[Important Notice](index=1&type=section&id=Item%201%20Important%20Notice) The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, and pledge no false records, misleading statements, or major omissions[2](index=2&type=chunk)[3](index=3&type=chunk) [Company Profile](index=2&type=section&id=Item%202%20Company%20Profile) Overview of key financial data, indicators, and shareholder structure as of the reporting period [Key Accounting Data and Financial Indicators](index=2&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3 2018, revenue and net profit declined year-over-year, but cumulative figures for the year-to-date still show growth, while operating cash flow significantly deteriorated Key Financial Indicators for Q3 2018 | Indicator | Current Period | YoY Change in Current Period | Year-to-Date | YoY Change Year-to-Date | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 3,185,836,171.20 | -12.74% | 9,648,952,935.53 | 11.74% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | 310,794,054.98 | -22.07% | 975,081,755.66 | 12.53% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses (Yuan) | 303,069,768.24 | -23.88% | 962,723,298.24 | -2.18% | | Net Cash Flow from Operating Activities (Yuan) | -384,096,153.23 | -176.75% | 42,726,528.37 | -94.09% | | Basic Earnings Per Share (Yuan/share) | 0.12 | -20.00% | 0.36 | 12.50% | | Weighted Average Return on Net Assets | 2.60% | -1.48% | 8.31% | -0.73% | Balance Sheet End-of-Period Data | Indicator | End of Current Period | End of Previous Year | Change from Previous Year-End | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 41,516,202,138.58 | 35,114,336,798.86 | 18.23% | | Net Assets Attributable to Shareholders of Listed Company (Yuan) | 12,118,991,109.23 | 11,314,528,075.16 | 7.11% | - From the beginning of the year to the end of the reporting period, the company's total non-recurring gains and losses amounted to **12,358,457.42 Yuan**, primarily from government subsidies[7](index=7&type=chunk) [Total Number of Shareholders and Shareholding of Top Ten Shareholders](index=3&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Shareholding%20of%20Top%20Ten%20Shareholders%20at%20the%20End%20of%20the%20Reporting%20Period) As of the reporting period, the company had 97,970 common shareholders, with the actual controllers holding nearly 50% of shares, a significant portion of which are pledged - At the end of the reporting period, the company had **97,970 common shareholders**[10](index=10&type=chunk) - The company's actual controllers, He Qiaonv (holding **41.52%**) and Tang Kai (holding **7.65%**), are a married couple, with **1,009,646,379 shares** and **60,632,106 shares** respectively pledged, indicating a high pledge ratio[10](index=10&type=chunk)[11](index=11&type=chunk) [Significant Events](index=5&type=section&id=Item%203%20Significant%20Events) Details significant financial changes, major asset restructuring, performance forecasts, and compliance [Analysis of Changes in Key Financial Data and Indicators](index=5&type=section&id=I.%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, significant changes occurred across the balance sheet, income statement, and cash flow statement, driven by business expansion, financing constraints, and increased operational expenses - Significant balance sheet item changes: - **Cash and cash equivalents** decreased by **54.00%** from the beginning of the year, primarily due to tighter financing and increased net investment outflows - **Long-term receivables** increased by **177.61%** from the beginning of the year, due to increased settlement of BT projects - **Fixed assets** increased by **100.90%** from the beginning of the year, due to office building purchases and consolidation - **Short-term borrowings** and **long-term borrowings** increased by **49.00%** and **245.63%** respectively from the beginning of the year, to meet working capital and project investment needs - **Other current liabilities** increased by **45.89%** from the beginning of the year, mainly due to a net increase of **1.5 billion Yuan** in short-term and ultra-short-term financing bonds[14](index=14&type=chunk)[16](index=16&type=chunk) - Significant income statement item changes: - **Administrative expenses**, **R&D expenses**, and **financial expenses** increased by **47.97%**, **99.48%**, and **83.00%** respectively year-over-year, primarily due to business expansion, increased R&D investment, and growth in interest-bearing debt[17](index=17&type=chunk) - Significant cash flow statement item changes: - **Net cash flow from operating activities** decreased by **94.09%** year-over-year, primarily due to a decrease of approximately **1.658 billion Yuan** in bank acceptance bill balances, leading to increased operating cash outflows - **Net cash flow from financing activities** increased by **142.53%** year-over-year, due to increased net financing inflows[19](index=19&type=chunk)[20](index=20&type=chunk) [Progress of Significant Events](index=7&type=section&id=II.%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company is progressing with a major asset restructuring to acquire Ya'an Oriental Bifengxia Tourism Co., Ltd. equity, with scheme details still under negotiation - The company plans to issue shares to acquire equity in Ya'an Oriental Bifengxia Tourism Co., Ltd., with this major asset restructuring still in progress. The company's stock resumed trading on August 27, 2018, but the details of the restructuring plan are still under negotiation and deliberation[21](index=21&type=chunk)[22](index=22&type=chunk) [2018 Annual Operating Performance Forecast](index=9&type=section&id=IV.%20Forecast%20for%202018%20Annual%20Operating%20Performance) The company forecasts a positive growth in net profit attributable to shareholders for 2018, ranging from 0% to 30%, driven by core business advantages and project implementation 2018 Annual Performance Forecast | Item | Data | | :--- | :--- | | Net Profit Change Range | 0.00% to 30.00% | | Net Profit Change Interval (10,000 Yuan) | 217,792.17 to 283,129.82 | | 2017 Annual Net Profit (10,000 Yuan) | 217,792.17 | [Other Compliance and Investor Relations Matters](index=9&type=section&id=Other%20Compliance%20and%20Investor%20Relations%20Matters) The company maintained good compliance during the reporting period, with no outstanding commitments or violations, and actively engaged with institutional investors - During the reporting period, the company had no overdue unfulfilled commitments, no financial assets measured at fair value, no illegal external guarantees, no non-operating funds occupied by controlling shareholders, and no entrusted wealth management matters[25](index=25&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The company hosted institutional investors on August 7 and August 23, 2018, through telephone communication and on-site visits respectively[30](index=30&type=chunk)

Section I Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility - Company's board, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions, and assume legal responsibility[3](index=3&type=chunk) - Company head He Qiaonv, chief accountant Zhou Shu, and head of accounting Li Fuliang declare the financial report in this semi-annual report is true, accurate, and complete[3](index=3&type=chunk) - Company plans no cash dividends, no bonus shares, and no conversion of capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the complete directory structure of the report, providing quick navigation for investors across all chapters [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, ensuring accurate understanding of key concepts like company name, business models, and reporting period - "Orient Landscape/The Company/Company" refers to Beijing Orient Landscape Environmental Co., Ltd. and its former names[10](index=10&type=chunk) - "PPP" refers to Public-Private-Partnership (Government and Social Capital Cooperation Model)[11](index=11&type=chunk) - "Reporting Period" refers to January 1, 2018, to June 30, 2018[11](index=11&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section introduces the company's basic information, including stock abbreviation, code, listing exchange, and legal representative - Company stock abbreviation: **Orient Landscape**, stock code: **002310**, listed on Shenzhen Stock Exchange[14](index=14&type=chunk) - Company Chinese name: Beijing Orient Landscape Environmental Co., Ltd., Legal Representative: He Qiaonv[14](index=14&type=chunk) [II. Contact Persons and Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides contact details for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication - Board Secretary: Yang Lijing, Securities Affairs Representative: Xia Keqin[15](index=15&type=chunk) - Contact address: 7th Floor, Building 104, No. 10 Jia, Jiuxianqiao North Road, Chaoyang District, Beijing, Phone: 010-59388886, Email: orientlandscape@163.com[15](index=15&type=chunk) [III. Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) This section states that the company's contact information, information disclosure, and document storage locations remained unchanged during the reporting period - Company's registered address, office address, postal code, website, and email remained unchanged during the reporting period[16](index=16&type=chunk) - Company's selected information disclosure newspaper, CSRC designated website, and semi-annual report storage location remained unchanged during the reporting period[17](index=17&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's operating revenue and net profit attributable to shareholders achieved significant growth, with a substantial increase in net cash flow from operating activities Key Accounting Data and Financial Indicators (Current Period vs. Prior Year Period) | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 6,463,116,764.33 | 4,984,296,874.06 | 29.67% | | Net Profit Attributable to Listed Company Shareholders (Yuan) | 664,287,700.68 | 467,661,973.81 | 42.04% | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses (Yuan) | 659,653,530.00 | 586,034,003.49 | 12.56% | | Net Cash Flow from Operating Activities (Yuan) | 426,822,681.60 | 222,991,167.67 | 91.41% | | Basic Earnings Per Share (Yuan/Share) | 0.25 | 0.17 | 47.06% | | Diluted Earnings Per Share (Yuan/Share) | 0.25 | 0.17 | 47.06% | | Weighted Average Return on Net Assets | 5.70% | 4.98% | 0.72% | | **Indicator** | **End of Current Period** | **End of Previous Year** | **Change from Previous Year-End** | | Total Assets (Yuan) | 40,153,438,647.91 | 35,114,336,798.86 | 14.35% | | Net Assets Attributable to Listed Company Shareholders (Yuan) | 11,808,318,062.71 | 11,314,528,075.16 | 4.36% | [V. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards - Company reported no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[19](index=19&type=chunk) - Company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[20](index=20&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring gains and losses for the reporting period amounted to **4.634 million yuan**, primarily including government subsidies, non-current asset disposal gains/losses, and fair value change gains/losses Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 171,755.01 | | Government subsidies recognized in current profit or loss | 17,179,008.06 | | Gains and losses from changes in fair value and investment income | 786,775.60 | | Other non-operating income and expenses | -358,841.55 | | Other gains and losses that meet the definition of non-recurring gains and losses | -8,819,407.31 | | Less: Income tax impact | 3,880,987.54 | | Minority interest impact (after tax) | 444,131.59 | | **Total** | **4,634,170.68** | Section III Company Business Overview [I. Main Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company has successfully transformed into an ecological environment construction and operation enterprise, forming business systems in water environment governance, industrial hazardous waste disposal, and all-for-one tourism - Company has transformed into an ecological environment construction and operation enterprise, with main businesses including water environment governance, industrial hazardous waste disposal, and all-for-one tourism[26](index=26&type=chunk) - In H1 2018, company won **36 PPP projects**, with a total bid amount of approximately **33.948 billion yuan**, covering water environment comprehensive governance, all-for-one tourism, and rural revitalization[27](index=27&type=chunk) [(I) Main Businesses Engaged by the Company](index=9&type=section&id=(%E4%B8%80)%20%E5%85%AC%E5%8F%B8%E6%89%80%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company primarily engages in ecological environment construction and operation businesses, including water environment governance, industrial hazardous waste disposal, and all-for-one tourism - Company has transformed into an ecological environment construction and operation enterprise, with main businesses including water environment governance, industrial hazardous waste disposal, and all-for-one tourism[26](index=26&type=chunk) - In H1 2018, company won **36 PPP projects**, with a total bid amount of approximately **33.948 billion yuan**, covering water environment comprehensive governance, all-for-one tourism, and rural revitalization[27](index=27&type=chunk) [(II) Industry Situation of the Company](index=9&type=section&id=(%E4%BA%8C)%20%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E7%9A%84%E6%83%85%E5%86%B5) The company's industries are strongly supported by national policies, with huge and continuously growing market demand, providing broad development space for its businesses - Water environment governance industry driven by national policies, entering a decisive stage in the next three years, company's "three-in-one" concept aligns with national strategy, expecting significant development space[29](index=29&type=chunk) - All-for-one tourism industry shifting from "scenic spot tourism" to "all-for-one tourism", national policies emphasize integrated development and innovative product supply, company will build characteristic projects with "investment + construction + operation" model[30](index=30&type=chunk) - Industrial hazardous waste disposal industry has huge market potential, stricter policies drive enterprises to prioritize hazardous waste disposal, company accelerating technology R&D and introduction, actively expanding market[31](index=31&type=chunk)[32](index=32&type=chunk) - Rural revitalization strategy elevated to national importance, supporting policies will continuously drive rural construction, providing broad market space for company's ecological protection and tourism businesses[33](index=33&type=chunk) [II. Significant Changes in Major Assets](index=12&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) During the reporting period, the company's fixed assets and construction in progress both increased significantly, primarily due to the purchase of office buildings and the consolidation of several companies - Increase in fixed assets mainly due to purchase of office buildings and consolidation of Shenzhen Jiezhi Technology Co., Ltd., Jiangsu Yingtian Chemical Co., Ltd., and other companies[36](index=36&type=chunk) - Increase in construction in progress mainly due to increased investment in production equipment and plants, and consolidation of Shenzhen Jiezhi Technology Co., Ltd., Jiangsu Yingtian Chemical Co., Ltd., Wujiang Taihu Industrial Waste Treatment Co., Ltd., and other companies[36](index=36&type=chunk) [III. Analysis of Core Competencies](index=12&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include extensive project experience, leading water environment governance technology, rapidly expanding industrial hazardous waste disposal capabilities, and strong brand influence - Company holds **12.56%** market share in ecological construction and environmental protection, and **10.60%** in tourism PPP sub-sectors, with **20 all-for-one tourism projects** totaling approximately **26 billion yuan** in investment, becoming an industry leader[37](index=37&type=chunk) - Company has multiple professional R&D and design departments, based on proprietary patented technologies, combined with acquisitions of Shanghai Liyuan and Zhongshan Environmental, optimizing water treatment technology advantages[39](index=39&type=chunk) - Company accelerating hazardous waste disposal market layout, possessing **140 authorized patents**, forming standardized treatment process modules, and has reserved **1.76 million tons** of industrial hazardous waste disposal capacity across **28 provinces** nationwide[40](index=40&type=chunk) - Company boasts world-class technology, design personnel, and experienced operational teams, and motivates employees through stock option incentive plans and employee stock ownership plans[41](index=41&type=chunk) - Company consistently focuses on brand building, participating in major projects like the Olympics and World Expo, and being selected for Ministry of Finance national demonstration projects, forming a highly influential brand advantage[42](index=42&type=chunk) Section IV Management Discussion and Analysis [I. Overview](index=15&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) Amidst a tightening financial environment, the company achieved fruitful financial and business results, with operating revenue increasing by **29.67%** and net profit by **42.04%** year-on-year - In H1 2018, company achieved operating revenue of **6.463 billion yuan**, a **29.67%** year-on-year increase; net profit attributable to listed company shareholders was **664 million yuan**, a **42.04%** year-on-year increase[45](index=45&type=chunk) - Water environment comprehensive governance business revenue was **2.705 billion yuan** (**41.85%** of total), all-for-one tourism business revenue was **1.162 billion yuan** (**17.97%**), and hazardous waste disposal business revenue was **482 million yuan** (**7.46%**)[45](index=45&type=chunk) - During the reporting period, company won **36 PPP orders**, with a total bid amount of approximately **33.948 billion yuan**, an **18.65%** year-on-year increase, primarily in water environment comprehensive governance[49](index=49&type=chunk) - Company's future development strategy includes continued deep cultivation of water environment comprehensive governance, all-for-one tourism, ecological restoration, and rural revitalization, alongside financial system reforms to strengthen financing capabilities and adjust business areas and models in response to the "deleveraging" environment[54](index=54&type=chunk)[55](index=55&type=chunk) - Company expanded hazardous waste treatment capacity through new construction and M&A, completing acquisitions of Shenzhen Jiezhi Technology Co., Ltd. and five other companies, and establishing six new companies, significantly enhancing hazardous waste disposal capabilities[52](index=52&type=chunk) [(I) Financial Performance](index=15&type=section&id=(%E4%B8%80)%20%E8%B4%A2%E5%8A%A1%E8%A1%A8%E7%8E%B0) During the reporting period, the company's operating revenue and net profit attributable to the parent company both achieved substantial growth, with net cash flow from operating activities doubling year-on-year Key Financial Indicators Data | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Billion Yuan) | 6.463 | 4.984 | 29.67% | | Net Profit Attributable to Parent Company Owners (Billion Yuan) | 0.664 | 0.468 | 42.04% | | Selling Expense Ratio | 0.24% | 0.36% | -0.12% | | Administrative Expense Ratio | 12.20% | 10.81% | 1.39% | | Financial Expense Ratio | 4.67% | 3.55% | 1.12% | | Weighted Average Return on Net Assets | 5.70% | 4.98% | 0.72% | | Earnings Per Share (Yuan) | 0.25 | 0.17 | 47.06% | | Cash Received from Sales of Goods and Provision of Services (Billion Yuan) | 5.014 | 3.732 | 34.35% | | Net Cash Flow from Operating Activities (Billion Yuan) | 0.427 | 0.223 | 91.41% | | **Indicator** | **End of Reporting Period** | **Beginning of Reporting Period** | **Year-on-Year Change** | | Total Assets (Billion Yuan) | 40.153 | 35.114 | 14.35% | | Total Equity Attributable to Parent Company Owners (Billion Yuan) | 11.808 | 11.315 | 4.36% | [(II) Business Performance](index=16&type=section&id=(%E4%BA%8C)%20%E4%B8%9A%E5%8A%A1%E8%A1%A8%E7%8E%B0) The company achieved significant progress in its three major business segments: comprehensive water environment governance, industrial hazardous waste disposal, and all-for-one tourism - In H1 2018, company won **36 PPP orders**, with a total bid amount of approximately **33.948 billion yuan**, a **18.65%** year-on-year increase, covering water environment comprehensive governance, all-for-one tourism, municipal landscaping, and rural revitalization[49](index=49&type=chunk) - All-for-one tourism business achieved significant expansion, winning **11 projects** in H1 with a total investment of approximately **12.7 billion yuan**, and investing in and operating scenic spots in Tengchong, Lin'an, Chongqing, and Lu'an[50](index=50&type=chunk) - Company continued to deepen its hazardous waste disposal industry layout, accumulating **1.76 million tons** of industrial hazardous waste environmental assessment approvals (1.14 million tons for resource utilization, 0.62 million tons for harmless disposal), with **8 additional projects** under construction to add **0.49 million tons** of disposal capacity[51](index=51&type=chunk) - During the reporting period, company completed acquisitions of Shenzhen Jiezhi Technology Co., Ltd., Jiangsu Yingtian Chemical Co., Ltd., and five other companies, and established six new companies, significantly enhancing hazardous waste disposal capacity[52](index=52&type=chunk) [(III) Company's Future Development Strategy](index=18&type=section&id=(%E4%B8%89)%20%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E6%88%98%E7%95%A5) The company will continue to deeply cultivate core businesses and implement financial system reforms to address challenges and ensure healthy development - Company will continue to deeply cultivate industries such as water environment comprehensive governance, all-for-one tourism, ecological restoration, and rural revitalization[54](index=54&type=chunk) - Company will strengthen financing capabilities for both the entity and projects, building a robust financial system, including adjusting loan structures, strengthening strategic cooperation with financial institutions, and introducing strategic investors to reduce asset-liability ratio[54](index=54&type=chunk)[55](index=55&type=chunk) - Company will adjust business regions (focusing on financially strong areas) and business models (flexibly adopting EPC or PPP), and implement a financial veto mechanism to strictly control project commencement conditions[55](index=55&type=chunk) - Hazardous waste disposal industry will be a key expansion area for the company in the coming years, accelerating layout through a combination of new construction and M&A, building the broadest coverage and most comprehensive qualification system[56](index=56&type=chunk)[57](index=57&type=chunk) [II. Analysis of Main Business](index=19&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's main business revenue increased by **29.67%**, with significant growth in engineering construction, water environment comprehensive governance, and all-for-one tourism, while management and financial expenses also rose Year-on-Year Changes in Key Financial Data | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,463,116,764.33 | 4,984,296,874.06 | 29.67% | | Operating Cost | 4,401,809,279.13 | 3,392,258,073.29 | 29.76% | | Selling Expenses | 15,820,126.47 | 18,159,609.24 | -12.88% | | Administrative Expenses | 788,406,987.27 | 538,736,981.38 | 46.34% | | Financial Expenses | 301,953,952.46 | 176,812,079.17 | 70.78% | | Income Tax Expense | 115,441,765.15 | 129,064,016.76 | -10.55% | | R&D Investment | 315,369,815.81 | 113,305,097.11 | 178.34% | | Net Cash Flow from Operating Activities | 426,822,681.60 | 222,991,167.67 | 91.41% | | Net Cash Flow from Investing Activities | -2,722,625,849.36 | -771,966,192.92 | -252.69% | | Net Cash Flow from Financing Activities | 1,077,157,014.41 | 966,610,370.43 | 11.44% | | Net Increase in Cash and Cash Equivalents | -1,218,592,652.09 | 417,635,343.58 | -391.78% | Operating Revenue Composition (by Product) | Product Category | Current Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Municipal Landscaping | 1,697,205,728.61 | 26.26% | 1,624,687,096.53 | 32.60% | 4.46% | | Water Environment Comprehensive Governance | 2,704,658,605.29 | 41.85% | 1,911,222,269.29 | 38.34% | 41.51% | | All-for-One Tourism | 1,161,653,837.58 | 17.97% | 98,613,807.01 | 1.98% | 1,077.98% | | Solid Waste Disposal | 482,053,405.53 | 7.46% | 980,278,948.90 | 19.67% | -50.82% | | Design and Planning | 234,557,747.02 | 3.63% | 141,313,832.29 | 2.84% | 65.98% | - Engineering construction revenue increased year-on-year, primarily due to active participation in water environment comprehensive governance and all-for-one tourism projects[62](index=62&type=chunk) - Operating revenue in Northwest, Southwest, Central, and South China regions grew rapidly, mainly because project value recognition in these areas increased in 2018[62](index=62&type=chunk) [III. Analysis of Non-Main Business](index=21&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, non-main business primarily generated asset impairment losses of **151.28 million yuan**, accounting for **19.43%** of total profit, mainly from the provision for impairment of accounts receivable and other receivables Non-Main Business Analysis | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Asset Impairment | 151,283,657.99 | 19.43% | Mainly asset impairment losses from provisions for accounts receivable and other receivables | No | [IV. Analysis of Assets and Liabilities](index=22&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets increased by **14.35%** year-on-year, with a decrease in cash and cash equivalents proportion and an increase in fixed assets and construction in progress Significant Changes in Asset Composition | Major Asset | End of Current Period Amount (Yuan) | Proportion of Total Assets | End of Prior Year Period Amount (Yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,033,656,434.16 | 5.06% | 3,092,864,539.50 | 11.95% | -6.89% | | Accounts Receivable | 9,110,946,609.70 | 22.69% | 5,754,568,014.49 | 22.23% | 0.46% | | Inventories | 14,090,982,641.34 | 35.09% | 9,319,528,426.80 | 36.00% | -0.91% | | Fixed Assets | 1,836,587,403.13 | 4.57% | 872,905,747.99 | 3.37% | 1.20% | | Construction in Progress | 305,097,134.98 | 0.76% | 41,204,261.42 | 0.16% | 0.60% | | Short-term Borrowings | 3,394,907,976.37 | 8.45% | 1,943,725,371.00 | 7.51% | 0.94% | | Long-term Borrowings | 507,487,157.08 | 1.26% | 206,926,499.00 | 0.80% | 0.46% | Asset Restrictions as of the End of the Reporting Period | Item | Period-End Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,108,275,560.73 | Margin Deposit | | Inventories | 124,656,129.20 | Loan Collateral | | Fixed Assets | 696,936,873.06 | Loan Collateral | | Intangible Assets | 128,354,026.48 | Loan Collateral/Pledge | | Accounts Receivable | 364,866,545.19 | Loan Pledge | | Other Non-Current Assets - BOT Projects in Progress | 44,215,120.79 | Loan Pledge | | Long-term Equity Investments | 49,500,000.00 | Loan Pledge | | **Total** | **2,516,804,255.45** | -- | [V. Analysis of Investment Status](index=22&type=section&id=%E4%BA%94%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company acquired several significant equity investments totaling **776 million yuan** through acquisitions, aiming to expand its hazardous waste disposal market presence Significant Equity Investments Acquired During the Reporting Period | Investee Company Name | Main Business | Investment Method | Investment Amount (Yuan) | Shareholding Ratio | | :--- | :--- | :--- | :--- | :--- | | Shenzhen Jiezhi Technology Co., Ltd. | Online recovery and regeneration of etching waste liquid | Acquisition | 371,000,000.00 | 70.00% | | Jiangsu Yingtian Chemical Co., Ltd. | Disposal and utilization of solvent-based hazardous waste | Acquisition | 184,000,000.00 | 60.00% | | Wujiang Taihu Industrial Waste Treatment Co., Ltd. | Hazardous waste disposal | Acquisition | 221,000,000.00 | 65.00% | | **Total** | -- | -- | **776,000,000.00** | -- | - These significant equity investments were all made using self-owned funds, aimed at expanding the hazardous waste disposal market, and have completed industrial and commercial change procedures[72](index=72&type=chunk) [VI. Significant Asset and Equity Disposals](index=24&type=section&id=%E5%85%AD%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not undertake any significant asset or equity disposals during the reporting period - Company did not dispose of significant assets during the reporting period[78](index=78&type=chunk) - Company did not dispose of significant equity during the reporting period[79](index=79&type=chunk) [VII. Analysis of Major Holding and Participating Companies](index=25&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company owns several important subsidiaries covering environmental landscape design, seedling cultivation, engineering construction, and environmental protection industries, and expanded its environmental protection business through new establishments and acquisitions Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Orient Lihe Landscape Design Co., Ltd. | Subsidiary | Environmental landscape design | 25,000,000.00 | 55,573,025.56 | | Hubei Shunda Construction Group Co., Ltd. | Subsidiary | Construction engineering | 70,000,000.00 | 102,282,792.79 | - During the reporting period, company established Beijing Orient Kolin Environmental Testing Co., Ltd. and Orient Landscape Group Culture & Tourism Co., Ltd., and completed acquisitions of Shenzhen Jiezhi Technology Co., Ltd. and five other companies[81](index=81&type=chunk)[83](index=83&type=chunk) - Company transferred equity of environmental protection business subsidiaries to Orient Landscape Group Environmental Co., Ltd. (newly established) under its wholly-owned subsidiary Beijing Orient Landscape Environmental Investment Co., Ltd. to meet operational management needs[82](index=82&type=chunk) [VIII. Structured Entities Controlled by the Company](index=26&type=section&id=%E5%85%AB%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - Company did not control any structured entities during the reporting period[84](index=84&type=chunk) [IX. Forecast of Operating Performance for January-September 2018](index=26&type=section&id=%E4%B9%9D%E3%80%81%E5%AF%B9%202018%20%E5%B9%B4%201-9%20%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company expects net profit attributable to shareholders for January-September 2018 to increase by **20.00% to 50.00%** year-on-year, driven by steady growth in water environment comprehensive governance and all-for-one tourism projects Forecast of Operating Performance for January-September 2018 | Indicator | Range/Amount | | :--- | :--- | | Net Profit Attributable to Listed Company Shareholders Change Range | 20.00% to 50.00% | | Net Profit Attributable to Listed Company Shareholders Change Interval (10,000 Yuan) | 103,978.33 to 129,972.91 | | Net Profit Attributable to Listed Company Shareholders for Jan-Sep 2017 (10,000 Yuan) | 86,648.60 | - Performance change mainly due to company's full utilization of project advantages in water environment comprehensive governance and all-for-one tourism markets, with steady project implementation, expected to drive year-on-year growth in operating revenue and profit[84](index=84&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=26&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from tightening credit, policy changes, and PPP model uncertainties, and has implemented measures like strengthening settlement management and optimizing financing structures - Company faces risks of continuous tightening credit environment, declining social financing scale growth, and increased financing difficulties for private enterprises[86](index=86&type=chunk) - Industry risks include local government revenue affected by real estate market, reduced municipal landscaping investment due to government debt cleanup, and PPP policy restrictions, potentially leading to slower order growth, extended construction periods, and difficulties in accounts receivable collection[87](index=87&type=chunk) - Traditional business models carry risks of advance payments, inventory, and accounts receivable collection efficiency affected by local government finances; PPP models face uncertainties due to imperfect policy environment, long project cycles, and impact of government changes on performance[88](index=88&type=chunk)[89](index=89&type=chunk) - Company faces risks of revenue recognition and project settlement discrepancies, potential losses and impairment of completed but unsettled inventory, and accounts receivable collection risks[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Company has implemented measures such as establishing a settlement management department, formulating settlement management procedures, and preparing tracking reports to strengthen settlement management and risk control, completing **3.963 billion yuan** in settlements in H1 2018[96](index=96&type=chunk) Section V Significant Matters [I. Information on Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period](index=30&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%AC%E5%BC%80%E7%9A%84%E5%B9%B4%E5%BA%A6%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E5%92%8C%E4%B8%B4%E6%97%B6%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E7%9A%84%E6%9C%89%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company held three shareholder meetings, including two extraordinary general meetings and one annual general meeting, with investor participation rates around **49%** Shareholder Meeting Information for the Reporting Period | Meeting Session | Meeting Type | Investor Participation Ratio | Date of Meeting | | :--- | :--- | :--- | :--- | | First Extraordinary General Meeting of 2018 | Extraordinary General Meeting | 49.54% | February 09, 2018 | | Second Extraordinary General Meeting of 2018 | Extraordinary General Meeting | 49.57% | April 24, 2018 | | 2017 Annual General Meeting | Annual General Meeting | 49.63% | May 16, 2018 | [II. Profit Distribution or Capital Reserve to Share Capital Conversion Plan for the Reporting Period](index=30&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E9%A2%84%E6%A1%88) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - Company plans no cash dividends, no bonus shares, and no conversion of capital reserves into share capital for the semi-annual period[100](index=100&type=chunk) [III. Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=30&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company reported no commitments fulfilled or overdue unfulfilled by its actual controller, shareholders, related parties, acquirers, or the company during or as of the end of the reporting period - No commitments fulfilled or overdue unfulfilled by actual controller, shareholders, related parties, acquirers, and the company during and as of the end of the reporting period[101](index=101&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=30&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - Company's semi-annual report was not audited[102](index=102&type=chunk) [V. Board of Directors' and Supervisory Board's Explanations on "Non-Standard Audit Report" for the Current Period](index=30&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no "non-standard audit report" issued by the accounting firm for the current reporting period - No "non-standard audit report" from the accounting firm for the current reporting period[103](index=103&type=chunk) [VI. Board of Directors' Explanations on "Non-Standard Audit Report" for the Previous Year](index=30&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no explanations regarding a "non-standard audit report" for the previous year during the reporting period - No explanations regarding "non-standard audit report" for the previous year during the reporting period[103](index=103&type=chunk) [VII. Bankruptcy Reorganization Matters](index=31&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not have any bankruptcy reorganization matters during the reporting period - Company had no bankruptcy reorganization matters during the reporting period[104](index=104&type=chunk) [VIII. Litigation Matters](index=31&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period - No significant litigation or arbitration matters for the company during the reporting period[105](index=105&type=chunk) [IX. Media Scrutiny](index=31&type=section&id=%E4%B9%9D%E3%80%81%E5%AA%92%E4%BD%93%E8%B4%A8%E7%96%91%E6%83%85%E5%86%B5) In May 2018, the company provided explanations regarding public media scrutiny concerning its bond issuance and the provision ratio for bad debts of accounts receivable - In May 2018, company noted public media reports questioning its bond issuance and accounts receivable bad debt provision ratio, and has provided explanations[105](index=105&type=chunk) [X. Penalties and Rectification](index=31&type=section&id=%E5%8D%81%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification situations during the reporting period - Company had no penalties or rectification situations during the reporting period[106](index=106&type=chunk) [XI. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=31&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company reported no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period - No issues regarding integrity status of the company, its controlling shareholder, or actual controller during the reporting period[107](index=107&type=chunk) [XII. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=31&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company continued to implement multiple phases of equity incentive plans and employee stock ownership plans, with exercise prices adjusted and the first exercise period of the third phase completed - Second phase equity incentive plan's initial grant stock option exercise price adjusted from **18.20 yuan** to **7.14 yuan**, and reserved grant portion exercise price adjusted from **24.10 yuan** to **9.53 yuan**[108](index=108&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk)[115](index=115&type=chunk) - Third phase equity incentive plan's initial grant stock option exercise price adjusted from **22.28 yuan** to **8.80 yuan**, and reserved grant portion exercise price adjusted from **16.63 yuan** to **16.54 yuan**[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[122](index=122&type=chunk) - In January 2018, the first exercise period of the third phase stock option incentive plan's initial grant was completed, increasing company's total share capital by **1,623,204 shares**[122](index=122&type=chunk) - First phase employee stock ownership plan completed purchase of **10,955,441 shares**, and was extended in April 2018 to May 14, 2019[125](index=125&type=chunk)[126](index=126&type=chunk) - Second phase employee stock ownership plan completed purchase of **92,474,622 shares**, with a total transaction amount of **1.476 billion yuan**[128](index=128&type=chunk)[129](index=129&type=chunk) - Third phase employee stock ownership plan completed purchase of **46,047,584 shares**, with a total transaction amount of **895 million yuan**[131](index=131&type=chunk) [XIII. Significant Related Party Transactions](index=39&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company reported no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or non-operating related party receivables/payables during the reporting period, but there were related party guarantees - No related party transactions related to daily operations during the reporting period[133](index=133&type=chunk) - No non-operating related party receivables and payables during the reporting period[136](index=136&type=chunk) - No other significant related party transactions during the reporting period[137](index=137&type=chunk) [XIV. Significant Contracts and Their Performance](index=39&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no significant entrustment, contracting, leasing, or other major contracts during the reporting period, but provided multiple significant guarantees for subsidiaries, totaling **7.91%** of the company's net assets - No entrustment, contracting, or leasing situations during the reporting period[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) Company's Guarantees for Subsidiaries (Partial) | Guaranteed Entity Name | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Nantong Jiuzhou Environmental Protection Technology Co., Ltd. | 8,000 | 7,000 | Joint and Several Liability Guarantee | Two years from the expiration of the performance period of the guaranteed debt under the main contract | No | | Hangzhou Fuyang Jinyuan Copper Co., Ltd. | 13,000 | 3,000 | Joint and Several Liability Guarantee | Two years from the expiration of the performance period of the guaranteed debt under the main contract | No | | Shanghai Liyuan Water Treatment Technology Co., Ltd. | 15,000 | 12,892.65 | Joint and Several Liability Guarantee | Two years from the expiration of the performance period of the guaranteed debt under the main contract | No | | Zhongshan Environmental Industry Co., Ltd. | 12,000 | 8,500 | Joint and Several Liability Guarantee | Two years from the expiration of the performance period of the guaranteed debt under the main contract | No | - Actual guarantee balance totaled **933.5955 million yuan** at the end of the reporting period, accounting for **7.91%** of the company's net assets[151](index=151&type=chunk) - Debt guarantees provided directly or indirectly for guaranteed entities with an asset-liability ratio exceeding **70%** totaled **513.2072 million yuan**[152](index=152&type=chunk) - No irregular external guarantees by the company during the reporting period[153](index=153&type=chunk) [XV. Social Responsibility](index=51&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company highly values environmental protection, with key polluting subsidiaries strictly implementing pollution prevention measures, and actively fulfills its social responsibility for targeted poverty alleviation - Company and its subsidiaries are key polluting units designated by environmental protection authorities, including Nantong Jiuzhou Environmental Protection Technology Co., Ltd., Hangzhou Fuyang Jinyuan Copper Co., Ltd., etc.[156](index=156&type=chunk) - Company highly prioritizes pollution control, using advanced facilities and processes, strictly controlling pollutant emissions, and implementing environmental "three simultaneous" system, obtaining relevant administrative permits[159](index=159&type=chunk)[160](index=160&type=chunk) - Company formulates and drills emergency plans for environmental incidents, ensuring effective and feasible environmental risk control, and develops enterprise environmental self-monitoring plans as required[161](index=161&type=chunk)[162](index=162&type=chunk) - Company actively responds to national targeted poverty alleviation efforts, establishing a poverty alleviation leadership group, helping impoverished households escape poverty through employment, and formulating assessment and incentive schemes[164](index=164&type=chunk)[165](index=165&type=chunk) [XVI. Explanation of Other Significant Matters](index=54&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company is planning to issue shares to acquire assets from related parties, which may constitute a major asset restructuring, leading to the suspension of its shares from trading since May 25, 2018 - Company is planning to issue shares to acquire assets from related parties, which may constitute a major asset restructuring[167](index=167&type=chunk) - Company's shares (stock abbreviation: Orient Landscape; stock code: 002310) have been suspended from trading since the market open on May 25, 2018, with multiple announcements of suspension progress and extension of resumption[167](index=167&type=chunk)[168](index=168&type=chunk) - As of the report date, the company and relevant parties are actively advancing various tasks for this restructuring, including transaction scheme design, due diligence, auditing, and valuation, and the shares have not yet resumed trading[169](index=169&type=chunk) [XVII. Significant Matters of Company Subsidiaries](index=55&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company reported no significant matters concerning its subsidiaries during the reporting period - No significant matters concerning company subsidiaries during the reporting period[170](index=170&type=chunk) Section VI Share Changes and Shareholder Information [I. Share Change Information](index=56&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital increased by **1,623,204 shares** due to the exercise of the first exercise period of the third phase stock option incentive plan's initial grant Share Change Information | Share Class | Quantity Before Change (Shares) | Proportion Before Change | Increase/Decrease in Current Change (Shares) | Quantity After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,059,533,270 | 39.52% | -39 | 1,059,533,231 | 39.49% | | II. Unrestricted Shares | 1,621,622,010 | 60.48% | 1,623,243 | 1,623,245,253 | 60.51% | | III. Total Shares | 2,681,155,280 | 100.00% | 1,623,204 | 2,682,778,484 | 100.00% | - Share change due to company exercising **1,623,204 stock options** for **81 incentive recipients** from the first exercise period of the third phase stock option incentive plan's initial grant in January 2018[173](index=173&type=chunk) - New shares completed registration with China Securities Depository and Clearing Corporation Limited Shenzhen Branch on January 10, 2018[174](index=174&type=chunk) [II. Number of Shareholders and Shareholding Information](index=58&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At the end of the reporting period, the company had **89,290** common shareholders, with He Qiaonv and Tang Kai as actual controllers, holding **41.52%** and **7.65%** of shares respectively - Total number of common shareholders at the end of the reporting period: **89,290**[179](index=179&type=chunk) Shareholding Information of Common Shareholders Holding 5% or More or Top 10 Common Shareholders (Partial) | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Common Shares Held at Period-End (Shares) | Number of Restricted Common Shares Held (Shares) | Number of Unrestricted Common Shares Held (Shares) | Pledge or Freeze Status (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | He Qiaonv | Domestic Natural Person | 41.52% | 1,113,789,413 | 835,342,060 | 278,447,353 | Pledged 770,859,379 | | Tang Kai | Domestic Natural Person | 7.65% | 205,349,530 | 154,012,147 | 51,337,383 | - | | Zhongtai Chuangzhan (Zhuhai Hengqin) Asset Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.75% | 100,621,920 | 0 | 100,621,920 | Pledged 99,079,700 | | Zhonghai Trust Co., Ltd. - Zhonghai Trust - Anying No. 19 Orient Landscape Employee Stock Ownership Plan Collective Fund Trust | Domestic Non-State-Owned Legal Person | 3.45% | 92,474,622 | 0 | 92,474,622 | - | - He Qiaonv and Tang Kai are a married couple and the company's actual controllers. He Qiaonv and He Guojie are siblings[180](index=180&type=chunk) [III. Changes in Controlling Shareholder or Actual Controller](index=60&type=section&id=%E4%B8%89%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - Company's controlling shareholder remained unchanged during the reporting period[182](index=182&type=chunk) - Company's actual controller remained unchanged during the reporting period[182](index=182&type=chunk) Section VII Information on Preference Shares [Information on Preference Shares](index=61&type=section&id=%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preference shares during the reporting period - Company had no preference shares during the reporting period[185](index=185&type=chunk) Section VIII Information on Directors, Supervisors, and Senior Management [I. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=62&type=section&id=%E4%B8%80%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, the shareholdings of some directors, supervisors, and senior management changed, with Vice Presidents Jia Ying and Hou Jiandong increasing their holdings, and Supervisory Board Chairman Fang Yi decreasing hers Changes in Shareholdings of Directors, Supervisors, and Senior Management (Partial) | Name | Position | Beginning of Period Shareholding (Shares) | Shares Increased This Period (Shares) | Shares Decreased This Period (Shares) | End of Period Shareholding (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | He Qiaonv | Chairman | 1,113,789,413 | 0 | 0 | 1,113,789,413 | | Fang Yi | Chairman of Supervisory Board | 11,337,390 | 0 | 100,000 | 11,237,390 | | Jia Ying | Vice President | 0 | 32,700 | 0 | 32,700 | | Hou Jiandong | Vice President | 1,000 | 8,000 | 0 | 9,000 | [II. Changes in Company Directors, Supervisors, and Senior Management](index=63&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's directors, supervisors, and senior management remained unchanged during the reporting period, with specific details available in the 2017 annual report - Company's directors, supervisors, and senior management remained unchanged during the reporting period, specific details available in the 2017 annual report[189](index=189&type=chunk) Section IX Information on Corporate Bonds [I. Basic Information on Corporate Bonds](index=64&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) The company's four publicly issued and listed corporate bonds, totaling **2.25 billion yuan**, were all unexpired at the end of the reporting period, with annual interest payments and principal repayment at maturity Basic Information on Corporate Bonds | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (10,000 Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | 16 Donglin 01 | 112380 | April 19, 2016 | April 19, 2021 | 100,000 | 5.78% | | 16 Donglin 02 | 112426 | August 10, 2016 | August 10, 2021 | 60,000 | 4.70% | | 16 Donglin 03 | 112464 | October 24, 2016 | October 24, 2021 | 60,000 | 4.00% | | 18 Donglin 01 | 112705 | May 18, 2018 | May 18, 2021 | 5,000 | 7.00% | - All corporate bonds accrue simple interest annually, no compound interest, with annual interest payments and principal repayment at maturity[192](index=192&type=chunk) - During the reporting period, **16 Donglin 01** completed its 2018 interest payment on time, other bonds had not yet entered their interest payment and redemption periods[192](index=192&type=chunk) [II. Information on Bond Trustees and Credit Rating Agencies](index=65&type=section&id=%E4%BA%8C%E3%80%81%E5%80%BA%E5%88%B8%E5%8F%97%E6%89%98%E7%AE%A1%E7%90%86%E4%BA%BA%E5%92%8C%E8%B5%84%E4%BF%A1%E8%AF%84%E7%BA%A7%E6%9C%BA%E6%9E%84%E4%BF%A1%E6%81%AF) The bond trustee for the company's corporate bonds is Huatai United Securities Co., Ltd., and the credit rating agency is Shanghai Brilliance Credit Rating & Investors Service Co., Ltd., with no changes during the reporting period - Bond Trustee: Huatai United Securities Co., Ltd., Contact Person: Liu Hongze, Phone: 010-56839492[194](index=194&type=chunk) - Credit Rating Agency: Shanghai Brilliance Credit Rating & Investors Service Co., Ltd.[194](index=194&type=chunk) - No changes in the bond trustee or credit rating agency appointed by the company during the reporting period[194](index=194&type=chunk) [III. Use of Corporate Bond Proceeds](index=65&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The proceeds from each bond issuance were used as committed in the prospectus, primarily for supplementing working capital and repaying other borrowings, with an ending balance of **3.2863 million yuan** - **16 Donglin 01** proceeds: **207 million yuan** for working capital, **790 million yuan** for repaying other borrowings[195](index=195&type=chunk) - **16 Donglin 02** proceeds entirely used to repay principal and interest of "15 Orient Landscape CP002"[195](index=195&type=chunk) - **16 Donglin 03** proceeds: **190 million yuan** for working capital, **410 million yuan** for repaying principal and interest of "13 Orient Landscape MTN001"[195](index=195&type=chunk) - **18 Donglin 01** proceeds: **50 million yuan** entirely used to supplement working capital[195](index=195&type=chunk) - All corporate bond proceeds were used consistently with the purposes, plans, and other agreements committed in the prospectus[196](index=196&type=chunk) [IV. Corporate Bond Credit Rating Information](index=66&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E4%BF%A1%E6%81%AF%E8%AF%84%E7%BA%A7%E6%83%85%E5%86%B5) Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. maintained the company's main credit rating at **AA+** and the bond credit ratings for "16 Donglin 01, 02, 03" and "18 Donglin 01" at **AA+**, with a stable outlook - Shanghai Brilliance Rating maintained company's main credit rating at **AA+**, with a stable outlook[197](index=197&type=chunk) - Maintained **AA+** bond credit ratings for **16 Donglin 01**, **16 Donglin 02**, **16 Donglin 03**, and **18 Donglin 01**[197](index=197&type=chunk) - No rating differences for other bonds or debt financing instruments issued by the company in China during the reporting period[197](index=197&type=chunk) [V. Corporate Bond Credit Enhancement Mechanisms, Repayment Plans, and Other Repayment Safeguard Measures](index=66&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%A2%9E%E4%BF%A1%E6%9C%BA%E5%88%B6%E3%80%81%E5%81%BF%E5%80%BA%E8%AE%A1%E5%88%92%E5%8F%8A%E5%85%B6%E4%BB%96%E5%81%BF%E5%80%BA%E4%BF%9D%E9%9A%9C%E6%8E%AA%E6%96%BD) All corporate bonds were issued without collateral, with repayment plans and safeguard measures consistent with the prospectus, and a special repayment reserve account established for management - All corporate bonds mentioned above were issued without collateral[198](index=198&type=chunk) - Repayment plans and safeguard measures during the reporting period were consistent with the prospectus and relevant commitments, with no changes[198](index=198&type=chunk) - All corporate bonds have a special repayment reserve account established for the collection and management of repayment reserves[198](index=198&type=chunk) [VI. Convening of Bondholder Meetings During the Reporting Period](index=66&type=section&id=%E5%85%AD%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%80%BA%E5%88%B8%E6%8C%81%E6%9C%89%E4%BA%BA%E4%BC%9A%E8%AE%AE%E7%9A%84%E5%8F%AC%E5%BC%80%E6%83%85%E5%86%B5) The company did not have any matters requiring a bondholder meeting during the reporting period, thus no bondholder meetings were held - No matters requiring a bondholder meeting during the reporting period, thus no bondholder meetings were held[199](index=199&type=chunk) [VII. Performance of Duties by Bond Trustee During the Reporting Period](index=66&type=section&id=%E4%B8%83%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%80%BA%E5%88%B8%E5%8F%97%E6%89%98%E7%AE%A1%E7%90%86%E4%BA%BA%E5%B1%A5%E8%A1%8C%E8%81%8C%E8%B4%A3%E7%9A%84%E6%83%85%E5%86%B5) During the reporting period, the bond trustee, Huatai United Securities Co., Ltd., performed its duties in accordance with relevant regulations and agreements, and publicly disclosed temporary trustee reports on significant company matters - During the reporting period, bond trustee performed duties in accordance with "Measures for the Administration of Corporate Bond Issuance and Trading" and "Bond Trustee Agreement"[200](index=200&type=chunk)[201](index=201&type=chunk) - Trustee publicly disclosed temporary trustee reports on company's change in business scope and registered capital, suspension of trading due to major asset restructuring, and other matters[201](index=201&type=chunk) - Trustee had no conflicts of interest in performing its duties[201](index=201&type=chunk) [VIII. Key Accounting Data and Financial Indicators as of the End of the Reporting Period and Previous Year-End (or Same Period of Previous Year)](index=67&type=section&id=%E5%85%AB%E3%80%81%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%92%8C%E4%B8%8A%E5%B9%B4%E6%9C%AB%EF%BC%88%E6%88%96%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%92%8C%E4%B8%8A%E5%B9%B4%E7%9B%B8%E5%90%8C%E6%9C%9F%E9%97%B4%EF%BC%89%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) At the end of the reporting period, the company's liquidity ratios decreased, asset-liability ratio increased, and EBITDA interest coverage ratio decreased, but loan and interest repayment rates remained **100%** Key Accounting Data and Financial Indicators | Item | End of Current Period | End of Previous Year | Change from Previous Year-End | | :--- | :--- | :--- | :--- | | Current Ratio | 102.46% | 112.76% | -10.30% | | Asset-Liability Ratio | 70.21% | 67.62% | 2.59% | | Quick Ratio | 46.49% | 54.01% | -7.52% | | **Item** | **Current Period** | **Prior Year Period** | **Change from Prior Year Period** | | EBITDA Interest Coverage Ratio | 4.23 | 5 | -15.40% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | [IX. Company's Overdue Unpaid Debts](index=67&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E9%80%BE%E6%9C%9F%E6%9C%AA%E5%81%BF%E8%BF%98%E5%80%BA%E9%A1%B9) The company had no overdue unpaid debts - Company had no overdue unpaid debts[203](index=203&type=chunk) [X. Interest Payment and Redemption of Other Bonds and Debt Financing Instruments During the Reporting Period](index=67&type=section&id=%E5%8D%81%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%AF%B9%E5%85%B6%E4%BB%96%E5%80%BA%E5%88%B8%E5%92%8C%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7%E7%9A%84%E4%BB%98%E6%81%AF%E5%85%91%E4%BB%98%E6%83%85%E5%86%B5) During the reporting period, all other bonds and debt financing instruments of the company were paid interest and redeemed on time, with no delays or inability to pay interest and principal - During the reporting period, other bonds and debt financing instruments were paid interest and redeemed on time, with no delays or inability to pay interest and principal[204](index=204&type=chunk) Other Bonds and Debt Financing Instruments with Timely Interest Payment and Redemption During the Reporting Period | Bond Abbreviation | Bond Type | Actual Issuance Size (Billion) | Maturity Date | Principal and Interest Repayment Status | | :--- | :--- | :--- | :--- | :--- | | 17 Orient Landscape SCP001 | Super Short-term Commercial Paper | 10 | 2018-03-04 | Timely interest payment and redemption | | 17 Orient Landscape SCP002 | Super Short-term Commercial Paper | - | 2018-05-22 | Timely interest payment and redemption | | 15 Orient Landscape MTN001 | Medium-term Notes | - | 2018-06-10 | Timely interest payment and redemption | | 17 Orient Landscape SCP003 | Super Short-term Commercial Paper | - | 2018-07-15 | Timely interest payment and redemption | [XI. Bank Credit Lines Obtained, Utilized, and Bank Loan Repayment During the Reporting Period](index=68&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%8E%B7%E5%BE%97%E7%9A%84%E9%93%B6%E8%A1%8C%E6%8E%88%E4%BF%A1%E6%83%85%E5%86%B5%E3%80%81%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5%E4%BB%A5%E5%8F%8A%E5%81%BF%E8%BF%98%E9%93%B6%E8%A1%8C%E8%B4%B7%E6%AC%BE%E7%9A%84%E6%83%85%E5%86%B5) The company maintains good cooperative relationships with financial institutions, securing high credit lines, with **11.087 billion yuan** obtained and **5.153 billion yuan** utilized, and all bank loans repaid on time - As of the end of the reporting period, company headquarters obtained **11.087 billion yuan** in credit lines from various financial institutions[205](index=205&type=chunk) - **5.153 billion yuan** of credit lines utilized, **5.934 billion yuan** unused[205](index=205&type=chunk) - During the reporting period, company repaid bank loans on time, with no extensions or reductions[205](index=205&type=chunk) [XII. Execution of Commitments and Agreements in Corporate Bond Prospectus During the Reporting Period](index=68&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%89%A7%E8%A1%8C%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%8B%9F%E9%9B%86%E8%AF%B4%E6%98%8E%E4%B9%A6%E7%9B%B8%E5%85%B3%E7%BA%A6%E5%AE%9A%E6%88%96%E6%89%BF%E8%AF%BA%E7%9A%84%E6%83%85%E5%86%B5) The company strictly adhered to the relevant agreements and commitments in the prospectus, with no matters causing significant impact on investors' interests - Company strictly adhered to relevant agreements and commitments in the prospectus, with no matters causing significant impact on investors' interests[206](index=206&type=chunk) [XIII. Significant Matters Occurred During the Reporting Period](index=68&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%91%E7%94%9F%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) During the reporting period, the company experienced changes in its business scope and registered capital, and its shares were suspended from trading due to a planned major asset restructuring - In December 2017, company changed business scope, adding sports event operation, exhibition organization, cultural and artistic exchange activities, etc.[207](index=207&type=chunk) - In June 2018, company again changed business scope, prioritizing water pollution control, adding sales of electronic products, computers, software, and auxiliary equipment, and changing registered capital to **2.682778484 billion yuan**[210](index=210&type=chunk) - In May 2018, company planned to issue shares to acquire assets from related parties, potentially constituting a major asset restructuring, leading to suspension of company shares from trading since market open on May 25, 2018, and not yet resumed as of report date[213](index=213&type=chunk) [XIV. Whether Corporate Bonds Have Guarantors](index=70&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%98%AF%E5%90%A6%E5%AD%98%E5%9C%A8%E4%BF%9D%E8%AF%81%E4%BA%BA) The company's corporate bonds do not have guarantors - Company's corporate bonds do not have guarantors[214](index=214&type=chunk) Section X Financial Report [I. Audit Report](index=71&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - Company's semi-annual financial report was not audited[216](index=216&type=chunk) [II. Financial Statements](index=71&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2018 [1. Consolidated Balance Sheet](index=71&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2018, the company's consolidated total assets reached **40.153 billion yuan**, with a high proportion of current assets, and short-term borrowings and accounts payable as major current liabilities Consolidated Balance Sheet (Period-End Balance) | Item | Period-End Balance (Yuan) | | :--- | :--- | | Cash and Cash Equivalents | 2,033,656,434.16 | | Accounts Receivable | 9,110,946,609.70 | | Inventories | 14,090,982,641.34 | | Total Current Assets | 25,989,964,903.92 | | Fixed Assets | 1,836,587,403.1

[Important Notice](index=1&type=section&id=Item%201.%20Important%20Notice) The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and bear corresponding legal responsibilities, with key financial officers guaranteeing the financial statements' integrity - The company's board of directors, supervisory board, and senior management affirm the report's truthfulness, accuracy, and completeness, with financial officers guaranteeing the financial statements[2](index=2&type=chunk)[3](index=3&type=chunk) [Company Overview](index=2&type=section&id=Item%202.%20Company%20Overview) [Key Accounting Data and Financial Indicators](index=2&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2018, the company achieved significant performance growth, with revenue doubling to **RMB 2.54 billion**, net profit attributable to shareholders turning positive at **RMB 9.778 million**, and operating cash flow improving significantly to **RMB 304.15 million**, primarily due to business expansion and retrospective adjustments from a common control merger Key Financial Indicators | Indicator | Current Period (RMB) | Prior Period (Adjusted) (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,540,218,529.19 | 1,229,266,787.44 | 106.65% | | Net Profit Attributable to Shareholders | 9,778,152.56 | -35,160,722.42 | 127.81% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 2,947,603.03 | -37,377,888.04 | 107.89% | | Net Cash Flow from Operating Activities | 304,150,358.49 | 26,521,172.86 | 1,046.82% | | Basic Earnings Per Share (RMB/share) | 0.0036 | -0.0131 | 127.48% | | Total Assets (as of period end) | 38,366,799,450.27 | 35,114,336,798.86 | 9.26% (vs. end of prior year) | | Net Assets Attributable to Shareholders (as of period end) | 11,328,408,122.87 | 11,314,528,075.16 | 0.12% (vs. end of prior year) | - The company retrospectively adjusted prior period accounting data due to a common control enterprise merger[6](index=6&type=chunk) Non-recurring Gains and Losses | Non-recurring Gains and Losses Items | Amount from Year-Beginning to End of Reporting Period (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -53,414.62 | | Government grants included in current profit/loss | 8,480,479.35 | | Other non-operating income and expenses | 110,745.97 | | Less: Income tax impact | 1,674,120.58 | | Less: Impact on minority interests (after tax) | 33,140.59 | | **Total** | **6,830,549.53** | [Shareholder Information](index=3&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period%20End) As of the reporting period end, the company had **63,133 common shareholders**, with controlling shareholders He Qiaonv and Tang Kai holding a combined **49.17%**, and institutional investors prominent among the top ten, noting a high pledge ratio for He Qiaonv's shares - At the end of the reporting period, the company had **63,133 common shareholders**[10](index=10&type=chunk) - The company's actual controllers are He Qiaonv and Tang Kai, holding **41.52%** and **7.65%** respectively[10](index=10&type=chunk)[11](index=11&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | He Qiaonv | 41.52% | 1,113,789,413 | Pledged 769,429,379 shares | | Tang Kai | 7.65% | 205,349,530 | - | | Zhongtai Chuangzhan (Zhuhai Hengqin) Asset Management Co., Ltd. | 3.96% | 106,215,920 | Pledged 99,079,700 shares | | China Sea Trust - AnYing No. 19 Oriental Garden Employee Stock Ownership Plan | 3.45% | 92,474,622 | - | | Boshi Theme Industry Mixed Securities Investment Fund (LOF) | 2.31% | 62,000,000 | - | [Significant Events](index=6&type=section&id=Item%203.%20Significant%20Events) [Analysis of Changes in Key Financial Data](index=6&type=section&id=I.%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20in%20the%20Reporting%20Period) During the reporting period, the company's financial position significantly changed due to business expansion, project settlements, and M&A activities, marked by increased long-term receivables, fixed assets, and borrowings, alongside revenue and cost growth, and improved operating cash flow from enhanced collections - **Balance Sheet Item Changes:** Long-term receivables increased by **202.18%** due to subsidiary BT project settlements[15](index=15&type=chunk); fixed assets grew by **91.34%** from office building purchases and consolidation scope expansion[15](index=15&type=chunk); long-term borrowings rose by **163.83%** due to new mortgage loans for office buildings[16](index=16&type=chunk); other current liabilities increased by **44.64%** due to the issuance of **RMB 2.5 billion** in short-term financing bonds[16](index=16&type=chunk) - **Income Statement Item Changes:** Operating revenue and cost increased by **106.65%** and **116.27%** respectively, driven by increased engineering project income and costs[16](index=16&type=chunk); financial expenses rose by **72.63%** due to higher interest expenses from increased interest-bearing debt[18](index=18&type=chunk) - **Cash Flow Statement Item Changes:** Net cash flow from operating activities increased by **1,046.82%** due to enhanced collection efforts for engineering project payments[18](index=18&type=chunk); net cash flow from financing activities grew by **1,299.83%** due to increased net financing inflows[19](index=19&type=chunk) [2018 Half-Year Performance Forecast](index=7&type=section&id=IV.%20Forecast%20of%20Operating%20Performance%20for%20January-June%202018) The company forecasts a **40% to 70%** year-on-year increase in net profit attributable to shareholders for H1 2018, driven by steady growth in PPP project implementation leveraging its first-mover advantage Performance Forecast | Item | Forecast Status | | :--- | :--- | | Performance Forecast Period | January 1, 2018 to June 30, 2018 | | Change in Net Profit Attributable to Shareholders | 40.00% to 70.00% | | Net Profit Attributable to Shareholders Range (RMB million) | 654.7268 to 795.0254 | | Net Profit Attributable to Shareholders in Prior Period (RMB million) | 467.662 | | Reason for Performance Change | Steady growth in the company's PPP project implementation, driving increased revenue and profit | [Other Significant Events](index=7&type=section&id=Other%20Significant%20Events) During the reporting period, the company reported no significant event progress, overdue unfulfilled commitments, irregular external guarantees, controlling shareholder fund occupation, or investor relations activities - No significant event progress required disclosure during the reporting period[20](index=20&type=chunk) - No overdue unfulfilled commitments existed during the reporting period[20](index=20&type=chunk) - No irregular external guarantees or non-operating fund occupation by controlling shareholders or their affiliates occurred during the reporting period[23](index=23&type=chunk)[24](index=24&type=chunk) - No investor research, communication, or interview activities took place during the reporting period[25](index=25&type=chunk)

北京东方园林环境股份有限公司 2017 年年度报告全文 北京东方园林环境股份有限公司 2017 年年度报告 2018 年 04 月 1 北京东方园林环境股份有限公司 2017 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人何巧女、主管会计工作负责人周舒及会计机构负责人(会计主管 人员)李福梁声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 重大风险提示详见"第四节 经营情况讨论与分析"的第十部分"重大风险提 示"，敬请投资者注意。 公司经本次董事会审议通过的利润分配预案为：以 2,682,778,484 为基数， 向全体股东每 10 股派发现金红利 0.65 元（含税），送红股 0 股（含税），不以公 积金转增股本。 2 | 目录 | | --- | | 第一节 | 重要提示、目录和释义 2 | | --- | --- | | 第二节 | 公司简介和主要财务指标 6 | | 第三节 | 公司业务概要 10 ...

