin of 23.2% and a net loss margin of 386.9%[23] - The group achieved total revenue of RMB 1,093 million in 2022, with a net loss attributable to shareholders of RMB 422.8 million, and a gross margin of 23.2%, down 6.8 percentage points year-on-year[41] Liquidity and Leverage - The current ratio decreased to 0.8 in 2022 from 1.0 in 2021, indicating a decline in liquidity[16] - The debt-to-asset ratio increased to 74.4% in 2022 from 60.5% in 2021, reflecting higher leverage[16] - The company's debt-to-asset ratio increased to 74% as of December 31, 2022, compared to 61% in 2021[173] Strategic Focus and Initiatives - The company is focusing on restructuring and strategic initiatives to improve financial performance in the upcoming fiscal year[18] - The group has maintained a focus on managing project compliance and cash flow stability, while actively managing construction progress and marketing expenses to adapt to the challenging revenue environment[23][29] - The group plans to enhance its capabilities in green technology and innovation, investing more in establishing a technology center and developing proprietary technologies and products[31] - The group aims to align with China's "30-60 goals" and urbanization efforts, promoting energy-saving, ecological, and functional development in urban landscaping[33] - The group will continue to focus on cash flow management and risk control in project investments to ensure operational stability and sustainability[29] - The group is committed to optimizing project management and enhancing its capabilities to undertake larger projects, thereby improving profit margins and return on net assets[45] - The group will continue to adopt a dual approach of PPP and general contracting to improve project precision and operational efficiency[52] Market and Economic Environment - The GDP of China grew by 3.0% to RMB 121 trillion in 2022, showcasing strong performance among major economies despite facing pressures from demand contraction, supply shocks, and weakened expectations[22] - The landscape industry is expected to maintain healthy growth in the coming years, driven by increasing market demand for environmental quality and ecological construction[33] - The market demand for landscaping projects is expected to approach RMB 1.1 trillion by 2025, driven by government investments in urban greening projects[37] - The company faces significant risks due to potential economic slowdown in China, which may decrease demand for its landscaping design and construction services[182] Corporate Governance - The board is committed to maintaining effective corporate governance practices to ensure sustainable returns for shareholders and manage overall business risks[54] - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[62] - The company has adopted the principles and code provisions of the corporate governance code as the foundation of its governance practices since its listing[57] - The company has received annual written confirmations of independence from all independent non-executive directors, affirming their independence throughout the reporting period[67] - The board retains ultimate decision-making authority on significant matters, including policy, strategy, budget, and major transactions[71] - The company believes that having the same individual serve as both chairman and CEO ensures consistent leadership and effective strategic planning[65] - The board is responsible for leading and controlling the company, ensuring high standards of compliance reporting and independent judgment in corporate actions[75] Employee and Diversity Policies - Employee costs for the reporting period amounted to approximately RMB 8.0 million, with 102 full-time employees in China as of December 31, 2022[189] - The overall employee gender ratio is 67% male and 33% female, with 48% of other employees being male[94] - The company emphasizes gender diversity at all levels, with the nomination committee reviewing the diversity policy annually to ensure its effectiveness[94] - The board believes it has achieved the goals set by the diversity policy[100] Risk Management and Compliance - The company has conducted annual self-assessments to ensure compliance with control policies across all departments[131] - The board of directors is responsible for the risk management and internal control systems, which aim to manage risks rather than eliminate them[133] - The company has complied with all relevant laws and regulations in China and Hong Kong during the reporting period[188] Stock Options and Financial Instruments - The company has a total of 39,482,142 stock options available for issuance under the stock option plan, representing 1.18% of the company's issued share capital[139] - During the reporting period, 1,473,643 stock options were cancelled or forfeited[145] - The company issued and sold redeemable fixed interest notes with a principal amount of $40,000,000, equivalent to approximately RMB 258.4 million, at an annual interest rate of 9.00%[150] - The stock option plan will remain effective for a period not exceeding ten years from June 25, 2014, with approximately one year remaining as of December 31, 2022[144] - The maximum number of stock options granted to each eligible person in any 12-month period cannot exceed 1% of the total issued shares[168] Audit and Financial Reporting - The audit committee reviewed the annual performance and annual report for the year ending December 31, 2021, and the interim financial performance for the six months ending June 30, 2022[82] - The audit committee, along with management and external auditors, reviewed the accounting principles and policies adopted by the company during the reporting period[197] - The company plans to present a resolution to reappoint Ernst & Young as its auditor at the upcoming annual general meeting[198] - The consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2022[200] - The financial performance and cash flows for the year ended on December 31, 2022, have been properly prepared according to the Hong Kong Financial Reporting Standards[200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Greenland Broad Greenstate Group Company Limited 中 國 綠 地 博 大 綠 澤 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1253） 截至2022年12月31日止年度 年度業績公告 及恢復股份買賣 財務摘要 截至12月31日止年度 2022年 2021年 變動 經審核 經審核 收益 人民幣千元 109,275 267,498 (158,223) 毛利 人民幣千元 25,396 80,259 (54,863) 母公司擁有人 應佔純利 人民幣千元 (422,794) 4,542 (427,336) 毛利率 % 23.2 30.0 (6.8) ...

