Matrix Design (301365)2023-04-24 16:00Dividend Distribution - The company plans to distribute a cash dividend of 6.70 RMB per 10 shares (including tax) to all shareholders, based on a total of 120,000,000 shares[3]. - The company will also increase capital reserves by converting 5 shares for every 10 shares held by shareholders[3]. - The company implemented a cash dividend policy, distributing 6.70 CNY per 10 shares, amounting to a total cash dividend of 80,400,000 CNY, which is 100% of the total distributable profit[179]. - The company plans to increase its total share capital from 120,000,000 shares to 180,000,000 shares by issuing 5 additional shares for every 10 shares held[180]. - The company will prioritize cash dividends and may also consider stock dividends or a combination of both as per legal allowances[197]. - The company plans to distribute at least 80% of its distributable profits as cash dividends if it is in a mature stage without significant capital expenditure arrangements[198]. - In cases where the company is in a mature stage with significant capital expenditures, the minimum cash dividend proportion is set at 40%[198]. - For companies in a growth stage with significant capital expenditures, the minimum cash dividend proportion is 20%[198]. - The profit distribution policy must be reviewed at least every three years, and any adjustments must comply with regulations from the China Securities Regulatory Commission[198]. Financial Performance - The company's operating revenue for 2022 was ¥794,486,140.08, a decrease of 10.36% compared to ¥886,351,484.86 in 2021[19]. - The net profit attributable to shareholders for 2022 was ¥165,179,536.06, down 24.87% from ¥219,850,306.64 in 2021[19]. - The net profit after deducting non-recurring gains and losses was ¥151,211,621.71, a decline of 30.25% from ¥216,776,288.01 in 2021[19]. - The total assets at the end of 2022 were ¥2,005,054,327.10, an increase of 95.19% from ¥1,027,211,986.21 at the end of 2021[19]. - The net assets attributable to shareholders increased by 184.52% to ¥1,764,101,626.79 from ¥620,024,115.25 at the end of 2021[19]. - The basic earnings per share for 2022 were ¥1.79, down 26.64% from ¥2.44 in 2021[19]. - The weighted average return on equity for 2022 was 20.72%, a decrease of 25.15% from 45.87% in 2021[19]. - The company achieved operating revenue of CNY 794.49 million in 2022, a decrease of 10.36% year-on-year, with a net profit attributable to shareholders of CNY 165.18 million, down 24.87%[66]. - The gross margin for the year was reported at 35%, a slight increase from 32% in the previous year[146]. Market and Industry Insights - The company operates in the space design and soft decoration industry, which is closely related to the real estate sector, indicating potential cyclical impacts on revenue[30]. - In 2022, the national real estate development residential investment amounted to CNY 1.006 trillion, a year-on-year decrease of 9.53%[36]. - The company ranked 17th in the "Top 100 Giants" list by Interior Design magazine in 2022, maintaining a strong position in the residential sector[40]. - The hotel industry in China saw the number of legal entities increase from 15,713 in 2010 to 25,281 in 2020, with a compound annual growth rate of 4.87%[37]. - The company focuses on high-quality development in the real estate sector, emphasizing the importance of providing quality housing services and improving operational efficiency to achieve stable growth[45]. Research and Development - The company has developed a high-efficiency indoor design effect rendering control system, which is crucial for the stability and feasibility of the AI design platform[82]. - The intelligent interior decoration design technology based on machine learning has been completed, enabling personalized design solutions and enhancing design quality[82]. - The company’s R&D investment amounted to ¥28,994,455.60 in 2022, representing 3.65% of total revenue, an increase from 3.46% in 2021[84]. - The number of R&D personnel decreased by 2.99% to 65 in 2022, with a notable increase in bachelor's degree holders by 22.22% to 44[84]. - The company has accumulated extensive R&D and project experience in the field of information technology for space design and soft decoration[106]. Corporate Governance - The company has established a complete and independent organizational structure, ensuring clear division of responsibilities among functional departments[137]. - The company has a clear governance structure that prevents mixed operations with controlling shareholders[137]. - The board of directors includes experienced professionals with backgrounds in finance and management, enhancing governance and strategic decision-making[143][144]. - The company emphasizes investor relations management, ensuring timely, complete, and accurate information disclosure through various channels[187]. - The company has committed to avoiding and reducing related party transactions to protect shareholder interests[200]. Employee and Talent Management - The company has a workforce of 596 employees, with 81.38% being technical personnel and 61.24% holding bachelor's or master's degrees[66]. - The company is committed to talent development through regular training and a performance incentive mechanism to enhance employee engagement and team stability[66]. - Employee compensation in space design decreased by 22.17% to ¥72,178,277.37, accounting for 15.76% of operating costs in 2022[73]. - The company has a structured training program aimed at enhancing employee skills and overall quality, which is crucial for its competitive edge[173]. Risks and Challenges - The real estate industry remains under pressure, with ongoing liquidity risks affecting client payments and overall business performance[115]. - Increased accounts receivable due to business expansion poses a risk of bad debts, particularly if clients face financial difficulties[116]. - Rising labor costs due to competition for skilled design talent may impact the company's profit margins if revenue does not grow correspondingly[117]. - The company faces risks related to the potential loss of core technical personnel, which could adversely affect its competitive position in the market[119]. Future Outlook and Plans - The company provided a revenue guidance of 1.8 billion for the next fiscal year, expecting a growth rate of 20%[146]. - New product launches are expected to contribute an additional 300 million in revenue in the upcoming year[146]. - The company plans to enhance operational efficiency through structural adjustments and performance mechanisms, adopting a flat management model[113]. - The company aims to increase its focus on non-residential sectors, expanding into areas such as office, education, and healthcare design, with notable projects completed in 2022[111]. - The company plans to expand its business into multiple sectors including office, hotel, education, and healthcare, enhancing its market position[105].