Palm Landscape Architecture Co Ltd

Palm Eco-Town Development Co., Ltd., listed as ST Palm, announced that it has received an administrative penalty decision from the Zhengzhou Comprehensive Urban Law Enforcement Bureau. An investigation found that in the Asian Development Bank loan project for rural clean energy development and atmospheric environment improvement in Henan, the company formed a consortium with Hexiang Construction Engineering Co., Ltd. and won the Xinyang project, worth 298.5709 million yuan, and the sixth phase project, worth 286.4368 million yuan. Because the project management personnel listed in the bidding documents of different bidders were the same person, the company was found to have engaged in bid rigging. At the same time, the company subcontracted low-pressure pipeline works and civil works from the contracted project to other companies, which was deemed illegal subcontracting. The Zhengzhou Comprehensive Urban Law Enforcement Bureau imposed a fine of 2,925,038 yuan on the company for bid rigging, accounting for 0.69 percent of the company's audited net assets attributable to the parent company for 2025. Penalties for the illegal subcontracting portion will be imposed after the project completion acceptance date and contract price are determined. The company said it has carried out a comprehensive risk review, improved relevant systems, and initiated accountability procedures against responsible personnel, and that this penalty will not have a material adverse impact on its operating performance.

ST Palm released its 2026 interim report, with total operating revenue of 1.112 billion yuan and net profit attributable to the parent company of minus 263 million yuan, an increase of 10.1367 million yuan compared with the same reporting period last year, achieving two consecutive years of growth. Net cash inflow from operating activities was 15.546 million yuan, an increase of 181 million yuan compared with the same reporting period last year. The company's latest asset-liability ratio was 97.97%, gross margin was 7.06%, ROE was minus 161.74%, and diluted earnings per share was minus 0.15 yuan. The number of shareholders was 56,400, and the top ten shareholders held 775 million shares, accounting for 42.98% of the total share capital.

Qixia Construction released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 781 million yuan, down 79.69 percent year on year. Net profit attributable to the parent company was negative 627 million yuan, swinging from a profit in the same period last year to a substantial loss. Net profit after deducting non-recurring items was negative 632 million yuan. Affected by a decline in sales collections, net cash flow from operating activities was negative 148 million yuan, turning from positive to negative. As of the end of the reporting period, the company's total assets were approximately 15.277 billion yuan, net assets attributable to shareholders of the listed company fell to 712 million yuan, and the asset-liability ratio rose to 95.11 percent. The core reason for the sharp decline in performance was the recognition of inventory impairment provisions totaling approximately 534 million yuan for four projects, namely Nanjing Xingye Happy Garden, Banshan Yuefu, Yanshang Yuefu, and Qiyue Bay, as well as an increase in expensed interest costs to 118 million yuan. In addition, losses from the associated company Palm Eco-Town Development brought investment losses of approximately 25.78 million yuan.

ST Palm has been sued by Shanghai International Trust over a shortfall obligation, with the amount involved reaching 322 million yuan, accounting for 76.49 percent of the company's audited net assets for 2025. The lawsuit stems from the company providing a shortfall guarantee for a 435 million yuan trust loan to Jishou Zongji Engineering Construction Project Management. As Jishou Zongji failed to repay the due amount, Shanghai Trust declared the loan prematurely due and demanded ST Palm assume joint repayment liability. The case has yet to be heard, and the company stated that if it is ultimately held liable, it could adversely affect its financial position. ST Palm has suffered massive losses for five consecutive years since 2021, with cumulative losses exceeding 5 billion yuan. Its net loss attributable to the parent company was 1.191 billion yuan in 2025, and it continued to lose 127 million yuan in the first quarter of 2026, with an estimated loss of 220 million to 270 million yuan for the first half of the year.