Financial Performance - For the six months ended June 30, 2022, the total revenue was approximately RMB 95.2 million, a decrease of 50.7% compared to RMB 193.3 million in the same period of 2021[10]. - The gross profit for the same period was approximately RMB 29.9 million, down 48.8% from RMB 58.5 million year-on-year[10]. - The net profit attributable to shareholders was approximately RMB 0.4 million, a significant decline of 97% from RMB 15.3 million in the previous year[10]. - The gross margin improved slightly to 31.4% from 30.3% in the previous year, while the net margin dropped to 0.4% from 7.9%[11]. - The operating profit for the period was approximately RMB 29.9 million, reflecting proactive management of project commencement and construction progress[16]. - The company reported a decrease in pre-tax profit to RMB 1.2 million, down 94% from RMB 18.3 million in the previous year[10]. - The group achieved total revenue of RMB 952 million, with a net profit attributable to the parent company of RMB 4 million, and a gross margin of 31.4%, an increase of 1.2 percentage points compared to the same period last year[37]. - The group reported total revenue of RMB 95,240,000 for the six months ended June 30, 2022, compared to RMB 193,289,000 for the same period in 2021, indicating a significant decrease of 50.7%[170]. - Revenue from construction contracts was RMB 89,581,000, down from RMB 190,761,000 in the previous year, reflecting a decline of 53.0%[170]. - The total comprehensive income for the period ended June 30, 2022, was RMB (25,292,000), compared to RMB 21,837,000 for the same period in 2021[136]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,404.5 million, an increase of 1.4% from RMB 3,358.3 million at the end of 2021[11]. - Current liabilities increased to RMB 2,147,344 thousand from RMB 1,995,379 thousand, reflecting a rise of 7.6%[129]. - Non-current liabilities decreased to RMB 238,407 thousand from RMB 318,892 thousand, a reduction of 25.2%[131]. - The equity attributable to the owners of the parent company was RMB 990,807 thousand, down from RMB 1,016,282 thousand[131]. - The total liabilities decreased from RMB 1,016,282,000 as of January 1, 2022, to RMB 990,807,000 as of June 30, 2022[135]. Cash Flow and Financial Position - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 30,940,000, a significant improvement compared to a negative cash flow of RMB (116,563,000) in the same period of 2021[139]. - The company's cash and cash equivalents decreased to RMB 57,189 thousand from RMB 77,465 thousand, a decline of 26.1%[129]. - The company’s cash and cash equivalents in Hong Kong dollars were reported at RMB 5,000, a decrease from RMB 12,000 in 2021[59]. - The company has provided guarantees to banks for financing amounts of RMB 683,150,000 for joint ventures, a decrease from RMB 712,950,000 in 2021[63]. - The company’s financial guarantee contracts are classified as Stage 1 credit risk, indicating no transfer of risk between stages during the period[65]. Project Management and Operations - The company maintained a cautious approach towards new projects, focusing on compliance and the financial strength of local governments to assess project feasibility[15]. - The company implemented measures to tighten marketing expenses and reduce operating costs to stabilize operations amid revenue pressure[16]. - The group is focusing on optimizing project management and enhancing operational efficiency in response to economic instability caused by the pandemic[37]. - The group has established a unified supplier database and developed a project management information platform to ensure strict budget adherence in project expenditures[40]. - The group will continue to adopt a PPP model alongside general contracting to enhance project precision and accelerate value conversion[44]. Market and Strategic Focus - The company aims to strengthen its cash flow and improve project management to prepare for long-term growth opportunities in urban greening under the "14th Five-Year Plan"[23]. - The company has expanded its market coverage to 15 provinces across China, enhancing its project functions in line with the "dual carbon" goals[26]. - The government plans to significantly enhance urban ecological infrastructure by 2025, with an expected market demand for landscaping projects nearing