Market Overview - On September 2, the infrastructure sector declined by 0.47% compared to the previous trading day, with Garden Holdings leading the decline [1] - The Shanghai Composite Index closed at 3858.13, down 0.45%, while the Shenzhen Component Index closed at 12553.84, down 2.14% [1] Individual Stock Performance - The top gainers in the infrastructure sector included: - China Communications Construction Co., Ltd. (交建股份) with a closing price of 11.02, up 9.98% on a trading volume of 411,900 shares and a turnover of 438 million yuan [1] - Pubang Co., Ltd. (普邦股份) with a closing price of 2.00, up 3.09% on a trading volume of 1,114,200 shares and a turnover of 224 million yuan [1] - The top decliners included: - Garden Holdings (园林股份) with a closing price of 16.72, down 6.85% on a trading volume of 199,400 shares and a turnover of 338 million yuan [2] - Pudong Construction (浦东建设) with a closing price of 8.64, down 6.49% on a trading volume of 751,400 shares and a turnover of 647 million yuan [2] Capital Flow Analysis - The infrastructure sector experienced a net outflow of 797 million yuan from institutional investors, while retail investors saw a net inflow of 519 million yuan [2] - Notable capital flows for specific stocks included: - Hongrun Construction (宏润建设) with a net inflow of 77.82 million yuan from institutional investors, but a net outflow of 97.77 million yuan from retail investors [3] - China Communications Construction Co., Ltd. (交建股份) had a net inflow of 57.48 million yuan from institutional investors, with both retail and speculative investors showing net outflows [3]

进一步统计，近3个月内该股累计发生1笔大宗交易，合计成交金额为404.88万元。该股近5个交易日累 计下跌18.56%，主力资金合计净流出5.13亿元。 责任编辑：小浪快报 炒股就看金麒麟分析师研报，权威，专业，及时，全面，助您挖掘潜力主题机会！ 9月1日，园林股份收涨1.53%，收盘价为17.95元，发生1笔大宗交易，合计成交量23.5万股，成交金额 404.88万元。 第1笔成交价格为17.23元，成交23.50万股，成交金额404.88万元，溢价率为-4.01%，买方营业部为机构 专用，卖方营业部为广发证券股份有限公司杭州学院路证券营业部。 ...

Group 1 - On September 1, 2025, Garden Co. executed a block trade of 235,000 shares, with a transaction value of 4.0488 million yuan, accounting for 0.97% of the total trading volume for that day [1][2] - The transaction price was 17.23 yuan, which represents a discount of 4.01% compared to the market closing price of 17.95 yuan [1][2] - The buying party was an institutional investor, while the selling party was Guangfa Securities Co., Ltd. [2]

Core Viewpoint - The company, Garden Co. (园林股份), has announced a plan to issue shares to specific investors, raising up to 200 million yuan for projects including the Huixiu Cultural Tourism Engineering project and to supplement working capital [1][4]. Fundraising Details - The total amount to be raised through this issuance is capped at 200 million yuan, which will be allocated entirely to the Huixiu Cultural Tourism Engineering project (140 million yuan) and working capital (60 million yuan) [2]. - The issuance will target no more than 35 specific investors, including qualified institutional investors and other eligible entities as defined by the China Securities Regulatory Commission [2][3]. Issuance Structure - The number of shares issued will not exceed 30% of the company's total shares prior to the issuance, with the final number to be determined by the board of directors in consultation with the lead underwriter [3]. - The pricing for the shares will be based on the average trading price over the 20 trading days prior to the issuance date, set at no less than 80% of this average [3]. Shareholder Structure - As of the announcement date, Garden Group holds 48.67% of the company's shares, maintaining its status as the controlling shareholder post-issuance [4]. - The company went public on March 1, 2021, raising 660 million yuan, with net proceeds of 585 million yuan allocated for operational funding [4]. Financial Performance - The company reported revenues of 514 million yuan, 628 million yuan, and 722 million yuan for the years 2022, 2023, and 2024, respectively, with net losses of 262 million yuan, 157 million yuan, and 190 million yuan during the same period [5]. - For the first half of 2025, the company achieved revenues of 288 million yuan, a decrease of 10.61% year-on-year, with a net loss of approximately 74 million yuan [6][7].

Core Insights - The company reported a total revenue of 288 million yuan for the first half of 2025, a year-on-year decrease of 10.61% [1] - The net profit attributable to shareholders was -74.43 million yuan, down 23.19% year-on-year [1] - The gross margin fell to 5.59%, a significant decline of 57.72% compared to the previous year [1] Financial Performance - Total revenue for 2024 was 322 million yuan, while for 2025 it decreased to 288 million yuan, reflecting a decline of 10.61% [1] - The net profit for 2024 was -60.42 million yuan, which worsened to -74.43 million yuan in 2025, marking a 23.19% decline [1] - The gross margin decreased from 13.22% in 2024 to 5.59% in 2025, indicating a drop of 57.72% [1] - The net profit margin also worsened from -18.44% in 2024 to -26.00% in 2025, a decline of 40.97% [1] Cash Flow and Debt - The company’s cash and cash equivalents decreased from 300 million yuan in 2024 to 180 million yuan in 2025, a decline of 40.10% [1] - Accounts receivable decreased slightly from 1.151 billion yuan to 1.092 billion yuan, a reduction of 5.13% [1] - Interest-bearing debt decreased from 191 million yuan to 134 million yuan, a decline of 29.70% [1] Operational Efficiency - The total of selling, administrative, and financial expenses was 33.94 million yuan, accounting for 11.78% of revenue, down 24.6% year-on-year [1] - The company’s return on invested capital (ROIC) has been historically low, with a median of 9.19% since its listing, and a worst year ROIC of -14.72% in 2022 [3] - The company has reported three years of negative cash flow from operating activities, indicating potential liquidity issues [4]

