HKHC(SH:600162)2022-05-24 16:00Financial Performance - The company's operating revenue for 2021 was CNY 5,704,314,008.18, representing a 14.50% increase compared to CNY 4,982,150,889.31 in 2020[26]. - The net profit attributable to shareholders of the listed company decreased by 33.37% to CNY 187,665,903.89 from CNY 281,649,123.23 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 50.82% to CNY 130,456,900.22 compared to CNY 265,247,557.88 in 2020[26]. - The net cash flow from operating activities was CNY 490,883,429.90, down 17.82% from CNY 597,328,920.56 in 2020[26]. - The total assets of the company increased by 15.68% to CNY 29,641,483,197.63 at the end of 2021, compared to CNY 25,623,925,893.49 at the end of 2020[26]. - The net assets attributable to shareholders of the listed company rose by 37.05% to CNY 7,286,106,884.23 from CNY 5,316,511,066.49 in 2020[26]. - Basic earnings per share decreased by 32.37% to RMB 0.0562 in 2021 compared to RMB 0.0831 in 2020[28]. - The diluted earnings per share also decreased by 32.37% to RMB 0.0562 in 2021 compared to RMB 0.0831 in 2020[28]. - The weighted average return on net assets decreased to 2.54% in 2021 from 5.26% in 2020, a decline of 2.72 percentage points[28]. Revenue and Sales - The company achieved a total sales amount of approximately RMB 3.7 billion and project cash inflows of about RMB 4.2 billion in 2021[34]. - The company reported a total sales area of 1.794 billion square meters for commercial housing in 2021, with a year-on-year growth rate of 1.9%, and a total sales amount of 1.819 trillion yuan, reflecting a year-on-year increase of 4.8%[38]. - The new construction area in 2021 was 1.989 billion square meters, a decline of 11.4%, marking the largest drop since 2016[38]. - In 2021, the company achieved a contracted sales area of approximately 311,700 square meters and a contracted sales amount of approximately 3.709 billion yuan, primarily from residential sales[44]. Operational Efficiency - The company focused on project completion and sales in key areas such as Guangzhou, Tianjin, and Lianyungang, with significant efforts in brand marketing and operational efficiency[34]. - The company’s operational management team has over 20 years of experience in the commercial circulation industry, establishing a competitive advantage in the South China region[43]. - The company’s budget management and cost control measures have been strengthened to ensure performance targets are met[36]. - The company aims to enhance cash flow management, improve fund recovery rates, and increase asset turnover to boost operational efficiency[75]. Investment and Financing - The company’s investment activities resulted in a net cash outflow of 561.16 million yuan, attributed to increased expenditures on joint ventures and the acquisition of the Nanchang Kunxin project[54]. - The total financing amount at the end of the period was RMB 620,420.02 million, with an average financing cost of 6.7879%[69]. - The company has established a partnership with Microsoft China for a cloud and mobile technology incubation project, which has seen significant progress since its inception in 2017[162]. Governance and Compliance - The company has provided a standard unqualified audit report from Deloitte Huayong Certified Public Accountants[5]. - The company strictly adheres to information disclosure regulations, ensuring all shareholders have equal access to information[86]. - The company has established a long-term system to prevent the controlling shareholder from occupying listed company funds, maintaining operational independence[88]. - The internal control system is effectively operating, with dedicated departments responsible for self-evaluation and internal audits[87]. Legal Matters - The company is involved in multiple lawsuits, including a claim for 130,000,000 CNY regarding unpaid project funds, with a court hearing already held[147]. - The company has engaged professional legal firms to actively respond to these lawsuits[148]. - The company has reported a good integrity status for itself and its major stakeholders during the reporting period[150]. - The company has successfully defended against a group lawsuit involving 168,000,000 CNY, with the court ruling in its favor[148]. Market Conditions and Risks - The real estate market faced unprecedented challenges in 2021 due to tightening policies and the impact of COVID-19, affecting project development and sales[139]. - The implementation of the "three red lines" financing policy for real estate companies increased financial pressure on the industry[139]. - Market risks include a slowdown in demand for commodity housing, particularly in lower-tier cities, which could adversely affect business growth[81]. Future Outlook - The company provided guidance for 2022, projecting revenue growth of 10% to 12%, aiming for a total revenue between 1.32 billion and 1.344 billion[99]. - The company plans to control costs, promote sales, and reduce inventory while focusing on improving core business capabilities and operational efficiency[76]. - The company is committed to sustainability, with plans to invest 100 million in green technology projects over the next three years[99].