Core Viewpoint - The company, Nongshang Environment, is implementing a strategic contraction in its landscaping business, focusing on accounts receivable management, project completion, and litigation case handling to improve asset quality and ensure sustainable development [2][4]. Group 1: Accounts Receivable Collection Strategy - The company plans to enhance its accounts receivable collection efforts through a comprehensive collection scheme that includes self-collection, third-party collection, and transfer of receivables [2][3]. - The collection initiative will encompass all subsidiaries within the landscaping business, with a timeline from June 30, 2025, to June 30, 2026, targeting accounts receivable, contract assets, and other receivables [2][3]. Group 2: Financial Performance and Challenges - In 2024, the company reported total revenue of 232 million yuan, with landscaping engineering revenue accounting for 110 million yuan, representing 47.68% of total revenue [3]. - The company experienced a significant increase in net loss, reporting a net profit of -77.08 million yuan in 2024, compared to -29.77 million yuan in the previous year, primarily due to credit impairment provisions [3]. - The company has faced ongoing cash flow challenges, with a cumulative net outflow exceeding 300 million yuan from 2020 to 2024, and as of March 31, 2025, it had only 30 million yuan in cash against over 500 million yuan in accounts receivable [3]. Group 3: Management and Oversight - The collection efforts will be overseen by the chairman, who will establish a dedicated collection team to manage the process [3]. - For irrecoverable receivables, the company will follow the prescribed write-off procedures and disclose information in a timely manner [3]. Group 4: Future Outlook - The implementation of the accounts receivable collection plan is expected to reduce risks associated with receivables, accelerate cash recovery, and enhance asset operation efficiency, thereby supporting the company's sustainable development [4].
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