[Item 1. Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) This section confirms the accuracy and completeness of the quarterly report by the board, supervisors, and management - The company's Board of Directors, Supervisory Board, directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility[3](index=3&type=chunk) - All directors attended the Board of Directors meeting that reviewed this quarterly report[4](index=4&type=chunk) - Company head He Qiaonv, chief accountant Zhou Shu, and head of accounting department Li Fuliang declare that the financial statements in the quarterly report are true, accurate, and complete[4](index=4&type=chunk) [Item 2. Company Profile](index=3&type=section&id=Item%202.%20Company%20Profile) This section provides an overview of the company's key financial performance and shareholder structure [I. Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant growth in total assets and net assets attributable to shareholders, with substantial year-over-year increases in operating revenue, net profit, and net cash flow from operating activities, following retrospective adjustments for business combinations under common control - The company retrospectively adjusted or restated prior period accounting data due to business combinations under common control[7](index=7&type=chunk) Period-End Financial Position | Indicator | As of Current Period-End (CNY) | As of Prior Year-End (Adjusted) (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 29,455,617,999.11 | 24,010,502,433.20 | 22.68% | | Net Assets Attributable to Shareholders | 9,988,949,208.73 | 9,190,103,932.36 | 8.69% | Current Period Performance | Indicator | Current Period (CNY) | Prior Year Same Period (Adjusted) (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,651,132,207.25 | 2,093,910,367.12 | 74.37% | | Net Profit Attributable to Shareholders | 398,824,075.86 | 219,769,769.99 | 81.47% | | Net Profit Attributable to Shareholders After Non-Recurring Gains/Losses | 398,142,684.50 | 217,880,963.54 | 82.73% | | Net Cash Flow from Operating Activities | 500,454,725.46 | -335,450,816.29 | 249.19% | | Basic Earnings Per Share (CNY/share) | 0.15 | 0.08 | 87.50% | | Diluted Earnings Per Share (CNY/share) | 0.15 | 0.08 | 87.50% | | Weighted Average Return on Equity | 4.08% | 3.33% | 0.75% (percentage points) | Year-to-Date Performance | Indicator | Year-to-Date (CNY) | Prior Year Same Period (Adjusted) (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,635,429,081.31 | 5,012,247,752.98 | 72.29% | | Net Profit Attributable to Shareholders | 866,486,049.67 | 516,882,797.65 | 67.64% | | Net Profit Attributable to Shareholders After Non-Recurring Gains/Losses | 984,176,687.99 | 473,329,982.90 | 107.93% | | Net Cash Flow from Operating Activities | 723,445,893.13 | 215,137,826.69 | 236.27% | | Basic Earnings Per Share (CNY/share) | 0.32 | 0.20 | 60.00% | | Diluted Earnings Per Share (CNY/share) | 0.32 | 0.20 | 60.00% | | Weighted Average Return on Equity | 9.04% | 7.94% | 1.10% (percentage points) | Non-Recurring Gains/Losses | Non-recurring Gain/Loss Item | Year-to-Date Amount (CNY) | | :--- | :--- | | Disposal gains/losses on non-current assets | -122,530,241.69 | | Government grants recognized in current profit/loss | 4,569,222.74 | | Net profit/loss of subsidiaries from year-beginning to merger date arising from business combinations under common control | -126,231.95 | | Other non-operating income and expenses apart from the above | -331,600.49 | | Other gain/loss items meeting the definition of non-recurring gains/losses | 1,101,485.84 | | Less: Income tax impact | 187,368.06 | | Minority interest impact (after tax) | 185,904.71 | | **Total** | **-117,690,638.32** | [II. Total Shareholders at Period-End and Top Ten Shareholders' Holdings](index=4&type=section&id=II.%20Total%20Shareholders%20at%20Period-End%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the reporting period-end, the company had 57,451 common shareholders, with He Qiaonv as the largest shareholder at 41.54% holding, largely pledged, and the actual controllers He Qiaonv and Tang Kai are a married couple, with He Guojie being He Qiaonv's brother - The total number of common shareholders at the end of the reporting period was **57,451**[11](index=11&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledge or Freeze Status (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | He Qiaonv | Domestic Natural Person | 41.54% | 1,113,789,413 | 835,342,060 | Pledged 800,186,560 | | Tang Kai | Domestic Natural Person | 7.66% | 205,349,530 | 154,012,147 | - | | Zhongtai Chuangzhan (Zhuhai Hengqin) Asset Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.50% | 120,600,541 | 21,520,803 | Pledged 115,970,799 | - He Qiaonv and Tang Kai are a married couple and the company's actual controllers; He Qiaonv and He Guojie are siblings[13](index=13&type=chunk) - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[13](index=13&type=chunk) [Item 3. Significant Events](index=7&type=section&id=Item%203.%20Significant%20Events) This section details significant changes in financial data, progress of key matters, and future performance forecasts [I. Changes and Reasons for Key Financial Data and Indicators During the Reporting Period](index=7&type=section&id=I.%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, the company experienced significant changes across its balance sheet, income statement, and cash flow statement, driven by business expansion, increased investments, and enhanced cash collection efforts - Notes receivable decreased by **93.32%** from the beginning of the year, primarily due to a reduction in collections via bank acceptance bills during the reporting period[16](index=16&type=chunk) - Prepayments increased by **118.07%** from the beginning of the year, mainly due to increased advance payments to suppliers during the reporting period[16](index=16&type=chunk) - Available-for-sale financial assets increased by **247.39%** from the beginning of the year, primarily due to new equity investment in Beijing Zhongguancun Bank Co., Ltd. during the reporting period[16](index=16&type=chunk) - Short-term borrowings increased by **76.84%** from the beginning of the year, mainly due to the company's expanding business scale, increased working capital needs, and corresponding increase in bank loans[16](index=16&type=chunk) - Other current liabilities increased by **1,070.58%** from the beginning of the year, primarily due to the company's issuance of **CNY 1.8 billion** in super short-term commercial papers during the reporting period[17](index=17&type=chunk) - Long-term borrowings decreased by **75.73%** from the beginning of the year, primarily due to the company's early repayment of acquisition loans during the reporting period[17](index=17&type=chunk) - Operating revenue and operating costs increased by **72.29%** and **69.73%** respectively year-over-year, mainly due to the expansion of the company's business scale and increased revenue and costs from engineering projects during the reporting period[18](index=18&type=chunk) - Asset impairment losses increased by **679.78%** year-over-year, primarily due to the expansion of the company's business scale, increased accounts receivable balance at period-end, and a corresponding increase in impairment provisions for receivables in accordance with accounting policies[19](index=19&type=chunk) - Investment income decreased by **512.98%** year-over-year, mainly due to a reduction in investment income from the disposal of subsidiaries in the current period compared to the prior period[19](index=19&type=chunk) - Net cash flow from operating activities increased by **236.27%** year-over-year, primarily due to the company's continued efforts to strengthen the collection of engineering project payments, resulting in a significant year-over-year increase in collections[20](index=20&type=chunk) - Net cash flow from investing activities decreased by **79.04%** year-over-year, primarily due to increased investment payments made by the company during the reporting period[20](index=20&type=chunk) [II. Analysis of Progress, Impact, and Solutions for Significant Events](index=8&type=section&id=II.%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) During the reporting period, the company adjusted the exercise prices for its second and third phases of stock option incentive plans - The company adjusted the exercise prices for the initial and reserved grants of its **second phase stock option incentive plan**[21](index=21&type=chunk)[22](index=22&type=chunk) - The company adjusted the exercise prices for the initial and reserved grants of its **third phase stock option incentive plan**[21](index=21&type=chunk)[22](index=22&type=chunk) [III. Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company](index=9&type=section&id=III.%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company) During the reporting period, there were no overdue unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no overdue unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself[23](index=23&type=chunk) [IV. 2017 Annual Operating Performance Forecast](index=9&type=section&id=IV.%202017%20Annual%20Operating%20Performance%20Forecast) The company forecasts a **50% to 80%** year-over-year increase in net profit attributable to shareholders for 2017, driven by the national promotion of the PPP model and the company's strong project execution 2017 Annual Performance Forecast | Indicator | Range/Amount | | :--- | :--- | | 2017 Annual Net Profit Attributable to Shareholders Change Range | 50.00% To 80.00% | | 2017 Annual Net Profit Attributable to Shareholders Range (CNY 10k) | 194,302.59 To 233,163.10 | | 2016 Annual Net Profit Attributable to Shareholders (CNY 10k) | 129,535.06 | - The primary reason for performance change is the strong national promotion of the PPP model, allowing the company to leverage its first-mover advantage in the PPP sector, significantly increasing the number and value of awarded projects, and rapidly advancing the implementation of awarded PPP projects[24](index=24&type=chunk) [V. Financial Assets Measured at Fair Value](index=9&type=section&id=V.%20Financial%20Assets%20Measured%20at%20Fair%20Value) The company had no financial assets measured at fair value during the reporting period - The company had no financial assets measured at fair value during the reporting period[25](index=25&type=chunk) [VI. Irregular External Guarantees](index=9&type=section&id=VI.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[25](index=25&type=chunk) [VII. Non-Operating Funds Occupied by Controlling Shareholder and Related Parties](index=9&type=section&id=VII.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Related%20Parties) During the reporting period, there were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company - During the reporting period, there were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company[26](index=26&type=chunk) [VIII. Registration Form for Investor Relations Activities During the Reporting Period](index=9&type=section&id=VIII.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) The company conducted one on-site investor relations activity during the reporting period, engaging with institutional investors Investor Relations Activities | Reception Date | Reception Method | Type of Reception Object | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | | 2017 年 08 月 15 日 | On-site Survey | Institutional | 巨潮资讯网（www.cninfo.com.cn）《2017 年 8 月 15 日投资者关系活动记录表》 | [Item 4. Financial Statements](index=10&type=section&id=Item%204.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the third quarter of 2017, including balance sheets, income statements, and cash flow statements [I. Financial Statements](index=10&type=section&id=I.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for the third quarter of 2017, including balance sheets, income statements, and cash flow statements, comprehensively presenting the company's financial position and operating results [1. Consolidated Balance Sheet](index=10&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2017, the company's consolidated total assets reached **CNY 29.46 billion**, a **22.68%** increase from the beginning of the period, with total liabilities of **CNY 19.41 billion** and total owners' equity of **CNY 10.05 billion** Consolidated Balance Sheet Summary | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 29,455,617,999.11 | 24,010,502,433.20 | | Total Liabilities | 19,409,001,560.30 | 14,567,817,379.52 | | Total Owners' Equity | 10,046,616,438.81 | 9,442,685,053.68 | [2. Parent Company Balance Sheet](index=13&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of September 30, 2017, the parent company's total assets were **CNY 27.20 billion**, total liabilities **CNY 18.00 billion**, and total owners' equity **CNY 9.20 billion** Parent Company Balance Sheet Summary | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 27,201,667,945.05 | 21,502,289,308.82 | | Total Liabilities | 17,999,519,085.75 | 13,046,444,470.63 | | Total Owners' Equity | 9,202,148,859.30 | 8,455,844,838.19 | [3. Consolidated Income Statement for the Current Period](index=15&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Period) In Q3 2017, the company achieved consolidated total operating revenue of **CNY 3.65 billion**, net profit attributable to parent company owners of **CNY 399 million**, and basic earnings per share of **CNY 0.15** Consolidated Income Statement (Current Period) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 3,651,132,207.25 | 2,093,910,367.12 | | Operating Profit | 458,850,372.47 | 267,756,716.56 | | Net Profit | 395,804,598.40 | 243,289,868.00 | | Net Profit Attributable to Parent Company Owners | 398,824,075.86 | 219,769,769.99 | | Basic Earnings Per Share (CNY/share) | 0.15 | 0.08 | | Diluted Earnings Per Share (CNY/share) | 0.15 | 0.08 | [4. Parent Company Income Statement for the Current Period](index=18&type=section&id=4.%20Parent%20Company%20Income%20Statement%20for%20the%20Current%20Period) In Q3 2017, the parent company reported operating revenue of **CNY 2.97 billion**, net profit of **CNY 290 million**, and basic earnings per share of **CNY 0.11** Parent Company Income Statement (Current Period) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 2,967,178,719.80 | 1,463,625,482.65 | | Operating Profit | 347,755,356.03 | 112,386,288.11 | | Net Profit | 290,075,790.46 | 97,575,274.66 | | Basic Earnings Per Share (CNY/share) | 0.11 | 0.04 | | Diluted Earnings Per Share (CNY/share) | 0.11 | 0.04 | [5. Consolidated Income Statement from Year-Beginning to Period-End](index=19&type=section&id=5.%20Consolidated%20Income%20Statement%20from%20Year-Beginning%20to%20Period-End) As of September 30, 2017, the company's year-to-date consolidated total operating revenue was **CNY 8.64 billion**, net profit attributable to parent company owners **CNY 866 million**, and basic earnings per share **CNY 0.32** Consolidated Income Statement (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 8,635,429,081.31 | 5,012,247,752.98 | | Operating Profit | 1,100,776,451.55 | 642,511,093.53 | | Net Profit | 909,945,828.46 | 579,178,849.78 | | Net Profit Attributable to Parent Company Owners | 866,486,049.67 | 516,882,797.65 | | Basic Earnings Per Share (CNY/share) | 0.32 | 0.20 | | Diluted Earnings Per Share (CNY/share) | 0.32 | 0.20 | - For business combinations under common control occurring in the current period, the net profit realized by the merged entity before the merger was **-CNY 126,231.95**[49](index=49&type=chunk) [6. Parent Company Income Statement from Year-Beginning to Period-End](index=21&type=section&id=6.%20Parent%20Company%20Income%20Statement%20from%20Year-Beginning%20to%20Period-End) As of September 30, 2017, the parent company's year-to-date operating revenue was **CNY 6.58 billion**, net profit **CNY 809 million**, and basic earnings per share **CNY 0.30** Parent Company Income Statement (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 6,582,130,766.37 | 3,736,318,872.71 | | Operating Profit | 950,335,781.75 | 405,832,752.62 | | Net Profit | 809,437,868.63 | 347,604,646.38 | | Basic Earnings Per Share (CNY/share) | 0.30 | 0.14 | | Diluted Earnings Per Share (CNY/share) | 0.30 | 0.14 | [7. Consolidated Cash Flow Statement from Year-Beginning to Period-End](index=23&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period-End) As of September 30, 2017, consolidated net cash flow from operating activities was **CNY 723 million**, from investing activities **-CNY 2.29 billion**, from financing activities **CNY 765 million**, resulting in a net decrease in cash and cash equivalents of **-CNY 804 million** Consolidated Cash Flow Statement (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 723,445,893.13 | 215,137,826.69 | | Net Cash Flow from Investing Activities | -2,291,893,826.38 | -1,280,113,548.71 | | Net Cash Flow from Financing Activities | 764,935,419.24 | 376,266,625.29 | | Net Increase in Cash and Cash Equivalents | -803,690,966.63 | -688,555,864.88 | | Period-End Balance of Cash and Cash Equivalents | 1,319,007,780.70 | 1,457,907,595.63 | [8. Parent Company Cash Flow Statement from Year-Beginning to Period-End](index=25&type=section&id=8.%20Parent%20Company%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period-End) As of September 30, 2017, parent company net cash flow from operating activities was **CNY 327 million**, from investing activities **-CNY 1.98 billion**, from financing activities **CNY 992 million**, resulting in a net decrease in cash and cash equivalents of **-CNY 664 million** Parent Company Cash Flow Statement (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 327,436,284.98 | 75,504,304.20 | | Net Cash Flow from Investing Activities | -1,983,040,368.62 | -1,256,190,088.90 | | Net Cash Flow from Financing Activities | 991,766,420.22 | 550,675,139.30 | | Net Increase in Cash and Cash Equivalents | -663,789,663.50 | -630,010,645.40 | | Period-End Balance of Cash and Cash Equivalents | 959,480,223.97 | 1,123,593,785.25 | [II. Audit Report](index=26&type=section&id=II.%20Audit%20Report) The company's third-quarter report is unaudited - The company's third-quarter report is unaudited[60](index=60&type=chunk)

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%20I.%20Important%20Notes,%20Table%20of%20Contents,%20and%20Definitions) [Important Notes and Definitions](index=2&type=section&id=Important%20Notes%20and%20Definitions) This chapter includes the company's Board of Directors' assurance statement on the truthfulness, accuracy, and completeness of the report, clarifies the plan not to distribute profits for the first half of 2017, and provides definitions for key terms such as PPP (Public-Private-Partnership) and the reporting period (January 1 to June 30, 2017) - The company's Board of Directors, Supervisory Board, and all senior management guarantee the truthfulness, accuracy, and completeness of this semi-annual report and assume corresponding legal liabilities[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the first half of 2017[5](index=5&type=chunk) - The reporting period is defined as January 1, 2017, to June 30, 2017[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile and Key Financial Data](index=5&type=section&id=Company%20Profile%20and%20Key%20Financial%20Data) This chapter provides the company's basic information and key financial data for the first half of 2017, showing operating revenue of **4.984 billion CNY**, a **70.79%** year-over-year increase, and net profit attributable to shareholders of **468 million CNY**, up **57.40%**, despite a **59.50%** decrease in net cash flow from operating activities Key Accounting Data and Financial Indicators for H1 2017 | Metric | Current Period | Prior Year Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (CNY)** | 4,984,296,874.06 | 2,918,337,385.86 | 70.79% | | **Net Profit Attributable to Parent (CNY)** | 467,661,973.81 | 297,113,027.66 | 57.40% | | **Net Profit Attributable to Parent (Excluding Non-Recurring Items) (CNY)** | 586,034,003.49 | 255,449,019.36 | 129.41% | | **Net Cash Flow from Operating Activities (CNY)** | 222,991,167.67 | 550,588,642.98 | -59.50% | | **Basic Earnings Per Share (CNY/share)** | 0.17 | 0.12 | 41.67% | | **Weighted Average Return on Net Assets** | 4.98% | 4.65% | 0.33% | | **Total Assets (CNY)** | 25,886,069,365.25 | 24,010,502,433.20 | 7.81% (Period-end vs. Prior Year-end) | | **Net Assets Attributable to Parent (CNY)** | 9,584,957,908.50 | 9,190,103,932.36 | 4.30% (Period-end vs. Prior Year-end) | Non-Recurring Gains and Losses for H1 2017 | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -122,072,703.44 | | Government Grants Recognized in Current Period P&L | 3,099,999.06 | | Other Non-Operating Income/Expenses and Defined P&L Items | 1,423,583.48 | | **Total** | **-118,372,029.68** | [Company Business Overview](index=8&type=section&id=Section%20III.%20Company%20Business%20Overview) [Main Business and Core Competencies](index=8&type=section&id=Main%20Business%20and%20Core%20Competencies) During the reporting period, the company successfully transformed into a comprehensive enterprise with water system management, solid and hazardous waste treatment, and all-area tourism as its three core businesses, primarily operating through the PPP model, leveraging its first-mover advantage, diverse water treatment technologies, extensive PPP experience, growing brand influence, and comprehensive employee incentive programs to build strong core competencies - The company's strategic transformation is maturing, forming three core business segments: - **Water System Management**: Covers urban black and odorous water body treatment, river basin management, and sponge cities - **Solid and Hazardous Waste Treatment**: Involves resource recycling, waste treatment, industrial hazardous waste valorization, and harmless disposal - **All-Area Tourism**: Adopts an 'investment + construction + operation' three-wheel-drive model[24](index=24&type=chunk)[27](index=27&type=chunk) - The company's business is primarily conducted through the PPP (Public-Private-Partnership) model, which involves jointly establishing project companies (SPVs) with governments for project investment, financing, and operation[24](index=24&type=chunk) - The company's core competencies include: - **Water System Management First-mover Advantage**: Proposed the 'three-in-one' ecological comprehensive management concept, becoming an industry leader - **Water Treatment Technology Synergy**: Optimized water treatment technology advantages through the acquisition of Shanghai Liyuan and Zhongshan Environmental - **PPP Model Experience**: Early strategic planning, forming alliances with multiple financial institutions for rapid project implementation - **Brand Influence**: Undertook multiple national-level and key projects, achieving high brand recognition - **Collection Guarantee**: Introduced financial institutions to ensure the recovery of accounts receivable from traditional projects - **Employee Incentives**: Launched employee stock ownership plans and equity incentives to motivate employees[29](index=29&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[36](index=36&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Section%20IV.