Recently, the semi-annual report of Palm shares showed that the net profit attributable to the shareholders of Listed Companies in the first half of 2019 was - 190 million yuan, a decline of 276.71% over the same period last year, which is the first semi-annual loss of Palm shares since the listing on June 10, 2010.
Like other PPP companies, Palm shares also announced a change of ownership at the beginning of this year when they encountered financing difficulties. So, what is the future of Palm Shares after the change of ownership to turn the tide around?
Loss reported in the first nine years of listing
Palm shares were listed on the SME board of Shenzhen Stock Exchange in 2010. They are mainly engaged in landscape design and landscape engineering construction. They mainly provide landscape design and landscape engineering construction services for real estate landscape engineering, leisure resort real estate landscape engineering and government public landscape engineering.
A few days ago, Palm Co. released its Semi-annual Performance Express of 2019, which said that its operating income during the reporting period was 1.313 billion yuan, down 44.16% from the same period last year. Net returns to its mother company fell to a loss of 190 million yuan from 107 million yuan in the same period last year. The company has suffered its first mid-term loss since its listing for nine years.
For this reason, Palm shares explained that due to the overall economic environment, industry development situation and other factors, the implementation of traditional ecological environment business orders slowed down, resulting in a more significant decline in business income compared with the same period last year. At the same time, due to the increase in financing costs, the companys financial costs increased compared with the same period last year, in addition to the above. In the same period of the year, the related investment returns of Eco-town business were confirmed, but there was no corresponding business in the current period. The above three points are the main reasons for the sharp decline in performance.
In addition, the latest Second Quarter Business Brief of 2019 released by Palm Stock shows that by the end of the second quarter of this year, the total number of unfinished orders signed by Palm Stock is 2709, amounting to 18.67 billion yuan, including 146 new contracts signed in the second quarter and 493 million yuan.
Although Palm shares have many orders, it is inevitable that the industry attribute of Palm shares is high input and slow return, which is also a drawback that all PPP enterprises can not avoid.
Data show that by the end of 2018, accounts receivable for palm shares amounted to 2.14 billion yuan, notes receivable amounted to 77.45 million yuan, and other receivables amounted to 1.03 billion yuan. Receivables have remained at a high level for many years, with accounts receivable over one year accounting for about half of them.
Introducing new shareholders into the Civil Travel Project
Throughout the landscape industry, after the crazy development in 2016 and 2017, many enterprises began to calm down. On the one hand, they have begun to slow down the pace of the project, on the other hand, they are constantly reducing the size of the project. However, by 2018, the whole industry was in a difficult situation of financing and cash shortage, so the state-owned enterprises began to frequently support PPP enterprises.
It is understood that in the top ranking PPP private enterprises, at present. Five companies have clearly announced the introduction of state-owned assets as strategic shareholders. Among them, Oriental Gardens officially changed ownership of Beijing Chaoyang State-owned assets today, Bishui introduced Chuantou Group as war capital investment, Tiehan Ecology into Shenzhen State-owned Assets Commission, Mengcao Ecology into local state-owned Inner Mongolia Financial Asset Management Co., Ltd. and Enlightened Sander to introduce Xiongan Group.
At the same time, in order to alleviate the difficulty of financing, Palm shares introduced state-owned controlling shareholders at the beginning of this year.
On March 27, 2019, Wu Guichang and Lin Congxiao, the palm shareholders, signed the Voting Rights Entrustment Agreement with Henan Henan Henan Provincial Housing Management and Operation Co., Ltd. (hereinafter referred to as Henan Henan Henan Henan Henan Capital), which irrevocably entrusted Henan Henan Henan Henan Province to exercise all the voting rights corresponding to their shares.
On May 14, this year, Palm Shares announced that the above agreement had come into effect. Henan Henan Henan Provinces total voting shares in listed companies amounted to 355 million shares, accounting for 23.88% of the total equity of listed companies. Henan Provinces Finance Department became the controlling shareholder of listed companies, while Henan Provinces Finance Department became the actual controller of listed companies. For this reason, the palm shares were officially relocated to Zhengzhou, Henan Province.
Subsequently, Palm has devoted itself to the Cultural Travel Project. Fifteen Eco-town projects have been laid out nationwide. Six projects have been put into operation. Among them, Yanshan Lake International Garden Resort (Yanshan Lake) from Meizhou attracted a large number of tourists through a series of large-scale activities this summer.
According to the data disclosed by the Ministry of Culture and Tourism, the number of domestic tourists reached 5.539 billion in the past 2018, an increase of 10.8% over the previous year, and the tourism income reached 5.97 trillion yuan, an increase of 10.5% over the previous year. According to the information released by the World Tourism Organization of the United Nations, about 37% of the worlds tourism activities involve cultural factors, and cultural tourists increase by 15% every year. The integration of culture and tourism has become an inevitable trend.
Up to now, palm shares have been put into operation in the ecological town cultural and tourism projects are running normally. On the premise that the cultural tourism industry is growing at a high speed, Palm will cooperate with Yue Wen Travel Group, a state-owned controlling shareholder, to promote the rapid growth of its cultural tourism business.
However, it is not clear how the future Palm shares invested in the Civil Travel Project can quickly reverse the current performance loss situation. Investor Net will continue to focus.
Source: Responsible Editor of Investor Network: Han Yukun_NBJ11142