RMB 1.1 trillion[32]. - The company anticipates broader business opportunities in the green landscaping industry driven by the demand for ecological space planning and refined urban management[27]. - The group has identified significant opportunities in the "14th Five-Year Plan" for green circular economy development, positioning itself for the next decade of growth[43]. Research and Development - The company plans to invest more in establishing technology centers and enhancing core R&D capabilities, particularly for technologies with independent intellectual property rights[24]. - The group aims to enhance its core technology in ecological construction to improve its industry position and risk resistance, enabling it to undertake larger projects and increase profit margins[43]. - The company has invested in establishing a technology center to strengthen R&D capabilities and promote the commercialization of technology in ecological and environmental projects[41]. Corporate Governance and Shareholding - The company has established a remuneration committee to set formal and transparent procedures for the remuneration policies of directors and senior management[112]. - The company believes that maintaining a high level of corporate governance is essential for effective management and business growth[107]. - Major shareholders include 博大國際 with a 29.65% stake, holding 991,321,041 shares[79]. - The company has a significant shareholding structure, with Mr. Wu Zhengping and Ms. Xiao Li holding 29.65% of the issued share capital each, totaling 991,321,041 shares[75]. Employee and Talent Management - As of June 30, 2022, the group employed 146 full-time employees, a decrease from 180 employees as of December 31, 2021[112]. - Employee costs for the reporting period amounted to approximately RMB 45.9 million, compared to RMB 81.6 million for the six months ended June 30, 2021[112]. - The stock option plan aims to attract and retain top talent by providing additional incentives to employees, directors, consultants, and advisors[85].

Financial Performance - For the year ended December 31, 2021, the company reported revenue of RMB 267,498 thousand, a decrease of 60.4% from RMB 676,161 thousand in 2020[13] - Gross profit for the same period was RMB 80,259 thousand, down 57.9% from RMB 190,611 thousand in 2020[13] - The company's profit before tax fell by 87.5% to RMB 11,716 thousand from RMB 94,046 thousand in 2020[13] - Net profit attributable to equity holders of the parent was RMB 4,542 thousand, a significant decline of 94.2% compared to RMB 78,295 thousand in the previous year[13] - Total assets as of December 31, 2021, were RMB 3,358,341 thousand, a decrease of 2.7% from RMB 3,452,771 thousand in 2020[13] - The company's equity attributable to equity holders increased slightly by 2.0% to RMB 1,016,282 thousand from RMB 995,931 thousand in 2020[13] - The gross margin improved to 30.0% in 2021 from 28.2% in 2020[13] - The net profit margin decreased to 1.7% in 2021 from 11.6% in 2020[13] - The total revenue achieved by the company during the reporting period was RMB 267.5 million, with a net profit attributable to the parent company of RMB 4.5 million; the gross profit margin increased by 1.8 percentage points to 30.0%[36] Operational Strategy - The group adopted a prudent approach by slowing down project commencement and construction progress to strengthen cash flow, which led to a decline in performance[21] - The group emphasizes maintaining a stable cash flow, appropriate scale, and reasonable profit margins as part of its operational strategy[26] - The company is actively optimizing its management model and adjusting its operational strategies to adapt to the economic uncertainties caused by the COVID-19 pandemic[36] - The group plans to transition from PPP projects to Engineering Procurement Construction (EPC) models, including EPC+Finance and EPC+Operation, to optimize asset allocation and ensure sustainable development[48] Market Trends - The overall market for new orders in the landscaping industry remains low, with a decrease in new orders due to the impact of previous PPP project contracts[25] - The Chinese urban landscaping market is projected to grow from RMB 215.8 billion in 2020 to RMB 426.6 billion by 2027, representing a compound annual growth rate (CAGR) of 11.01% from 2021 to 