东珠生态(603359) - 2025 Q2 - 季度财报

Section I Definitions Definitions of Common Terms This chapter defines common terms used in the report, including company names, regulatory bodies, reporting periods, and key professional terminology Definitions of Common Terms | Common Term | Definition | | :--- | :--- | | The Company, Company, Dongzhu Ecological | Dongzhu Ecological Environment Protection Co., Ltd. | | CSRC, China Securities Regulatory Commission | China Securities Regulatory Commission | | SSE | Shanghai Stock Exchange | | Reporting Period, This Reporting Period | January 1, 2025 to June 30, 2025 | | PPP | Public-Private-Partnership | | EPC | Engineering-Procurement-Construction | | EOD | Eco-environment-oriented Development | | National Reserve Forests | Multi-functional forests cultivated to meet the needs of economic and social development and people's better lives for quality timber | | Forestry Carbon Sink | The process of utilizing forest carbon storage functions to absorb and fix atmospheric carbon dioxide through afforestation and other activities, combined with carbon sink trading | | CCER | China Certified Emission Reduction, quantifying and verifying emission reduction effects of renewable energy, forestry carbon sink, and other projects within China | Section II Company Profile and Major Financial Indicators I. Company Information This section provides the company's basic registration information, including its Chinese name, abbreviation, English name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Company's Chinese Name | 东珠生态环保股份有限公司 | | Company's Chinese Abbreviation | 东珠生态 | | Company's English Name | DongzhuEcologicalEnvironmentProtectionCo.,Ltd | | Company's Legal Representative | Xi Huiming | II. Contact Person and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication Contact Person and Contact Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Tan Shaoyang | Wang Jian | | Contact Address | No. 90 Xihu Middle Road, Dongting Street, Xishan District, Wuxi City, Jiangsu Province | No. 90 Xihu Middle Road, Dongting Street, Xishan District, Wuxi City, Jiangsu Province | | Phone | 0510-88227528 | 0510-88227528 | | Fax | 0510-88209884 | 0510-88209884 | | Email | dongzhushengtai@dongzhushengtai.com | dongzhushengtai@dongzhushengtai.com | III. Brief Introduction to Changes in Basic Information This section discloses the company's basic information, such as its registered and office addresses, with no significant changes during the reporting period Company Basic Information | Item | Content | | :--- | :--- | | Company's Registered Address | No. 90 Xihu Middle Road, Dongting Street, Xishan District, Wuxi City | | Company's Office Address | No. 90 Xihu Middle Road, Dongting Street, Xishan District, Wuxi City | | Company Website | http://www.dongzhushengtai.com/ | | Email | dongzhushengtai@dongzhushengtai.com | IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section introduces the company's designated newspapers, website for information disclosure, and the location for storing reports Information Disclosure Status | Item | Content | | :--- | :--- | | Company's Selected Information Disclosure Newspapers | "China Securities Journal", "Securities Times", "Shanghai Securities News", "Securities Daily" | | Website Address for Semi-Annual Report Publication | http://www.sse.com.cn | | Company's Semi-Annual Report Storage Location | Company Board of Directors Office | V. Brief Introduction to Company Stock This section provides information on the company's stock, including its listing exchange, abbreviation, and code Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Dongzhu Ecological | 603359 | Dongzhu Landscape | VII. Major Accounting Data and Financial Indicators This section discloses the company's major accounting data and financial indicators for the first half of 2025, showing a significant year-on-year decrease in operating revenue and net profit, with the company incurring losses Major Accounting Data This section details the company's operating revenue, total profit, net profit, net cash flow from operating activities, net assets, and total assets for the current and prior year periods, showing significant year-on-year declines Major Accounting Data (Jan-Jun 2025 vs Jan-Jun 2024) | Major Accounting Data | Current Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 208,041,246.94 | 270,336,054.81 | -23.04 | | Total Profit | -9,902,848.92 | 12,968,760.00 | -176.36 | | Net Profit Attributable to Shareholders of Listed Company | -9,538,865.10 | 12,987,952.72 | -173.44 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -9,351,658.24 | 12,945,001.58 | -172.24 | | Net Cash Flow from Operating Activities | 165,870,423.58 | 220,468,772.05 | -24.76 | | Current Period End vs Prior Year End | | | | | Net Assets Attributable to Shareholders of Listed Company | 2,665,898,858.46 | 2,675,437,723.56 | -0.36 | | Total Assets | 6,763,272,088.47 | 6,923,257,375.72 | -2.31 | Major Financial Indicators This section details the company's basic earnings per share, diluted earnings per share, basic earnings per share after deducting non-recurring gains and losses, and weighted average return on net assets for the current and prior year periods, explaining the reasons for the loss Major Financial Indicators (Jan-Jun 2025 vs Jan-Jun 2024) | Major Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | -0.02 | 0.03 | -166.67 | | Diluted Earnings Per Share (CNY/share) | -0.02 | 0.03 | -166.67 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (CNY/share) | -0.02 | 0.03 | -166.67 | | Weighted Average Return on Net Assets (%) | -0.36 | 0.39 | Decreased by 0.75 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | -0.35 | 0.39 | Decreased by 0.74 percentage points | - During the reporting period, the company's operating revenue decreased by 23.04% year-on-year; net profit attributable to shareholders of the listed company and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses incurred losses, primarily due to a decrease in new orders and a decline in the conversion rate of existing orders into output value[17] - The company's net cash flow from operating activities decreased by 24.76% year-on-year, mainly due to a decrease in project payments collected during the reporting period[17] IX. Non-Recurring Gains and Losses and Amounts This section discloses the company's non-recurring gains and losses and their amounts for