Real Estate Market Overview - In 2021, the real estate market experienced significant challenges, with a decline in investment and both supply and transaction volumes dropping [5]. - The sales area and sales amount of commodity residential properties maintained double-digit growth, but the overall market growth rate significantly decreased compared to 2020 [6]. - By the end of December 2021, the national inventory of commercial housing reached 51.023 million square meters, an increase of 1.137 million square meters year-on-year, marking a historical high [6]. - The real estate industry faced significant challenges in 2021, with investment contraction and declines in both supply and transaction volume [27]. - Despite the overall downturn, the new residential property market saw a slight increase in transaction volume and average price compared to the end of 2020 [27]. - In 2021, the real estate market saw a 15.5% year-on-year decline in transaction area, while transaction value increased by 2.8% compared to the end of 2020 [28]. - The forecast for GDP growth in 2022 is 5.5%, with the real estate industry expected to experience cautious investment trends due to market confidence issues [40]. - The new residential market in China is anticipated to enter a phase of negative growth in 2022, with sales volume slightly declining and average prices remaining stable [43]. - The overall performance of the Chinese housing market is expected to stabilize in 2022, with core cities likely to maintain growth while lower-tier cities face inventory pressure [43]. Company Financial Performance - The company faced increased promotional expenses in the second half of 2021 due to market downturns, leading to a decrease in gross profit [8]. - The group's gross profit for the year was approximately RMB 9.9 million, down from RMB 10.7 million the previous year, resulting in a gross profit margin decrease to 24.6% from 40.0% [34]. - The group recorded a loss attributable to shareholders of approximately RMB 2.9 million for the year, compared to a profit of RMB 58,000 the previous year [34]. - The overall operating and administrative expenses increased by approximately 7.4% year-on-year, primarily due to increased business travel for seeking opportunities [34]. - Revenue from comprehensive real estate consulting and sales agency services accounted for approximately 97.6% of total revenue, up from 85.0% in 2020 [35]. - The group's revenue from comprehensive real estate consulting and sales agency services increased by approximately 41.8% year-on-year, driven by strong market momentum [36]. - The company will not recommend the distribution of a final dividend for the year ending December 31, 2021, due to the need to maintain healthy liquidity levels amid market uncertainties [9]. - The company adopted a dividend policy targeting a payout ratio of 10% to 30% of consolidated net profit for the fiscal year [183]. - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 4,495,000, a decrease from RMB 8,883,000 in 2020 [191]. - The board has decided not to recommend any final dividend for the year ended December 31, 2021 [182]. Business Strategy and Future Plans - In 2022, the company plans to expand its real estate consulting, sales agency, and asset management businesses in first- and second-tier cities to identify suitable investment opportunities [10]. - The company aims to strengthen budget management and cost control to reduce operating expenses and ensure a healthy financial status for sustainable long-term development [10]. - The company plans to continue exploring opportunities in the Southeast Asian market, particularly in Cambodia, despite the significant impact of the pandemic on performance [44]. - The company is committed to sustainable development and aims to integrate sustainability into its business value chain [65]. - The company aims to provide comprehensive and high-quality real estate consulting and sales services to its clients, ensuring accurate project information and market insights [180]. Environmental, Social, and Governance (ESG) Initiatives - The board has established a cross-departmental ESG working group to enhance cooperation and ensure consistent performance [70]. - The company has set clear short-term and long-term sustainability goals to achieve continuous emission reduction progress [70]. - The company will continue to monitor and review its ESG performance regularly [71]. - A total of 28 sustainability issues were identified through an online survey involving internal and external stakeholders, focusing on areas such as labor practices, environmental protection, and community investment [76]. - The importance matrix identified 10 key ESG issues prioritized by stakeholders, including business ethics, anti-corruption training, customer satisfaction, and employee development [82]. - The company emphasizes the protection of customer privacy and corporate data, ensuring compliance with all relevant laws and regulations regarding data privacy [85]. - A zero-tolerance policy towards corruption, bribery, and fraud is enforced, with all employees required to undergo anti-corruption training and sign a compliance agreement [86]. - The company has established an Environmental, Social, and Governance (ESG) working group to integrate ESG factors into operations and report on performance regularly to management [74]. - The company has implemented various resource-saving measures, including energy-efficient lighting and water-saving devices, to reduce operational carbon footprint [129]. - The company has identified climate-related risks and opportunities, emphasizing the importance of transitioning to a low-carbon economy [149]. Employee Management and Welfare - The total number of employees as of December 31, 2021, was 101, with a gender ratio of 1:1.15 (54 males and 47 females) [99]. - The employee turnover rate was 9%, with 105 employees leaving, including 43 males (7%) and 62 females (11%) [99]. - The company has established a "Intellectual Property Management System" to protect the rights of the group and its clients, adhering to relevant laws such as the Patent Law and Copyright Law [91]. - The company emphasizes employee welfare by providing competitive salaries, statutory holidays, and various benefits, including marriage leave and transportation allowances [94]. - The company encourages employee feedback through dedicated channels, ensuring confidentiality and prompt follow-up on complaints or suggestions [98]. - The company aims to create a harmonious and safe working environment to retain talent and enhance employee satisfaction [93]. - A total of 85 employees, representing 84% of the workforce, received training during the year, with 47 males (87%) and 38 females (81%) participating [108]. - The average training hours per employee totaled 799 hours, with both male and female employees averaging 8 hours each [108]. - The company has implemented a system to ensure no child or forced labor is employed, with no significant non-compliance cases reported during the year [95]. Supply Chain Management - The company maintained a total of 20 primary suppliers, all located in China, ensuring a stable supply chain [112]. - The company has implemented a supplier selection and evaluation process to ensure quality products and services, with performance assessments conducted post-delivery [113]. - All suppliers are required to adhere to the company's Supplier Code of Conduct, which includes five key areas: working conditions, environmental responsibility, delivery quality standards, anti-corruption, and intellectual property [114]. Operational Performance and Compliance - The company has complied with all relevant laws and regulations that have a significant impact on its operations during the fiscal year ending December 31, 2021 [176]. - The company did not violate any environmental laws or regulations during the reporting year [120]. - The company has not received any complaints regarding its products or services during the reporting period, indicating compliance with health, safety, and advertising regulations [90]. - The company faces significant risks and uncertainties, which are discussed in the management discussion and analysis section of the report [181].
富阳(00352) - 2021 - 年度财报