2027[34] - The urban landscape design industry in China is expected to maintain an average growth rate of 7%, with the market size projected to reach RMB 350 billion in 2022[34] Environmental Initiatives - The company plans to accelerate its carbon reduction efforts in line with the "30-60 targets" and continue advocating for energy-saving and environmentally friendly business practices[29] - The company aims to achieve carbon peak and reduction targets by 2030 and 2060, respectively, with a plan to gradually reduce total greenhouse gas emission density over the next five years, using 2021 as the baseline year[181] - The company is committed to gradually reducing air pollutant emissions density over the next five years, using 2021 as the baseline year[176] - The company has implemented enhanced site management to minimize environmental impacts during construction projects[174] - The company focuses on planting a large number of green plants in its horticultural projects, which helps absorb carbon dioxide, although these are not accounted for in the company's greenhouse gas emissions reduction[180] Governance and Compliance - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[56] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for specific deviations noted in the report[50] - The independent non-executive directors have confirmed their independence throughout the reporting period, contributing to high standards of compliance and governance[60] - The company will regularly review the management structure and consider separating the roles of Chairman and CEO if necessary to maintain effective governance[59] - The board retains final decision-making authority on significant matters, including policies, strategies, budgets, internal controls, risk management, and major transactions[65] Risk Management - The company's risk management and internal control system is based on its "Risk Management Internal Control System" and involves participation from the board, management, and employees[110] - The risk management objectives include identifying potential impacts on the company and providing reasonable assurance for achieving business goals, including effective resource use and compliance with regulations[113] - Management conducts regular internal control assessments to identify risks affecting the group's operations and financial processes, ensuring compliance with control policies[117] - The internal auditor independently reviews the adequacy and effectiveness of the risk management and internal control systems, reporting findings to the audit committee[118] ESG Performance - The ESG report covers the company's management policies and strategies related to environmental, social, and governance (ESG) practices for the year 2021[146] - The company is committed to continuously collecting relevant ESG data to improve the accuracy and comprehensiveness of its ESG data collection system[147] - The company has established an ESG governance framework led by the board, with a dedicated working group responsible for identifying and managing significant ESG issues[153] - Stakeholder engagement includes communication with government, customers, suppliers, employees, and the community to align long-term development directions[160] Emission Reductions - Total greenhouse gas emissions (Scope 1 and 2) decreased from 646.00 tons in 2020 to 406.02 tons in 2021, representing a reduction of approximately 37.2%[182] - Total energy consumption decreased from 1,123,169.00 kWh in 2020 to 617,123.56 kWh in 2021, a reduction of approximately 45%[195] - Total water consumption decreased significantly from 64,212.00 tons in 2020 to 25,902.33 tons in 2021, a reduction of approximately 59.6%[199] - The company has not generated any hazardous waste during the reporting period and has not set related targets[188]

China Greenland Broad Greenstate Group Company Limited | --- | --- | --- | --- | --- | |---------------------|-------------------------------------------------------------|-------|-------|-------| | | China Greenland Broad Greenstate Group Company Limited | | | | | | | | | | | | 中國綠地博大綠澤集團有限公司 | | | | | | | | | | | | (Incorporated in the Cayman Islands with limited liability) | | | | | (Stock code : 1253) | | | | | IN TERIM REPORT 中國綠地博大綠澤集團有限公司 中期報告 2021 China Greenland Broad Greenstate Group Company Limit ...