the first half of 2025, totaling CNY -187,206.85 Non-Recurring Gains and Losses and Amounts (H1 2025) | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -37,227.78 | | Government grants recognized in current profit or loss | 77,744.45 | | Other non-operating income and expenses apart from the above | -258,825.85 | | Less: Income tax impact | -32,592.71 | | Impact on minority interests (after tax) | 1,490.38 | | Total | -187,206.85 | Section III Management Discussion and Analysis I. Explanation of the Company's Industry and Main Business During the Reporting Period This section details the overview of the ecological protection and environmental governance industry to which the company belongs, its main business scope, operating model, industry development trends, and the company's position Main Business The company's main business includes ecological wetland protection, water environment governance, municipal landscape, national reserve forests, and forestry carbon sinks, actively expanding overseas markets and undertaking the land consolidation EPC project in Champasak Province, Laos - The company's business covers ecological wetland protection, water environment governance, municipal landscape, national reserve forests, forest parks, mine restoration, rural revitalization construction, forestry carbon sinks, and other segments, providing full industry chain solutions[23][24] - The company successfully bid for the land consolidation EPC project in Champasak Province, Lao People's Democratic Republic, marking initial success in international business expansion[25] Operating Model The company's operating model remained unchanged during the reporting period, primarily adopting EPC, PPP, and EOD models - The company's operating model remained unchanged, primarily including EPC (Engineering-Procurement-Construction), PPP (Public-Private-Partnership), and EOD (Eco-environment-oriented Development) models[26] Industry Situation and Industry Position The ecological restoration industry is accelerating its development under policy dividends and "dual carbon" goals, while the municipal landscape industry is shifting towards "quality improvement and function priority"; the company maintains strong competitiveness with multiple qualifications and cross-regional operating capabilities - The ecological restoration industry is seeing accelerated project implementation under the "14th Five-Year Plan" and "dual carbon" goals, with the "ecological restoration + carbon sink" model becoming mainstream[27][28] - The municipal landscape industry's focus is shifting towards optimizing existing urban spaces, emphasizing small and micro projects and low-carbon smart operation, but local fiscal pressure is concentrating industry resources towards large enterprises[29] - The company holds multiple qualifications, including "Grade I General Contractor for Municipal Public Works" and "Grade A Special Design for Landscape Architecture Engineering", demonstrating strong capabilities in planning, design, construction, and cross-regional operation for large-scale integrated projects[30] II. Discussion and Analysis of Operations During the reporting period, the company faced macroeconomic and local fiscal pressures, leading to a decline in revenue and net profit, but actively responded by focusing on its core business, expanding overseas markets, and strengthening risk control and corporate governance Overview In the first half of the year, the company's operating revenue decreased by 23.04% year-on-year, and net profit attributable to the parent company was a loss of CNY 9.5389 million, mainly affected by the economic environment, industry adjustments, and reduced local government fiscal payment capacity - The company's operating revenue for the first half of the year was CNY 208.0412 million, a year-on-year decrease of 23.04%; net profit attributable to owners of the parent company was CNY -9.5389 million, resulting in a loss[32] - The loss was primarily due to the economic environment, industry conditions, and reduced fiscal payment capacity of some local governments, leading to slower project progress and collection, and a decline in the conversion rate of existing orders into output value[32] - The company won 3 new projects totaling CNY 3.512 billion; signed 5 new projects totaling CNY 3.539 billion, and successfully bid for the land consolidation EPC project in Champasak Province, Laos[31] Review of Major Events in H1 2025 In the first half of the year, the company focused on its core business, optimized its business structure, successfully expanded into overseas markets, actively developed new businesses such as forestry carbon sinks, improved risk control mechanisms, and continuously enhanced corporate governance and management efficiency - The company continued to deepen its presence in ecological wetland restoration, expanded into water governance, mine restoration, national reserve forests, and other businesses, and successfully signed its first overseas project, the "Land Consolidation EPC Project in Champasak Province, Lao People's Democratic Republic"[34] - Actively developing new businesses such as forestry carbon sinks, mine governance, and soil remediation, and strengthening research on CCER market policies and methodologies, aiming to create new profit growth points[35] - Continuously improving risk control mechanisms and strengthening project settlement and collection efforts to address local fiscal pressures and working capital challenges[35] - Enhancing corporate governance, strengthening internal management, optimizing resource allocation, and reinforcing performance incentive mechanisms to improve management efficiency and risk prevention capabilities[36] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness remained largely unchanged, primarily reflected in its R&D capabilities, first-mover advantage in ecological wetlands, integrated design-construction full industry chain, cross-regional operating structure, and excellent and stable management team and employee incentive mechanisms - As a national high-tech enterprise, the company holds 167 patents, including 7 new utility model patents and 1 new invention patent during the reporting period, demonstrating core technology and R&D capabilities in ecological restoration and landscape construction[37][38] - The company has cultivated the ecological wetland sector for many