Gelonghui, January 31, 丨 Oriental Garden (002310.SZ) announced its 2023 annual results forecast. Net profit loss attributable to shareholders of listed companies during the reporting period was 445 million yuan to 380 million yuan, a decrease of 23.50% — 34.67% over the same period of the previous year; net profit loss after deducting non-recurring profit and loss of 445 million yuan — 380 million yuan, a decrease of 22.34% — 33.69% over the same period last year; basic earnings loss of 1.66 yuan/share — 1.42 yuan/share; operating income of 55,000 yuan— 75,000 yuan, after deduction, operating income of 50 million yuan to 70 million yuan.

The main reason for the decline in the company's revenue is: in terms of ecological construction business, although the company achieved a major breakthrough in project expansion in 2023, and the number of new bid wins and new orders increased significantly, the current conversion rate is low due to the cyclical transformation of the output value of new winning orders. At the same time, in 2023, in order to speed up repayment and promote projects to meet repayment conditions as soon as possible, the company will focus on promoting settlement of existing projects. Project settlement deductions will greatly reduce current revenue. In terms of the industrial waste recycling business, due to capital and other risks, the scale of the business was controlled, and revenue declined to a certain extent. Furthermore, depreciation preparations for accounts receivable, contract assets, etc. according to the age of accounts have greatly eroded profits, and the company's expenses still account for a high proportion of revenue, resulting in large losses in net profit.