Financial Performance - Total revenue for 2020 was RMB 676,161,000, a decrease of 28.8% from RMB 949,088,000 in 2019[17] - Gross profit for 2020 was RMB 190,611,000, down 9.8% from RMB 211,291,000 in 2019[17] - Profit before tax increased by 15.8% to RMB 94,046,000 compared to RMB 81,193,000 in 2019[17] - Net profit attributable to shareholders was RMB 78,295,000, representing a 9.7% increase from RMB 71,383,000 in 2019[17] - Total assets as of December 31, 2020, were RMB 3,452,771,000, an increase of 2.6% from RMB 3,364,005,000 in 2019[17] - Total equity attributable to shareholders increased by 12.6% to RMB 995,931,000 from RMB 884,240,000 in 2019[17] - Gross margin improved to 28.2% in 2020 from 22.3% in 2019[18] - Net profit margin increased to 11.6% in 2020 from 7.5% in 2019[18] - The total revenue for the group reached approximately RMB 676.2 million, with a profit of about RMB 190.6 million and a net profit attributable to the parent company of RMB 78.3 million, resulting in a gross margin of 28.2% and a net profit margin of 11.6%[23] Strategic Initiatives - The group has entered a positive cycle of completing old projects, steadily advancing ongoing projects, and preparing for new projects, with overall performance meeting expectations for the year[23] - The group has focused on optimizing management and gradually completing existing projects, with plans to resume continuous order acquisition as the operating environment improves[26] - The group signed a comprehensive strategic cooperation framework agreement with the Jiangsu Dongtai High-tech Zone Management Committee, involving industrial investment and urban construction, aligning with national strategies[27] - The group launched its first "design + construction + operation" full industry chain project, marking a significant milestone in its business transformation[27] - The group aims to enhance operational capabilities and promote high-quality ecological development while adhering to green and low-carbon development principles[29] - The group plans to shift its strategic layout towards a full industry chain approach, focusing on urban renewal and enhancement as a planner, investor, builder, and operator[29] - The group has actively participated in the PPP model to improve public service supply quality and efficiency, contributing to high-quality economic development[28] Technological Advancements - The company has established a technology innovation team to accelerate technological advancements in construction processes, operational models, and management systems[36] - The company has invested significantly in establishing a technology center, focusing on independent development and enhancing cooperation with academic institutions, resulting in a strong competitive advantage in ecological construction technology[44] - The company holds a total of 63 patents, including 3 invention patents and 59 utility model patents, which cover areas such as wastewater treatment and ecological restoration[44] - The company is actively exploring new business models such as EPC+F (Engineering, Procurement, and Construction + Financing) and EPC+O (Engineering, Procurement, and Construction + Operations) to diversify its operations[36] Environmental and Social Governance (ESG) - The ESG report covers the period from January 1, 2020, to December 31, 2020, detailing the company's management policies and strategies related to environmental, social, and governance (ESG) performance[129] - The company is committed to improving its ESG performance by addressing significant ESG issues identified through stakeholder impact assessments[156] - The company adheres to national environmental laws and regulations, including the Environmental Protection Law of the People's Republic of China[159] - The company has implemented measures to reduce environmental impact during construction projects, including the selection of environmentally responsible subcontractors[159] - The company has established a dedicated team for managing dust, noise, and water pollution at construction sites[180] - The company promotes the secondary use of water resources during project construction, including the use of groundwater and river water[175] Corporate Governance - The board of directors is responsible for leading and controlling the company, overseeing business strategies and performance, and ensuring effective internal controls and risk management systems[60] - The audit committee reviewed the annual performance and financial reports for the year ending December 31, 2019, and the interim financial results for the six months ending June 30, 2020[66] - The company conducts regular reviews of its corporate governance policies and practices to ensure compliance with legal and regulatory standards[89] - The board meetings are scheduled with at least 14 days' notice, ensuring all directors are informed of the latest developments[90] - The company emphasizes the importance of board diversity in its recruitment and nomination processes[74] Employee Engagement and Workforce - The company emphasizes a fair and harmonious work environment as a core value, recognizing employees as one of its most important assets[185] - The company has established a competitive compensation and benefits system to enhance employee engagement and transparency in labor rights and salary structures[187] - As of December 31, 2020, the company had 256 employees, a decrease from 364 in 2019, with all employees being full-time and located in China[194] - The gender distribution of employees in 2020 was 70% male (180) and 30% female (76), compared to 69% male (252) and 31% female (112) in 2019[198] - The company has implemented a performance evaluation system to ensure fair and transparent promotion processes, with a dedicated committee overseeing performance assessments[188]

China Greenland Broad Greenstate Group Company Limited 中國綠地博大綠澤集團有限公司 (於開曼群島註冊成立的有限公司) (股份代號：1253) 中期報告 2020 博採眾長 Eclectic 大有作為 Accomplishment 精益求精 Excelsior 深生不息 Continuous | --- | --- | |-------|----------------------------| | | 目 錄 | | 2 | 公司资料 | | 4 | 財務摘要 | | 5 | 主席報告書 | | 8 | 管理層討論與分析 | | 16 | 其他資料及企業管治概要 | | 24 | 中期簡明綜合損益表 | | 25 | 中期簡明綜合其他全面收益表 | | 26 | 中期簡明綜合財務狀況表 | | 28 | 中期簡明綜合權益變動表 | | 29 | 中期簡明綜合現金流量表 | | 31 | 中期簡明綜合財務資料附註 | | 61 | 釋義 | | --- | --- | --- | |------------------------------|------ ...