years, accumulating rich project experience and talent advantages, forming a first-mover advantage in this niche area[38] - The company possesses full industry chain implementation capabilities, from "seedling-design-engineering-maintenance", and has established partnerships with multiple universities and institutions, providing strong multi-dimensional support[39] - The company has largely completed its national strategic layout, with business operations spanning over twenty provinces and cities, and has accumulated advanced technologies for different regional environments, enhancing its cross-regional operating capabilities[39] - The company boasts an experienced and professional core operational management team, and motivates employees through incentive mechanisms such as employee stock ownership plans[40] IV. Major Operating Conditions During the Reporting Period This section provides a detailed analysis of the company's financial statement item changes during the reporting period, including operating revenue, costs, expenses, and cash flows, along with an in-depth analysis of asset and liability conditions, explaining the reasons for each change Analysis of Main Business The company's operating revenue and operating costs decreased year-on-year, primarily due to reduced orders and slow construction progress; management and R&D expenses decreased, while financial expenses significantly increased, and net cash flow from operating activities decreased Major Financial Statement Item Fluctuation Analysis Table (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 208,041,246.94 | 270,336,054.81 | -23.04 | Decrease in order quantity, slow construction progress | | Operating Cost | 155,982,820.30 | 216,344,945.11 | -27.90 | Decrease in order quantity, slow construction progress | | Administrative Expenses | 35,061,130.06 | 36,698,858.58 | -4.46 | Decrease in travel and entertainment expenses | | Financial Expenses | 12,292,077.12 | -15,429,545.97 | 179.67 | Decrease in recognized project investment returns | | Research and Development Expenses | 6,340,517.58 | 9,778,533.26 | -35.16 | Decrease in R&D investment | | Net Cash Flow from Operating Activities | 165,870,423.58 | 220,468,772.05 | -24.76 | Decrease in project payment collection | | Net Cash Flow from Investing Activities | 13,410.00 | -18,199.00 | 173.69 | Increase from disposal of fixed assets, etc. | | Net Cash Flow from Financing Activities | -124,901,581.54 | -146,170,869.62 | 14.55 | Decrease in bank loan repayments | Analysis of Assets and Liabilities The company's total assets and net assets both decreased at the end of the period. Notes receivable significantly increased, other payables grew substantially, while notes payable and long-term borrowings significantly decreased. Some monetary funds and contract assets are restricted Asset and Liability Status Changes (June 30, 2025 vs December 31, 2024) | Item Name | Current Period End (CNY) | Prior Year End (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 265,076,981.92 | 327,231,007.54 | -18.99 | | | Notes Receivable | 26,291,710.24 | 10,823,726.02 | 142.91 | Increase in unexpired acceptance notes received | | Accounts Receivable | 524,831,944.04 | 616,790,035.75 | -14.91 | | | Contract Assets | 4,442,355,615.53 | 4,368,237,596.50 | 1.70 | | | Total Assets | 6,763,272,088.47 | 6,923,257,375.72 | -2.31 | | | Short-term Borrowings | 354,449,395.42 | 435,571,775.00 | -18.62 | | | Notes Payable | - | 8,102,754.67 | -100.00 | Decrease in paid unexpired commercial acceptances | | Other Payables | 263,152,377.11 | 117,449,019.07 | 124.06 | Increase in other payables for current accounts | | Long-term Borrowings | - | 83,440,286.67 | -100.00 | Loan repayment and reclassification | Major Restricted Assets (June 30, 2025) | Item | Period-end Book Balance (CNY) | Type of Restriction | Restriction Status | | :--- | :--- | :--- | :--- | | Monetary Funds | 179,291,598.21 | Frozen | Frozen due to litigation | | Contract Assets | 128,989,395.42 | Pledged | Pledged for borrowings | | Total | 308,280,993.63 | / | / | IV. Investment Status Analysis During the reporting period, the company had no significant equity investments, non-equity investments, financial assets measured at fair value, securities investments, private equity fund investments, or derivative investments - During the reporting period, the company had no significant equity investments, non-equity investments, financial assets measured at fair value, securities investments, private equity fund investments, or derivative investments[48][49] VI. Analysis of Major Holding and Participating Companies This section discloses the basic information, main business, registered capital, total assets, net assets, operating revenue, operating profit, and net profit of the company's major holding subsidiaries, showing that some subsidiaries are operating at a loss Major Holding and Participating Company Financial Data (H1 2025) | Company Name | Company Type | Main Business | Registered Capital (CNY 10,000) | Total Assets (CNY 10,000) | Net Assets (CNY 10,000) | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dongzhu Ecological Technology (Jiangxi) Co., Ltd. | Subsidiary | Urban planning, design, construction, operation management; municipal engineering; landscape architecture; ecological protection and tourism and related supporting facilities | 1,500.00 | 16,260.63 | 6,929.35 | - | -17.85 | -17.85 | | Xingguo Lusheng Nursery Co., Ltd. | Subsidiary | Urban planning, design, construction, operation management; municipal engineering; landscape architecture | 1,000.00 | 8,965.10 | 3,980.05 | - | -1.66 | -1.66 | | Wuxi Lvfeng Nursery Co., Ltd. | Subsidiary | Urban greening seedling cultivation, wholesale, retail; landscape engineering construction | 500.00 | 234.93 | 234.17 | - | -5.31 | -5.31 | | Pengzhou Guanqu Tourism Development Co., Ltd. | Subsidiary | Ecological environmental engineering, landscape engineering, ancient garden architecture engineering, municipal public engineering, water conservancy engineering, urban and road lighting engineering | 5,000.00 | 16,825.88 | -1,075.52 | - | -5.26 | -5.26 | | Hongjiang Qingjianghu Construction Development Co., Ltd. | Subsidiary | Tourism development; landscape engineering construction; construction engineering; landscape architecture design; municipal engineering construction; overhead line and pipeline engineering