NB CONSTRUCTION(SH:601789)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 19.80 billion, representing a year-on-year increase of 6.69% compared to CNY 18.56 billion in 2019 [21]. - The net profit attributable to shareholders for 2020 was CNY 279.59 million, which is an increase of 16.36% from CNY 240.28 million in 2019 [21]. - The total assets at the end of 2020 reached CNY 18.62 billion, marking an 18.10% increase from CNY 15.77 billion at the end of 2019 [21]. - The basic earnings per share for 2020 was CNY 0.2687, up 9.14% from CNY 0.2462 in 2019 [22]. - The weighted average return on equity for 2020 was 8.78%, an increase of 0.26 percentage points from 8.52% in 2019 [22]. - The net cash flow from operating activities for 2020 was CNY 969.60 million, a decrease of 14.87% compared to CNY 1.14 billion in 2019 [21]. - The company reported a net profit of CNY 108.46 million in Q4 2020, which is a significant increase compared to CNY 56.57 million in Q1 2020 [24]. - The total equity attributable to shareholders at the end of 2020 was CNY 3.57 billion, reflecting a 23.32% increase from CNY 2.89 billion at the end of 2019 [21]. - The company recognized non-recurring gains of CNY 45.23 million in 2020, compared to CNY 41.97 million in 2019 [27]. Dividend Policy - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares to all shareholders, with the total cash dividend amount depending on the total number of shares registered on the dividend distribution date [5]. - The company has a cash dividend policy that mandates a minimum of 30% of the average distributable profit over the last three years to be distributed in cash, with a minimum of 10% of the current year's distributable profit [106]. - In 2020, the company distributed a cash dividend of RMB 1.0 per 10 shares, totaling RMB 97,608,390.20, which is consistent with the previous year's dividend of RMB 1.0 per 10 shares [110]. - The company reported a net profit attributable to ordinary shareholders of RMB 279,589,539.24 for the year 2020, with a cash dividend payout ratio of 34.91% [110]. - The company maintained a consistent dividend policy over the past three years, with cash dividends distributed in 2018, 2019, and 2020 [110]. Audit and Compliance - The company received a standard unqualified audit report from Da Xin Accounting Firm, ensuring the financial report's authenticity and completeness [4]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the annual report's content [8]. - The company has not encountered any significant accounting errors that would require correction or impact its financial statements [114]. - The company has adopted the new revenue recognition standards effective January 1, 2020, as mandated by the Ministry of Finance [113]. - The company has engaged Da Xin Accounting Firm for auditing services, with a remuneration of RMB 130,000 for the current year [115]. Market Position and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth [30]. - The company is positioned as a regional leader in the construction industry, with a strong market foundation in Ningbo and the Yangtze River Delta [71]. - The company aims to enhance its competitive edge by focusing on integrated services in construction, operation, and delivery, leveraging its strong capital and management capabilities [95]. - The company plans to implement a "one body, two wings" development strategy, focusing on general contracting and specialized subcontracting to drive growth [96]. - The company intends to strengthen its technological innovation and improve its competitive capabilities through high-difficulty project undertakings and enhanced research efforts [97]. Legal Matters - The company is currently involved in significant litigation matters, including a lawsuit against Xi Rui Real Estate for overdue payments totaling RMB 127,406,606.61 [117]. - The company has received a civil judgment requiring Xi Rui Real Estate to pay RMB 145,447,132.60, including principal and interest, along with legal fees and other costs [117]. - The company has filed an appeal against the judgment from the Zhejiang Provincial High People's Court regarding the aforementioned case [117]. - The company has received a civil judgment from the Supreme People's Court, confirming its priority right to recover 125,299,046 RMB in project payments, with cumulative collections amounting to 50,784,998.84 RMB as of the report date [118]. - The company has filed claims totaling 36,171,720 RMB in the bankruptcy liquidation case of Zhejiang Logistics, with the case accepted by the court in September 2020 [118]. Research and Development - Research and development expenses increased by 50.88% to 354 million RMB due to higher investment in R&D activities [50]. - The company obtained 10 invention patents and 80 utility model patents in 2020, enhancing its technological capabilities [39]. - The company is investing 200 million RMB in R&D for new construction technologies and sustainable building practices [181]. - The company is investing heavily in R&D, with a budget increase of 30% aimed at developing new technologies [186]. Employee and Governance - The total number of employees in the parent company is 37, while the main subsidiaries employ 5,511, resulting in a total of 5,548 employees [192]. - The board of directors consists of 11 members, including 4 independent directors, ensuring compliance with governance standards [198]. - The company held 11 board meetings in 2020, making timely disclosures of relevant decisions [198]. - The supervisory board has 5 members, including 2 employee representatives, and conducted 7 meetings in 2020 [199]. - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company funds and assets [198]. Financial Structure and Debt - The company issued 540 million RMB in convertible bonds and 450 million RMB in medium-term notes to support infrastructure projects and repay bank loans [44]. - As of the end of the reporting period, the total debt of the company was RMB 14.828 billion, indicating an improvement in debt structure and enhanced risk resistance [162]. - The company maintained an AA credit rating from Dongfang Jincheng International Credit Rating Co., Ltd., with a stable outlook [162]. - The total amount of guarantees provided to shareholders, actual controllers, and their related parties is 6,000,000,000.00 RMB [141]. - The total amount of guarantees to subsidiaries during the reporting period is 8,562,500,000.00 RMB [141]. Community Engagement and Social Responsibility - The company has committed CNY 1.08 million for poverty alleviation efforts, including cash and material support [153]. - The company has established a CNY 10 million fund for charitable donations, contributing CNY 500,000 annually [156]. - The company donated CNY 1 million and protective materials for COVID-19 relief efforts [156].