TANDE(SH:600665)2022-04-08 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 376,806,218.33 in 2021, representing a 14.61% increase compared to RMB 328,775,116.22 in 2020[6]. - Total operating revenue for 2021 was RMB 6,941,947,174.46, marking a 30.89% increase from RMB 5,303,654,893.66 in 2020[24]. - Basic earnings per share rose to RMB 0.4361 in 2021, a 14.61% increase from RMB 0.3805 in 2020[25]. - The weighted average return on equity increased to 9.31% in 2021, up from 8.65% in 2020, reflecting a 0.66 percentage point increase[25]. - The net profit after deducting non-recurring gains and losses was RMB 251,618,369.42, a decrease of 13.98% from RMB 292,505,508.99 in 2020[24]. - The company reported a decrease in diluted earnings per share to RMB 0.2912 after deducting non-recurring gains and losses, down from RMB 0.3385 in 2020, a decline of 13.97%[25]. - The company achieved a sales revenue of 6.942 billion RMB, representing a 30.89% increase compared to the previous year[39]. - The net profit attributable to the parent company was 377 million RMB, with a weighted average return on equity of 9.31%[37]. - The company recorded a contract sales amount of 12.189 billion RMB and an equity contract sales amount of 9.4 billion RMB[37]. - The company achieved total sales revenue of 1,218,892.35 million RMB, with a sales area of 731,963.15 square meters during the reporting period[60]. Cash Flow and Financial Stability - The net cash flow from operating activities decreased by 82.73% to RMB 669,379,333.63 at the end of 2021, down from RMB 3,876,529,048.96 at the end of 2020[24]. - The company secured financing of RMB 8.1 billion throughout the year, enhancing its financial stability[32]. - The company’s cash flow from operating activities decreased by 82.73% to 669 million RMB compared to the previous year[39]. - The average financing cost for the company was 7.38% with total financing amounting to 1,485,349.80 million RMB at the end of the reporting period[63]. - The company has a loan balance of CNY 1.15 billion from financial institutions, with a loan interest rate of 8.7% per annum, due within 30 months[159]. - The company has another loan balance of CNY 150 million, with a loan interest rate of 9% per annum, due within 24 months[160]. Strategic Initiatives and Market Position - The company aims to position itself as a leader in cultural real estate and a provider of quality living experiences[35]. - The company plans to invest 8.204 billion RMB in construction and planned projects in 2022, with an estimated land acquisition cost of approximately 11.7 billion RMB for about 1.05 million square meters[63]. - The company plans to focus on acquiring quality land in economically strong cities with net population inflow, using methods such as bidding and mergers[81]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for this purpose[98]. - The company is actively expanding its market presence through strategic partnerships and joint ventures in various regions[69]. Operational Efficiency and Management - The company implemented a strategic focus on project management and operational efficiency, resulting in multiple awards for engineering quality[32]. - The company aims to enhance cash flow safety by increasing sales efforts and improving fund utilization efficiency[81]. - The company is committed to improving operational efficiency and cost control through detailed cost estimation and project management[82]. - The company has optimized its subsidiary management structure to improve control efficiency[130]. - The company has established a comprehensive internal control system, reviewing 156 existing documents and enhancing the internal control framework[128]. Governance and Compliance - The company held 18 board meetings in 2021, passing 61 resolutions and receiving 13 special reports[87]. - The company’s governance structure has been refined with the revision of 7 governance rules, including the shareholder meeting rules[87]. - The company’s board and committees actively engaged in governance, holding a total of 13 committee meetings and 4 supervisory meetings[87]. - The company has improved its internal control and risk management awareness through the implementation of management manuals[87]. - The company’s audit committee confirmed that the related transactions during the reporting period did not harm the interests of the company or its minority shareholders[113]. Market Challenges and Outlook - The real estate market faced challenges in 2021, with a 23.8% year-on-year decline in residential land transactions across 300 cities[34]. - The outlook for 2022 suggests a potential recovery in the real estate market, although external challenges remain significant[34]. - The company anticipates a gradual recovery in market confidence and a slight increase in transaction volume in 2022, despite ongoing industry adjustments[74]. - The company is monitoring the impact of regulatory changes on the real estate market, with expectations of a stable policy environment in 2022[75]. Environmental and Social Responsibility - The company has actively promoted waste classification in its service communities, setting up centralized waste classification points[141]. - The company has implemented comprehensive management measures to effectively reduce air pollution during project construction[141]. - In response to the COVID-19 pandemic, the company dispatched over 700 personnel to support nucleic acid testing in 41 communities, demonstrating strong community engagement and social responsibility[143]. - The company initiated the "Orange Light" micro-light plan, supporting rural revitalization by purchasing local agricultural products, thereby aiding in poverty alleviation efforts[144]. Legal and Litigation Matters - The company has been involved in significant litigation, including a case where Tianjin Tiandi Yuan demanded RMB 45 million from Tianjin Binhai Development Investment Holding Co., which is currently under court proceedings[152]. - A total of RMB 1.6 billion in funds has been frozen by the Xi'an Intermediate People's Court due to ongoing litigation involving the company's subsidiary[152]. - The company has faced a lawsuit from Shaanxi Construction Sixth Group, claiming RMB 73.12 million in progress payments and RMB 12.80 million in economic losses due to delays[153]. Related Party Transactions - The total amount of related party transactions for 2021 was CNY 32.15 million, which did not exceed the initially estimated total of CNY 122.34 million[157]. - The company engaged in various related party transactions, including purchasing materials and providing services, with amounts ranging from CNY 7,547.17 to CNY 27.5 million[157]. - The company has signed a share custody agreement with its controlling shareholder, managing the equity of three project companies in real estate development[163].