construction; forest tree breeding, seedling cultivation, sales | 13,391.52 | 6,746.88 | 1,417.30 | - | -1.77 | -1.77 | | Dengzhou Lvjian Landscape Ecological Construction Co., Ltd. | Subsidiary | Engineering survey and design | 10,801.80 | 24,056.53 | -2,377.91 | - | -0.47 | -0.47 | | Liangshan Huancheng Water System Construction Development Co., Ltd. | Subsidiary | Greening seedling cultivation and sales | 5,000.00 | 6,970.54 | 4,430.02 | - | -0.01 | -0.01 | | Wuxi Xindong Water Conservancy Engineering Co., Ltd. | Subsidiary | Various engineering construction activities | 1,000.00 | 36.47 | -79.81 | - | -39.67 | -39.67 | | Zhonglin Dongzhu (Beijing) Landscape Design Institute Co., Ltd. | Subsidiary | Environmental protection engineering, landscape engineering, ancient garden architecture engineering, municipal public engineering, water conservancy engineering, power generation engineering, urban and road lighting engineering, mine restoration engineering construction; landscape architecture design; greening maintenance services; ecological environmental protection technology research and development, technical consulting, technical services and technology transfer; flower and seedling cultivation, sales | 660.00 | 592.91 | -296.37 | - | -3.39 | -3.39 | | Dongzhu Rongbin Ecological Environmental Protection (Baoding) Co., Ltd. | Subsidiary | Environmental consulting services; engineering and technical research and experimental development; forest carbon sequestration services; landscape engineering construction; energy-saving management services; carbon reduction, carbon conversion, carbon capture, carbon sequestration technology research and development. Construction engineering; construction engineering design; construction engineering supervision; construction labor subcontracting | 100.00 | 3.19 | -165.99 | - | -64.98 | -64.98 | V. Other Disclosures This section discloses potential risks faced by the company, such as policy, market competition, financial, and lower-than-expected forestry carbon sink expansion, and introduces measures taken by the company for its "Quality Improvement, Efficiency Enhancement, and Return" special action Potential Risks The company faces risks such as policy adjustments, intensified market competition, financial risks due to local fiscal pressure (e.g., tight working capital, high accounts receivable), and lower-than-expected expansion of forestry carbon sink business - The company faces policy adjustment risks, where policy support for the ecological restoration and municipal landscape industries may change, affecting order acceptance and project progress[54] - Market competition is intensifying, with relatively low entry barriers, leading to a decrease in the company's project win rate and a decline in gross profit margins[54] - Financial risks are prominent, as the engineering construction business model requires significant capital occupation, and local fiscal pressure affects the collection of project payments, potentially leading to persistently high accounts receivable and contract assets[55] - The expansion of the forestry carbon sink business faces uncertainties, as the carbon market is still developing, policies and methodologies need improvement, and projects are characterized by "high initial investment, long return cycles, and uncertain returns"[56] Other Disclosures The company actively carried out its "Quality Improvement, Efficiency Enhancement, and Return" special action, focusing on its main business, expanding overseas, vigorously recovering accounts receivable, improving corporate governance, and enhancing information disclosure quality and investor communication - The company launched its "Quality Improvement, Efficiency Enhancement, and Return" special action, focusing on its core business, deeply cultivating national strategic regions, and successfully bidding for its first overseas project, the Laos Champasak Province Land Consolidation EPC Project[57][58] - Vigorously recovering accounts receivable, establishing a debt collection working group, actively communicating and coordinating with owners, and urging settlement and payment of progress payments[58] - Adhering to standardized operations, continuously improving corporate governance and internal control, strengthening compliance awareness among "key minorities", and organizing various training sessions to enhance governance levels[59] - Enhancing information disclosure quality and improving investor communication through various channels such as WeChat official accounts, SSE e-interaction platform, and investor hotlines, and holding performance briefings to actively respond to hot issues[59] Section IV Corporate Governance, Environment and Society I. Changes in Company Directors and Senior Management After the reporting period, the company completed the re-election of its board of directors, forming the sixth board of directors with non-independent directors, independent directors, and employee representative directors, and appointed a new term of senior management - The company convened a board meeting on July 22, 2025, to deliberate and approve the proposal for the re-election of the board of directors, nominating candidates for non-independent and independent directors for the sixth board of directors[62] - On August 7, 2025, the company held a shareholders' meeting and an employee representative meeting to elect members of the sixth board of directors, and on the same day, held a board meeting to elect the chairman and appoint a new term of senior management[62][63] II. Profit Distribution or Capital Reserve Conversion Plan The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserves into share capital for this semi-annual period - The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserves into share capital for this semi-annual period[63] III. Company Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentive Measures and Their Impact During the reporting period, the company had no progress or changes in its equity incentive plan, employee stock ownership plan, or other employee incentive measures - During the reporting period, the company had no progress or changes in its equity incentive plan, employee stock ownership plan, or other employee incentive measures[64] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law During the reporting period, the company was not included in the list of enterprises