HXSS(600477)2023-07-10 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.35 per 10 shares, totaling RMB 82,568,970.33 (before tax), based on a total of 2,359,113,438 shares after deducting repurchased shares[5] - Cash dividend distribution: RMB 0.35 per share, totaling RMB 82,568,970.33, accounting for 30.83% of the net profit attributable to shareholders[156] Share Repurchase - The company's total share capital is 2,369,111,152 shares, with 9,997,714 shares repurchased[5] - Employee stock repurchase: 9,997,714 shares repurchased at an average price of RMB 3.65 per share, totaling RMB 36,477,557.24[157] Financial Performance - Annual revenue reached 9.94 billion RMB, a year-on-year increase of 3.73%[24] - Net profit attributable to shareholders of the listed company was 267.86 million RMB, a year-on-year decrease of 34.92%[24] - Net profit attributable to shareholders after deducting non-recurring gains and losses was 190.19 million RMB, a year-on-year decrease of 11.32%[24] - Total assets at the end of the period were 13.93 billion RMB, a year-on-year increase of 18.52%[24] - Equity attributable to shareholders of the listed company was 5.07 billion RMB, a year-on-year increase of 17.91%[24] - Basic earnings per share were 0.124 RMB, a year-on-year decrease of 35.08%[25] - Weighted average return on equity was 5.35%, a decrease of 4.59 percentage points year-on-year[25] - Operating cash flow for the year was -835.23 million RMB, an improvement of 7.58% compared to the previous year[24] - The company achieved a revenue of 9.94 billion yuan, a year-on-year increase of 3.73%, and a net profit attributable to shareholders of 267 million yuan[65] Contract and Order Information - Newly signed contract orders for the year amounted to 16.42 billion RMB, with 1.82 billion RMB in orders won but not yet signed[35] - The company signed steel structure contracts totaling approximately 12.041 billion yuan, a year-on-year increase of 12.44%[36] - The company completed 152 projects with a total value of 5,451,304,700 RMB in 2022[87] - The company has 350 ongoing projects with a total value of 20,339,002,300 RMB, including 8 overseas projects[89] - The company signed 358 new projects in 2022 with a total value of 16,423,549,500 RMB[90] - The company holds orders worth 11,341,795,900 RMB, including 74,438,250 RMB for projects not yet started and 1,059,741,340 RMB for ongoing projects[91] Subsidiary and Investment Information - The company invested in new production bases in Henan Xin'an and acquired a controlling stake in Bozhou Hangxiao, while also participating in the mixed-ownership reform of Wuhu Urban Construction Company[36] - The company's subsidiary, Jiangxi Hangxiao, paid RMB 930,000 in personal income tax on behalf of a shareholder, which was repaid on January 18, 2023[7] - The company completed a private placement in February 2022, raising 830 million yuan to invest in a green prefabricated building intelligent manufacturing demonstration base in Hangzhou, with an annual production capacity of 450,000 tons of steel structure products and 2.5 million square meters of enclosure products[60] - Shandong Hangsu reported total assets of 72,858.33 million and net assets of 20,136.31 million[99] - Anhui Hangsu reported total assets of 44,875.25 million and net assets of 14,559.92 million[99] - Hebei Hangxiao reported total assets of 159,078.21 million and net assets of 33,939.01 million[99] - Guangdong Hangsu reported total assets of 114,859.17 million and net assets of 31,373.72 million[99] - Wanjun Green Building reported total assets of 177,736.54 million and net assets of 63,950.03 million[99] R&D and Innovation - The company's industrial internet project obtained 3 authorized invention patents and 4 computer software copyright registration certificates, and was listed as a key "industrial internet project" by the provincial, municipal, and district governments[38] - The self-service transaction amount on the company's platform reached 1.47 billion yuan, accounting for 35.58% of the total platform transaction volume[38] - The company's subsidiary successfully developed an automatic welding control system for steel structure small parts (stiffening plates) and implemented multiple automatic welding workstations[39] - The company built distributed photovoltaic power stations with a total capacity of 13,312KW, including a 9,600KW project in Xiaoshan, which is the largest single photovoltaic building integration project in Zhejiang Province[41] - The company's R&D expenses increased by 27.22% to 487.79 million yuan, mainly due to increased R&D