China Greenland Broad Greenstate Group Company Limited 中國綠地博大綠澤集團有限公司 (於開曼群島註冊成立的有限公司) 股份代號：1253 20 O 元 | --- | --- | --- | --- | |-------|---------------------------|---------------------------------|-------| | | | | | | | | | | | | | | | | | | t | | | | A c 博 採 眾 長 E c l e | c o m p l i s h m e n c t i c r | | ] 錄 02 公司资料 04 財 務 摘 要 05 五年財務摘要 06 主席報告書 09 管理層討論與分析 14 企業管治報告 27 環境·社會及管治報告 48 董事及高级管理層 52 董事會報告 69 獨立核數師報告 75 綜合損益及其他全面收益表 77 綜合財務狀況表 79 綜合權益變動表 80 綜合現金流量表 82 財務報表附註 178 釋義 公司资料 公司名稱 中國綠地博大綠澤集團有限 ...

China Greenland Broad Green state Group Company Limited China Greenland Broad Greenstate Group Company Limited 中國綠地博大綠澤集團有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock code：1253) Interim Report 中國綠地博大綠澤集團有限公司 中期報告 Interim Report 2019 2019 China Greenland Broad Greenstate Group Company Limited 中國綠地博大綠澤集團有限公司 (於開曼群島註冊成立的有限公司) (股份代號：1253) Arl Grifte 中期報告 2019 Eclectic 博採眾長 Accomplishment 大有作為 Excelsior 精益求精 Continuous 深生不息 V 目錄 公司資料 2 財務摘要 4 主席報告書 5 管理層討論與分析 8 其他資料及企業管治概要 15 簡明綜合中期損益表 ...

Financial Performance - The company's revenue for the year ended December 31, 2018, was RMB 889.5 million, a decrease of 33.4% from RMB 1,336.3 million in 2017[10] - Gross profit for 2018 was RMB 222.9 million, down 37.3% from RMB 355.7 million in 2017[10] - Profit before tax decreased by 63.9% to RMB 64.4 million in 2018 from RMB 178.2 million in 2017[10] - Net profit attributable to shareholders was RMB 59.2 million, a decline of 61.9% compared to RMB 155.6 million in 2017[10] - The group's total revenue for the year ended December 31, 2018, was approximately RMB 889.55 million, a decrease of 33.4% compared to the same period last year[20] - The net profit for the year was approximately RMB 42.09 million, with a profit attributable to the parent company of approximately RMB 59.24 million, resulting in a gross margin of 25.1% and a net profit margin of 6.7%[20] - The company achieved total revenue of RMB 88,955 million, with net profit attributable to shareholders of RMB 5,924 million, representing a decline of 33.4% and 61.9% year-on-year respectively[35] - The decline in performance was primarily due to macroeconomic downturns and a cautious industry outlook, leading the company to slow down project initiation and construction progress[35] Assets and Financial Ratios - Total assets as of December 31, 2018, were RMB 3,395.3 million, down 15.4% from RMB 4,015.7 million in 2017[11] - The company's current ratio was 1.1 in 2018, compared to 1.2 in 2017, indicating a slight decrease in liquidity[13] - The debt-to-asset ratio improved to 69.4% in 2018 from 74.1% in 2017, reflecting better financial stability[13] Strategic Focus and Development - The company aims to focus on ecological construction and has secured significant PPP projects, primarily with local governments[19] - The strategic direction emphasizes ecological construction, environmental restoration, and cultural tourism as key growth areas[19] - The company maintains a cautious approach to expanding new PPP projects to mitigate risks and ensure sustainable cash flow[19] - The company is focusing on the PPP model for future projects, aligning with government initiatives to establish a market-oriented ecological protection compensation mechanism by 2020[65] - The company aims to optimize the PPP model in its core landscape gardening business, focusing on ecological construction and environmental restoration[66] - The environmental protection business has been included in the company's strategic development plan, aiming to enhance its professional capabilities[66] - A dedicated cultural tourism management company, Shanghai Lvzhe Cultural Tourism Co., Ltd., has been established to integrate various business elements including culture, tourism, and modern agriculture[66] - The company plans to provide a comprehensive "one-stop" ecological construction solution, enhancing its technical competitiveness and adapting to market conditions[66] Project Management and Technology - As of December 2018, the PPP comprehensive information platform had 8,654 projects in the management database with a total investment amount of RMB 13.2 trillion, and 4,691 projects had been implemented with an investment amount of RMB 7.2 trillion[24] - The group completed the construction of several PPP projects, including the Shentan Theme Park and the Xiaohe Riverside Scenic Area in Henan Province, which won the "National Forest Cup" quality engineering award[25] - The group has established a good reputation among local governments, enhancing its financing capabilities for PPP projects[26] - The group has developed key technologies in ecological construction, including research on saline-alkali land improvement and urban wetland ecological restoration[28] - The number of projects in the PPP database reached 12,553 by the end of 2018, with a landing rate of 55.7%, setting a historical high[29] - The company has built a leading project information management system through information technology to enhance project execution efficiency and quality, ensuring robust development[156] - The company has formed multiple academic workstations and established long-term partnerships with national research institutions, enhancing its technical