SID(SH:600748)2023-03-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 10,063,198,233.94, representing a 54.15% increase compared to CNY 6,528,286,480.94 in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 183,735,682.32, a decrease of 67.71% from CNY 568,937,979.06 in 2020[22]. - The net cash flow from operating activities was negative CNY 3,572,881,666.67, a decline of 584.19% compared to CNY 737,913,100.64 in 2020[22]. - The total assets at the end of 2021 were CNY 39,542,508,277.37, down 5.31% from CNY 41,758,594,963.32 at the end of 2020[22]. - The net assets attributable to shareholders decreased by 11.54% to CNY 10,024,030,365.08 at the end of 2021 from CNY 11,331,522,391.08 at the end of 2020[22]. - Basic earnings per share for 2021 were CNY 0.08, a decrease of 70.04% from CNY 0.28 in 2020[24]. - The weighted average return on equity was 1.50% for 2021, down 3.56 percentage points from 5.06% in 2020[24]. - Non-recurring gains for 2021 amounted to approximately CNY 964.91 million, primarily from the disposal of non-current assets[27]. - The company reported a significant increase in income tax expenses, rising 105.04% to ¥968,022,530.51, primarily due to increased profits from real estate sales[47]. Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY 429.94 million in Q4 2021, a significant recovery from previous quarters[26]. - The net cash flow from operating activities was negative at approximately RMB -3.57 billion, a decline of 584.19% year-on-year, primarily due to land reserve payments[40]. - The company’s investment activities generated a cash inflow of ¥760,890,195.28, a significant improvement compared to the previous year[51]. - The company reported a capitalized interest amount of 64.17 million RMB during the reporting period[64]. - The company’s cash dividend policy stipulates that the cumulative cash distribution over the last three years should not be less than 30% of the average distributable profit, with the actual distribution being 70.10%[112]. Real Estate Development - The total sales area for the year was approximately 240,000 square meters, generating a total sales amount of about CNY 6.252 billion[31]. - The company successfully launched the "Shangshi • Haishang Jingying (Phase II)" project, achieving a signing amount of approximately CNY 3.5 billion[31]. - The company acquired a strategic land plot in Hongkou District, Shanghai, for the construction of a 480-meter tall building, marking a significant expansion in the area[32]. - The company had 8 ongoing construction projects with a total area of approximately 1.5 million square meters, achieving set goals for quality, progress, and safety[32]. - The company achieved a sales signing rate of 96% for key new projects, such as "Shanghai Baoshan Shanshi • Haishang Jingying (Phase II)"[36]. - The company plans to invest RMB 4.8 billion in a joint venture for the development of state-owned land use rights in Hongkou District, Shanghai[180]. Corporate Governance - The company has established a sound corporate governance structure, ensuring clear responsibilities among the shareholders' meeting, board of directors, supervisory board, and management[82]. - The company has implemented measures to ensure independence from its controlling shareholder in terms of assets, personnel, finance, and operations[82]. - The company’s governance practices comply with the requirements set by regulatory authorities, with no significant discrepancies noted[82]. - The company has a commitment to transparency and information disclosure, aligning with regulatory standards[82]. - The company has a strong leadership team with extensive experience in various sectors, including construction and finance[90]. Related Party Transactions - The total amount of related party transactions for 2021 was approximately RMB 87.99 million, exceeding the expected amount of RMB 85.05 million[171]. - The company received rental fees from related parties totaling RMB 3,720,080.18, RMB 471,698.10, and RMB 1,151,291.40, among others, based on market pricing[170]. - The company’s related party transactions are primarily for service provision, including management and engineering project fees[170]. - The company has a total of 450.40 million RMB in receivables from various related parties for project payments[176]. Internal Controls and Compliance - The company established an internal control system in accordance with the Basic Norms for Enterprise Internal Control, with 18 revised and 6 new regulations implemented[117]. - There were two significant internal control deficiencies identified, including fictitious transactions by senior management at a subsidiary, which are under judicial investigation[118]. - The internal control audit report received a clean opinion with an emphasis on certain matters[122]. - The company is committed to maintaining the legal rights of its shareholders while addressing the audit report's concerns[132]. Future Outlook and Strategy - In 2022, the company aims to achieve a revenue target of 7 billion RMB and expects a completion area of approximately 880,000 square meters[73]. - The company plans to focus on optimizing the structure of existing assets while balancing new developments, emphasizing the importance of revitalizing existing assets as a key task for the year[74]. - The company recognizes the ongoing challenges posed by the global pandemic and economic pressures, with a focus on adhering to the "housing is for living, not for speculation" policy[78]. - The company aims to deepen its involvement in urban renewal, long-term rental apartments, and senior housing as part of its diversified real estate strategy[72].