investment[66] - Total R&D investment accounted for 5.18% of total revenue, with 5.22% of R&D investment capitalized[76] - The company has 1,126 R&D personnel, accounting for 17% of the total workforce[77] Environmental and Social Responsibility - The company built distributed photovoltaic power stations with a total capacity of 13,312KW, including a 9,600KW project in Xiaoshan, which is the largest single photovoltaic building integration project in Zhejiang Province[41] - The company installed solar photovoltaic panels on the roof of its Xiaoshan factory, with the first phase of the project in progress. Upon completion, part of the energy will be used by the company, and the rest will be handled by the installation company. Measured data will be available after completion[172] - The company's total investment in external donations and public welfare projects amounted to 1.3322 million yuan, including 1.2352 million yuan in cash donations and 97,000 yuan in material donations[173] - The company's two sets of organic waste gas treatment facilities, using activated carbon adsorption and catalytic combustion, are operating normally, with a waste gas treatment efficiency of approximately 91.5%[164] - The company's total emissions of volatile organic compounds (VOCs) were 5.778 tons per year, well below the permitted limit of 58.55 tons per year, with no超标排放[163] - The company has established emergency response plans for environmental incidents, which have been filed with the local environmental protection bureaus in Xiaoshan and Jiaozhou[166] - The company has installed online monitoring equipment and developed a self-monitoring plan, which has been filed with the relevant authorities[167] - The company's particulate matter emissions were 5.076 tons per year, below the permitted limit of 13.09 tons per year, with no超标排放[163] - The company has a dedicated environmental protection department responsible for managing, supervising, and inspecting daily environmental protection work[168] - The company's subsidiaries not listed as key pollutant discharge units will also strictly comply with national environmental laws and regulations[169] - The company has conducted environmental impact assessments for its construction projects and obtained the necessary environmental permits[165] Corporate Governance and Leadership - The company's board of directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the annual report[4] - The company's legal representative is Shan Yinmu[16] - The company's Chairman, Dan Yinmu, holds 904,713,764 shares and received a pre-tax remuneration of 3.39 million yuan in 2022[128] - The company's Vice Chairman and President, Lu Yongjun, holds 26,246,741 shares and received a pre-tax remuneration of 980,000 yuan in 2022[128] - The company's CFO, Xu Qiong, holds 582,645 shares and received a pre-tax remuneration of 785,800 yuan in 2022[128] - The company's CEO, Che Jihua, holds 14,904,900 shares and received a pre-tax remuneration of 1.297 million yuan in 2022[128] - The company's 2022 Annual General Meeting approved the 2022 employee stock ownership plan and related management measures[126] - The company's 2022 Second Extraordinary General Meeting approved proposals to provide guarantees for subsidiaries and revise the external investment management system[126] - The company's 2022 Annual Report indicates no significant differences in corporate governance compared to legal and regulatory requirements[125] - The company's 2022 Annual Report shows no major changes in the independence of assets, personnel, finance, organization, and business from the controlling shareholder[125] - The company's 2022 Annual Report details the shareholding and remuneration of directors, supervisors, and senior management, with no significant changes in shareholding during the year[128] - Total compensation for executives in 2022 amounted to 970.197 million yuan[129] - Vice President Liu Angui's compensation was 1,313,507 yuan, the highest among the listed executives[129] - Vice President Tan Bo achieved a performance completion rate of 95.32%, the highest among the executives[129] - Vice President Liu Xiaoguang holds the position of Chief Engineer and has a performance completion rate of 94.08%[129] - Vice President Cai Zhiheng has a performance completion rate of 89.52% and serves as the General Manager of Henan Hangxiao[129] - Vice President Huang Xinliang holds multiple professional qualifications including Senior Economist and National First-Class Registered Structural Engineer[131] - Vice President Wang Lei graduated from Tsinghua University's