SMC(SH:600823)2022-04-22 16:00Financial Performance - In 2021, the company's operating revenue was CNY 19.39 billion, a decrease of 10.66% compared to CNY 21.71 billion in 2020[21]. - The net profit attributable to shareholders was CNY 961 million, down 38.01% from CNY 1.55 billion in the previous year[21]. - The basic earnings per share decreased by 36.59% to CNY 0.26 from CNY 0.41 in 2020[22]. - The total assets at the end of 2021 were CNY 142.98 billion, a decrease of 4.23% from CNY 149.30 billion in 2020[21]. - The net cash flow from operating activities was negative CNY 16.11 billion, compared to a positive CNY 4.84 billion in 2020[21]. - The weighted average return on equity decreased to 3.61% from 5.90% in 2020, a decline of 2.29 percentage points[22]. - The net assets attributable to shareholders at the end of 2021 were CNY 25.81 billion, a slight decrease of 1.07% from CNY 26.09 billion in 2020[21]. - The cash balance at the end of the reporting period was CNY 8.891 billion, a decrease of 38.06% year-on-year, with a cash-to-short-term debt ratio of 0.54[38]. - The company reported a total financing amount of CNY 37,629.74 million, with an average financing cost of 6.75%[77]. Revenue and Sales - In 2021, the company's total operating revenue was CNY 19.392 billion, a decrease of 10.66% year-on-year, with real estate sales revenue at CNY 17.316 billion, down 14.46%[38]. - The company achieved a total sales contract of CNY 28.8 billion for the year, a year-on-year increase of 6%, with a sales area of 1.59 million square meters, up 47%[38]. - The total sales area for residential properties in the first half of 2021 reached 88.64 million square meters, a year-on-year increase of 27.7%[33]. - The company emphasized its focus on strategic urban development in eight key city clusters, aiming to enhance operational efficiency and create value[31]. - The company’s commercial projects saw a significant increase in sales and foot traffic, with sales up 40% and foot traffic up 61% year-on-year[39]. Market Strategy and Development - The company plans to focus on risk management and strategic development in the upcoming years[6]. - The company plans to continue expanding its market presence while adhering to national policies and focusing on high-standard commercial properties[31]. - The company is focusing on expanding its presence in key markets, including Jiangsu and Guangdong provinces[66]. - The company plans to achieve a contract sales target of 13 billion RMB in 2022, with a planned sales rate of 45%[86]. - The company is actively expanding its market presence with 45 new projects planned, contributing to a projected growth in sales[70]. Operational Efficiency - The company plans to continue optimizing its dual-driven operational model of real estate development and commercial management to adapt to market changes[42]. - The company aims to maintain the vacancy rate of quality commercial projects below 5% and increase rental rates by 5-10 percentage points for underperforming projects[87]. - The company will focus on developing its light asset management business and expand its presence in key urban areas[87]. - The company is committed to improving operational quality and efficiency through inventory reduction and structural adjustments[84]. Governance and Compliance - The board of directors strictly adhered to their commitments, ensuring independent opinions and constructive suggestions on the company's strategic development and major operational decisions[97]. - The company maintained complete separation from its controlling shareholders in personnel, assets, institutions, finance, and business, ensuring independent operational capabilities[99]. - The company has established a system for insider information management, with no incidents of insider trading prior to the disclosure of sensitive information[98]. - The company’s governance practices align with legal and regulatory requirements, ensuring compliance and transparency in its operations[98]. - The company has established specialized committees under the board, including audit, nomination, compensation, and strategic committees, to enhance governance[119]. Risk Management - The company emphasizes risk control, operational excellence, and management precision as key capabilities for navigating market fluctuations[85]. - The company acknowledges risks related to the cyclical recovery of the real estate market and potential impacts from renewed COVID-19 outbreaks[90]. - The company will implement measures to mitigate liquidity risks, including deferring heavy asset investments and optimizing non-core assets[88]. - The company is facing tightening financing channels, which may impact its future capital raising efforts[197]. Future Outlook - Future guidance suggests a revenue growth target of 15% for the next fiscal year, driven by new product launches and market expansion strategies[70]. - The company plans to invest in new technologies, with a budget allocation of 500 million RMB for R&D in the upcoming year[70]. - The company is committed to ESG management, focusing on green buildings and sustainable operations[89]. - The company plans to achieve rental income of 1.42 billion yuan in 2022, representing steady growth compared to 2021[87]. Compensation and Remuneration - The total pre-tax compensation for the Chairman, Wu Linghua, was 2.68 million CNY[102]. - The total pre-tax compensation for the independent director, Wu Sizong, was 142,500 CNY[102]. - The total pre-tax compensation for the independent director, Xu Jianxin, was 87,500 CNY[102]. - The total pre-tax compensation for the independent director, Qian Xieliang, was 87,500 CNY[102]. - The total pre-tax compensation for the independent director, Wang Hongwei, was 87,500 CNY[102]. - The total pre-tax compensation for the independent director, Li Dapei, was 55,000 CNY[102]. Related Party Transactions - The company reported a related party transaction amounting to 1,653.5 million yuan, which was conducted in accordance with legal procedures and did not harm the interests of the company or minority shareholders[122]. - The company reported a total of 60,127.90 million RMB in funds provided to related parties, with a net increase of 25,692.54 million RMB during the reporting period[162]. - The company has a balance of 36,516.07 million RMB with Shenzhen Shenshi Shanju Industrial Co., Ltd., reflecting an increase of 880.39 million RMB[162]. Debt and Financing - The company has significant repayment pressure with a large amount of bonds maturing within the next year, which could affect future financing[197]. - The company has issued corporate bonds with a total value of 4.65% interest rate, maturing in 2022[191]. - The company has a bond that will mature in 2023 with an interest rate of 4.12% and annual interest payments[200]. - The company has provided a joint liability guarantee of RMB 40 million for a loan from China Industrial Bank, with a remaining balance of RMB 7.5 million as of the end of the reporting period[171].