%20Management%20Discussion%20and%20Analysis) [Overview](index=12&type=section&id=一、概述) In the first half of 2017, the company achieved significant results in its strategic transformation year, maintaining stable performance growth with operating revenue reaching **4.984 billion CNY**, a **70.79%** year-over-year increase, and net profit attributable to parent reaching **468 million CNY**, up **57.40%**, while expanding PPP projects and strategically entering all-area tourism and hazardous waste treatment sectors H1 2017 Operating Performance Overview | Metric | Amount | Year-over-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 4.984 billion CNY | 70.79% | | Net Profit Attributable to Parent | 468 million CNY | 57.40% | | Total Investment Amount of Winning PPP Bids | 28.611 billion CNY | - | | Total Winning Bid Amount of Projects | 30.294 billion CNY | 24.52% | - The company's business expanded rapidly, establishing 12 new SPV companies during the reporting period, totaling 44, laying the foundation for PPP project construction and financing[40](index=40&type=chunk) - The company launched new all-area tourism businesses, with two projects landed totaling approximately **3.88 billion CNY** in investment, while continuously expanding its hazardous waste treatment strategic layout through acquisitions of companies like Nantong Jiuzhou Environmental and Hangzhou Lvjia[40](index=40&type=chunk) [Main Business Analysis](index=13&type=section&id=二、主营业务分析) The company's main business revenue achieved rapid growth of **70.79%**, primarily due to sufficient PPP orders and project implementation, with environmental protection business and nursery stock sales showing particularly strong growth of **137.45%** and **2,403,282.09%** year-over-year, respectively, and the fastest revenue growth observed in North China, Northeast China, and East China regions Key Financial Data Year-over-Year Changes | Item | Current Period (CNY) | Prior Year Period (CNY) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,984,296,874.06 | 2,918,337,385.86 | 70.79% | | Operating Costs | 3,392,258,073.29 | 2,068,489,638.80 | 64.00% | | Selling Expenses | 18,159,609.24 | 8,313,704.20 | 118.43% | | Administrative Expenses | 538,736,981.38 | 308,564,206.35 | 74.59% | | R&D Investment | 113,305,097.11 | 66,259,539.69 | 71.00% | | Net Cash Flow from Financing Activities | 966,610,370.43 | -22,239,157.31 | 4,446.43% | Operating Revenue Composition (by Industry) | Industry | Current Period Revenue (CNY) | Proportion of Total Revenue | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Engineering Construction | 3,732,146,633.80 | 74.88% | 56.31% | | Environmental Protection Business | 980,278,948.90 | 19.67% | 137.45% | | Design and Planning | 141,313,832.29 | 2.84% | 19.97% | | Nursery Stock Sales | 118,727,075.03 | 2.38% | 2,403,282.09% | Operating Revenue Composition (by Region) | Region | Current Period Revenue (CNY) | Proportion of Total Revenue | Year-over-Year Change | | :--- | :--- | :--- | :--- | | East China Region | 2,069,365,563.54 | 41.52% | 104.94% | | North China and Northeast China Regions | 1,453,943,515.31 | 29.17% | 231.33% | | Northwest and Southwest China Regions | 791,211,912.87 | 15.87% | 8.06% | | Central and South China Regions | 669,775,882.34 | 13.44% | -9.20% | [Non-Core Business Analysis](index=16&type=section&id=三、非主营业务分析) During the reporting period, the company's non-core businesses negatively impacted profit, primarily due to a **121 million CNY** investment loss from subsidiary disposal and **109 million CNY** in asset impairment losses from provisions for accounts receivable and other receivables Non-Core Business P&L | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | -120,693,955.89 | -18.76% | Primarily investment loss from subsidiary disposal | | Asset Impairment | 109,458,032.64 | 17.02% | Primarily provision for impairment of accounts receivable and other receivables | [Asset and Liability Analysis](index=16&type=section&id=四、资产及负债状况分析) As of the end of the reporting period, the company's total assets were **25.886 billion CNY**, a **7.81%** increase from the prior year-end, with inventories and accounts receivable constituting significant portions at **36.00%** and **22.23%** respectively, and **714 million CNY** in restricted assets primarily comprising cash used as deposits and fixed/intangible assets pledged for borrowings Asset Composition (Proportion of Total Assets) | Asset Item | Current Period-end | Prior Year-end | | :--- | :--- | :--- | | Cash and Equivalents | 11.95% | 12.63% | | Accounts Receivable | 22.23% | 21.01% | | Inventories | 36.00% | 41.97% | Period-end Restricted Assets | Item | Period-end Book Value (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Equivalents | 552,530,448.59 | Deposit | | Fixed Assets | 18,498,673.20 | Borrowing Pledge | | Intangible Assets | 60,055,230.87 | Borrowing Pledge etc | | Other Non-Current Assets - BOT Projects Under Construction | 83,379,023.38 | Pledge | | **Total** | **714,463,376.04** | -- | [Investment Analysis](index=17&type=section&id=五、投资状况分析) During the reporting period, the company's investment activities significantly increased by **549.28%** year-over-year, including major equity investments in Nantong Jiuzhou Environmental (hazardous waste incineration) and Hangzhou Lvjia Water Purifier (waste acid treatment), and a new equity stake in Beijing Zhongguancun Bank, with details provided on the use of proceeds from two non-public offerings, where some early raised funds were reallocated for engineering project payments - Investment amount for the reporting period was **845 million CNY**, a significant increase of **549.28%** compared to **130 million CNY** in the prior year period[57](index=57&type=chunk) Significant Equity Investments During the Reporting Period | Investee Company Name | Main Business | Investment Method | Investment Amount (million CNY) | Shareholding Percentage | | :--- | :--- | :--- | :--- | :--- | | Nantong Jiuzhou Environmental Technology Co., Ltd. | Hazardous Waste Incineration and Secure Landfill | Acquisition | 27,040 | 80.00% | | Hangzhou Lvjia Water Purifier Technology Co., Ltd. | Waste Acid Treatment and Water Purifier Sales | Acquisition | 6,540 | 60.00% | | Beijing Zhongguancun Bank Co., Ltd. | Commercial Banking Business | New Establishment | 39,600 | 9.90% | - The company changed the use of **1.548 billion CNY** raised in 2013, reallocating **734 million CNY** originally for 'green nursery base construction' and 'garden machinery procurement' to payments for 14 engineering projects[65](index=65&type=chunk)[69](index=69&type=chunk)[78](index=78&type=chunk) [Significant Asset and Equity Disposals](index=26&type=section&id=六、重大资产和股权出售) During the reporting period, the company sold its 60% equity stake in Hangzhou Fuyang Shenneng Solid Waste Environmental Recycling Co., Ltd. to Hangzhou Shenlian Environmental Technology Co., Ltd. for **1.5115 billion CNY**, with this disposal negatively impacting the company's net profit attributable to parent by **25.60%** Significant Equity Disposal | Equity Sold | Counterparty | Transaction Price (million CNY) | Impact on Listed Company's Net Profit | | :--- | :--- | :--- | :--- | | 60% Equity Stake in Hangzhou Fuyang Shenneng Solid Waste Environmental Recycling Co., Ltd. | Hangzhou Shenlian Environmental Technology Co., Ltd. | 151,150 | Negative **25.60%** of total net profit | [Analysis of Major Holding and Associate Companies](index=27&type=section&id=七、主要控股参股公司分析) This chapter provides the operating performance and key financial data of the company's major subsidiaries during the reporting period, listing subsidiaries acquired and disposed of through acquisitions, new establishments, and equity transfers, with the disposal of Shenneng Environmental having a significant impact on net profit attributable to parent Major Subsidiary Financial Data (H1 2017) | Company Name | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | | Zhongbang Construction Engineering Co., Ltd. | 60,341,480.32 | 14,865,606.76 | 14,316,591.96 | | Zhongshan Environmental Protection Industry Co., Ltd. | 80,559,414.33 | -29,077,122.50 | -28,337,522.20 | | Shanghai Liyuan Water Treatment Technology Co., Ltd. | 64,557,817.93 | -2,590,882.74 | -3,004,683.09 | | Beijing Miaolianwang Technology Co., Ltd. | 112,643,142.13 | 46,005,457.38 | 45,734,566.44 | | Hangzhou Fuyang Jinyuan Copper Co., Ltd. | 514,542,743.46 | 34,118,835.29 | 26,902,245.14 | - During the reporting period, the company acquired new subsidiaries including Nantong Jiuzhou Environmental and Hangzhou Lvjia Water Purifier, and disposed of Hangzhou Fuyang Shenneng Solid Waste Environmental Recycling Co., Ltd. through equity transfer[90](index=90&type=chunk) [2017 Q1-Q3 Operating Performance Forecast](index=30&type=section&id=九、对%202017%20年%201-9%20月经营业绩的预计) The company forecasts a **50% to 80%** year-over-year increase in net profit attributable to shareholders for the first three quarters of 2017 (January-September), with a projected net profit range of **776 million CNY** to **931 million CNY**, primarily driven by the maturing strategic transformation and rapid revenue growth fueled by the expanding PPP business model 2017 Q1-Q3 Performance Forecast | Item | Forecast Data | | :--- | :--- | | Change in Net Profit Attributable to Parent | 50.00% To 80.00% | | Net Profit Attributable to Parent Range | 77.56257 million CNY To 93.07508 million CNY | | Net Profit Attributable to Parent in Prior Year Period (2016) | 51.70838 million CNY | [Risks and Countermeasures](index=30&type=section&id=十、公司面临的风险和应对措施) The company faces primary risks including industry and business model risks, revenue recognition risk, and completed but unsettled inventory risk, with industry risks stemming from local government fiscal conditions impacting municipal project investment and collection, and business model risks encompassing bad debt risk from traditional advance payment models and policy/performance uncertainties of the nascent PPP model; the company has implemented measures like establishing a settlement management department and strengthening assessments to actively promote project settlement and mitigate these risks - **Industry and Business Model Risks**: - Local government fiscal pressure may affect municipal construction investment and the company's collection progress - Traditional advance payment models lead to significant inventories and accounts receivable, posing bad debt risks - The PPP model is in its nascent stage, facing policy and government transition performance uncertainty risks[93](index=93&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) - **Revenue and Inventory Risks**: - Revenue recognition using the percentage-of-completion method creates a time lag with project settlement, potentially leading to revenue adjustments - As of June 30, 2017, the cumulative revenue difference between completed but unsettled projects and cumulative settlement was **8.487 billion CNY** - The balance of completed but unsettled inventories (engineering inventories) reached **8.503 billion CNY**, posing impairment and collection risks[98](index=98&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - **Countermeasures**: The company has established a settlement management department, formulated and implemented settlement management processes, and actively promotes project settlement through methods such as preparing plan tracking tables and monthly reports, completing **2.867 billion CNY** in settlements in H1 2017[105](index=105&type=chunk) [Significant Matters](index=34&type=section&id=Section%20V.%20Significant%20Matters) [Equity Incentive and Employee Stock Ownership Plans](index=35&type=section&id=十二、公司股权激励计划、员工持股计划或其他员工激励措施的实施情况) During the reporting period, the company actively promoted multiple employee incentive measures, completing partial exercise of the second phase equity incentive plan and granting reserved options for the third phase equity incentive plan, while also launching the second phase employee stock ownership plan, which completed approximately **1.5 billion CNY** in stock purchases, further motivating core employees - **Second Phase Equity Incentive Plan**: In June 2017, the exercise of the second exercise period for the initial grant of stock options and the first exercise period for the reserved grant was completed, with 115 incentive recipients exercising a total of **3,794,874 options**[122](index=122&type=chunk)[123](index=123&type=chunk) - **Third Phase Equity Incentive Plan**: In March 2017, **1.0745 million** reserved stock options were granted to 6 incentive recipients at an exercise price of **16.63 CNY**[127](index=127&type=chunk) - **Second Phase Employee Stock Ownership Plan**: As of July 10, 2017, the plan completed stock purchases, accumulating **92,474,622 shares**, representing **3.45%** of total share capital, with a transaction amount of approximately **1.476 billion CNY** and an average transaction price of approximately **15.96 CNY/share**[128](index=128&type=chunk)[129](index=129&type=chunk) [Significant Contracts and Performance](index=40&type=section&id=十四、重大合同及其履行情况) This chapter primarily discloses the company's significant guarantees, noting that during the reporting period, the company mainly provided guarantees for its subsidiaries to support their business development and financing needs, with the actual guarantee balance to subsidiaries reaching **666 million CNY**, representing **6.95%** of the company's net assets, as of the end of the reporting period Summary of Company's External Guarantees (As of Period-end) | Guarantee Type | Approved Guarantee Limit (million CNY) | Actual Guarantee Balance (million CNY) | | :--- | :--- | :--- | | Guarantees to Subsidiaries | 88,300 | 66,645.25 | | **Total** | **88,300** | **66,645.25** | - The actual total guarantee amount represents **6.95%** of the company's net assets[143](index=143&type=chunk) [Other Significant Matters](index=47&type=section&id=十六、其他重大事项的说明) During the reporting period, the company had two other significant matters: the sale of a 60% equity stake in subsidiary Shenneng Environmental for **1.5115 billion CNY**, and the formal launch of all-area tourism business via board resolution, with plans to undertake related projects already developed by the controlling shareholder - The company sold its 60% equity stake in Shenneng Environmental for a consideration of **1.5115 billion CNY**[151](index=151&type=chunk) - The company decided to launch all-area tourism business and will undertake existing all-area tourism PPP projects in Fenghuang County and Tengchong City from the industrial group, to extend its industrial layout and leverage business synergies[151](index=151&type=chunk) [Share Changes and Shareholder Information](index=49&type=section&id=Section%20VI.%20Share%20Changes%20and%20Shareholder%20Information) [Share Changes and Shareholding](index=49&type=section&id=股份变动与股东持股) During the reporting period, due to the exercise of the second phase equity incentive plan, the company's total share capital increased from **2.677 billion shares** to **2.681 billion shares**, with **74,967 households** of common shareholders at period-end, and actual controllers He Qiaonv and Tang Kai jointly holding **49.20%**, while an employee stock ownership plan collective fund trust appeared among the top ten shareholders with a **3.34%** stake - Due to the exercise of the second phase equity incentive plan, the company's total share capital increased by **3,794,874 shares**, reaching **2,681,155,280 shares** at period-end[156](index=156&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | He Qiaonv | Domestic Individual | 41.54% | 1,113,789,413 | | Tang Kai | Domestic Individual | 7.66% | 205,349,530 | | Zhongtai Chuangzhan (Zhuhai Hengqin) Asset Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.50% | 120,600,541 | | China Overseas Trust - Anying No. 19 Oriental Garden Employee Stock Ownership Plan Collective Fund Trust | Domestic Non-State-Owned Legal Person | 3.34% | 89,526,422 | | Shandong International Trust Co., Ltd. - Hengying No. 2 Collective Fund Trust Plan | Domestic Non-State-Owned Legal Person | 2.21% | 59,296,268 | - Actual controllers He Qiaonv and Tang Kai are a married couple, jointly holding **49.20%** of shares[164](index=164&type=chunk) [Corporate Bonds Information](index=57&type=section&id=Section%20IX.%20Corporate%20Bonds%20Information) [Corporate Bond Basic Information and Rating](index=57&type=section&id=公司债券基本情况与评级) As of the end of the reporting period, the company had three publicly issued corporate bonds, '16 Donglin 01', '16 Donglin 02', and '16 Donglin 03', listed on the Shenzhen Stock Exchange, with a total balance of **2.2 billion CNY**; during the period, Shanghai New Century Credit Rating upgraded the company's issuer credit rating and related bond ratings from AA to **AA+** with a **stable** outlook, primarily due to successful strategic transformation, sufficient PPP projects on hand, and guaranteed business growth Basic Information on Outstanding Corporate Bonds | Bond Abbreviation | Bond Code | Maturity Date | Bond Balance (million CNY) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 16 Donglin 01 | 112380 | 2021-04-19 | 100,000 | 5.78% | | 16 Donglin 02 | 112426 | 2021-08-10 | 60,000 | 4.70% | | 16 Donglin 03 | 112464 | 2021-10-24 | 60,000 | 4.00% | - On June 20, 2017, Shanghai New Century upgraded the company's long-term issuer credit rating and bond ratings from AA to **AA+**, with a **stable** outlook[179](index=179&type=chunk)[180](index=180&type=chunk) - As of the end of the reporting period, the company obtained bank credit lines totaling **9.627 billion CNY**, with **3.378 billion CNY** utilized and **6.249 billion CNY** unused, indicating strong indirect financing capability[187](index=187&type=chunk) [Financial Report](index=61&type=section&id=Section%20X.%20Financial%20Report) [Financial Statements](index=61&type=section&id=财务报表) This chapter presents the unaudited consolidated and parent company financial statements for the first half of 2017, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, showing steady asset growth, significant profitability improvement, but a decrease in operating cash flow and a substantial increase in financing cash flow Consolidated Balance Sheet Summary (June 30, 2017) | Item | Period-end Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | **Total Assets** | **25,886,069,365.25** | **24,010,502,433.20** | | Inventories | 9,319,528,426.80 | 8,782,717,265.10 | | Accounts Receivable | 5,754,568,014.49 | 5,123,746,526.10 | | **Total Liabilities** | **16,245,951,718.14** | **14,567,817,379.52** | | Short-term Borrowings | 1,943,725,371.00 | 1,236,446,752.51 | | Bonds Payable | 2,735,780,880.36 | 2,736,030,284.62 | | **Equity Attributable to Parent Company Owners** | **9,584,957,908.50** | **9,190,103,932.36** | Consolidated Income Statement Summary (H1 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | **Total Operating Revenue** | **4,984,296,874.06** | **2,918,337,385.86** | | Operating Costs | 3,392,258,073.29 | 2,068,489,638.80 | | **Operating Profit** | **641,926,079.08** | **374,754,376.97** | | Investment Income | -120,693,955.89 | 28,546,394.77 | | **Total Profit** | **643,205,246.82** | **414,367,510.32** | | **Net Profit Attributable to Parent Company Owners** | **467,661,973.81** | **297,113,027.66** | Consolidated Cash Flow Statement Summary (H1 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | **222,991,167.67** | **550,588,642.98** | | **Net Cash Flow from Investing Activities** | **-771,966,192.92** | **-963,182,869.06** | | **Net Cash Flow from Financing Activities** | **966,610,370.43** | **-22,239,157.31** | | **Net Increase in Cash and Cash Equivalents** | **417,635,343.58** | **-434,716,537.96** | [Notes to Financial Statements](index=82&type=section&id=财务报表附注) The notes to financial statements detail the company's general information, basis of financial statement preparation, significant accounting policies and estimates, and provide explanations for major items in the consolidated financial statements, with key areas including revenue recognition policies (especially the percentage-of-completion method for construction contracts), segment information (environmental and environmental protection segments), related party transactions, and share-based payments; during the reporting period, the company reclassified government grants related to daily operations to 'Other Income' in accordance with new regulations - The company's main businesses include landscape engineering, ecological restoration, design, nursery stock sales, and solid and hazardous waste disposal; construction contract revenue is recognized using the percentage-of-completion method, with completion progress determined by the ratio of cumulative actual contract costs incurred to the total estimated contract costs[243](index=243&type=chunk)[344](index=344&type=chunk) - In accordance with new regulations from the Ministry of Finance, the company changed its accounting policy, reclassifying government grants related to daily operating activities from 'Non-Operating Income' to 'Other Income', increasing 'Other Income' by **49,458,281.15 CNY** for the current period[356](index=356&type=chunk) Segment Information (H1 2017) | Item (CNY) | Environmental Segment | Environmental Protection Segment | Total | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 4,003,993,764.48 | 980,303,109.58 | 4,984,296,874.06 | | **Total Profit** | 560,625,942.84 | 82,579,303.98 | 643,205,246.82 | | **Total Assets** | 24,620,818,873.69 | 1,928,874,890.20 | 25,886,069,365.25 (After Elimination) | | **Total Liabilities** | 15,757,363,921.18 | 1,152,212,195.60 | 16,245,951,718.14 (After Elimination) |

[Important Notice](index=2&type=section&id=Section%201%20Important%20Notice) The company provides a statement affirming the authenticity and integrity of the quarterly report and its financial statements [Statement on Report Authenticity](index=2&type=section&id=Section%201%20Important%20Notice) The company's board of directors, supervisory board, and senior management ensure the quarterly report's content is true, accurate, and complete, free from false information or material omissions, and assume corresponding legal liabilities - The company's board of directors, supervisory board, and all senior management guarantee the report's content is **true, accurate, and complete**, and assume legal responsibility[3](index=3&type=chunk) - Company head He Qiaonv, chief accountant Zhou Shu, and accounting department head Ma Jing jointly declare the **authenticity, accuracy, and completeness of the financial statements**[4](index=4&type=chunk) [Company Overview](index=3&type=section&id=Section%202%20Company%20Overview) The company presents key financial performance indicators and detailed shareholder information for the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2017, the company achieved CNY 1.23 billion in operating revenue, a 63.39% increase, while net loss attributable to shareholders significantly narrowed by 47.35% to CNY 35.11 million, and net cash flow from operating activities slightly decreased by 8.15% Key Accounting Data and Financial Indicators (CNY) | Indicator | Current Period | Prior Year Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,229,266,787.44 | 752,342,106.29 | 63.39% | | Net Profit Attributable to Shareholders | -35,109,514.69 | -66,684,998.05 | 47.35% | | Net Cash Flow from Operating Activities | 26,488,429.53 | 28,839,319.16 | -8.15% | | Basic Earnings Per Share (CNY/share) | -0.01 | -0.03 | 66.67% | | Total Assets | 23,959,844,473.51 | 24,005,870,955.47 | -0.19% (vs. end of prior year) | | Net Assets Attributable to Shareholders | 9,150,361,259.94 | 9,185,470,774.63 | -0.38% (vs. end of prior year) | - During the reporting period, the company's **non-recurring gains and losses totaled CNY 2.2172 million**, primarily from other non-operating income and expenses and financial asset-related gains[8](index=8&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Shareholder%20Information%20at%20Period-End%20and%20Top%20Ten%20Shareholders) As of the period-end, the company had 66,345 common shareholders, with actual controllers He Qiaonv and Tang Kai holding a combined 49.27% of shares, and several top ten shareholders having pledged shares - As of the end of the reporting period, the company had **66,345 common shareholders**[11](index=11&type=chunk) Top Ten Shareholders and Share Pledges | Shareholder Name | Shareholding Percentage | Number of Shares Held | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | | He Qiaonv | 41.60% | 1,113,789,413 | Pledged 683,637,600 | | Tang Kai | 7.67% | 205,349,530 | Pledged 55,200,000 | | Zhongtai Chuangzhan (Zhuhai Hengqin) Asset Management Co., Ltd. | 6.46% | 173,033,941 | Pledged 173,009,022 | - The company's actual controllers are **He Qiaonv and Tang Kai**, a married couple, and some of the top ten shareholders include Guotai-series funds managed by the same entity[12](index=12&type=chunk) [Significant Matters](index=7&type=section&id=Section%203%20Significant%20Matters) This section details significant financial changes, provides a half-year performance forecast, and outlines investor relations activities [Analysis of Changes in Key Financial Data and Indicators](index=7&type=section&id=I.%20Analysis%20of%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, the company experienced significant changes in financial indicators, including revenue and cost growth, increased sales expenses and asset impairment losses, and shifts in monetary funds, long-term equity investments, and construction in progress - Balance Sheet item changes: - **Monetary funds** decreased by **36.13%** from the beginning of the year, primarily due to increased investment payments[16](index=16&type=chunk) - **Prepayments** increased by **139.89%** from the beginning of the year, primarily due to increased prepayments to suppliers for goods[16](index=16&type=chunk) - **Long-term equity investments** increased by **54.44%** from the beginning of the year, primarily due to increased external equity investments[16](index=16&type=chunk) - Income Statement item changes: - **Operating revenue** increased by **63.39%** year-over-year, primarily due to increased revenue from engineering construction projects[16](index=16&type=chunk) - **Selling expenses** increased by **114.47%** year-over-year, primarily due to the consolidation of selling expenses from newly acquired companies at the end of 2016[16](index=16&type=chunk)[17](index=17&type=chunk) - **Asset impairment losses** increased by **1,369.29%** year-over-year, primarily due to increased bad debt provisions corresponding to increased project settlements[16](index=16&type=chunk)[17](index=17&type=chunk) - Cash Flow Statement item changes: - **Net cash flow from investing activities** decreased by **139.15%** year-over-year, primarily due to increased investment payments[17](index=17&type=chunk) - **Net cash flow from financing activities** increased by **85.07%** year-over-year, primarily due to a decrease in cash paid for debt repayment[17](index=17&type=chunk) [2017 Half-Year Performance Forecast](index=8&type=section&id=IV.%20Forecast%20of%20Operating%20Performance%20for%20January-June%202017) The company forecasts a 30% to 60% increase in net profit attributable to shareholders for January-June 2017, driven by PPP business expansion and rapid revenue growth 2017 Half-Year Performance Forecast (CNY) | Item | Forecast Data | | :--- | :--- | | Performance Forecast Period | January 1, 2017 to June 30, 2017 | | Net Profit Attributable to Parent Company Change Range | 30.00% to 60.00% | | Net Profit Attributable to Parent Company Change Interval (CNY million) | 386.4301 to 475.6063 | | Net Profit Attributable to Parent Company for 2016 Same Period (CNY million) | 297.254 | - The primary reason for the performance change is the **national promotion of PPP business models**, leading to the company's continuous business expansion and rapid operating revenue growth in 2017[20](index=20&type=chunk) [Investor Relations Activities](index=8&type=section&id=VIII.%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company hosted an on-site institutional investor survey on March 17, 2017, with related activity records disclosed - The company conducted an **on-site survey investor relations activity** on March 17, 2017, with institutional investors as the recipients[23](index=23&type=chunk) [Financial Statements](index=9&type=section&id=Section%204%20Financial%20Statements) This section presents the consolidated financial statements, including the balance sheet, income statement, cash flow statement, and audit opinion [Consolidated Balance Sheet](index=9&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2017, total assets were CNY 23.96 billion, a slight decrease of 0.19%, with total liabilities at CNY 14.51 billion and total equity attributable to parent company owners at CNY 9.15 billion Consolidated Balance Sheet (CNY) | Item | Period-End Balance (2017-03-31) | Beginning-of-Period Balance (2016-12-31) | | :--- | :--- | :--- | | Total Assets | 23,959,844,473.51 | 24,005,870,955.47 | | Total Liabilities | 14,507,303,080.29 | 14,567,819,059.52 | | Total Equity Attributable to Parent Company Owners | 9,150,361,259.94 | 9,185,470,774.63 | [Consolidated Income Statement](index=14&type=section&id=3.%20Consolidated%20Income%20Statement) In Q1 2017, total operating revenue reached CNY 1.23 billion, a 63.39% increase, resulting in an operating loss of CNY 13.31 million and a net loss attributable to parent company owners of CNY 35.11 million, a 47.35% reduction in loss Consolidated Income Statement (CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | I. Total Operating Revenue | 1,229,266,787.44 | 752,342,106.29 | | III. Operating Profit | -13,310,900.83 | -54,757,903.84 | | Net Profit Attributable to Parent Company Owners | -35,109,514.69 | -66,684,998.05 | | Basic Earnings Per Share | -0.01 | -0.03 | [Consolidated Cash Flow Statement](index=18&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) In Q1 2017, net cash flow from operating activities was CNY 26.49 million, while investing activities resulted in a net cash outflow of CNY 873 million, and financing activities saw a net cash outflow of CNY 102.1 million, leading to a net decrease in cash and cash equivalents of CNY 948.5 million Consolidated Cash Flow Statement (CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 26,488,429.53 | 28,839,319.16 | | Net Cash Flow from Investing Activities | -872,900,965.69 | -364,997,399.25 | | Net Cash Flow from Financing Activities | -102,104,519.35 | -683,808,905.10 | | Net Increase in Cash and Cash Equivalents | -948,517,055.88 | -1,019,989,144.54 | [Audit Opinion](index=22&type=section&id=II.%20Audit%20Report) The company's Q1 2017 report is unaudited - The company's first quarter report is **unaudited**[50](index=50&type=chunk)

北京东方园林环境股份有限公司 2016 年年度报告全文 北京东方园林环境股份有限公司 2016 年年度报告 2017 年 04 月 1 北京东方园林环境股份有限公司 2016 年年度报告全文 第一节 重要提示、目录和释义 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人何巧女、主管会计工作负责人周舒及会计机构负责人(会计主管 人员)马静声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 北京东方园林环境股份有限公司 2016 年年度报告全文 重大风险提示详见"第四节 经营情况讨论与分析"的第十部分"重大风险提 示"，敬请投资者注意。 重大风险提示详见"第四节 经营情况讨论与分析"的第十部分"重大风险提 示"，敬请投资者注意。 公司经本次董事会审议通过的利润分配预案为：以 2,677,360,406 为基数， 向全体股东每 10 股派发现金红利 0.30 元（含税），送红股 0 股（含税），不以公 积金转增股本。 2 | 目录 | | --- | | 第一 ...