School of Economics and Management with an MBA degree[131] - Vice President Zhang Bo has been with the company since 2003 and currently serves as the General Manager of Guangdong Hangxiao[131] - Vice President Lan Kalai holds a master's degree in Civil Engineering from Wuhan University of Technology[131] - Vice President Song Beibei joined the company in May 2021 and currently serves as Vice President and Board Secretary[131] - Total actual remuneration for all directors, supervisors, and senior management in the reporting period amounted to 15.3718 million yuan[133] Regulatory and Compliance - The company received a regulatory warning from the Shanghai Stock Exchange on August 3, 2022, regarding certain responsible persons[136] - The company received a warning letter from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission on August 19, 2022, regarding a senior executive[136] - The company's senior management received a regulatory warning due to a short-term trading violation by a family member[199] - The company emphasized the importance of compliance with securities laws and regulations to prevent future violations[200] Litigation and Legal Matters - The company has ongoing litigation with Xinjiang Tian Sheng Industrial Co., Ltd. regarding a construction contract, with a total claim amount of RMB 44.085 million, of which RMB 20.816 million is secured debt and RMB 4.067 million is interest[193] - The company reached a settlement with Guizhou Xingdong National Health Industry Co., Ltd. for a construction contract dispute, with a total payment of RMB 48.5715 million, of which RMB 38 million has been received, and the remaining amount is under enforcement[193] - The company has a construction contract dispute with Yunnan Boxin Real Estate Development Co., Ltd., with a remaining claim amount of RMB 3.6304 million, currently under enforcement[193] - The company's litigation with Baotou Guorui Carbon Valley Co., Ltd. regarding a construction contract has a first-instance judgment in effect and is under enforcement[189] - The company's litigation with Inner Mongolia Kaide Real Estate Development Co., Ltd. regarding a construction contract has a second-instance judgment maintaining the original ruling, with the remaining amount under enforcement[189] - The company's litigation with Tianjin Gaosheng Real Estate Development Co., Ltd. regarding a construction contract has a first-instance judgment in effect and is under enforcement[189] - The company's litigation with Inner Mongolia Kaide Real Estate Development Co., Ltd. regarding a loan contract has a mediation agreement from the Tangshan Intermediate People's Court, with the remaining amount under phased enforcement[190] - The company filed a lawsuit against Zhejiang Guangchuan Construction Co., Ltd. for a construction contract dispute involving an amount of 1.13231 million yuan[194] - A lawsuit was filed against Chenggong District Dacheng Real Estate Co., Ltd. for a construction contract dispute involving an amount of 7.64566 million yuan[194] - The company recovered 1.2307512 million yuan from a lawsuit against Zhejiang Xiangsheng Construction Engineering Co., Ltd.[194] - Jiangxi Hangxiao won a lawsuit against Sichuan Gaobiao Construction Engineering Co., Ltd. for a construction contract dispute involving an amount of 7.33583 million yuan[194] - Jiangxi Hangxiao won a lawsuit against Sichuan Gaobiao Construction Engineering Co., Ltd. for a construction contract dispute involving an amount of 2.35971 million yuan[194] - Hebei Hangxiao received a first-instance judgment for a construction contract dispute involving an amount of 2.81249 million yuan[195] - Hebei Hangxiao is still awaiting the recovery of 1.20563 million yuan from a construction contract dispute with Ningxia Beifang Caixin Construction Group Co., Ltd.[195] - Wanjun Lvjian filed a lawsuit against Huludao Lijia Real Estate Development Co., Ltd. for a contract dispute involving an amount of 1.35601 million yuan[195] Industry and Market Outlook - The national construction industry output value in 2022 was 31.19798 trillion yuan, a year-on-year increase of 6.5%, but the growth rate decreased by 4.5 percentage points[43] - The supply of industrial land in 100 cities reached 1.218 billion square meters, a year-on-year increase of 19%, accounting for 55% of the total supply[44] - China's steel structure industry is expected to grow at an annual rate of 10% to 15% over the next five to ten years[102] - Steel structure usage in China is projected to reach 13,765 million tons by 2025, with a year-on-year growth rate of 13%[102] - The