[Important Notice](index=2&type=section&id=Important%20Notice) This section confirms the company's commitment to the accuracy and completeness of the quarterly report [Guarantee by Directors, Supervisors, and Senior Management](index=2&type=section&id=Guarantee%20by%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company's Board of Directors, Board of Supervisors, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and undertake legal responsibility for it - Company management guarantees the truthfulness, accuracy, and completeness of the report content and assumes corresponding legal responsibilities[3](index=3&type=chunk) - The company's principal, the person in charge of accounting work, and the head of the accounting department all declare to guarantee the truthfulness, accuracy, and completeness of the financial statements[4](index=4&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) This section provides an overview of the company's key financial performance and shareholder structure [Key Accounting Data and Financial Indicators](index=3&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first three quarters of 2019, the company's operating performance experienced a severe decline, with significant drops in revenue and net profit, and severe liquidity pressure Key Financial Performance (Year-to-date as of Report Period End) | Indicator | Year-to-date as of Report Period End | Year-to-date vs. Same Period Last Year Change | | :--- | :--- | :--- | | Operating Revenue (Yuan) | 3,836,117,579.97 | -60.24% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | -885,501,688.32 | -190.81% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses (Yuan) | -869,500,510.39 | -190.32% | | Net Cash Flow from Operating Activities (Yuan) | -1,430,060,655.98 | -3,447.01% | | Basic Earnings Per Share (Yuan/Share) | -0.33 | -191.67% | | Weighted Average Return on Net Assets | -7.24% | -15.55% | Key Financial Position (As of Report Period End) | Indicator | As of Report Period End | As of Report Period End vs. End of Last Year Change | | :--- | :--- | :--- | | Total Assets (Yuan) | 41,453,556,918.54 | -1.52% | | Net Assets Attributable to Shareholders of Listed Company (Yuan) | 11,634,110,755.72 | -8.79% | - The company's total non-recurring gains and losses from the beginning of the year to the end of the reporting period amounted to **-16.00 million yuan**, primarily including losses from disposal of non-current assets and government subsidies[8](index=8&type=chunk) [Shareholder Information](index=4&type=section&id=Shareholder%20Information) As of the report period end, the company had 117,841 common shareholders, with significant pledged holdings by controlling shareholders and a new state-owned entity as a major shareholder Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | He Qiaonv | 33.39% | 896,580,594 | Pledged 895,873,278 | | Tang Kai | 5.74% | 154,012,147 | Pledged 134,760,106 | | Beijing Chaohuixin Enterprise Management Co., Ltd. | 5.00% | 134,273,101 | None | | Beijing Yingrun Huimin Fund Management Center (Limited Partnership) | 5.00% | 134,273,101 | None | - Shareholders He Qiaonv and Tang Kai are a married couple; Beijing Chaohuixin and Yingrun Huimin Fund are concerted parties under the same ultimate controller[12](index=12&type=chunk) [Significant Events](index=6&type=section&id=Significant%20Events) This section details major events, including financial data changes, controlling ownership transfer, and performance forecasts [Analysis of Financial Data Changes](index=6&type=section&id=Analysis%20of%20Financial%20Data%20Changes) The company's financial performance significantly deteriorated due to macroeconomic credit tightening and liquidity constraints, impacting revenue, costs, and cash flow - Affected by macroeconomic credit tightening and the company's liquidity constraints, project construction progress slowed, leading to year-on-year decreases in operating revenue, operating costs, and taxes and surcharges by **60.24%**, **57.52%**, and **64.76%** respectively[17](index=17&type=chunk) - Tightening financing environment led to increased financing costs, with financial expenses increasing by **35.71%** compared to the same period last year[17](index=17&type=chunk) - Net cash flow from operating activities decreased by **3,447.01%** year-on-year, primarily due to decreased operating revenue and a corresponding reduction in project collections[18](index=18&type=chunk) - Net cash flow from investing activities increased by **96.48%** year-on-year, primarily due to increased funds received from asset disposals and reduced external investment expenditures during the reporting period[19](index=19&type=chunk) [Progress of Significant Events](index=8&type=section&id=Progress%20of%20Significant%20Events) The company completed a change in controlling ownership, with a state-owned entity becoming the new controlling shareholder and actual controller - The company's controlling ownership changed, with Chaohuixin (a wholly-owned subsidiary of Beijing Chaoyang District State-owned Assets Supervision and Administration Commission) becoming the controlling shareholder by acquiring **5%** of shares and accepting a **16.8%** voting rights entrustment, making Beijing Chaoyang District State-owned Assets Supervision and Administration Commission the company's actual controller[21](index=21&type=chunk) - The related share transfer was completed with registration procedures on **September 30, 2019**, finalizing the change in the company's controlling shareholder and actual controller[21](index=21&type=chunk) [2019 Annual Operating Performance Forecast](index=9&type=section&id=2019%20Annual%20Operating%20Performance%20Forecast) The company forecasts a significant year-on-year decrease in 2019 net profit, expecting improvement in Q4 after state-owned capital entry 2019 Annual Performance Forecast | Item | Forecast Situation | | :--- | :--- | | Performance Forecast Type | Net profit positive, year-on-year decrease over 50% | | Net Profit Change Range | -121.93% to -93.73% | | Net Profit Change Range (Ten Thousand Yuan) | -35,000 to 10,000 | | 2018 Annual Net Profit (Ten Thousand Yuan) | 159,592.12 | - The main reasons for the performance change are shifts in the financial environment and concentrated debt repayment in the first half, leading to the proactive suspension of some PPP projects and controlled investment pace[24](index=24&type=chunk) - With the completion of the controlling ownership transfer, Q4 operating and financial conditions are expected to improve significantly[24](index=24&type=chunk) [Other Significant Matters](index=9&type=section&id=Other%20Significant%20Matters) During the reporting period, the company maintained compliance with no overdue commitments, illegal guarantees, or fund occupation issues - During the reporting period, the company had no overdue unfulfilled commitments, illegal guarantees, fund occupation, or entrusted wealth management matters[23](index=23&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section presents the company's unaudited financial statements for the third quarter of 2019 [Financial Statements (Unaudited)](index=11&type=section&id=Financial%20Statements%20%28Unaudited%29) This section provides the company's unaudited detailed financial statements for the third quarter of 2019, including consolidated and parent company balance sheets, income statements, and cash flow statements - This section includes the consolidated and parent company balance sheets as of **September 30, 2019**[31](index=31&type=chunk)[36](index=36&type=chunk) - This section includes the consolidated and parent company income statements for the third quarter of **2019** and year-to-date as of the report period end[41](index=41&type=chunk)[47](index=47&type=chunk)[51](index=51&type=chunk) - This section includes the consolidated and parent company cash flow statements from the beginning of **2019** to the end of the reporting period[55](index=55&type=chunk)[59](index=59&type=chunk) [Notes on Financial Statement Adjustments](index=30&type=section&id=Notes%20on%20Financial%20Statement%20Adjustments) Effective January 1, 2019, the company adopted new financial instrument standards, reclassifying certain equity investments without impacting opening retained earnings - The company adopted new financial instrument standards effective **January 1, 2019**, without adjusting comparative period information, only retrospectively adjusting opening balances[67](index=67&type=chunk) - The main adjustment involved reclassifying equity instrument investments totaling **563 million yuan** from the original 'available-for-sale financial assets' account to the 'other equity instrument investments' account[65](index=65&type=chunk)[67](index=67&type=chunk) [Audit Report](index=36&type=section&id=Audit%20Report) The company's third-quarter report for 2019 is unaudited - The company's third-quarter report is unaudited[72](index=72&type=chunk)

