Palm(SZ:002431)2018-08-14 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,352,305,188.39, representing a 10.63% increase compared to CNY 2,126,244,209.23 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was CNY 107,247,306.00, up 27.21% from CNY 84,305,998.21 year-on-year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 102,500,770.89, an increase of 28.86% compared to CNY 79,546,059.73 in the previous year[19]. - The basic earnings per share for the reporting period was CNY 0.07, a 16.67% increase from CNY 0.06 in the same period last year[19]. - The total assets at the end of the reporting period were CNY 17,395,578,811.18, reflecting a 10.96% increase from CNY 15,676,849,918.15 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company were CNY 5,565,750,454.09, a slight increase of 1.21% from CNY 5,499,469,928.83 at the end of the previous year[19]. - The net cash flow from operating activities was negative CNY 396,857,665.12, worsening by 31.55% compared to negative CNY 301,688,110.53 in the same period last year[19]. - The company reported a total share capital of 1,486,985,450 shares as of the last trading day before the disclosure[19]. Ecological Town Business - The company has established 13 ecological town projects across the country, with 5 currently in operation, including projects in Changsha and Guizhou[28]. - The ecological town business has formed six product lines, including characteristic towns and leisure vacation areas, expanding from small towns to rural areas[28]. - The company has developed a comprehensive operational model for ecological towns, consisting of four stages: business acquisition, construction support, industry introduction, and operational management[31]. - The traditional ecological environment business remains a significant revenue source, evolving from single landscaping to multi-functional services including infrastructure and environmental protection[33]. - The implementation of the rural revitalization strategy provides a broad market space for the company's ecological town business, exemplified by the successful case of the Xunlonghe Ecological Art Town[30]. - The company aims to enhance competitiveness and profitability by introducing strategic partners and moving towards a platform-based, light-asset, and multi-profit model in the ecological town business[28]. - The company is leveraging national policies to drive the ecological town business into a high-growth phase, optimizing its business model[27]. - The ecological town strategy aligns with national policies on ecological civilization and new urbanization, positioning the company favorably in the market[28]. - The company has a strong operational capability in ecological towns, not relying on local government payments, thus ensuring sustainable development[31]. - The company has established a complete industrial chain advantage in ecological town development, integrating construction, operation, and content since the strategic shift in 2014[43]. - The company has developed six major product lines, including characteristic towns and leisure vacation areas, enhancing its offerings in the ecological town sector[46]. - The company has built a strong customer reserve and relationships, leading to rapid growth in orders and market assurance for future business[48]. - The company has successfully extended its ecological town business line from urban to rural areas, promoting rural revitalization through beautiful countryside initiatives[46]. - The company has formed a PPP/EPC integrated platform, leveraging over 30 years of ecological environment experience to undertake various municipal projects[47]. - The company has achieved significant brand recognition in the ecological town sector, becoming a benchmark for local and national government learning[45]. Revenue and Investment - The ecological town business generated revenue of 153 million yuan during the reporting period[54]. - Investment income from ecological town project companies amounted to approximately 170 million yuan[54]. - The engineering construction business reported revenue of 1.94 billion yuan, up 25.70% year-on-year, with a gross margin of 14.01%[58]. - Planning and design business revenue grew to 232 million yuan, a year-on-year increase of 16.96%, with a gross margin of 24.32%[60]. - The company signed over 20 strategic cooperation agreements with local governments, expanding its business layout[57]. - The company is developing new product lines, including a football town and a health town, enhancing its market competitiveness[56]. Financial Management and Strategy - The company plans not to distribute cash dividends or issue bonus shares[7]. - The weighted average return on net assets was 1.93%, a decrease of 0.03% compared to 1.96% in the previous year[19]. - Sales expenses increased by 153.89% to 53.34 million yuan, primarily due to advertising and maintenance costs for ecological town projects[62]. - The total investment during the reporting period was CNY 96.45 million, a significant decrease of 85.34% compared to CNY 657.97 million in the same period last year[77]. - The company has pledged various assets for short-term loans, including real estate valued at CNY 9.52 million and fixed assets valued at CNY 33.78 million, securing loans of CNY 6.50 million and CNY 7.00 million respectively[75][76]. - The company has established a financing limit of CNY 100 million with Zheshang Bank, secured by commercial acceptance bills[73]. - The total amount of raised funds is CNY 99,540 million, with CNY 4,244 million invested during the reporting period[83]. - Cumulative investment of raised funds reached CNY 29,971.32 million by June 30, 2018, with CNY 676,247.53 million remaining uninvested[85]. - The company has not changed the purpose of the raised funds, maintaining a 0.00% change ratio[83]. - The company issued 109,988,950 shares at a price of CNY 9.05 per share, raising a total of CNY 995.40 million[84]. - The net amount raised after deducting expenses was CNY 975.96 million[84]. - The balance of the special