reserves in various professional fields[157] - The company has developed core technologies in ecological construction, including soil improvement and aquatic ecological governance, with a portfolio of patented technologies[64] Governance and Compliance - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[72] - The company has adopted the corporate governance code and has complied with all applicable provisions, except for specific clauses regarding the separation of roles between the chairman and CEO[68][75] - Independent non-executive directors have confirmed their independence and the company has rectified previous non-compliance regarding the number of independent directors[76] - All independent non-executive directors serve a specific three-year term and are eligible for re-election at the annual general meeting[78] - The board is responsible for leading and controlling the company, ensuring effective strategy implementation and financial performance monitoring[80] - The company emphasizes high standards of compliance reporting and independent judgment in its operations[80] - The audit committee reviewed the annual performance and annual report for the year ending December 31, 2017, and the interim financial performance for the six months ending June 30, 2018[86] - The company has established three committees: the audit committee, remuneration committee, and nomination committee, to oversee specific matters[84] - The audit committee currently consists of three independent non-executive directors, ensuring compliance with listing rules[85] - The remuneration committee is responsible for advising the board on the remuneration policies for individual executive directors and senior management[90] - The nomination committee is tasked with reviewing the structure, size, and composition of the board, as well as assessing the independence of non-executive directors[93] - The company encourages all directors to participate in relevant training courses, with costs covered by the company[82] - The company maintains records of training received by all directors during the reporting period[83] - The board of directors is responsible for evaluating and selecting candidates based on character, integrity, qualifications, and relevant experience to ensure diversity within the board[99] - The nomination committee must assess candidates' qualifications and contributions to the company, including their independence and diversity factors[101] - The board has a responsibility to review the effectiveness of risk management and internal control systems, ensuring they are designed to manage risks associated with achieving business objectives[121] - The company has established a risk management and internal control system based on its internal control framework, involving the board, management, and employees[123] - The company adheres to Hong Kong Financial Reporting Standards and other regulations to ensure the safety and integrity of its assets[130] - Management has confirmed the effectiveness of the risk management and internal control systems to the board and audit committee[131] - The internal auditor is responsible for independently reviewing the adequacy and effectiveness of the risk management and internal control systems[131] - The board, through the audit committee, reviews the risk management and internal control systems and considers them effective and adequate[131] - The company has established a disclosure policy to guide the handling of confidential information and regulatory disclosures[131] Stakeholder Engagement and ESG Initiatives - The company emphasizes the importance of effective communication with shareholders and the market to ensure they receive necessary information regarding strategies, operations, and financial performance[151] - The company has established a sustainable dividend policy to protect shareholder interests, adopted on November 13, 2018, outlining principles for distributing net profits as dividends[153] - The company is committed to environmental, social, and governance (ESG) initiatives, with the board overseeing strategies that reflect core values and manage related risks[156] - The ESG report covers the period from January 1, 2018, to December 31, 2018, detailing the company's management policies and strategies related to ESG[158] - The company actively engages stakeholders, including shareholders, customers, suppliers, and regulatory bodies, to determine long-term development directions and maintain close relationships[161] - The company has identified key stakeholder expectations and established communication channels to address their concerns and maintain compliance with regulations[162] - The company emphasizes timely and accurate disclosure of relevant information to protect shareholder rights[174] - The company engages in roadshows and meetings with investors to enhance corporate governance[178] - The company is committed to community development and social responsibility initiatives, including charitable donations[198] - The company focuses on reducing pollutant emissions and waste as part of its environmental efforts[199] - The company maintains transparency through information disclosure on the stock exchange and its website[185]