LJRB(SH:600853)2021-03-30 16:00Financial Performance - In 2020, the company's operating revenue reached approximately CNY 11.84 billion, representing a year-on-year increase of 6.58% compared to CNY 11.11 billion in 2019[22]. - The net profit attributable to shareholders was approximately CNY 224.45 million, a slight increase of 0.56% from CNY 223.21 million in 2019[22]. - The basic earnings per share (EPS) for 2020 was CNY 0.2234, reflecting a 0.59% increase from CNY 0.2221 in 2019[22]. - The net cash flow from operating activities improved significantly to approximately CNY 2.34 billion, compared to a negative cash flow of CNY -851.12 million in 2019[22]. - The company's total assets increased by 18.75% to approximately CNY 23.45 billion at the end of 2020, up from CNY 19.74 billion at the end of 2019[22]. - The net assets attributable to shareholders rose by 31.52% to approximately CNY 2.42 billion, compared to CNY 1.84 billion at the end of 2019[22]. - The company's total revenue for 2020 was CNY 11,837,428,005.59, representing a 6.57% increase from CNY 11,106,371,251.76 in 2019[59]. - The construction engineering segment accounted for 98.25% of total revenue in 2020, with revenue of CNY 11,630,206,648.54, up from CNY 10,637,745,721.24 in 2019[59]. Dividends and Profit Distribution - The company distributed a cash dividend of CNY 16,748,359.10 (including tax) for the third quarter of 2020, with a plan to distribute 0.5 shares for every 10 shares held and a cash dividend of CNY 0.20 per 10 shares[5]. - The board proposed not to distribute profits or increase capital reserves at the end of 2020, opting to carry forward the remaining profits for future distribution[5]. - The company distributed cash dividends totaling approximately CNY 16.75 million to shareholders, with a stock dividend of 0.5 shares for every 10 shares held[22]. - The company's net profit attributable to ordinary shareholders for 2020 was 224,453,925.94 RMB, with a dividend payout ratio of 7.46%[102]. Risk Management - The company reported no significant risk events during the reporting period, with detailed descriptions of potential risks and countermeasures provided in the report[8]. - The company’s future plans and strategic developments are subject to investment risks, and no substantial commitments are made to investors[6]. - The company faces financing risks due to the expansion of its operational scale and investment projects, which may impact its profitability[93]. - Accounts receivable risk is significant due to the long project durations and large contract amounts typical in the construction industry, leading to slower turnover[94]. - Interest rate risk arises primarily from long-term and short-term bank borrowings, affecting the company's cash flow[95]. - The company is exposed to foreign exchange risk, particularly related to USD and other foreign currencies, which may impact its operational performance[96]. - Safety risks are heightened with increased construction activity, including various hazards associated with road, bridge, and tunnel construction[97]. Legal Matters - The company is involved in a significant arbitration case seeking compensation of approximately 42.18 million RMB due to increased labor costs from Qinglong Company[113]. - The company is also facing a lawsuit from Guizhou Highway Group, with claims totaling approximately 82.44 million RMB, including economic losses and penalties[114]. - The company has faced multiple legal proceedings regarding construction contracts and overpayments[116]. - The company is currently executing a court ruling to recover funds from a previous legal case[116]. - The company has been actively pursuing legal remedies to address financial losses from construction-related disputes[116]. - The company is appealing several court decisions, including a ruling that requires it to pay 1,148,655 yuan for project funds[124]. - The company is involved in multiple legal disputes, including a claim for 3,371,175.01 yuan for unpaid cement payments[120]. - The company is actively managing its legal risks and obligations through court proceedings and settlements[120]. Corporate Governance - The company has a standard unqualified audit report issued by Zhongshen Yatai Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[7]. - The company has not disclosed any penalties or corrective actions against its executives or major shareholders[128]. - The company is focused on maintaining a strong governance structure with independent oversight from its board members[199]. - The leadership team has been stable, with many members serving in their roles since 2016 or earlier, indicating continuity in management[199]. Strategic Development - The company is actively pursuing the renewal of its qualifications for foreign aid projects, which expired in January 2019[32]. - The company is actively pursuing a "going out" strategy, successfully securing the Delhi Metro project in India through an innovative joint venture model[48]. - The company is focusing on expanding its market presence in key economic regions such as the Yangtze River Delta and the Greater Bay Area[86]. - The company plans to secure new contract orders of 24 billion yuan in 2021[90]. - The company is committed to deepening reforms and enhancing its competitive edge in the infrastructure construction sector[89]. Research and Development - The company obtained a total of 78 national patents during the reporting period, including 25 invention patents and 52 utility model patents[41]. - Research and development expenses increased significantly by CNY 170.55 million, marking a 1,196.83% rise compared to the previous year, due to enhanced investment in research projects[53]. - The company employed 781 R&D personnel, representing 13.50% of the total workforce, highlighting a strong focus on innovation[65]. - The company is investing 50 million in research and development to innovate sustainable construction materials[200]. Environmental Responsibility - The company has maintained compliance with national and local environmental standards, with no reported environmental pollution incidents or complaints[172]. - The company has actively engaged in green construction practices, implementing guidelines and management systems to promote environmental responsibility[171]. - The company has implemented a comprehensive environmental management system in accordance with ISO14001:2015 standards[171]. Shareholder Information - The total number of ordinary shares increased from 837,417,955 to 1,004,901,546 shares due to a profit distribution plan, which included a cash dividend of 0.02 yuan per share and a stock dividend of 0.05 shares per share[177]. - The largest shareholder, Heilongjiang Construction Investment Group Co., Ltd., holds 44.45% of the shares, totaling 446,690,030 shares[184]. - The number of restricted shares held by Heilongjiang Construction Investment Group Co., Ltd. is 167,481,600, which will become tradable on April 2, 2021, with an additional 27,913,600 shares becoming tradable due to a private placement[187].