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) The company's management and accounting personnel guarantee the truthfulness and completeness of this quarterly report and its financial statements - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal liabilities[3](index=3&type=chunk) - The company's principal officer, head of accounting, and head of accounting department all declare and guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[4](index=4&type=chunk) [Core Financial Data and Shareholder Structure](index=3&type=section&id=Item%202.%20Key%20Financial%20Data%20and%20Shareholder%20Changes) This section details the company's strong financial performance in the first three quarters of 2016 and outlines its concentrated shareholder structure [Core Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved strong performance growth in the first three quarters of 2016, with operating revenue increasing by 46.39% and net profit attributable to shareholders increasing by 97.02%, alongside a significant improvement in operating cash flow, turning positive with a 134.53% increase, indicating enhanced business expansion and collection capabilities Key Financial Indicators for the First Three Quarters of 2016 | Indicator | Year-Beginning to Period-End | Year-over-Year Change | | :--- | :--- | :--- | | Operating Revenue (RMB) | 5,012,247,752.98 | 46.39% | | Net Profit Attributable to Shareholders (RMB) | 517,083,767.82 | 97.02% | | Net Cash Flow from Operating Activities (RMB) | 215,127,932.53 | 134.53% | | Basic Earnings Per Share (RMB/share) | 0.21 | 110.00% | | Weighted Average Return on Net Assets | 7.94% | Increased by 3.41 percentage points | Non-Recurring Gains and Losses for the First Three Quarters of 2016 | Project | Amount (RMB) | | :--- | :--- | | Government Grants | 15,885,476.17 | | Other Non-Recurring Gains and Losses | 31,689,990.17 | | **Total** | **43,552,781.74** | [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) As of the end of the reporting period, the company had 82,965 common shareholders, with controlling shareholder He Qiaonv holding 44.17% and, together with Tang Kai, serving as the actual controller, indicating a relatively concentrated equity structure among the top ten shareholders - As of the end of the reporting period, the company had **82,965** common shareholders[11](index=11&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | He Qiaonv | 44.17% | 1,113,789,413 | | Tang Kai | 8.14% | 205,349,530 | | Zhongtai Chuangzhan (Zhuhai Hengqin) Holding Co., Ltd. | 6.01% | 151,513,138 | | Shandong International Trust Co., Ltd. - Hengying No. 2 | 2.35% | 59,296,268 | | China Construction Bank - Boshi Theme Industry Mixed (LOF) | 1.51% | 38,000,000 | - The company's actual controllers are He Qiaonv and Tang Kai[12](index=12&type=chunk) [Significant Events](index=6&type=section&id=Item%203.%20Significant%20Events) This section covers significant financial changes, major asset restructuring progress, ongoing commitments, and the company's annual performance forecast [Analysis of Financial Item Changes](index=6&type=section&id=I.%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, the company experienced significant changes in multiple financial indicators, with substantial increases in long-term equity investments and construction in progress on the asset side, significant growth in long-term borrowings and bonds payable on the liability side reflecting financing expansion, and synchronized growth in revenue and costs alongside a sharp decrease in asset impairment losses due to enhanced collection efforts - Balance Sheet Item Changes: - **Long-term equity investments** increased by **107.35%** from the beginning of the year, primarily due to increased external equity investments[15](index=15&type=chunk) - **Construction in progress** increased by **348.78%** from the beginning of the year, mainly due to increased investment in production equipment and plant facilities[15](index=15&type=chunk) - **Long-term borrowings** increased by **923.53%** from the beginning of the year, primarily due to increased acquisition loans[16](index=16&type=chunk) - **Bonds payable** increased by **106.33%** from the beginning of the year, mainly due to the issuance of **1.6 billion RMB** in corporate bonds[16](index=16&type=chunk) - Income Statement Item Changes: - **Operating revenue** increased by **46.39%** year-over-year, primarily due to increased engineering project revenue and solid waste disposal revenue from newly acquired companies[16](index=16&type=chunk) - **Asset impairment losses** decreased by **70.07%** year-over-year, mainly due to intensified collection efforts and increased cash recovery[17](index=17&type=chunk) - **Investment income** increased by **4,055.53%** year-over-year, primarily from gains on disposal of subsidiaries[17](index=17&type=chunk) - Cash Flow Statement Item Changes: - **Net cash flow from operating activities** increased by **134.53%** year-over-year, primarily due to intensified collection of accounts receivable and a significant increase in cash recovery[18](index=18&type=chunk) - **Net cash flow from investing activities** decreased by **225.13%** year-over-year, primarily due to increased investment payments[18](index=18&type=chunk) - **Net cash flow from financing activities** increased by **287.21%** year-over-year, primarily due to reduced financing expenditures[18](index=18&type=chunk) [Progress of Significant Events](index=7&type=section&id=II.%20Progress%20of%20Significant%20Matters%2C%20Their%20Impact%2C%20and%20Analysis%20of%20Solutions) The company steadily advanced its major asset restructuring during the reporting period, acquiring 100% equity in Zhongshan Environmental and Shanghai Liyuan through share issuance and cash payment, a transaction approved by the CSRC with asset transfer completed, while also adjusting its second and third stock option incentive plans - The company adjusted the quantity and exercise price of its second and third stock option incentive plans and completed the initial grant registration for the third phase options[19](index=19&type=chunk) - The company's major asset restructuring is steadily progressing, involving the proposed acquisition of **100%** equity in Zhongshan Environmental and Shanghai Liyuan through share issuance and cash payment; during the reporting period, this matter received approval from the China Securities Regulatory Commission and the transfer of target assets was completed[20](index=20&type=chunk)[21](index=21&type=chunk) [Commitments](index=8&type=section&id=III.%20Commitments%20Fulfilled%20and%20Unfulfilled%20by%20the%20Company%2C%20Shareholders%2C%20Actual%20Controllers%2C%20Acquirers%2C%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20or%20Other%20Related%20Parties%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The company's controlling shareholders and actual controllers, He Qiaonv and Tang Kai, have made long-term effective commitments regarding avoiding horizontal competition and regulating related-party transactions, which are being strictly fulfilled during the reporting period - The company's actual controllers, He Qiaonv and Tang Kai, committed to avoiding horizontal competition by ensuring that they and their controlled entities will not engage in businesses that compete with Oriental Landscape, and will grant Oriental Landscape priority development rights in relevant new businesses[25](index=25&type=chunk) - The actual controllers committed to minimizing related-party transactions with the listed company, and for unavoidable transactions, they will adhere to fair and transparent principles, fulfill decision-making and disclosure procedures, and ensure no harm to the legitimate rights and interests of the listed company and other shareholders[27](index=27&type=chunk) [Operating Performance Forecast](index=11&type=section&id=IV.%20Forecast%20of%202016%20Annual%20Operating%20Performance) The company forecasts a 70% to 100% year-over-year increase in net profit attributable to shareholders for 2016, driven by new project implementation, solid waste disposal revenue from environmental companies acquired in late 2015, and increased profits from water treatment companies acquired in Q4 2016 2016 Annual Operating Performance Forecast | Project | Forecast Situation | | :--- | :--- | | Net Profit Attributable to Shareholders Change Range | 70.00% to 100.00% | | Net Profit Attributable to Shareholders Range (Million RMB) | 1,023.34 to 1,203.93 | | 2015 Annual Net Profit Attributable to Shareholders (Million RMB) | 601.97 | - Performance growth drivers include: - Continuous implementation of new company projects generating output value[28](index=28&type=chunk) - Increased solid waste disposal revenue from environmental companies newly acquired at the end of 2015[28](index=28&type=chunk) - Increased profit contribution from water treatment companies newly acquired in the fourth quarter of 2016[28](index=28&type=chunk) [Financial Statements](index=12&type=section&id=Item%204.%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for the third quarter of 2016 [Financial Statement Details](index=12&type=section&id=I.%20Financial%20Statements) This section provides the company's unaudited consolidated and parent company financial statements for the third quarter of 2016, including the balance sheet, income statement, and cash flow statement - This section includes the company's consolidated and parent company balance sheets, income statements, and cash flow statements as of September 30, 2016[33](index=33&type=chunk) [Balance Sheet](index=12&type=section&id=1.%20Consolidated%20Balance%20Sheet) This subsection presents the company's consolidated balance sheet as of September 30, 2016 [Income Statement](index=17&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Period) This subsection presents the company's consolidated income statement for the current reporting period [Cash Flow Statement](index=25&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period-End) This subsection presents the company's consolidated cash flow statement from the beginning of the year to the end of the reporting period [Audit Report](index=28&type=section&id=II.%20Audit%20Report) The company's third-quarter 2016 report is unaudited - The company's third-quarter report is unaudited[65](index=65&type=chunk)

[Section 1 Important Notes, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the authenticity and accuracy of the semi-annual report and plans no dividend distribution for the period - The Board of Directors, Supervisory Committee, and senior management declare the report's content to be true, accurate, and complete[3](index=3&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for key terms used throughout the report to ensure clear understanding - "Orient Landscape/The Company" refers to Beijing Orient Landscape & Environment Co, Ltd[9](index=9&type=chunk) - The "Reporting Period" refers to the period from January 1, 2016, to June 30, 2016[9](index=9&type=chunk) [Section 2 Company Profile](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) [Company Basic Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) The company, Orient Landscape, is listed on the Shenzhen Stock Exchange under the stock code 002310 Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Orient Landscape | | Stock Code | 002310 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 北京东方园林生态股份有限公司 | | Legal Representative | He Qiaonv | [Contact Information and Other Details](index=5&type=section&id=%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F%E5%8F%8A%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's contact information and registration details remained unchanged during the reporting period - The Secretary to the Board of Directors is Zhang Qiang, with the contact number 010-59388886[13](index=13&type=chunk) - During the reporting period, there were **no changes** to the company's contact information, information disclosure, document repository, or registration details[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Section 3 Summary of Accounting Data and Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E6%91%98%E8%A6%81) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company demonstrated strong performance with significant growth in revenue, net profit, and operating cash flow in H1 2016 Key Accounting Data and Financial Indicators for H1 2016 | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,918,337,385.86 | 2,233,571,527.45 | 30.66% | | Net Profit Attributable to Shareholders | 297,253,955.99 | 157,276,927.91 | 89.00% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 255,589,947.69 | 155,068,295.75 | 64.82% | | Net Cash Flow from Operating Activities | 550,580,445.61 | -375,467,307.54 | 246.64% | | Basic Earnings Per Share (Yuan/Share) | 0.29 | 0.16 | 81.25% | | Diluted Earnings Per Share (Yuan/Share) | 0.29 | 0.16 | 81.25% | | Weighted Average Return on Equity | 4.65% | 2.72% | 1.93% | | **End of Current Period** | | **End of Prior Year** | **Change from Prior Year-End** | | Total Assets | 18,326,687,735.58 | 17,695,635,569.68 | 3.57% | | Net Assets Attributable to Shareholders | 6,487,204,877.22 | 6,250,473,638.05 | 3.79% | [Non-recurring Profit and Loss Items and Amounts](index=7&type=section&id=%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring profit and loss for the period totaled 41.66 million yuan, primarily from government subsidies Non-recurring Profit and Loss Items and Amounts for H1 2016 | Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 23,692.26 | | Government Subsidies Included in Current Profit/Loss | 12,831,772.53 | | Other Non-operating Income and Expenses | -714,716.97 | | Other Profit/Loss Items Meeting Non-recurring Definition | 31,689,990.17 | | Less: Income Tax Impact | 1,645,544.69 | | Minority Interest Impact (After Tax) | 521,185.00 | | Total | 41,664,008.30 | [Section 4 Board of Directors' Report](index=9&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%8A%A5%E5%91%8A) [Business Overview](index=9&type=section&id=%E7%BB%8F%E8%90%A5%E6%A6%82%E8%BF%B0) The company achieved significant performance growth in H1 2016 by focusing on water environment and hazardous waste treatment businesses - The company's strategy focuses on ecological restoration of water environments and hazardous waste treatment, accelerating PPP project acquisition and environmental business expansion[27](index=27&type=chunk) - In H1, the company won bids for projects with a total investment of approximately **24.33 billion yuan**, with announced projects totaling about 19.27 billion yuan, indicating a maturing PPP business model[28](index=28&type=chunk) - The company drives environmental business growth through M&A and organic development, supported by environmental industry funds established with financial institutions[29](index=29&type=chunk) Key Operating Data for H1 2016 | Indicator | Amount (Billion Yuan) | Y-o-Y Growth | | :--- | :--- | :--- | | Operating Revenue | 2.92 | 30.66% | | Net Profit Attributable to Shareholders | 0.30 | 89.00% | | Net Cash Flow from Operating Activities | 0.55 | 246.64% | [Analysis of Core Business](index=10&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's revenue and net profit grew significantly, driven by increased engineering project income and contributions from newly acquired solid waste businesses - In H1 2016, operating revenue was **2.92 billion yuan**, a Y-o-Y increase of 30.66%; net profit was **336 million yuan**, a Y-o-Y increase of 117.51%[31](index=31&type=chunk) - The growth in operating revenue and cost was mainly due to increased income from engineering projects and contributions from newly acquired solid waste disposal businesses in late 2015[33](index=33&type=chunk) - Net cash flow from operating activities **increased by 246.64%**, primarily due to enhanced efforts in collecting receivables, leading to a significant year-on-year increase in cash collections[34](index=34&type=chunk) - The company continues to advance its strategic layout in the broad ecological and environmental sectors, including ecological landscaping, ecological restoration, solid waste and soil treatment, and water ecology governance[35](index=35&type=chunk) - The company is achieving its strategic transformation through talent acquisition, R&D investment, a shift to the PPP business model, and specialized M&A, such as the acquisition of Shanghai Liyuan and Zhongshan Environmental Protection[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Year-on-Year Changes in Key Financial Data](index=10&type=section&id=%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%90%8C%E6%AF%94%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Revenue and costs rose due to project growth and acquisitions, while improved collections significantly boosted operating cash flow Year-on-Year Changes in Key Financial Data | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Y-o-Y Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,918,337,385.86 | 2,233,571,527.45 | 30.66% | Increase in engineering project revenue and newly acquired solid waste disposal revenue | | Operating Cost | 2,068,489,638.80 | 1,478,771,255.46 | 39.88% | Increase in engineering project costs and newly acquired solid waste disposal costs | | Selling Expenses | 8,313,704.20 | 3,864,334.87 | 115.14% | Addition of selling expenses from companies newly acquired at the end of 2015 | | Income Tax Expense | 78,478,528.54 | 24,538,807.82 | 219.81% | Increase in the company's operating profit | | Net Cash Flow from Operating Activities | 550,580,445.61 | -375,467,307.54 | 246.64% | Strengthened collection of receivables, leading to a significant increase in cash inflow | [Future Development and Planning](index=11&type=section&id=%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E4%B8%8E%E8%A7%84%E5%88%92) The company is transitioning towards the broader ecological and environmental industry, focusing on solid waste, soil, and water ecology treatment - The company's strategic goal is to become a leader in urban ecological and environmental protection by providing comprehensive, integrated solutions for solid waste, soil, and water ecology treatment[35](index=35&type=chunk) - During the reporting period, the company recruited top experts in hazardous waste disposal and water ecology, increased R&D investment in areas like contaminated soil and urban river restoration, and established cooperation platforms with universities[35](index=35&type=chunk) - The business model is shifting from solely undertaking construction contracts to engaging in PPP projects, with a dedicated M&A team actively acquiring leading companies in solid waste and water ecology treatment[36](index=36&type=chunk) - The acquisitions of Shanghai Liyuan and Zhongshan Environmental Protection have been approved by the CSRC, which will enhance the company's service capabilities and depth in the water treatment industry[37](index=37&type=chunk) [Core Business Composition](index=12&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%9E%84%E6%88%90%E6%83%85%E5%86%B5) The company's core business is dominated by engineering construction and environmental services, with significant revenue growth from the Northwest and Southwest regions Core Business Composition (by Industry) | Industry | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Y-o-Y Revenue Change | | :--- | :--- | :--- | :--- | :--- | | Engineering Construction | 2,387,694,820.81 | 1,668,354,175.20 | 30.13% | 13.15% | | Environmental Business | 412,841,763.22 | 324,232,529.63 | 21.46% | - | | Design and Planning | 117,795,861.83 | 75,902,117.32 | 35.56% | -3.65% | | Nursery Stock Sales | 4,940.00 | 816.65 | 83.47% | -97.35% | Core Business Composition (by Product) | Product | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Y-o-Y Revenue Change | | :--- | :--- | :--- | :--- | :--- | | Landscape Construction | 1,719,747,333.83 | 1,228,013,210.05 | 28.59% | 6.86% | | Ecological Wetlands | 418,967,435.78 | 269,321,874.95 | 35.72% | 236.36% | | Water Conservancy and Municipal | 248,980,051.20 | 171,019,090.20 | 31.31% | -33.84% | | Solid Waste Disposal | 412,841,763.22 | 324,232,529.63 | 21.46% | - | | Design and Planning | 117,795,861.83 | 75,902,117.32 | 35.56% | -3.65% | | Nursery Stock Sales | 4,940.00 | 816.65 | 83.47% | -97.35% | Core Business Composition (by Region) | Region | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Y-o-Y Revenue Change | | :--- | :--- | :--- | :--- | :--- | | East China | 1,009,733,126.88 | 731,862,424.15 | 27.52% | 53.96% | | Northwest & Southwest China | 732,178,400.10 | 486,468,188.95 | 33.56% | 353.15% | | North & Northeast China | 438,818,820.64 | 315,384,513.33 | 28.13% | 10.18% | | Central & South China | 737,607,038.24 | 534,774,512.37 | 27.50% | -27.47% | [Core Competitiveness Analysis](index=13&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core strengths lie in its first-mover advantage in sponge cities, leading technology, and extensive experience in PPP models - The company holds a **first-mover advantage** in the sponge city sector, becoming a pioneer and leader in the PPP field with its "three-in-one" ecological comprehensive treatment concept[42](index=42&type=chunk) - Through the acquisition of Shenneng Environmental, the company possesses **leading technology** in industrial hazardous waste treatment, with its multi-metal hazardous waste comprehensive utilization technology identified as internationally advanced[43](index=43&type=chunk) - The company has accumulated **extensive experience in the PPP model**, establishing strategic alliances with multiple financial institutions and signing PPP project agreements with various provincial and municipal governments[44](index=44&type=chunk) - The company's **brand influence is growing**, having undertaken several large-scale, high-end projects that have enhanced its brand recognition[45](index=45&type=chunk)[46](index=46&type=chunk) - The company effectively mitigates accounts receivable risk and ensures capital turnover through **multiple models**, including partnerships with financial institutions[47](index=47&type=chunk) - The company has launched its **third stock option incentive plan**, expanding the scope of incentives to motivate core employees[48](index=48&type=chunk) [Investment Analysis](index=14&type=section&id=%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company significantly increased its external equity investments and utilized 1.12 billion yuan of raised funds, with some project uses altered - External investment during the reporting period was **130,129,516.64 yuan**, a year-on-year increase of 218.94%[49](index=49&type=chunk) - The company invested in Wuxi Ruiqi Renewable Resources Co, Ltd (60%), Guizhou Water Investment Orient Ecological Environment Co, Ltd (44%), and Beijing Orient Fudi Environmental Technology Co, Ltd (52%), among others[49](index=49&type=chunk)[50](index=50&type=chunk) - The company holds shares in Zhejiang Fuyang Rural Commercial Bank and Fuyang Yongtong Micro-credit Co, Ltd[51](index=51&type=chunk) - Total raised funds amounted to **1.548 billion yuan**, with a cumulative investment of 1.120 billion yuan, of which 734 million yuan was reallocated to 14 engineering projects[58](index=58&type=chunk) - The IT construction project and 14 engineering projects did not meet planned progress or expected returns, mainly due to strategic transformation and project delays[61](index=61&type=chunk) - Key subsidiaries include