There is no capital chain tension in Oriental gardens

For the company's operating conditions, Oriental Garden (002310) The 7th response, the company is operating well, there is no capital chain tension. Oriental Garden 6th announced that signed a 1.2 billion yuan order. Rough statistics, this year, the company announced the total amount of orders signed by more than 5 billion yuan, the first half of the operating income of nearly 10 times times.　　Analysts pointed out that the Oriental garden continues to sign large orders for future growth to lay a solid foundation, but also to the company's capital chain to create greater pressure. CICC analyst Li Yongxi that these orders will ensure the company's performance growth over the next two years. And with the company's brand awareness, relying on the capital advantage after listing, the company in north China is expected to get more large-scale municipal garden project orders. According to the Chinese newspaper, in the first half of this year, the Urban Garden project revenue reached 360 million yuan, with a gross profit margin of 34.85%. During the reporting period, the company's collective asset impairment was prepared for 7.3037 million yuan, an increase of 460.87% per cent, mainly the revenue account to increase the provision of bad debts.　　The increase is due to the expansion of the company's business and the first half of a large amount of output not to the collection period, resulting in increased accounts receivable. Analysts believe that municipal projects occupy more funds, some projects need to be the garden enterprises cushion, local governments are willing to give such projects high gross margin in exchange for the smooth project.　　If the company can further strengthen cost control, gross margin is expected to continue to improve. Li Yongxi warns that with the increase in project acquisition, the proportion of projects accounted for increased, oriental garden will face greater financial pressure. In the first half of this year, the net amount of cash flow generated by Oriental garden operations is 165 million yuan. With the company's large-scale projects more and more, the project back, cash flow turnover requirements will be more and more high. In addition, the real estate regulation causes the local government income to reduce greatly, may cause the landscaping investment to shrink or the payment to be delayed, this may lead to the company bad debt or affects the company capital turnover.