required to disclose environmental information by law - During the reporting period, the company was not included in the list of enterprises required to disclose environmental information by law[65] V. Specific Situation of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work During the reporting period, the company had no specific situation regarding consolidating and expanding poverty alleviation achievements, rural revitalization, or other related work - During the reporting period, the company had no specific situation regarding consolidating and expanding poverty alleviation achievements, rural revitalization, or other related work[65] Section V Major Events I. Fulfillment of Commitments The company's actual controller, controlling shareholder, directors, and senior management strictly fulfilled their share lock-up commitments during the reporting period Fulfillment of Commitments | Commitment Background | Commitment Type | Commitment Party | Commitment Content | Commitment Date | Commitment Period | Has Performance Deadline | Commitment Period | Timely and Strictly Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments related to initial public offering | Share Lock-up | Actual controller, controlling shareholder, Chairman Xi Huiming | Within thirty-six months from the date of listing of the issuer's shares, not to transfer or entrust others to manage the company's shares directly and indirectly held by me, nor to have the company repurchase such shares; during the term of office, no more than 25% of the total shares held by me shall be transferred annually; no transfer within six months after resignation; the reduction price shall not be lower than the issue price within two years after the lock-up period expires; if the average closing price of the shares is lower than the issue price or the closing price at the end of the period is lower than the issue price within 6 months after listing, the lock-up period shall be automatically extended by 6 months. | September 1, 2017 | Long-term | Yes | Long-term | Yes | | Commitments related to initial public offering | Share Lock-up | Director, Senior Management Miao Chunxiao | Within twelve months from the date of listing of the issuer's shares, not to transfer or entrust others to manage the company's shares directly and indirectly held by me, nor to have the company repurchase such shares; during the term of office, no more than 25% of the total shares held by me shall be transferred annually; no transfer within six months after resignation; the reduction price shall not be lower than the issue price within two years after the lock-up period expires; if the average closing price of the shares is lower than the issue price or the closing price at the end of the period is lower than the issue price within 6 months after listing, the lock-up period shall be automatically extended by 6 months. | September 1, 2017 | Long-term | Yes | Long-term | Yes | II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties - During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties[68] III. Irregular Guarantees During the reporting period, the company had no instances of providing external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company had no instances of providing external guarantees in violation of prescribed decision-making procedures[69] VII. Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[69] IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or overdue large debts[69] X. Major Related Party Transactions During the reporting period, the company had no major related party transactions not disclosed in temporary announcements, such as those related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships - During the reporting period, the company had no major related party transactions not disclosed in temporary announcements, such as those related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships[70][71] XIII. Explanation of Other Major Matters During the reporting period, the company signed multiple strategic cooperation agreements involving land governance, soil remediation, new energy, carbon sink development, and infrastructure construction, but their successful implementation remains uncertain - The company signed a strategic cooperation agreement with Huahao Boda (Beijing) Technology Co., Ltd., to collaborate in areas such as land governance, soil remediation, integrated park construction, mine development and restoration, municipal infrastructure and water conservancy industries, comprehensive water environment and ecological governance, beautiful rural construction, and new urban infrastructure development and digital economy[72] - The company signed a strategic cooperation agreement with Guangzhou Lantian Southern Holding Group Co., Ltd., to collaborate in areas such as land reclamation, low-efficiency agricultural land indicator transformation, rural ecological leisure, and other agricultural, cultural, and tourism sectors[72] - The company signed a strategic cooperation agreement with the Cambodia China Jiangsu General Chamber of Commerce, focusing on industrial park infrastructure construction, industrial and domestic sewage treatment, municipal roads, landscape architecture, construction engineering, geological disaster management and ecological restoration, and comprehensive water environment and ecological governance in river basins within Cambodia[73] Section VI Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[75] II. Shareholder Information This section discloses the total number of common shareholders at the end of the reporting period, as well as the shareholding status of the top ten shareholders and top ten unrestricted shareholders, including their shareholding quantity, proportion, and pledge status Total Number of Shareholders As of the end of the reporting period, the total number of common shareholders of the company was 35,081 Total Number of Shareholders | Indicator | Quantity (shareholders) | | :--- | :--- | | Total number of common shareholders at the end of the reporting period | 35,081 | Table of Shareholding Status of Top Ten Shareholders and Top Ten Unrestricted Shareholders at the End of the Reporting Period This section details the shareholding quantity, proportion, number of restricted shares, and pledge status of the company's top ten shareholders, as well as the shareholding status of the top ten