北京东方园林环境股份有限公司 2019 年半年度报告全文 北京东方园林环境股份有限公司 2019 年半年度报告 2019 年 08 月 1 北京东方园林环境股份有限公司 2019 年半年度报告全文 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、高级管理人员保证半年度报告内容的 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张振迪及会计机构负责人(会计主 管人员)林鸣声明：保证本半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"公司面临的 风险和应对措施"，敬请投资者注意。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 目录 | | --- | | 2019 | 年半年度报告 1 | | --- | --- | | 第一节 | 重要提示、释义 1 | | 第二节 | 公司简介和主要财务指标 4 | | 第三节 | 公司业务概要 6 | | 第四节 | 经营情况讨论与分析 10 | | 第五节 | 重要事项 1 ...

北京东方园林环境股份有限公司 2019 年第一季度报告全文 北京东方园林环境股份有限公司 2019 年第一季度报告 2019 年 04 月 1 北京东方园林环境股份有限公司 2019 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人何巧女、主管会计工作负责人张振迪及会计机构负责人(会计主 管人员)李福梁声明：保证季度报告中财务报表的真实、准确、完整。 2 北京东方园林环境股份有限公司 2019 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 1,013,494,075.31 | 2,540,218,529.19 | -60.10% | | 归属于上市公司股东的净利润（元） | -269,048,0 ...

北京东方园林环境股份有限公司 2018 年年度报告全文 北京东方园林环境股份有限公司 2018 年年度报告 2019 年 04 月 1 北京东方园林环境股份有限公司 2018 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张振迪及会计机构负责人(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 2685462004 为基数，向 全体股东每 10 股派发现金红利 0.94 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 6 | | --- | --- | | 第二节 | 公司简介和主要财务指标 10 | | 第三节 | 公司业务概要 14 | ...

[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) |