top five listed companies in the steel structure industry had a combined output of 6.19 million tons in 2021, with a concentration rate of 6.38%, up 1.1% from the previous year[104] - The BIPV market is projected to have a new market space of 37.5 billion yuan for photovoltaic curtain walls and 55.5 billion yuan for photovoltaic roofs from 2022 to 2025, with a total renovation market of 225.3 billion yuan[106] Strategic Goals and Future Plans - The company aims to become a world-class green building integrated service provider, integrating R&D, design, manufacturing, installation, building materials, construction, supply chain, and BIPV photovoltaic building integration[47] - Hangxiao Steel Structure aims to become a world-class green building integrated service provider, focusing on R&D, design, manufacturing, installation, building materials, general contracting, supply chain, and BIPV[106] - The company is implementing a "career partner" sharing mechanism to maximize the autonomy and flexibility of outstanding talents, with projects as the smallest unit for profit accounting[107] - Hangxiao Steel Structure is expanding its national production base, leveraging its capital advantages, brand, qualifications, and technology to ensure sufficient production capacity and delivery guarantees[108] - The company is establishing a professional in-house construction workforce, encouraging skilled project managers and construction teams to form a core team of industrial workers[109] - Hangxiao Steel Structure is building a green building "industry energy aggregation platform" using blockchain and supply chain finance to enhance trust and reshape the industry value chain[110] - The company is leveraging BIPV technology to explore new engineering systems for public, commercial, and residential buildings, aiming to seize market opportunities in the green building sector[111] - New contracts and sales revenue are expected to significantly increase in 2023 compared to 2022, with a focus on expanding into "Belt and Road" countries[112] - The company will intensify efforts to develop general contracting and bridge steel structure businesses, targeting county-level markets[112] - Construction of intelligent steel structure production lines and information management platforms will be advanced[112] - The company will continue to invest in R&D, leveraging national postdoctoral and provincial academician workstations, and collaborate with universities and research institutes to develop new steel structure prefabricated housing systems and BIPV technologies[112] - The company aims to enhance its B2B platform, Wan Jun Green Building, by implementing real-time bidding and online tendering features to boost sales and attract high-quality suppliers and buyers[112] - The company will focus on BIPV technology development and patent layout to expand market reach[113] Risk Factors - The company faces risks from macroeconomic policy changes, which could impact its steel structure business, and will monitor economic conditions closely to adjust strategies accordingly[115] - Fluctuations in steel prices pose a cost risk, and the company will implement a steel price tracking mechanism and strengthen supplier relationships to control procurement costs[116] - The company acknowledges risks associated with its innovative businesses, such as Wan Jun Green Building and BIPV, which are still in the exploratory phase and have not yet established mature profit models[117] - Labor shortages and rising labor costs are a concern, and the company plans to attract and train skilled workers while advancing intelligent manufacturing to improve efficiency[118] Employee and Training Information - Total number of employees: 6,767, including 664 from the parent company and 6,103 from major subsidiaries[147] - Employee composition: 3,855 production personnel, 378 sales personnel, 757 technical personnel, 181 financial personnel, 560 administrative personnel, and 1,036 others[147] - Education level of employees: 109 with master's or doctoral degrees, 1,373 with bachelor's degrees, and 5,285 with associate degrees or below[147] - Total training sessions conducted: 2,137, with 54,505 participants[149] - Total labor outsourcing hours: 3,789,539.13, with total payments of RMB 132,930,996.06[151] Audit and Financial Reporting - The company's audit report was issued by Dahua Certified Public Accountants (Special General Partnership) with an unqualified opinion[4] - The company has paid RMB 1 million in financial audit fees and RMB 600,000 in internal control audit fees to Da Hua Certified Public