unrestricted circulating share shareholders Top Ten Shareholders' Shareholding Status (June 30, 2025) | Shareholder Name | Change During Reporting Period | Period-end Shareholding Quantity (shares) | Proportion (%) | Number of Restricted Shares Held (shares) | Pledge, Mark or Freeze Status (Share Status/Quantity) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xi Huiming | 0 | 151,872,560 | 34.04 | 0 | Pledged/78,170,000 | Domestic Natural Person | | Pu Jianfen | 0 | 38,118,080 | 8.54 | 0 | Pledged/16,000,000 | Domestic Natural Person | | Xi Chenchao | 0 | 15,479,492 | 3.47 | 0 | None/0 | Domestic Natural Person | | Liao Guopei | 3,969,100 | 3,969,100 | 0.89 | 0 | None/0 | Domestic Natural Person | | Jiang Yaofei | 2,171,700 | 2,171,700 | 0.49 | 0 | None/0 | Domestic Natural Person | | Liu Jiayu | 1,989,600 | 1,989,600 | 0.45 | 0 | None/0 | Domestic Natural Person | | Yu Xionghua | -849,300 | 1,399,800 | 0.31 | 0 | None/0 | Domestic Natural Person | | Miao Chunxiao | 0 | 1,369,212 | 0.31 | 0 | None/0 | Domestic Natural Person | | Wang Hua | 836,548 | 1,200,000 | 0.27 | 0 | None/0 | Domestic Natural Person | | Du Xinbo | 0 | 1,100,000 | 0.25 | 0 | None/0 | Domestic Natural Person | - Xi Huiming, Pu Jianfen, and Xi Chenchao are parties acting in concert; Xi Huiming is the company's actual controller, controlling shareholder, and chairman; Xi Huiming and Pu Jianfen are husband and wife, and Xi Huiming, Pu Jianfen, and Xi Chenchao are father-son and mother-son relationships, respectively[79] III. Directors and Senior Management Information During the reporting period, there were no changes in the shareholdings of the company's directors and senior management, nor were they granted any equity incentives - During the reporting period, there were no changes in the shareholdings of the company's directors and senior management, nor were they granted any equity incentives[80] IV. Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - During the reporting period, there were no changes in the company's controlling shareholder or actual controller[80] Section VII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[82] II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[82] Section VIII Financial Report I. Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[4] II. Financial Statements This section includes 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 2025, comprehensively presenting the company's financial position and operating results Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 6.763 billion, total liabilities were CNY 4.039 billion, and total owners' equity was CNY 2.724 billion Consolidated Balance Sheet Major Data (June 30, 2025) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 6,763,272,088.47 | 6,923,257,375.72 | | Total Liabilities | 4,039,214,296.26 | 4,189,296,734.59 | | Total Owners' Equity | 2,724,057,792.21 | 2,733,960,641.13 | Parent Company Balance Sheet As of June 30, 2025, the company's parent company total assets were CNY 6.804 billion, total liabilities were CNY 4.134 billion, and total owners' equity was CNY 2.670 billion Parent Company Balance Sheet Major Data (June 30, 2025) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 6,804,324,871.05 | 6,979,501,385.74 | | Total Liabilities | 4,134,195,018.38 | 4,301,073,223.08 | | Total Owners' Equity | 2,670,129,852.67 | 2,678,428,162.66 | Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was CNY 208.04 million, a year-on-year decrease of 23.04%; net profit was a loss of CNY 9.9028 million, and net profit attributable to parent company shareholders was a loss of CNY 9.5389 million Consolidated Income Statement Major Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 208,041,246.94 | 270,336,054.81 | | Total Operating Costs | 210,234,808.10 | 248,410,777.29 | | Total Profit | -9,902,848.92 | 12,968,760.00 | | Net Profit | -9,902,848.92 | 12,412,455.17 | | Net Profit Attributable to Parent Company Shareholders | -9,538,865.10 | 12,987,952.72 | | Basic Earnings Per Share (CNY/share) | -0.02 | 0.03 | Parent Company Income Statement For the first half of 2025, the company's parent company operating revenue was CNY 208.04 million, and net profit was a loss of CNY 8.2983 million Parent Company Income Statement Major Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 208,041,246.94 | 270,336,054.81 | | Operating Profit | -8,039,484.14 | 15,767,214.07 | | Total Profit | -8,298,309.99 | 15,743,489.56 | | Net Profit | -8,298,309.99 | 15,035,482.18 | Consolidated Cash Flow Statement For the first half of 2025, the company's net cash flow from operating activities was CNY 165.87 million, a year-on-year decrease of 24.76%; net cash flow from investing activities was positive, and net cash flow from financing activities was negative Consolidated Cash Flow Statement Major Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 165,870,423.58 | 220,468,772.05 | | Net Cash Flow from Investing Activities | 13,410.00 | -18,199.00 | | Net Cash Flow from Financing Activities | -124,901,581.54 | -146,170,869.62 | | Net Increase in Cash and Cash Equivalents | 40,982,252.04 | 74,279,703.43 | Parent Company Cash Flow Statement For the first half of 2025, the company's parent company net cash flow from operating activities was CNY 156 million, net cash flow from investing activities was negative, and net cash flow from financing activities was negative Parent Company Cash Flow Statement Major Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 155,753,015.62 | 102,548,034.05 | | Net Cash Flow from Investing Activities | -41,590.00 | -602,800.00 | | Net Cash Flow from Financing Activities | -124,901,581.54 | -29,947,973.27 | | Net Increase in Cash and Cash Equivalents | 30,809,844.08 | 71,997,260.78 | Consolidated Statement of Changes in Owners' Equity For the first half of 2025, the company's consolidated total owners' equity decreased by CNY 9.9028 million, primarily due to net profit losses Consolidated Statement of Changes in Owners' Equity Major Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | | :--- | :--- | | Total Owners' Equity at Beginning of Period | 2,733,960,641.13 | | Amount of Change in Current Period | -9,902,848.92 | | Total Owners' Equity at End of Period | 2,724,057,792.21 | Parent Company Statement of Changes in Owners' Equity For the first half of 2025, the company's parent company total owners' equity decreased by CNY 8.2983 million, primarily