MCST(300355)2019-08-29 16:00Financial Performance - Total revenue for the reporting period was ¥1,295,923,467.13, a decrease of 31.17% compared to ¥1,882,850,746.58 in the same period last year[25]. - Net profit attributable to shareholders was ¥83,035,596.37, down 56.20% from ¥189,565,467.59 year-on-year[25]. - The net profit after deducting non-recurring gains and losses was ¥60,807,473.23, a decline of 69.24% compared to ¥197,691,989.15 in the previous year[25]. - Basic earnings per share decreased to ¥0.05, down 58.33% from ¥0.12 in the previous year[25]. - The company's operating revenue for the reporting period was RMB 1,295,923,467.13, a decrease of 31.17% compared to RMB 1,882,850,746.58 in the same period last year[76]. - Operating costs decreased by 32.39% to RMB 874,640,250.71 from RMB 1,293,695,604.57, primarily due to the reduction in operating revenue[76]. - Research and development expenses were reduced by 57.32% to RMB 17,279,785.64 from RMB 40,490,600.06, indicating a decrease in investment in R&D projects[77]. - The net cash flow from operating activities improved to -¥710,982,568.01, a 29.56% increase from -¥1,009,362,520.21 in the same period last year[25]. - The company reported a significant increase of 866.48% in net cash flow from financing activities, amounting to RMB 154,748,622.28 compared to RMB 16,011,636.66 in the same period last year[77]. Asset and Liability Management - The company reported a total goodwill impairment provision of RMB 20,921.26 million, with RMB 18,425.91 million related to Putian Garden and RMB 2,495.35 million related to Luluxing, resulting in a remaining goodwill value of RMB 17,364.03 million as of June 30, 2019[9]. - The company's accounts receivable amounted to RMB 424,677.00 million, representing 65.90% of current assets, indicating a high risk of delayed or uncollectible receivables[10]. - Long-term receivables reached RMB 650,753.22 million, primarily due to the consolidation of PPP project receivables during the reporting period[10]. - The total assets at the end of the reporting period were RMB 14,914,717,462.75, an increase of 2.71% from RMB 14,521,055,542.15 at the end of the previous year[25]. - The net assets attributable to shareholders increased to ¥3,721,967,835.79, reflecting a growth of 1.53% from ¥3,665,901,770.20 at the end of the previous year[25]. - The company plans to optimize its financial structure and reduce financial risks by issuing preferred shares to lower the asset-liability ratio[8]. Business Strategy and Development - The company aims to shift its business focus from relying solely on government clients to a mixed client base of both government and corporate clients, enhancing cash flow and reducing funding pressure[12]. - The company is actively coordinating with government special funds to support project payment collections and improve cash flow[11]. - The company is exploring financial models such as asset securitization and accounts receivable factoring to reduce capital occupation and improve liquidity[11]. - The company is focusing on high-quality PPP projects for development, as the order growth rate has slowed down due to macroeconomic risks and policy adjustments[118]. - The company is actively adjusting its business structure to include both government and corporate clients, aiming to alleviate cash flow pressure and enhance sustainable development[124]. - The company is expanding its innovative business segments, including mine restoration and ecological big data, to enhance competitiveness[6]. Project and Research Initiatives - The company has established a comprehensive system for native grass seed breeding and promotion, leading in ecological restoration seed supply in China[32]. - The company has launched innovative business segments, including soil and mine restoration, ecological big data, and specialty seed industries, to expand its customer base and enhance technological capabilities[32]. - The company has completed a total ecological restoration area of nearly 20 million acres[35]. - The company has established over 200 ecological restoration technical standards, covering various restoration techniques[35]. - The company has undertaken a total of 43 national and regional scientific research projects by the end of 2018[35]. - The company has launched its ecological big data platform (1.0), which includes functions for land type recognition and ecological evolution[40]. - The company has developed 20+ fertilizer products and introduced 4 new home gardening products and 3 specialized fertilizers for "Happy Grass"[40]. - The company has signed 12 mining restoration projects, including the "Uyou Coal Mine Geological Environment Restoration Project" and "Lhasa Ecological Restoration Project" among others[42]. Financial Commitments and Fund Management - The total amount of raised funds was RMB 124,683.73 million, with cumulative investment reaching RMB 125,440.12 million[89]. - The company utilized RMB 35 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 6 months[90]. - An additional RMB 23 million of over-raised funds was permanently used to supplement working capital, transferred on January 4, 2013[91]. - The company approved the use of RMB 60 million of idle raised funds for working capital, with a return to the special account by December 9, 2013[91]. - The company has committed to invest CNY 13.67 million in a drought-resistant plant production base project, which is currently not applicable[103]. - The company has fully utilized CNY 12.03 million for operational funds, achieving 100% of the committed investment[103]. - The company has reported a cumulative investment of CNY 7.93 million in the ecological environment governance project along G6 highway, achieving 63.98% of the committed investment[103]. Shareholder and Governance Matters - The company has not declared any cash dividends or stock bonuses for the half-year period, opting to retain earnings for reinvestment[128]. - The company has committed to not engaging in competition with Inner Mongolia Hexinyuan Mongcao Drought-resistant Greening Co., Ltd., and this commitment has been adhered to as of the reporting period[129]. - The company has ensured that no direct or indirect competition with its business operations has occurred, and this commitment remains effective as of the reporting period[130]. - The company has reported no violations of commitments made by shareholders and related parties as of the reporting period[130]. - The company has a long-term commitment to maintain independence in business, assets, finance, personnel, and organization, which has been upheld as of the reporting period[130]. - The company completed the profit commitments for the years 2016-2018, allowing certain shareholders to lift their share restrictions as of August 1, 2019[167]. Legal and Compliance - The company has no significant litigation or arbitration matters during the reporting period[134]. - The company has not faced any penalties or rectification issues during the reporting period[137]. - The company has adhered to all commitments made by shareholders without any violations[131]. - No related party transactions occurred during the reporting period[141]. - The company has not undergone any bankruptcy reorganization during the reporting period[133]. Guarantees and Financial Obligations - The company has provided guarantees totaling CNY 50 million, CNY 75 million, and CNY 100 million, all of which have been fulfilled[145]. - The company has additional guarantees totaling CNY 200 million and CNY 280 million, which are still outstanding[145]. - The company has a guarantee of CNY 196 million that was fulfilled on May 20, 2019[146]. - The company has ongoing guarantees with expiration dates extending to 2026[146]. - The company has engaged in several transactions with Xiamen Luluxing Greening Engineering Co., Ltd., with amounts totaling CNY 20 million and CNY 10 million, some of which have been fulfilled[146]. Bond Issuance and Management - The company has issued a bond named "17蒙草 G1" with a total amount of CNY 250 million, which was fully repurchased during the reporting period[184]. - The interest rate for the "17蒙草 G1" bond is set at 5.50%, with total interest payments amounting to CNY 13.75 million[184]. - The company completed the redemption of the "17 Mongcao G1" green corporate bonds, with a total redemption amount of 250 million yuan and interest of 13.75 million yuan, totaling 263.75 million yuan[197]. - The company's credit rating was adjusted to "AA-" with a stable outlook, while the "17 Mongcao G1" bond maintains a "AAA" rating[200].