Group 1 - The core point of the news is that the number of shareholders of Garden Co. decreased significantly by 31.76% from March 31, 2025, to June 30, 2025, while the average shareholding value per shareholder was lower than the industry average [1][2] - As of June 30, 2025, Garden Co. had 9,637 shareholders, a decrease of 4,486 from the previous quarter, with an average shareholding of 16,700 shares and an average market value of 217,000 yuan [1][2] - In the same period, the stock price of Garden Co. increased by 40.67%, despite the significant reduction in the number of shareholders [1][2] Group 2 - The average number of shareholders in the infrastructure industry was 54,900 as of June 30, 2025, indicating that Garden Co.'s shareholder count is below the industry average [1] - The average market value of shares held by shareholders in the infrastructure industry was 247,000 yuan, which is higher than that of Garden Co. [1] - From March 31, 2025, to June 30, 2025, the net inflow of main funds into Garden Co. was 64.44 million yuan, while retail investors experienced a net outflow of 36.18 million yuan [2]

Group 1 - Company announced a provision for credit and asset impairment of approximately 42.66 million yuan, which will reduce the total profit for the first half of 2025 by the same amount [1] - For the year 2024, the revenue composition of the company is as follows: 89.08% from landscape engineering construction, 5.33% from maintenance and operation, 2.1% from land consolidation, 1.61% from landscape design, and 0.72% from other sources [1]

Group 1 - Company announced a stock issuance to specific investors, authorized by the 2024 annual general meeting, with a maximum of 35 investors involved [1] - The issuance price will not be lower than 80% of the average stock price over the last 20 trading days prior to the pricing benchmark [1] - The company aims to raise up to 200 million yuan, with funds allocated for a total investment of approximately 918 million yuan for the Huixiu Cultural Tourism Engineering project and 6 million yuan for working capital [1] Group 2 - For the year 2024, the company's revenue composition is as follows: 89.08% from landscaping engineering construction, 5.33% from maintenance and operation, 2.1% from land consolidation, 1.61% from landscape design, and 0.72% from other sources [1]

Core Viewpoint - Hangzhou Garden Greening Co., Ltd. plans to issue A-shares to specific investors through a simplified procedure, which may dilute immediate returns for existing shareholders, and the company has proposed measures to mitigate this impact [1][5][11]. Financial Impact of the Issuance - The issuance will increase the total share capital from 161,237,408 shares to a maximum of 174,526,443 shares, assuming the upper limit of 13,289,035 shares is issued at a price of 15.05 yuan per share [2][3]. - The projected net profit attributable to shareholders for 2025 under three scenarios shows potential losses: - Scenario 1: Net profit remains at -190.20 million yuan - Scenario 2: Net profit breaks even at 0 yuan - Scenario 3: Net profit decreases by 20% to -152.16 million yuan [3][4][5]. - Basic earnings per share (EPS) are projected to improve from -1.18 yuan to 0 yuan in the break-even scenario, and to -0.94 yuan in the 20% loss reduction scenario [4][5]. Necessity and Reasonableness of the Issuance - The issuance is deemed necessary to seize industry development opportunities, enhance core competitiveness, and align with the company's strategic goals [5][7]. Relationship of Fundraising Projects to Existing Business - The total amount to be raised is 200 million yuan, which will be invested in projects closely related to the company's main business, aimed at improving profitability and expanding business scope [7][8]. Measures to Mitigate Dilution of Immediate Returns - The company will implement several measures to enhance operational efficiency, reduce costs, and ensure effective use of raised funds, including: - Strengthening management of raised funds to ensure they are used for designated projects [9][10]. - Accelerating the development of main business areas to improve competitiveness [10]. - Optimizing operational management to enhance efficiency and control costs [10]. - Improving profit distribution policies to ensure investor returns [10][11]. Commitments from Related Parties - The controlling shareholder, Hangzhou Yuanrong Holding Group Co., Ltd., and the company's directors and senior management have committed to taking necessary measures to ensure the effectiveness of the proposed return mitigation strategies [11][12].

Group 1 - The company announced its major operating data for the second quarter of 2025, which is unaudited [1] - The number and total amount of newly signed projects were disclosed, including 1 engineering construction project and 7 engineering design projects [1] - The company provided updates on significant projects that have been signed but not yet executed, indicating delays due to funding and project handover issues [1][1]