due to net profit losses Parent Company Statement of Changes in Owners' Equity Major Data (Jan-Jun 2025) | Item | H1 2025 (CNY) | | :--- | :--- | | Total Owners' Equity at Beginning of Period | 2,678,428,162.66 | | Amount of Change in Current Period | -8,298,309.99 | | Total Owners' Equity at End of Period | 2,670,129,852.67 | III. Company Basic Information This section introduces the company's registration information, industry, main business nature, and scope of consolidated financial statements, noting a reduction of one subsidiary in the consolidated scope during the reporting period Company's Registered Address, Organizational Form, and Headquarters Address The company is registered at No. 90 Xihu Middle Road, Dongting Street, Xishan District, Wuxi City, with Xi Huiming, Pu Jianfen, Xi Chenchao, and Tan Shaoyang as its actual controllers - The company's registered address is No. 90 Xihu Middle Road, Dongting Street, Xishan District, Wuxi City, and its actual controllers are Xi Huiming, Pu Jianfen, Xi Chenchao, and Tan Shaoyang[108] Company's Business Nature and Main Operating Activities The company operates in the ecological protection and environmental governance industry, primarily providing services such as landscape engineering, environmental protection engineering, mine restoration engineering construction, and landscape architecture design - The company operates in the ecological protection and environmental governance industry, with main businesses including landscape engineering, environmental protection engineering, mine restoration engineering construction, landscape architecture design, greening maintenance services, and ecological environmental protection technology research and development[109] Scope of Consolidated Financial Statements This period, a total of 31 subsidiaries were included in the scope of consolidated financial statements, a decrease of 1 subsidiary compared to the previous period, mainly due to the deregistration of Jiangsu Suzhou Dongzhu Ecological Environment Protection Co., Ltd. - This period, a total of 31 subsidiaries were included in the scope of consolidated financial statements, a decrease of 1 subsidiary compared to the previous period[111] - The decreased subsidiary is Jiangsu Suzhou Dongzhu Ecological Environment Protection Co., Ltd., which is no longer included in the consolidated scope due to deregistration[113] IV. Basis for Preparation of Financial Statements The company's financial statements are prepared in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, based on the going concern assumption and accrual basis, using historical cost as the measurement basis - The company's financial statements are prepared in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, adopting the accrual basis and historical cost measurement[114][116] - The company evaluated its ability to continue as a going concern for the 12 months from the end of the reporting period and found no significant doubts, thus the financial statements are prepared on a going concern basis[115] V. Significant Accounting Policies and Accounting Estimates This section elaborates on the company's statement of compliance with enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, preparation of consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, other receivables, inventories, contract assets, long-term equity investments, fixed assets, biological assets, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, lease liabilities, share-based payments, preferred shares/perpetual bonds, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, and discontinued operations, among other significant accounting policies and estimates - The company adheres to enterprise accounting standards, accurately and completely reflecting its financial position[117] - Detailed classification, recognition, measurement, and derecognition methods for financial assets and liabilities are specified, along with criteria and methods for calculating expected credit losses[143][153][158] - Revenue recognition adopts the performance obligation model, recognizing revenue when the customer obtains control of goods or services, and for construction contracts, revenue is recognized over time based on the progress of performance[228][230] - The classification, recognition, and accounting treatment methods for government grants are clarified, including those related to assets and those related to income[235][238][239] VI. Taxes This section discloses the company's main tax categories and rates, and details the corporate income tax and value-added tax preferential policies enjoyed by the company and its subsidiaries Main Tax Categories and Rates The company's main tax categories include value-added tax, urban maintenance and construction tax, and corporate income tax, with corporate income tax rates varying based on the nature and location of the company and its subsidiaries Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Based on sales of goods and taxable services calculated according to tax laws, the output tax is calculated, and the difference after deducting the input tax allowed for the current period is the VAT payable | 3%, 6%, 9% | | Urban Maintenance and Construction Tax | Actual paid turnover tax amount | 7% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | Tax Incentives As a high-tech enterprise, the company enjoys a 15% income tax preference; some subsidiaries are exempt from income tax and value-added tax for forest tree cultivation and planting, while others enjoy tax incentives for western development or small and micro enterprises - As a high-tech enterprise, the company enjoys a 15% corporate income tax preferential policy[257] - Subsidiaries Wuxi Lvfeng Nursery Co., Ltd., Jurong Maoshan Dongzhu Nursery Co., Ltd., and Xingguo Lusheng Nursery Co., Ltd. are exempt from corporate income tax and value-added tax for income derived from forest tree cultivation and planting[257][259] - Some subsidiaries enjoy corporate income tax preferential policies for western development enterprises (15% income tax), while others enjoy corporate income tax reduction policies for small and micro enterprises[257][258] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes and explanations for various asset, liability, owners' equity, revenue, cost, and expense items in the consolidated financial statements, including period-end