Located in Zhejiang Province, the Group is a municipal garden and municipal engineering construction service provider with operations in 12 provinces, three municipalities and two autonomous regions in China. It was listed as one of the top 100 landscaping enterprises in China in 2013 and 2014, among the top 50 urban landscaping enterprises in China for three consecutive years from 2013 to 2015, and the AAA credit enterprises in 2016.

Application scores and opinions

The Group has more than 10 years of experience in a wide range of landscape and municipal engineering, with the Yangtze River Delta as the core focus area. According to Frost Sullivan, as of June 2016, Canghai Holdings is one of the few construction service providers in China with five first-class qualifications for garden and municipal engineering construction, and the only company in Zhejiang Province with all five first-class qualifications. The group's income and profit are growing steadily and rapidly, with a compound annual growth rate of 34.7% and 88.5% respectively for 2013-2015. Take 2015 as an example, the income is about 1 billion yuan, and the profit for the year is 95 million yuan. During the track record period, the Group has completed a total of 421 projects in China, and as at October 31, 2016, there were 115 projects under construction and 286 customers, of whom 216 were state-owned enterprises and local governments. These customers accounted for more than 80% of the revenue in the past three years, and the customer concentration is high. Due to the nature of the business of the group, the project expenses need to be paid regularly, and the amount of accounts receivable is large, so the credit risk of customers and the repayment cycle have a great impact on the liquidity of the group. Although the credit of state-owned enterprises and local governments is higher, the repayment cycle is longer. In terms of industry, with the acceleration of urbanization and the improvement of environmental awareness, urban garden construction has great potential for development. According to Frost Sullivan, China's landscaping market is highly fragmented, and there are many small and medium-sized landscaping companies. More than 3000 companies are engaged in municipal landscaping business in the Yangtze River Delta, and the competition is fierce. However, the market share of Canghai Garden, a wholly-owned subsidiary of the group, ranks fifth in the Yangtze River Delta and first in Zhejiang Province in 2015, and has a certain competitive advantage. According to the IPO price, the valuation of the group's price-to-earnings ratio is more reasonable, ranging from 13.3 to 16.9 times. To sum up, the company was given a "neutral" rating with a total score of 6.2.