Zhengping Road & Bridge (SH:603843)2021-04-22 16:00Financial Performance - The net profit attributable to shareholders for 2020 was CNY 110,330,632.45, with a distributable profit of CNY 93,850,664.49 after statutory surplus reserve allocation[5]. - The company achieved operating revenue of CNY 4,891,605,145.27 in 2020, representing a year-on-year increase of 31.19%[22]. - Net profit attributable to shareholders reached CNY 110,330,632.45, marking a 54.50% increase compared to the previous year[22]. - The basic earnings per share for 2020 was CNY 0.20, up 53.85% from CNY 0.13 in 2019[23]. - The total assets of the company increased by 8.81% to CNY 7,168,193,104.89 at the end of 2020[22]. - The company reported a cash flow from operating activities of CNY 287,390,978.29, a decrease of 32.10% compared to the previous year[22]. - The weighted average return on equity improved to 7.65%, an increase of 2.47 percentage points from 2019[23]. - The company recorded a net profit of CNY 55,267,646.94 in Q4 2020, showing strong performance in the last quarter[26]. - Non-recurring gains included government subsidies of CNY 8,236,317.33, contributing to the overall profit[28]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares (including tax) based on the total share capital as of the dividend distribution record date[5]. - The company reported a cash dividend of 0.30 RMB per 10 shares for 2020, with a total cash distribution amounting to 16,800,126 RMB, representing 15.23% of the net profit attributable to ordinary shareholders[94]. - The company has a history of maintaining a consistent dividend policy over the past three years, with dividends ranging from 0.20 to 0.30 RMB per 10 shares[94]. Strategic Development and Market Expansion - The company plans to expand its market presence through new project launches and increased engineering progress[23]. - The company has entered the transportation construction market in Hubei and Heilongjiang for the first time, marking a strategic expansion[32]. - The cultural tourism project "Ping'an Yi" was upgraded to a national AAAA-level scenic area, enhancing the company's market presence[33]. - The company has secured multiple water conservancy projects in Yunnan and Guizhou, showcasing its operational capabilities in water engineering[34]. - The company aims to expand its infrastructure services and urban development business, targeting a dual-driven industry structure[41]. - The company plans to enhance its infrastructure and municipal engineering capabilities in line with the "14th Five-Year Plan," focusing on major projects like the Western Land-Sea New Corridor and the National Water Network[82]. Risk Factors and Challenges - The company has detailed risk factors in the report, which investors are advised to review[7]. - The company faces significant financial risks due to the capital-intensive nature of infrastructure projects, which require substantial and long-term funding[90]. - The company is exposed to risks from fluctuations in raw material prices, such as steel and cement, which may increase due to stricter environmental regulations[90]. - Seasonal fluctuations in project construction can lead to significant variations in the company's financial performance throughout the fiscal year[90]. - The company acknowledges risks from natural disasters and public health emergencies that could disrupt operations and increase costs[91]. Corporate Governance and Transparency - The report outlines the company's commitment to transparency and accountability in its financial disclosures[8]. - The company emphasizes the importance of accurate and complete financial reporting, with all board members present at the meeting[8]. - The company is committed to fulfilling its promises regarding the accuracy of its prospectus and will compensate investors for any losses due to misstatements[95]. - The company will strictly fulfill all public commitments made regarding its initial public offering (IPO) and actively accept social supervision[98]. - The company has outlined its commitment to transparency and accountability in its financial reporting and investor communications[95]. Audit and Compliance - The report includes a standard unqualified audit opinion from Sigma Accounting Firm[4]. - The company appointed Sigma Accounting Firm as the external auditor for the year 2020, with a remuneration of CNY 1,400,000[109]. - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies[168]. - The financial statements fairly reflect the company's financial position as of December 31, 2020, and its operating results for the year[172]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 27,002, a decrease from 27,884 at the end of the previous month[133]. - The largest shareholder, Jin Shengguang, holds 149,255,273 shares, representing 26.65% of the total shares[135]. - Jin Shenghui, the second largest shareholder, holds 59,428,594 shares, accounting for 10.61%[135]. - The total compensation for Jin Shengguang, the chairman, is reported at 1.44 million RMB[143]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 10.8022 million yuan[151]. Research and Development - The company is focusing on new product development and technological advancements to drive future growth[23]. - The company is investing 50 million in R&D for new technologies aimed at enhancing user experience[101]. - Total R&D investment amounted to ¥6.87 million, representing 0.14% of total revenue, with 78.92% of the R&D costs capitalized[60]. - The company is investing 50 million in R&D for sustainable construction materials over the next three years[145]. Operational Performance - The company completed 194 projects during the reporting period, with a total value of CNY 179,463.31 million, all of which were domestic projects[70]. - The total amount of ongoing projects is CNY 1,603,472.03 million, with 198 projects in progress, all located domestically[71]. - The company secured new contracts worth CNY 2.4 billion during the reporting period, with a total backlog of CNY 23 billion by the end of 2020[47]. - The company completed the construction of 5 highway projects and 3 highway projects passed completion acceptance in 2020[48]. Social Responsibility - The company has been recognized for its contributions during the COVID-19 pandemic, donating RMB 3 million to support frontline medical workers and providing 2,000 medical goggles to healthcare institutions in Qinghai Province[125]. - The company’s subsidiary participated in the construction of the Xi'an Public Health Service Center project, contributing to pandemic control efforts[126].