Core Viewpoint - The credit rating of Jinpu Garden Co., Ltd. has been downgraded to A with a stable outlook due to declining profitability and worsening debt repayment indicators [1][3][7]. Company Overview - Jinpu Garden primarily engages in landscape construction projects and holds various industry qualifications, including a Class A qualification in landscape engineering design and a Class I qualification in ancient architecture contracting [3][9]. - The company has a strong competitive edge in the domestic landscape construction sector, with a business model that includes "park cities," "garden villages," and "ecological restoration" [3][6]. Financial Performance - As of March 31, 2025, the company's total assets amounted to 3.49 billion yuan, with total liabilities of 0.83 billion yuan, resulting in a debt-to-asset ratio of 60.75% [9][10]. - The company reported a revenue of 0.906 billion yuan and a profit of 0.045 billion yuan for the first quarter of 2024, indicating a decline compared to previous periods [4][9]. - The operating cash flow remains negative, indicating a reliance on external financing [6][9]. Market Conditions - The landscape construction market is facing challenges due to a slowdown in the real estate sector, which has led to decreased demand for landscape projects [17][18]. - Despite the downturn, there is a growing demand for ecological restoration projects driven by government policies aimed at environmental improvement [17][18]. Industry Analysis - The construction industry, particularly the landscape sector, is experiencing increased competition, with larger state-owned enterprises gaining market share [16][21]. - The overall market for landscape services is expected to remain subdued in 2025, with demand primarily driven by government and real estate projects [17][18]. Future Outlook - The stable rating outlook reflects expectations that government policies promoting rural revitalization and ecological restoration will support long-term growth in the landscape construction sector [7][17]. - The company is expected to face ongoing challenges related to cash flow and debt repayment, necessitating careful financial management [6][9].