NB CONSTRUCTION(SH:601789)2015-04-20 16:00Financial Performance - The company's operating revenue for 2014 was CNY 13,644,421,864.22, representing a year-on-year increase of 1.07% compared to CNY 13,499,325,426.38 in 2013[22]. - The net profit attributable to shareholders of the listed company decreased by 18.86% to CNY 183,907,431.54 from CNY 226,662,646.45 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 22.68% to CNY 168,822,980.43 compared to CNY 218,348,745.75 in 2013[22]. - The net cash flow from operating activities was negative at CNY -601,513,688.59, a significant decline from CNY -148,147,087.95 in 2013[22]. - The total assets of the company increased by 19.71% to CNY 10,368,674,224.60 from CNY 8,661,845,566.18 in 2013[22]. - The net assets attributable to shareholders of the listed company rose by 5.41% to CNY 2,175,478,783.09 compared to CNY 2,063,807,317.87 at the end of 2013[22]. - The company reported a significant increase in asset impairment losses, which rose by 197.15% to ¥123.75 million, attributed to an increase in litigation-related disputes[34]. - The company's financial expenses increased by 23.16% to ¥133.31 million, primarily due to increased bank borrowings and related interest expenses[43]. - The total investment income decreased by 90.22% to ¥1.32 million, largely due to the previous year's disposal of investments in Ningbo Dongzhou Electric Equipment Co., Ltd.[34]. - The company’s total cash flow from investment activities was -¥118.64 million, reflecting a decrease due to cash payments for acquiring two companies[47][48]. Business Operations - The company achieved a total asset of RMB 10.369 billion, an increase of 19.41% compared to the beginning of the year[29]. - The company undertook a total business volume of RMB 139.92 billion, an increase of 8.18% compared to 2013[29]. - The company secured state-owned and fiscal-funded projects worth RMB 5.374 billion, a significant increase of 79.99% from 2013[30]. - The company’s business volume outside Ningbo accounted for 41.59% of total business volume, with a growth of 50.67% year-on-year[30]. - The company’s total order volume for the year reached ¥13.99 billion, with residential projects accounting for 41.97% of the total[36]. - The company has a complete and compact industrial chain covering surveying, engineering design, construction, municipal engineering, and more, enhancing its ability to provide comprehensive construction services[57]. - The company has established two provincial-level enterprise technology centers and has been granted 7 national-level construction methods and 39 provincial-level construction methods[57]. - The company has a strong brand reputation and has built landmark buildings in Ningbo, contributing to its high market competitiveness[56]. - The company has a well-qualified team with significant theoretical and practical experience, playing a crucial role in production, technology research, and capital operations[57]. Research and Development - The company applied for 11 patents and was granted 2 invention patents and 15 utility model patents during the reporting period[32]. - Research and development expenses totaled ¥7.85 million, a decrease of 39.46% from ¥12.96 million in the previous year, accounting for 0.06% of operating revenue[44][45]. - The company has a strong focus on technological innovation, with many research achievements applied in production practices[57]. - The management team highlighted a strong commitment to R&D, with an investment of 100 million CNY planned for the upcoming year[160]. Risk Management - The company faces risks related to macroeconomic downturns, which could adversely affect its operations, and will adjust strategies accordingly[85]. - There is a significant risk of accounts receivable due to the current real estate market downturn, prompting enhanced management of receivables[86]. - The company is exposed to raw material price fluctuations, which could increase construction costs, and will implement cost control measures[87]. - The company has experienced delays in project initiation due to late fundraising and feasibility report issues, impacting the progress of several projects[66]. Corporate Governance - The company has established a long-term mechanism to prevent the controlling shareholder from occupying the company's funds and assets, with no incidents reported[178]. - The audit committee provided guidance on the appointment of auditing firms and internal control audits, enhancing the company's governance structure[187]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting of significant events[179]. - The company has implemented a system for managing insider information, maintaining detailed records of relevant personnel and events[180]. - The company has established a fair and transparent mechanism for evaluating senior management, with compensation linked to individual roles, workload, responsibilities, and risks[190]. Shareholder Information - The company has a cash dividend policy that mandates a minimum of 30% of average distributable profits over the last three years to be distributed as cash dividends[89]. - The company reported a net profit of 226,662,646.45 RMB in 2013, with a profit distribution ratio of 32.30%[92]. - The company’s major shareholders included Huatai Fund Management and other institutional investors, with significant shares released on August 18, 2014[136]. - The total number of shares held by the top ten shareholders is 258,000,000, which is approximately 52.5% of total shares[143]. Future Outlook - The company aims to create a platform worth RMB 10 billion and establish a century-old enterprise as part of its future development strategy[149]. - The company plans to strengthen investment in local branches due to unsatisfactory results in Shenyang, Qingdao, and Wuhan, while operations in Tianjin, Luoyang, and Wuhu are performing well[67]. - The company intends to actively pursue BOT and EPC projects, aiming to enhance its overall project contracting capabilities[81]. - The company will focus on expanding its overseas business and participating in PPP projects with good operational revenue opportunities[81]. - The company plans to strengthen talent recruitment and training, focusing on systematic talent development and performance evaluation[82].