CJJG(SH:600496)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was CNY 11,484,018,588.4, representing a 12.20% increase compared to CNY 10,235,446,133.0 in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 7,648,111,426.73, a significant increase of 60.69% from CNY 5,403,318,634.81 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 591,755,525.34, which is a 61.39% increase from CNY 366,670,335.03 in 2019[23]. - The net cash flow from operating activities was CNY 424,101,478.15, showing a decrease of 22.33% compared to CNY 546,011,756.92 in 2019[23]. - Basic earnings per share (EPS) rose by 54.89% to CNY 0.3451 in 2020 compared to CNY 0.2228 in 2019[25]. - The weighted average return on net assets increased by 3.11 percentage points to 11.03% in 2020[25]. - Operating income for the fourth quarter of 2020 was approximately CNY 3.72 billion, with a net profit attributable to shareholders of CNY 159.57 million[26]. - The company reported a cash flow from operating activities of approximately CNY 252.31 million in 2020[30]. - Non-recurring gains and losses amounted to approximately CNY 56.36 million in 2020, compared to CNY 36.65 million in 2019[32]. - Revenue for the reporting period reached 11.484 billion yuan, an increase of 12.20% year-on-year, while net profit rose to 648 million yuan, reflecting a significant growth of 60.69%[64]. Dividend Policy - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares, totaling CNY 60,386,230.47 for the year 2020[6]. - The company plans to distribute at least 30% of the average distributable profit over the last three years in cash dividends during profitable years[134]. - In 2020, the company distributed cash dividends amounting to 60,386,230.47 RMB, representing 9.32% of the net profit attributable to ordinary shareholders[135]. - The company has committed to maintaining a cash dividend policy that prioritizes cash distributions when conditions allow, ensuring shareholder interests are protected[131]. Business Operations and Strategy - The company’s main business includes steel structure engineering and complete building products, with a focus on integrated design, manufacturing, and installation services[35]. - The company is transitioning from a steel structure subcontractor to an EPC (Engineering, Procurement, and Construction) contractor, enhancing its position in the industry and improving pricing power and cash flow[39]. - The company has developed the Green Building System (GBS) with a maximum assembly rate of 95% for prefabricated buildings[35]. - The product system is categorized into public buildings, industrial products, and residential products, with public buildings further divided into customized and standardized products[38]. - The company aims to enhance its core competitiveness through technology innovation and has established a group expert committee to track industry trends[120]. - The company is initiating a digital transformation, focusing on parameterized design and automated production[123]. - The company is promoting prefabricated buildings and integrating information technology into construction processes to improve efficiency and sustainability[118]. - The company’s strategic plan includes transitioning to a comprehensive service provider in the steel structure construction industry[119]. Market and Industry Trends - In 2020, the total area of newly started prefabricated buildings reached 630 million square meters, a 50% increase from 2019, accounting for approximately 20.5% of new construction area[42]. - The proportion of prefabricated steel structure buildings among newly started prefabricated buildings was 30.2%, totaling 190 million square meters, which represents a 46% increase from 2019[44]. - The government has implemented policies to promote the EPC model, with local regulations established in all 31 provinces and regions in mainland China[41]. - The construction industry is a key player in carbon reduction, with the goal of achieving carbon peak by 2030 and carbon neutrality by 2060, necessitating a shift towards green building practices[45]. - Steel structure market penetration is currently low, with only 7.4% of national steel production used in construction, compared to an average of 30% in developed countries[46]. - The steel structure industry in China is rapidly growing, but competition in the low-end market is expected to intensify, potentially impacting profitability[128]. Research and Development - The company invested over 2 billion yuan in R&D over the past 8 years, the highest in the steel structure industry, and received 6 national science and technology progress awards[55]. - The company has developed a digital green construction technology that was included in the National Green Technology Promotion Catalog (2020)[61]. - The company has established two national-level post-doctoral research stations to enhance high-end research talent recruitment[70]. - The company’s R&D expenses increased by 9.98% to 442.68 million RMB, reflecting its commitment to innovation[76]. - Research and development expenses totaled 442,676,227.23, representing 3.85% of operating income, with a 9.98% increase compared to the previous period[89][91]. Client and Market Presence - The company has a strong client base, including major clients like Apple, Alibaba, and Huawei, with high customer retention rates[57]. - The company achieved a total of 439 new business contracts with a business value of 18.368 billion yuan, representing a year-on-year growth of 31%[64]. - The company secured new orders worth 5.636 billion yuan in EPC and prefabricated construction, marking a year-on-year increase of 103%[65]. - The proportion of EPC and prefabricated orders in total orders increased from 20% in 2019 to 31% in the reporting period[65]. - The company has expanded its market presence into new regions, including Lishui City in Zhejiang Province and Zhangye City in Gansu Province[65]. Financial Position and Assets - The net assets attributable to shareholders of the listed company increased by 29.66% year-on-year, reaching approximately CNY 6.83 billion at the end of 2020[25]. - Total assets grew by 14.84% year-on-year, amounting to approximately CNY 15.81 billion at the end of 2020[25]. - The company’s cash and cash equivalents increased by 54.04% to 3,135,465,062.85, primarily due to a directed stock issuance[93]. - The company’s contract assets reached 4,768,723,939.56, accounting for 30.16% of total assets[93]. - The company’s total liabilities decreased by 12.60% compared to the previous period[82]. Corporate Governance and Compliance - The company has maintained a standard unqualified audit report from its accounting firm, Zhonghua Certified Public Accountants[5]. - The company has no major litigation or arbitration matters during the reporting period[147]. - The company has no significant accounting errors or corrections during the reporting period[145]. - The company has not faced any risks of suspension or termination of listing[145][147]. - The company has implemented new revenue recognition standards starting January 1, 2020, affecting financial reporting and contract asset/liability presentation[141]. Shareholder Information - The company issued 202,429,149 new shares in August 2020, increasing the total shares to 2,012,874,349[170]. - The top ten shareholders held a total of 300 million shares, representing 14.90% of the company, with significant pledges on their shares[181]. - The company reported a decrease in the number of shareholders, indicating potential consolidation among investors[180]. - The company’s equity structure remains stable with no new priority shareholders reported[180]. - The largest shareholder, Seiko Holdings Group Co., Ltd., holds 237,069,604 shares of common stock[183]. Social Responsibility - The company donated CNY 515,000 for poverty alleviation through scholarships and donations[160]. - The company plans to continue supporting poverty alleviation initiatives in the future[162].