account for raised funds was CNY 692,463.24 million as of June 30, 2018[85]. - The company has established a four-party supervision agreement to oversee the use of raised funds[86]. Social Responsibility and Environmental Commitment - The company has committed CNY 201.84 million in public welfare expenditures in the first half of 2018, focusing on poverty alleviation and educational support[167]. - The company provided CNY 58,000 for supporting impoverished students as part of its educational poverty alleviation efforts[168]. - The company plans to continue its poverty alleviation initiatives, including targeted funding for students in specific regions and support for single-parent families[169]. - The company has established a foundation that has been active in various public welfare activities since its inception in 2012[167]. - The company aims to enhance the living conditions of disadvantaged groups and promote regional coordinated development through its social responsibility efforts[166]. - The company does not belong to the key pollutant discharge units as identified by environmental protection authorities[164]. - The company is committed to promoting green development and sustainable urbanization in China[164]. Shareholder and Corporate Governance - The controlling shareholder intends to transfer 74,864,729 shares, representing 5.03% of the total share capital, to Huayi Investment, making it the largest shareholder[172]. - The company has approved the issuance of medium-term notes up to RMB 800 million, primarily to repay debts and supplement working capital, pending approval from the interbank market association[173]. - A cash dividend of RMB 0.30 per share (including tax) was distributed to shareholders, totaling RMB 44,609,563.5[174]. - The total number of shares before the recent changes was 1,486,985,450, with a significant reduction in restricted shares from 535,664,410 to 271,822,216[178]. - The company experienced a release of 220,312,500 restricted shares on February 13, 2018, transitioning them to tradable shares[179]. - The company’s major shareholders have undergone significant changes, with the largest shareholder now being Huayi Investment after the transfer of shares[172]. - The company has not yet completed the issuance of medium-term notes as of the report date[173]. - The company’s stock structure now includes 1,215,163,234 unrestricted shares, accounting for 81.72% of the total[178]. - The total number of ordinary shareholders at the end of the reporting period was 102,555[185]. - Wu Guichang holds 11.10% of the shares, amounting to 165,058,655 shares, with 41,264,664 shares pledged[185]. - Nanjing Qixia Construction Co., Ltd. holds 6.79% of the shares, totaling 101,000,000 shares[185]. - Zhejiang Yitong Huifeng Equity Investment Co., Ltd. holds 4.20% of the shares, amounting to 62,500,000 shares, with all shares pledged[185]. - The company did not have any securities issuance or listing during the reporting period[183]. - The company’s controlling shareholder and actual controller did not change during the reporting period[188]. - The total number of shares held by the top ten shareholders with unrestricted shares includes 101,000,000 shares from Nanjing Qixia Construction Co., Ltd. and 62,500,000 shares from Zhejiang Yitong Huifeng Equity Investment Co., Ltd.[186]. - The company has a total of 325,356,491 shares subscribed in the 2014 private placement, with a lock-up period from February 13, 2015, to February 12, 2018[186]. - The number of shares held by the employee stock ownership plan is 34,133,700 shares[187]. - The company did not engage in any repurchase transactions during the reporting period[187]. - The company reported a total of 215,777,789 shares held by directors and senior management at the end of the period, with a net increase of 130,000 shares during the reporting period[193]. Bond Issuance and Management - The company has issued bonds with a total balance of 30,000 million for "16 Palm 01" at an interest rate of 5.98%, and 78,000 million for "16 Palm 02" at 5.85%[198]. - The company issued "18 Palm 01" bonds with a balance of 20,000 million at an interest rate of 6.26%, and "18 Palm 02" bonds with a balance of 50,000 million at 6.48%[198]. - The company has not experienced any defaults on its bonds, with timely interest payments made for "16 Palm 01" on April 2, 2018[199]. - The company’s bonds are traded on the Shenzhen Stock Exchange, and only qualified investors can participate in the bond issuance[199]. - The company has not exercised any options related to interest rate adjustments or buyback rights for its bonds during the reporting period[199]. - The company’s total bond issuance is aimed at qualified investors, with public investors excluded from participation[199]. - No changes occurred in the bond trustee and credit rating agencies for "16 Palm 01", "16 Palm 02", "18 Palm 01", and "18 Palm 02" during the reporting period[200]. - The bond trustee for "16 Palm 01" and "16 Palm 02" is Morgan Stanley, while for "18 Palm 01" and "18 Palm 02" it is Guotai Junan Securities[200]. - The credit rating agency for "16 Palm 01" and "16 Palm 02" is Pengyuan Credit Rating Co., Ltd., and for "18 Palm 01" and "18 Palm 02" it is Shanghai New Century Credit Rating Co., Ltd.[200]. Legal and Compliance - The company has not encountered any major litigation or arbitration matters during the reporting period, indicating a stable legal environment[114]. - The half-year financial report has not been audited, which may affect the perception of financial reliability[112]. - The company has not reported any issues regarding the use and disclosure of raised funds[89]. - The company has no violations regarding external guarantees during the reporting period[162]. - The company has no non-operating related party debts during the reporting period[123]. - The company has no asset or equity acquisition or sale related party transactions during the reporting period[120]. - The company reported no penalties or rectifications during the reporting period[116].