balances, beginning-of-period balances, reasons for changes, bad debt provision status, and restricted conditions - Monetary funds at period-end balance were CNY 265 million, of which CNY 179 million was frozen due to litigation[261][262][263] - Notes receivable at period-end balance were CNY 26.29 million, including CNY 0.7293 million in bad debt provisions for commercial acceptance bills[265][270] - Accounts receivable at period-end balance were CNY 525 million, with bad debt provisions of CNY 213 million, including CNY 11.4 million individually provided for bad debts[275][276] - Contract assets at period-end book value were CNY 4.442 billion, with bad debt provisions of CNY 868 million[286][288] - Operating revenue and operating costs decreased year-on-year, primarily due to reduced orders and slow construction progress[43] - Financial expenses increased significantly by 179.67% year-on-year, mainly due to a decrease in project investment returns[43] VIII. Research and Development Expenses During the reporting period, the company's total R&D expenses were CNY 6.3405 million, a year-on-year decrease of 35.16%, primarily composed of personnel expenses, direct inputs, and depreciation and amortization, all expensed Research and Development Expenses Composition (H1 2025 vs H1 2024) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Personnel Expenses | 2,371,997.37 | 4,133,060.63 | | Direct Inputs | 2,513,216.27 | 3,495,059.28 | | Depreciation and Amortization | 1,310,992.24 | 1,332,496.84 | | Other Expenses | 144,311.70 | 817,916.51 | | Total | 6,340,517.58 | 9,778,533.26 | | Of which: Expensed R&D Expenditures | 6,340,517.58 | 9,778,533.26 | - R&D expenses decreased by 35.16% year-on-year, mainly due to a decrease in R&D investment[43] IX. Changes in Consolidation Scope During the reporting period, the company's consolidation scope decreased by one subsidiary, Jiangsu Suzhou Dongzhu Ecological Environment Protection Co., Ltd., which is no longer included due to deregistration - One subsidiary was deregistered in this period; Jiangsu Suzhou Dongzhu Ecological Environment Protection Co., Ltd. was deregistered on June 20, 2025, and is no longer included in the consolidation scope[392] X. Interests in Other Entities This section details the composition of the enterprise group, including the main operating locations, registered capital, business nature, shareholding proportion, and acquisition methods of each subsidiary, and discloses the minority shareholder interests of important non-wholly-owned subsidiaries Interests in Subsidiaries This section lists detailed information for the company's 31 subsidiaries, including registered location, business nature, and shareholding proportion, with most being controlling subsidiaries Subsidiary List (Partial) | Subsidiary Name | Main Operating Location | Registered Capital (CNY 10,000) | Business Nature | Shareholding Proportion (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Dongzhu Ecological Environment Protection (Liaoning) Co., Ltd. | Liaoning Province | 1,000 | Ecological environmental protection technology R&D, landscape engineering construction, etc. | 51 | Establishment | | Dongzhu Ecological Technology (Jiangxi) Co., Ltd. | Ganzhou City | 1,500 | Ecological environmental protection technology R&D, ecological environment governance services, etc. | 100 | Establishment | | Sichuan Dongzhu Ecological Environment Co., Ltd. | Chengdu City | 1,000 | Soil pollution control and remediation services, municipal public works, etc. | 51 | Establishment | | Wuxi Lvfeng Nursery Co., Ltd. | Wuxi City | 500 | Greening seedling cultivation and sales | 100 | Establishment | | Hongjiang Qingjianghu Construction Development Co., Ltd. | Huaihua City | 13,392 | Urban planning, design, construction, operation management; municipal engineering; landscape architecture; ecological protection and tourism and related supporting facilities | 80 | Establishment | 2. Important Non-Wholly-Owned Subsidiaries This section discloses the minority shareholder equity, current period profit or loss attributable to minority shareholders, dividends declared to minority shareholders, and period-end minority shareholder equity balance for important non-wholly-owned subsidiaries such as Sichuan Dongzhu Ecological Environment Co., Ltd., Dongzhu Ecological Environment Protection (Luzhou) Co., Ltd., Kunming Dongzhu Ecological Environment Protection Engineering Co., Ltd., and Henan Dongzhu Municipal Engineering Co., Ltd. Important Non-Wholly-Owned Subsidiary Financial Information (H1 2025) | Subsidiary Name | Minority Shareholding Proportion (%) | Current Period Profit or Loss Attributable to Minority Shareholders (CNY) | Dividends Declared to Minority Shareholders in Current Period (CNY) | Period-end Minority Shareholder Equity Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Sichuan Dongzhu Ecological Environment Co., Ltd. | 49 | -3,400.36 | - | 12,962,131.54 | | Dongzhu Ecological Environment Protection (Luzhou) Co., Ltd. | 49 | -674.91 | - | 4,621,252.51 | | Kunming Dongzhu Ecological Environment Protection Engineering Co., Ltd. | 62.08 | -189.93 | - | 14,923,913.29 | | Henan Dongzhu Municipal Engineering Co., Ltd. | 49 | 6.13 | - | 6,150,046.56 | XI. Government Grants During the reporting period, the company's total government grants recognized in current profit or loss amounted to CNY 77,744.45, primarily consisting of income-related grants Government Grants Recognized in Current Profit or Loss (H1 2025 vs H1 2024) | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Income-related | 77,744.45 | 123,798.85 | | Total | 77,744.45 | 123,798.85 | XII. Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (exchange rate risk, interest rate risk, price risk), and has formulated corresponding risk management policies and measures, such as continuous monitoring of credit risk, maintaining sufficient cash reserves, and obtaining bank credit lines Credit Risk The company manages credit risk by formulating credit policies, continuously monitoring accounts receivable, and assessing customer creditworthiness; its main customers are government and government investment platforms, resulting in lower credit risk - The company manages credit risk by formulating credit policies, continuously monitoring accounts receivable, and assessing customer creditworthiness[400] - Its main customers are government and government investment p