Beijing Orient Lihe Landscape Design Co, Ltd, Hangzhou Fuyang Shenneng Solid Waste Environmental Regeneration Co, Ltd, and Suzhou Wuzhong District Solid Waste Treatment Co, Ltd, covering businesses such as landscape design and hazardous waste disposal[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [External Equity Investments](index=14&type=section&id=%E5%AF%B9%E5%A4%96%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company's external equity investments grew significantly, focusing on renewable resources, water ecology, and construction investment External Investment Situation | Indicator | Amount (Yuan) | | :--- | :--- | | Investment in Reporting Period | 130,129,516.64 | | Investment in Prior Year Period | 40,800,000.00 | | Change | 218.94% | - Investee companies include Wuxi Ruiqi Renewable Resources Co, Ltd (60%), Guizhou Water Investment Orient Ecological Environment Co, Ltd (44%), and Beijing Orient Fudi Environmental Technology Co, Ltd (52%)[49](index=49&type=chunk)[50](index=50&type=chunk) - The company holds equity in Zhejiang Fuyang Rural Commercial Bank (0.99%) and Fuyang Yongtong Micro-credit Co, Ltd (10.00%)[51](index=51&type=chunk) [Use of Raised Funds](index=16&type=section&id=%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) As of June 30, 2016, the company had used 1.12 billion yuan of the 1.55 billion yuan raised, with some project purposes changed Overall Use of Raised Funds | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Total Raised Funds | 154,822.54 | | Raised Funds Invested in Reporting Period | 18,330.45 | | Cumulative Raised Funds Invested | 111,956.32 | | Cumulative Amount of Altered Use | 73,400 | | Proportion of Altered Use | 47.41% | - The Green Nursery Stock Base Construction Project and the Landscape Machinery Purchase Project were changed to 14 engineering projects, with a total reallocated amount of **734 million yuan**[61](index=61&type=chunk) - The IT Construction Project was delayed due to the company's strategic transformation and is expected to be ready for use by December 31, 2017[61](index=61&type=chunk) - The expected ready-for-use dates for the 14 engineering projects have been adjusted accordingly due to project delays[61](index=61&type=chunk)[66](index=66&type=chunk) [Analysis of Major Subsidiaries and Investees](index=21&type=section&id=%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E3%80%81%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's subsidiaries span various sectors, with solid waste treatment companies contributing significantly to revenue and profit Operating Performance of Major Subsidiaries | Company Name | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | | Beijing Orient Lihe Landscape Design Co, Ltd | 105,923,106.40 | 10,651,279.06 | | Hangzhou Fuyang Shenneng Solid Waste Environmental Regeneration Co, Ltd | 331,605,974.36 | 97,134,697.99 | | Suzhou Wuzhong District Solid Waste Treatment Co, Ltd | 10,203,145.02 | 2,648,075.58 | | Zhongbang Construction Engineering Co, Ltd | 119,199,284.29 | 27,999,223.86 | - Wenzhou Shengli Landscape Engineering Co, Ltd and Orient Mingyuan Longsheng Construction Co, Ltd incurred losses during the reporting period[69](index=69&type=chunk)[70](index=70&type=chunk) [Forecast for January-September 2016 Operating Performance](index=23&type=section&id=2016%E5%B9%B41-9%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E9%A2%84%E8%AE%A1) The company expects net profit for the first nine months of 2016 to grow by 60% to 90% year-on-year Forecast for January-September 2016 Operating Performance | Indicator | Range (10,000 Yuan) | | :--- | :--- | | Change in Net Profit Attributable to Shareholders | 60.00% to 90.00% | | Net Profit Attributable to Shareholders Range | 41,992.29 to 49,865.84 | | Net Profit Attributable to Shareholders for Jan-Sep 2015 | 26,245.18 | - The performance growth is mainly attributed to the continuous implementation of new projects and increased revenue from solid waste disposal by newly acquired companies in late 2015[73](index=73&type=chunk) [Risk Disclosure](index=23&type=section&id=%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company faces risks related to industry downturns, business model uncertainties, revenue recognition, and inventory impairment - A downturn in the real estate industry and strengthened local government debt management could impact new business development, contract execution, and collection schedules[74](index=74&type=chunk)[75](index=75&type=chunk) - The traditional municipal landscape project model involves risks of advance funding, inventory, and receivables collection efficiency being affected by local government finances[76](index=76&type=chunk) - Financial and PPP models face risks from multi-party coordination, complex approval processes, policy uncertainties, and long project cycles[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - There is a discrepancy between the company's revenue recognition and project settlement; as of June 30, 2016, the cumulative revenue for projects under construction but not yet settled was **18.40 billion yuan**, while cumulative settlements were 11.84 billion yuan, a difference of 6.56 billion yuan[80](index=80&type=chunk)[81](index=81&type=chunk) - Completed but unsettled inventory faces potential loss and impairment risks, with an impairment provision of **52.82 million yuan** already made[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - The company has strengthened settlement management by establishing a settlement department and implementing tracking reports, completing settlements of **2.08 billion yuan** in H1 2016[86](index=86&type=chunk) [Industry and Business Model Risks](index=23&type=section&id=%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%9A%E5%8A%A1%E6%A8%A1%E5%BC%8F%E9%A3%8E%E9%99%A9) The company faces risks from market downturns and uncertainties in its traditional, financial, and PPP business models - The downturn in the real estate industry and scrutiny of local government debt pose challenges to the company's business expansion and collection progress[74](index=74&type=chunk)[75](index=75&type=chunk) - The traditional municipal landscape project model requires upfront funding, leading to large inventories and receivables, with collection efficiency dependent on local government finances[76](index=76&type=chunk) - Financial and PPP models involve multi-party participation, complex approval processes, and an evolving policy environment, creating uncertainties[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Revenue Risk](index=25&type=section&id=%E6%94%B6%E5%85%A5%E9%A3%8E%E9%99%A9) A significant discrepancy exists between revenue recognized using the percentage-of-completion method and actual customer settlements - The company's revenue recognition for landscape projects is not strictly aligned with project settlement, posing a revenue risk[80](index=80&type=chunk) - As of June 30, 2016, the cumulative revenue for projects under construction but not yet settled was **18.40 billion yuan**, while cumulative settlements were 11.84 billion yuan, resulting in a difference of **6.56 billion yuan**[81](index=81&type=chunk) [Risk of Completed but Unsettled Inventory](index=25&type=section&id=%E5%B7%B2%E5%AE%8C%E5%B7%A5%E6%9C%AA%E7%BB%93%E7%AE%97%E5%AD%98%E8%B4%A7%E9%A3%8E%E9%99%A9) The company's large balance of completed but unsettled inventory is exposed to potential loss and impairment risks - Municipal landscape business is affected by local government financial pressures, leading to risks of potential losses from settlement delays[82](index=82&type=chunk) - As of June 30, 2016, the balance of engineering inventory (completed but unsettled) was **6.65 billion yuan**, with an inventory write-down provision of **52.82 million yuan**[84](index=84&type=chunk) - The company has strengthened settlement management and is actively using financial models to ensure timely collection of project payments[85](index=85&type=chunk)[86](index=86&type=chunk) [Implementation of Profit Distribution](index=27&type=section&id=%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company implemented its 2015 profit distribution plan, increasing total share capital to 2.52 billion shares - The company's 2015 profit distribution plan has been implemented, with a cash dividend of **0.60 yuan (tax included) per 10 shares**[88](index=88&type=chunk) - **15 shares were issued for every 10 shares** from the capital reserve, increasing the company's total share capital to 2,521,779,867 shares[88](index=88&type=chunk) - The record date for the dividend distribution was July 15, 2016, and the ex-dividend date was July 18, 2016[89](index=89&type=chunk) [Record of Investor Relations Activities](index=27&type=section&id=%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) The company engaged with institutional investors to discuss its business strategy, PPP model, and financial performance - On January 19, 2016, the company met with Jinyuan Securities and other institutions to discuss the business of Shenneng Environmental and Wuzhong Solid Waste, sponge city strategy, and PPP project risks[92](index=92&type=chunk) - On April 26, 2016, the company communicated with Bida Capital and others regarding the PPP development model, SPV equity ratios, funding sources, and project returns[93](index=93&type=chunk) - On May 31, 2016, the company discussed its 2015 annual report, PPP model, contract implementation speed, and future environmental strategy with China Merchants Fund and other institutions[93](index=93&type=chunk) - On June 20, 2016, the company engaged with CSCI Fund and others on topics including PPP financing costs, 2016 collections, project settlement issues, and industrial hazardous waste business qualifications[93](index=93&type=chunk) [Section 5 Significant Matters](index=29&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Corporate Governance](index=29&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E6%83%85%E5%86%B5) The company maintained compliance with regulatory requirements and held multiple board and shareholder meetings during the period - The company strictly adheres to laws such as the "Company Law" and "Securities Law," continuously improving its corporate governance structure and internal control system[96](index=96&type=chunk) - During the reporting period, the company held **2 general shareholders' meetings, 8 board meetings, and 6 supervisory committee meetings**[96](index=96&type=chunk) - The company's actual corporate governance practices are in compliance with the requirements of the "Company Law" and relevant CSRC regulations[97](index=97&type=chunk) [Asset Transactions](index=29&type=section&id=%E8%B5%84%E4%BA%A7%E4%BA%A4%E6%98%93%E4%BA%8B%E9%A1%B9) The company acquired Wuxi Ruiqi Renewable Resources and disposed of its stake in Donglian (Shanghai) Creative Design - The company's subsidiary, Hangzhou Fuyang Shenneng Solid Waste Environmental Regeneration Co, Ltd, acquired 100% of Wuxi Ruiqi Renewable Resources Co, Ltd for **33 million yuan**[101](index=101&type=chunk)[103](index=103&type=chunk) - This acquisition contributed **2.18 million yuan** to the listed company's net profit, accounting for 0.73% of the total net profit[101](index=101&type=chunk)[104](index=104&type=chunk) - The company sold its 60% stake in Donglian (Shanghai) Creative Design Development Co, Ltd for **25.7 million yuan**, resulting in a **31.69 million yuan** impact on the company's net profit[102](index=102&type=chunk) [Asset Acquisitions](index=29&type=section&id=%E6%94%B6%E8%B4%AD%E8%B5%84%E4%BA%A7%E6%83%85%E5%86%B5) The company acquired 100% of Wuxi Ruiqi Renewable Resources for 33 million yuan, contributing 2.18 million yuan to net profit Asset Acquisition Details | Counterparty | Acquired Asset | Transaction Price (10,000 Yuan) | Progress | Impact on P&L (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Luan Jianlin, Xu Feng, Chen Shengjun, Fang Wenli | Wuxi Ruiqi Renewable Resources Co, Ltd | 3,300 | Title transferred, debts and credits transferred | 217.68 | - This acquisition did not affect the continuity of the company's business or the stability of its management[101](index=101&type=chunk) [Asset Disposals](index=30&type=section&id=%E5%87%BA%E5%94%AE%E8%B5%84%E4%BA%A7%E6%83%85%E5%86%B5) The company sold its 60% stake in Donglian (Shanghai) Creative Design for 25.7 million yuan Asset Disposal Details | Counterparty | Sold Asset | Sale Date | Sale Price (10,000 Yuan) | Impact on Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Zhu Shengxuan, Yu Zhiyuan | 60% stake in Donglian (Shanghai) Creative Design Development Co, Ltd | 2016-2-28 | 2,570 | 3,169.00 | - The disposal did not affect the continuity of the company's business or the stability of its management[102](index=102&type=chunk) [Business Combinations](index=30&type=section&id=%E4%BC%81%E4%B8%9A%E5%90%88%E5%B9%B6%E6%83%85%E5%86%B5) The company completed the acquisition of Wuxi Ruiqi Renewable Resources, which contributed 2.18 million yuan to net profit - In March 2016, Shenneng Environmental acquired 100% of Wuxi Ruiqi Renewable Resources Co, Ltd for **33 million yuan**[103](index=103&type=chunk) - The acquisition has completed business registration changes, and the transfer of asset titles, debts, and credits is complete[103](index=103&type=chunk) - From the acquisition date to the end of the reporting period, this acquisition contributed **2.18 million yuan** to the listed company's net profit[104](index=104&type=chunk) [Implementation and Impact of Share Incentive Plans](index=31&type=section&id=%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company advanced its second and third stock option plans, adjusting terms and canceling non-compliant options - The second stock option plan initially granted **8.62 million stock options** to 225 participants at an exercise price of 18.20 yuan/share, later adjusted to **7.23 yuan/share**[106](index=106&type=chunk)[107](index=107&type=chunk)[111](index=111&type=chunk) - The second plan's reserved grant of 1 million options was adjusted to 2.5 million shares, with the exercise price changed from 24.10 yuan to **9.62 yuan**[106](index=106&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Due to non-compliance with exercise conditions, **1,634,600 stock options** from the first exercise period of the second plan's initial grant were canceled[112](index=112&type=chunk) - The third stock option plan proposes to grant **5.16 million stock options**, with an initial grant of 4.73 million options at an exercise price of 22.28 yuan/share, later adjusted to **8.89 yuan/share**[113](index=113&type=chunk)[114](index=114&type=chunk) - The third plan's reserved grant of 429,800 options was adjusted to **1.07 million shares**[113](index=113&type=chunk)[114](index=114&type=chunk) [Second Stock Option Incentive Plan](index=31&type=section&id=%E7%AC%AC%E4%BA%8C%E6%9C%9F%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92) The second stock option plan underwent multiple adjustments to its terms, including exercise price and number of participants - The second plan initially granted **8.62 million stock options** to 225 participants, representing 0.85% of the company's total share capital[107](index=107&type=chunk) - The initial exercise price was 18.20 yuan/share, later adjusted to 18.14 yuan, and finally to **7.23 yuan/share** due to a rights issue[106](index=106&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) - A reserved grant of 1 million options was adjusted to 2.5 million shares, with the exercise price changed from 24.10 yuan to **9.62 yuan**[106](index=106&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Due to employee departures, the number of initial grant participants was reduced from 225 to 165, and **2,083,300 options were canceled**[110](index=110&type=chunk) - The first exercise period of the initial grant did not meet the conditions, resulting in the cancellation of **1,634,600 stock options**[112](index=112&type=chunk) [Third Stock Option Incentive Plan](index=33&type=section&id=%E7%AC%AC%E4%B8%89%E6%9C%9F%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92) The third stock option plan was approved, with adjustments made to the exercise price and quantity following the 2015 rights issue - The third plan proposes to grant **5,156,700 stock options**, representing 0.51% of the company's total share capital[113](index=113&type=chunk) - The initial grant consists of **4,726,900 stock options**, with 429,800 reserved for future grants[113](index=113&type=chunk) - The exercise price was initially set at 22.28 yuan/share and later adjusted to **8.89 yuan/share** due to a rights issue[113](index=113&type=chunk)[114](index=114&type=chunk) - The number of unexercised reserved options was adjusted from 429,800 to **1,074,500 shares**[114](index=114&type=chunk) [Significant Related-Party Transactions](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in a 9.97 million yuan related-party transaction for services received, which was within the approved limit Related-Party Transactions in Daily Operations | Related Party | Transaction Type | Transaction Content | Amount (10,000 Yuan) | Approved Limit (10,000 Yuan) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Orient ADI Landscape Design Co, Ltd | Services Received | Landscape Design | 997.46 | 5,000 | No | - The company had **no related-party transactions** involving asset acquisitions, disposals, or joint external investments during the reporting period[117](index=117&type=chunk)[118](index=118&type=chunk) - The company had **no non-operating related-party debts or credits** during the reporting period[119](index=119&type=chunk)[120](index=120&type=chunk) [Significant Contracts and Their Performance](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company provided a 9 million yuan guarantee for a subsidiary and secured multiple credit facilities and loan agreements - The company had **no custody, contracting, or leasing arrangements** during the reporting period[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) Guarantees Between the Company and Subsidiaries | Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | Completed | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Miaolianwang Technology Co, Ltd | 10,000 | 900 | General Guarantee | Two years from the expiration of the debt performance period under the main contract | No | - At the end of the reporting period, the actual guarantee balance totaled **9 million yuan**, representing 0.14% of the company's net assets[127](index=127&type=chunk) - The company signed multiple credit facility agreements with financial institutions, including Bank of Beijing, Jiangsu Bank, and China Guangfa Bank, with total credit lines reaching **5.75 billion yuan**[131](index=131&type=chunk) - The company has several significant loan agreements, including a **500 million yuan** M&A loan from Industrial Bank and loans from Beijing Rural Commercial Bank, China Construction Bank, and ICBC[132](index=132&type=chunk)[133](index=133&type=chunk) [Guarantees](index=35&type=section&id=%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company provided a 9 million yuan guarantee for its subsidiary, Beijing Miaolianwang Technology Co, Ltd Guarantees Between the Company and Subsidiaries | Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | Completed | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Miaolianwang Technology Co, Ltd | 10,000 | 900 | General Guarantee | Two years from the expiration of the debt performance period under the main contract | No | - At the end of the reporting period, the total approved guarantee limit for subsidiaries was **350 million yuan**, with an actual outstanding balance of 9 million yuan[127](index=127&type=chunk) - The company had **no instances of non-compliant external guarantees** during the reporting period[128](index=128&type=chunk) [Other Significant Transactions](index=36&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%A4%E6%98%93) The company secured credit facilities totaling 5.75 billion yuan and entered into several major loan agreements Credit Facility Agreements | Lender | Credit Limit (Billion Yuan) | Borrower | | :--- | :--- | :--- | | Bank of Beijing | 1.25 | Orient Landscape | | China Minsheng Bank | 1.0 | Orient Landscape | | China Construction Bank | 0.8 | Orient Landscape | | Ping An Bank | 0.6 | Orient Landscape | | Postal Savings Bank of China | 0.6 | Orient Landscape | | China CITIC Bank | 0.25 | Shenneng Solid Waste | Major Loan Agreements | Lender | Guarantee Method | Balance (10,000 Yuan) | Borrower | | :--- | :--- | :--- | :--- | | Industrial Bank M&A Loan | Pledge | 50,000.00 | Orient Landscape | | Beijing Rural Commercial Bank | Unsecured | 10,000.00 | Orient Landscape | | China Construction Bank | Unsecured | 20,000.00 | Orient Landscape | | ICBC | Unsecured | 5,000.00 | Orient Landscape | | China Guangfa Bank | Unsecured | 10,000.00 | Orient Landscape | | Bank of Jiangsu | Unsecured | 3,500.00 | Orient Landscape | | China CITIC Bank | Guaranteed | 21,500.00 | Shenneng Solid Waste | | China Everbright Bank | Guaranteed | 7,000.00 | Shenneng Solid Waste | | Shanghai Pudong Development Bank | Guaranteed | 3,000.00 | Jinyuan Copper | | Zhejiang Rural Commercial Bank | Pledge | 4,500.00 | Jinyuan Copper | | China Everbright Bank | Guaranteed | 7,000.00 | Jinyuan Copper | | China CITIC Bank | Guaranteed | 3,800.00 | Jinyuan Copper | | Bank of Hangzhou | Guaranteed | 3,000.00 | Jinyuan Copper | | Bank of China | Guaranteed | 3,000.00 | Jinyuan Copper | | Bank of Beijing | Guaranteed | 900.00 | Beijing Miaolianwang | [Commitments](index=38&type=section&id=%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The controlling shareholders have made and are strictly fulfilling commitments to avoid competition and reduce related-party transactions - He Qiaonv and Tang Kai have committed that they and their controlled entities will **not engage in businesses that compete** with Orient Landscape's core operations and will grant Orient Landscape priority for development and acquisition opportunities[134](index=134&type=chunk)[135](index=135&type=chunk) - He Qiaonv and Tang Kai have committed to **minimize related-party transactions** with Orient Landscape and its subsidiaries, ensuring any unavoidable transactions are conducted fairly and transparently[135](index=135&type=chunk) - All commitments are being **strictly fulfilled**[135](index=135&type=chunk) [Information on Corporate Bonds](index=40&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company issued a 1 billion yuan corporate bond with a stable AA credit rating and has utilized the proceeds as planned Corporate Bond Basic Information | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Outstanding Balance (10,000 Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Orient Landscape & Environment Co, Ltd 2016 Public Offering of Corporate Bonds to Qualified Investors (Phase I) | 16 Dong Lin 01 | 112380 | 2016-04-19 | 2021-04-19 | 100,000 | 5.78% | - The bond includes an issuer's option to adjust the coupon rate and an investor's put option at the end of the third interest-bearing year[139](index=139&type=chunk) - Of the proceeds, **181 million yuan** was used to supplement working capital, and **807 million yuan** was used to repay other borrowings[141](index=141&type=chunk) - The tracking credit rating for the corporate bond by Shanghai Brilliance Credit Rating is **AA for the issuer and AA for the bond**, with a stable