NINGBO FUDA(600724)2022-03-28 16:00Financial Performance - The company achieved a net profit attributable to shareholders of the parent company of ¥360,599,024.29 in 2021, with a net profit of ¥402,238,489.90 for the parent company[6]. - The proposed cash dividend is ¥2.50 per 10 shares, amounting to a total distribution of ¥361,310,267.75, resulting in a cash dividend payout ratio of 100.20%[6]. - The company reported an opening retained earnings balance of ¥324,085,841.16, after deducting the previous year's dividend payable of ¥317,953,035.62[6]. - The company's operating revenue for 2021 was approximately ¥2.34 billion, showing no change compared to 2020[25]. - The net profit attributable to shareholders decreased by 14.49% to approximately ¥360.60 million in 2021 from ¥421.69 million in 2020[25]. - The net profit after deducting non-recurring gains and losses was approximately ¥280.99 million, a decrease of 5.59% from ¥297.63 million in 2020[25]. - The net cash flow from operating activities was approximately ¥368.69 million, down 51.73% from ¥763.82 million in 2020[28]. - The total assets at the end of 2021 were approximately ¥4.29 billion, an increase of 3.20% from ¥4.16 billion at the end of 2020[28]. - The basic earnings per share for 2021 was ¥0.2495, a decrease of 14.50% from ¥0.2918 in 2020[28]. - The weighted average return on equity decreased by 2.28 percentage points to 12.23% in 2021 from 14.52% in 2020[28]. - The company reported non-recurring gains of approximately ¥84.25 million from the disposal of non-current assets in 2021, compared to ¥22.04 million in 2020[33]. - The company’s net profit attributable to shareholders in Q4 2021 was approximately ¥130.09 million, showing a significant increase compared to previous quarters[29]. - The total net assets attributable to shareholders at the end of 2021 were approximately ¥2.99 billion, reflecting a 1.45% increase from ¥2.95 billion at the end of 2020[28]. - In 2021, the company achieved total revenue of CNY 2.34 billion, remaining stable compared to the previous year, while total profit decreased by 11.96% to CNY 617 million[60]. - The net profit attributable to shareholders was CNY 361 million, down 14.49% year-on-year, with a diluted earnings per share of CNY 0.2495[60]. Dividend and Profit Distribution - The company plans to submit the profit distribution proposal to the shareholders' meeting for approval[6]. - The total number of shares for the dividend distribution is based on the total share capital of 1,445,241,071 shares as of December 31, 2021[6]. - The company does not plan to increase capital reserves through stock conversion for the year 2021[6]. - The proposed cash dividend for 2021 is 2.50 CNY per 10 shares, amounting to a total distribution of 361,310,267.75 CNY, with a cash dividend payout ratio of 100.20%[179]. - The company’s total share capital as of December 31, 2021, was 1,445,241,071 shares, which serves as the basis for the dividend distribution[179]. Operational Highlights - The company achieved a significant improvement in the Tianyi Plaza renovation project, with the first phase completed and showing remarkable results[40]. - The company is advancing a 200,000-ton grinding system relocation project, with 65% of the construction completed and expected to be operational by August 2022[40]. - The company signed an investment agreement for fuel oil trade, with a 300,000-ton coal tar deep processing project initiated in August 2021, expected to be operational by July 2022[40]. - The company faced challenges in the cement sector due to environmental regulations, energy consumption controls, and macroeconomic adjustments, impacting production and sales[44]. - The company’s commercial real estate segment reported a rental income of approximately 35.4 million in 2021, with a total leased area of 15.83 million square meters[49]. - The company received multiple honors, including being recognized as one of the "Top Ten Characteristic Commercial Streets in Zhejiang Province" and a "Demonstration Enterprise in Commercial Services" in 2021[41]. Market and Industry Challenges - The cement production volume was 381.23 million tons, a decline from 502.22 million tons in 2020 and 560.94 million tons in 2019[51]. - The cement segment's revenue accounted for 60.25% of the company's total revenue in 2021, down from 79.93% in 2020[51]. - The commercial real estate sector faces significant challenges, including increased competition and a decline in brand expansion willingness due to repeated pandemic impacts[118]. - The cement industry is experiencing overcapacity risks, which could adversely affect the company's performance if regulatory policies are not effectively implemented[119]. - Environmental regulations are becoming stricter, leading to increased costs for the company, particularly in the cement sector[119]. Governance and Compliance - The audit report issued by Lixin Zhonglian CPA firm was a standard unqualified opinion[5]. - The company has established a robust internal control system, receiving a standard unqualified opinion from the auditor for the effectiveness of its financial reporting internal controls[184][188]. - The company’s board of directors is responsible for the establishment and implementation of internal controls, ensuring compliance with relevant regulations[188]. - The company has engaged independent directors to gather opinions from minority shareholders regarding profit distribution proposals[178]. - The company has established a comprehensive governance mechanism, ensuring compliance with the latest regulations and enhancing decision-making and management processes[129]. - The company conducted a comprehensive self-inspection of its corporate governance for the years 2018, 2019, and 2020, reporting no issues requiring special rectification[189]. Future Outlook and Strategic Initiatives - The company plans to enhance resource integration and management efficiency through the establishment of Fuda New Materials, focusing on cement and other projects[54]. - The company aims to adapt to the evolving commercial real estate landscape, focusing on smart commerce and consumer experience integration[112]. - The company reported a revenue target of 2.8 billion yuan for 2022, with a cement sales volume of 3.9 million tons[124]. - The company plans to leverage the new energy trade center development in Ningbo to enhance its fuel oil storage and trade capabilities[114]. - The company is actively pursuing new industry expansions and acquisition strategies to drive future growth[64]. Environmental and Sustainability Efforts - The company has implemented pollution prevention facilities, including high-efficiency bag dust collectors, across its subsidiaries, ensuring no direct wastewater discharge during production[197]. - The company has established a wastewater recycling system, ensuring that all cooling water is reused and does not come into contact with raw materials[197]. - The company reported a total of 94.489 tons of particulate matter emissions for the first year, with consistent figures for subsequent years[196]. - The actual emission concentration of particulate matter from the company is generally below 10.58 mg/Nm³, with nitrogen oxides and sulfur dioxide emissions also below regulatory limits[195].