outlook[142](index=142&type=chunk) - The company has made timely interest and principal payments on its other bonds and debt financing instruments, with no instances of delayed payments[152](index=152&type=chunk) - As of the end of the reporting period, the company had a total bank credit line of **7.07 billion yuan**, with 2.44 billion yuan utilized and 4.63 billion yuan unused[153](index=153&type=chunk) [Corporate Bond Basic Information](index=40&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) The company issued a 1 billion yuan, 5-year corporate bond with a 5.78% coupon rate in April 2016 Corporate Bond Basic Information | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Outstanding Balance (10,000 Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Orient Landscape & Environment Co, Ltd 2016 Public Offering of Corporate Bonds to Qualified Investors (Phase I) | 16 Dong Lin 01 | 112380 | 2016-04-19 | 2021-04-19 | 100,000 | 5.78% | - The bond includes an issuer's option to adjust the coupon rate and an investor's put option at the end of the third interest-bearing year[139](index=139&type=chunk) [Use of Corporate Bond Proceeds](index=41&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The bond proceeds of 991 million yuan were used to supplement working capital and repay other borrowings - Of the bond proceeds, **181 million yuan** was used to supplement working capital, and **807 million yuan** was used to repay other borrowings[141](index=141&type=chunk) - The dedicated account for the bond proceeds is operating smoothly, and the use of funds is consistent with the purposes stated in the prospectus[141](index=141&type=chunk) [Corporate Bond Credit Rating](index=41&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E4%BF%A1%E6%81%AF%E8%AF%84%E7%BA%A7%E6%83%85%E5%86%B5) The company's corporate bond maintains a stable AA credit rating for both the issuer and the bond itself - The tracking rating report from Shanghai Brilliance Credit Rating shows a **corporate credit rating of AA** and a **bond credit rating of AA**, both with a stable outlook[142](index=142&type=chunk) - There is **no change** in the credit rating from the previous assessment[142](index=142&type=chunk) [Key Accounting Data and Financial Indicators](index=42&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's liquidity improved, and its EBITDA interest coverage ratio increased significantly due to higher profits Key Accounting Data and Financial Indicators for Corporate Bonds | Item | End of Current Period | End of Prior Year | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Current Ratio | 168.00% | 149.00% | 19.00% | | Debt-to-Asset Ratio | 63.49% | 63.83% | -0.34% | | Quick Ratio | 80.00% | 76.00% | 4.00% | | **Item** | **Current Period** | **Prior Year Period** | **Y-o-Y Change** | | EBITDA Interest Coverage Ratio | 4.18 | 2.7 | 54.81% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Coverage Ratio | 100.00% | 100.00% | 0.00% | - The **EBITDA interest coverage ratio increased by 1.48 times**, a 54.81% increase, mainly due to the significant growth in the company's total profit[148](index=148&type=chunk) [Assets with Restricted Rights as of the Reporting Period End](index=43&type=section&id=%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%B5%84%E4%BA%A7%E6%9D%83%E5%88%A9%E5%8F%97%E9%99%90%E6%83%85%E5%86%B5) As of the period end, 2.13 billion yuan of the company's assets were restricted, primarily for deposits and loan collateral Assets with Restricted Rights | Item | Year-end Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 604,542,286.76 | Security deposits | | Fixed Assets | 46,787,574.90 | Loan mortgage | | Intangible Assets | 17,292,332.30 | Loan mortgage | | Long-term Equity Investments | 1,464,000,000.00 | Loan pledge | | Total | 2,132,622,193.96 | -- | [Section 6 Changes in Share Capital and Shareholders](index=45&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Changes in Share Capital](index=45&type=section&id=%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total share capital and share structure remained unchanged during the reporting period Changes in Share Capital | Category | Pre-Change Quantity (Shares) | Pre-Change Ratio | Change (+/-) (Shares) | Post-Change Quantity (Shares) | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 442,276,346 | 43.85% | 0 | 442,276,346 | 43.85% | | II. Unrestricted Shares | 566,435,601 | 56.15% | 0 | 566,435,601 | 56.15% | | III. Total Shares | 1,008,711,947 | 100.00% | 0 | 1,008,711,947 | 100.00% | - There were **no changes** in the company's total share capital or shareholder structure during the reporting period[159](index=159&type=chunk) [Number of Shareholders and Shareholdings](index=46&type=section&id=%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the period end, the company had 40,546 shareholders, with the top two shareholders being the actual controllers, He Qiaonv and Tang Kai - At the end of the reporting period, the total number of common shareholders was **40,546**[162](index=162&type=chunk) Shareholdings of Top 10 Common Shareholders or Shareholders with >5% Stake | Shareholder Name | Shareholder Type | Shareholding Ratio | Common Shares Held (Shares) | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Pledged or Frozen Shares (Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | He Qiaonv | Domestic Individual | 44.17% | 445,515,766 | 357,148,569 | 88,367,197 | Pledged 370,176,524 | | Tang Kai | Domestic Individual | 8.14% | 82,139,812 | 76,419,812 | 5,720,000 | Pledged 29,460,000 | | Zhongtai Chuangzhan (Zhuhai Hengqin) Holding Co, Ltd | Domestic Non-State-Owned Corp | 6.01% | 60,605,255 | 0 | 60,605,255 | Pledged 60,537,395 | - He Qiaonv and Tang Kai are a married couple and are the **actual controllers** of the company[162](index=162&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=47&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder **did not change** during the reporting period[164](index=164&type=chunk) - The company's actual controller **did not change** during the reporting period[164](index=164&type=chunk) [Section 7 Information on Preferred Shares](index=48&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company did not have any preferred shares during the reporting period - The company **did not have any preferred shares** during the reporting period[166](index=166&type=chunk) [Section 8 Directors, Supervisors, and Senior Management](index=49&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=49&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) The shareholdings of several key management personnel, including the Chairwoman and a director, decreased during the period Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Opening Balance (Shares) | Shares Sold (Shares) | Closing Balance (Shares) | | :--- | :--- | :--- | :--- | :--- | | He Qiaonv | Chairwoman | 476,198,092 | 30,682,326 | 445,515,766 | | Tang Kai | Director | 101,893,084 | 19,753,272 | 82,139,812 | | Fang Yi | Director | 4,796,412 | 261,456 | 4,534,956 | [Changes in Directors, Supervisors, and Senior Management](index=50&type=section&id=%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Director and Vice Chairman Li Donghui resigned from his positions for personal reasons during the reporting period - Mr Li Donghui resigned from his positions as Director and Vice Chairman of the fifth Board of Directors on June 13, 2016, for personal reasons[168](index=168&type=chunk) [Section 9 Financial Report](index=51&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Audit Report](index=51&type=section&id=%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The semi-annual financial report has not been audited - The company's semi-annual financial report is **unaudited**[171](index=171&type=chunk) [Financial Statements](index=51&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company financial statements for the first half of 2016 [Consolidated Balance Sheet](index=51&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2016, the company's total consolidated assets reached 18.33 billion yuan, with total liabilities of 11.64 billion yuan Key Data from Consolidated Balance Sheet | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 18,326,687,735.58 | 17,695,635,569.68 | | Total Current Assets | 14,643,886,462.17 | 14,433,040,658.73 | | Total Non-current Assets | 3,682,801,273.41 | 3,262,594,910.95 | | Total Liabilities | 11,635,620,259.91 | 11,295,103,299.30 | | Total Equity | 6,691,067,475.67 | 6,400,532,270.38 | [Consolidated Income Statement](index=57&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2016, the company's consolidated revenue grew by 30.66% to 2.92 billion yuan, with net profit increasing by 117.51% Key Data from Consolidated Income Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 2,918,337,385.86 | 2,233,571,527.45 | | Operating Profit | 374,895,305.30 | 176,542,440.22 | | Total Profit | 414,508,438.65 | 179,029,578.72 | | Net Profit | 336,029,910.11 | 154,490,770.90 | | Net Profit Attributable to Parent Company Owners | 297,253,955.99 | 157,276,927.91 | | Basic Earnings Per Share (Yuan/Share) | 0.29 | 0.16 | [Consolidated Cash Flow Statement](index=60&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The company's operating cash flow improved significantly to a net inflow of 551 million yuan in H1 2016 Key Data from Consolidated Cash Flow Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 550,580,445.61 | -375,467,307.54 | | Net Cash Flow from Investing Activities | -963,182,869.06 | -68,058,154.87 | | Net Cash Flow from Financing Activities | -22,239,157.31 | -313,559,911.76 | | Net Increase in Cash and Cash Equivalents | -434,724,735.33 | -757,089,590.70 | - Total cash inflows from operating activities were **2.94 billion yuan**, primarily from cash received from the sale of goods and provision of services amounting to 2.76 billion yuan[188](index=188&type=chunk) - Cash outflows from investing activities were mainly for the purchase of fixed assets, intangible assets, and other long-term assets (30.62 million yuan), investment payments (454 million yuan), and net cash paid for the acquisition of subsidiaries and other business units (480 million yuan)[190](index=190&type=chunk) [Company Basic Information](index=72&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company, listed on the Shenzhen Stock Exchange, focuses on ecological restoration and environmental protection businesses - The company was listed on the Shenzhen Stock Exchange on November 27, 2009, and was renamed Beijing Orient Landscape & Environment Co, Ltd in January 2015[213](index=213&type=chunk) - As of June 30, 2016, the company's registered capital was **1.01 billion yuan**[213](index=213&type=chunk) - The company's main businesses are ecological restoration, focusing on water environment treatment (including ecological wetlands, landscape construction, and water conservancy), and environmental protection, focusing on hazardous waste treatment, rural sewage treatment, and comprehensive resource utilization[216](index=216&type=chunk) - The scope of the consolidated financial statements includes subsidiaries such as Wenzhou Shengli Landscape Engineering Co, Ltd, Hangzhou Fuyang Shenneng Solid Waste Environmental Regeneration Co, Ltd, and Suzhou Wuzhong District Solid Waste Treatment Co, Ltd[217](index=217&type=chunk) [Company Overview](index=72&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) Beijing Orient Landscape & Environment Co, Ltd is a publicly listed company specializing in ecological restoration and environmental services - The company's shares were listed on the Shenzhen Stock Exchange on **November 27, 2009**[213](index=213&type=chunk) - As of June 30, 2016, the registered capital was **1,008,711,900 yuan**, and the legal representative is He Qiaonv[213](index=213&type=chunk) [Historical Evolution](index=72&type=section&id=%E5%8E%86%E5%8F%B2%E6%B2%BF%E9%9D%A9) The company's registered capital has grown through public offerings and capital increases, reaching 2.52 billion yuan after the 2015 rights issue - The company was converted from a limited liability company to a joint-stock limited company on **September 12, 2001**[214](index=214&type=chunk) - In November 2009, the company went public with an A-share listing, and its registered capital changed to **50.08 million yuan**[214](index=214&type=chunk) - Through multiple capital reserve transfers and stock option exercises, the registered capital reached **1.01 billion yuan** as of September 30, 2014[215](index=215&type=chunk)[216](index=216&type=chunk) - On July 18, 2016, the company transferred **1.51 billion yuan** from its capital reserve to share capital, increasing the registered capital to 2.52 billion yuan[216](index=216&type=chunk) [Industry and Main Business](index=73&type=section&id=%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company operates in the landscape and environmental sectors, focusing on water environment treatment and hazardous waste disposal - The company belongs to the **landscape and greening industry**[216](index=216&type=chunk) - Its main businesses are **ecological restoration focusing on water environment treatment** and **environmental protection focusing on hazardous waste treatment**[216](index=216&type=chunk) - The consolidated financial statements include 19 subsidiaries, such as Wenzhou Shengli Landscape Engineering Co, Ltd and Hangzhou Fuyang Shenneng Solid Waste Environmental Regeneration Co, Ltd[217](index=217&type=chunk) [Significant Accounting Policies and Estimates](index=74&type=section&id=%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's accounting policies for key areas such as revenue recognition, asset valuation, and business combinations - The company prepares its financial statements on a going concern basis, in compliance with Business Accounting Standards, to provide a true and fair view of its financial position[219](index=219&type=chunk)[220](index=220&type=chunk)[222](index=222&type=chunk) - The company's main businesses include landscape engineering, water conservancy and municipal engineering, ecological restoration, design, nursery stock cultivation and sales, and solid and hazardous waste disposal[221](index=221&type=chunk) - For consumable biological assets (nursery stock), actual costs incurred before canopy closure are capitalized, while subsequent costs are expensed[253](index=253&type=chunk)[282](index=282&type=chunk) - Revenue recognition methods include the percentage-of-completion method for design and construction contracts, settlement statements for crude copper sales, and disposal volume for solid waste treatment[311](index=311&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk) [Taxes](index=101&type=section&id=%E7%A8%8E%E9%A1%B9) The company is subject to various taxes and benefits from several preferential tax policies, including reduced rates for high-tech enterprises Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services | 3%, 6%, 11%, 17% | | Business Tax | Landscape engineering revenue | 3% | | Urban Maintenance and Construction Tax | Actual paid Business Tax, VAT, and Consumption Tax | 1%, 5%, 7% | | Corporate Income Tax | Taxable income | 25%, 15% | - The company headquarters and its subsidiaries, Beijing Miaolianwang and Hubei Orient Miaolian, are **exempt from VAT and corporate income tax** on the sale of self-cultivated nursery stock[323](index=323&type=chunk) - The company headquarters and its subsidiaries, EDSA-Orient and Orient Lihe, are recognized as high-tech enterprises and are eligible for a **preferential corporate income tax rate of 15%**[323](index=323&type=chunk) - The subsidiary Shenneng Solid Waste is eligible for a **70% VAT refund** on revenue from garbage and sludge treatment services and a **30% VAT refund** on the sale of comprehensive resource utilization products[323](index=323&type=chunk) - The subsidiaries Shenneng Solid Waste and Jinyuan Copper are **exempt from VAT** on the sale of associated gold products[323](index=323&type=chunk) [Notes to Consolidated Financial Statement Items](index=103&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures on major items in the consolidated financial statements, explaining significant balances and changes - At the end of the period, cash and cash equivalents totaled **2.32 billion yuan**, with restricted funds of 605 million yuan, mainly for acceptance bill and letter of guarantee deposits[325](index=325&type=chunk)[326](index=326&type=chunk) - Accounts receivable at period-end were **3.85 billion yuan**, with a bad debt provision of 512 million yuan; receivables within one year accounted for the largest portion[332](index=332&type=chunk)[333](index=333&type=chunk) - Inventory at period-end was **7.70 billion yuan**, of which 6.60 billion yuan was from completed but unsettled construction contracts, with a write-down provision of 52.82 million yuan[353](index=353&type=chunk)[357](index=357&type=chunk) - Goodwill had a book value of **1.48 billion yuan**, primarily from the acquisitions of Shenneng Solid Waste, Wuzhong Solid Waste, and Wuxi Ruiqi Renewable Resources[377](index=377&type=chunk)[382](index=382&type=chunk) - Short-term borrowings at period-end were **1.31 billion yuan**, a decrease of 34.65% from the beginning of the year, mainly consisting of guaranteed and unsecured loans[399](index=399&type=chunk) - Bonds payable at period-end were **2.49 billion yuan**, an increase of 66.45% from the beginning of the year, primarily comprising medium-term notes and corporate bonds[431](index=431&type=chunk)[433](index=433&type=chunk) - Operating revenue was **2.92 billion yuan** and operating cost was 2.07 billion yuan, resulting in a gross margin of 29.12%[448](index=448&type=chunk) - Investment income was **28.55 million yuan**, mainly from gains on the disposal of long-term equity investments[462](index=462&type=chunk) [Cash and Cash Equivalents](index=103&type=section&id=%E8%B4%A7%E5%B8%81%E8%B5%84%E9%87%91) The company's cash balance decreased to 2.32 billion yuan, with 605 million yuan restricted for security deposits Composition of Cash and Cash Equivalents | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Cash on Hand | 194,721.54 | 509,655.60 | | Bank Deposits | 1,711,535,345.52 | 2,145,945,146.79 | | Other Cash Equivalents | 604,542,286.76 | 508,919,311.95 | | Total | 2,316,272,353.82 | 2,655,374,114.34 | Details of Restricted Cash and Cash Equivalents | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Acceptance Bill Deposits | 532,037,096.63 | 452,708,923.13 | | Letter of Guarantee Deposits | 72,505,190.13 | 47,460,388.82 | | Letter of Credit Deposits | - | 3,750,000.00 | | Term or Notice Deposits for Guarantees | - | 5,000,000.00 | | Total | 604,542,286.76 | 508,919,311.95 | [Accounts Receivable](index=104&type=section&id=%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) The company's accounts receivable totaled 3.85 billion yuan, with the top five debtors accounting for 33.25% of the balance Accounts Receivable Disclosure by Category | Category | Book Balance (Yuan) | Bad Debt Provision (Yuan) | Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Accounts receivable with bad debt provision based on credit risk characteristics | 4,349,128,610.37 | 496,847,496.96 | 3,852,281,113.41 | | Accounts receivable with individually insignificant amounts but separate bad debt provision | 15,183,362.52 | 15,183,362.52 | 0 | | Total | 4,364,311,972.89 | 512,030,859.48 | 3,852,281,113.41 | Top Five Accounts Receivable by Debtor at Period-End | Debtor Name | Accounts Receivable (Yuan) | % of Total | Bad Debt Provision (Yuan) | | :--- | :--- | :--- | :--- | | Binzhou Economic Development Zone Management Committee | 451,165,596.14 | 10.34% | 34,696,342.09 | | Datong Municipal Landscape Administration | 436,398,672.58 | 10.00% | 55,897,216.53 | | Yingkou Coastal Development and Construction Co, Ltd | 289,183,035.86 | 6.63% | 28,918,303.59 | | Sichuan Xiongzhou Industrial Co, Ltd | 140,580,030.00 | 3.22% | 7,029,001.50 | | CITIC Qingshui Rujiang (Wuhan) Investment and Construction Co, Ltd | 133,745,284.04 | 3.06% | 6,687,264.20 | | Total | 1,451,072,618.62 | 33.25% | 133,228,127.91 | [Inventories](index=109&type=section&id=%E5%AD%98%E8%B4%A7) The company's inventory balance was 7.70 billion yuan, dominated by 6.60 billion yuan in completed but unsettled construction assets Inventory by Category | Item | Book Balance (Yuan) | Write-down Provision (Yuan) | Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Raw Materials | 438,362,804.12 | 10,524,298.84 | 427,838,505.28 | | Finished Goods | 141,793,474.76 | 3,713,200.44 | 138,080,274.32 | | Consumable Biological Assets | 532,484,772.79 | - | 532,484,772.79 | | Completed but Unsettled Assets from Construction Contracts | 6,652,036,165.28 | 52,820,585.93 | 6,599,215,579.35 | | Total | 7,764,677,216.95 | 67,058,085.21 | 7,697,619,131.74 | Completed but Unsettled Assets from Construction Contracts at Period-End | Item | Amount (Yuan) | | :--- | :--- | | Cumulative Costs Incurred | 12,217,498,828.02 | | Cumulative Gross Profit Recognized | 6,223,321,249.88 | | Amount Settled | 11,841,604,498.55 | | Completed but Unsettled Assets from Construction Contracts | 6,599,215,579.35 | [Goodwill](index=115&type=section&id=%E5%95%86%E8%AA%89) The company's goodwill of 1.48 billion yuan primarily arose from several key acquisitions, with no impairment identified Goodwill Book Value | Investee or Goodwill-Generating Event | Opening Balance (Yuan) | Current Period Increase (Yuan) | Current Period Decrease (Yuan) | Closing Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Hangzhou Fuyang Shenneng Solid Waste Environmental Regeneration Co, Ltd | 1,274,569,786.80 | - | - | 1,274,569,786.80 | | Suzhou Wuzhong District Solid Waste Treatment Co, Ltd | 106,681,551.65 | - | - | 106,681,551.65 | | Wuxi Ruiqi Renewable Resources Co, Ltd | - | 25,209,289.03 | - | 25,209,289.03 | | Total | 1,490,001,533.09 | 25,209,289.03 | 35,484,077.08 | 1,479,726,745.04 | - Goodwill primarily arose from the acquisitions of Shenneng Solid Waste (1.46 billion yuan), Wuzhong Solid Waste (141.6 million yuan), and Wuxi Ruiqi Renewable Resources (33 million yuan)[381](index=381&type=chunk)[382](index=382&type=chunk) - At the end of the period, **no signs of goodwill impairment were found**, and no impairment provision was deemed necessary[378](index=378&type=chunk) [Short-term Borrowings](index=121&type=section&id=%E7%9F%AD%E6%9C%9F%E5%80%9F%E6%AC%BE) The company's short-term borrowings decreased to 1.31 billion yuan, with no overdue loans at the period end Short-term Borrowings by Category | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Pledged Loans | 105,000,000.00 | 44,500,000.00 | | Mortgaged Loans | 78,000,000.00 | 88,900,000.00 | | Guaranteed Loans | 582,000,000.00 | 830,150,000.00 | | Unsecured Loans | 491,850,000.00 | 801,850,000.00 | | Commercial Acceptance Bill Discounting | 54,000,000.00 | 240,250,000.00 | | Total | 1,310,850,000.00 | 2,005,650,000.00 | - At the end of the current period, the total amount of overdue short-term borrowings was **0 yuan**[400](index=400&type=chunk) [Bonds Payable](index=127&type=section&id=%E5%BA%94%E4%BB%98%E5%80%BA%E5%88%B8) The company's bonds payable increased to 2.49 billion yuan following the issuance of a new 1 billion yuan corporate bond Bonds Payable by Category | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Medium-Term Notes | 1,495,715,604.75 | 1,494,137,374.24 | | Corporate Bonds | 991,314,919.34 | - | | Total | 2,