Hangzhou Landscaping (SH:605303)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.42 billion, a decrease of 4.30% compared to ¥1.49 billion in 2019 [20]. - Net profit attributable to shareholders was approximately ¥109.74 million, down 22.48% from ¥141.56 million in 2019 [20]. - Basic earnings per share decreased to ¥0.91, a decline of 22.22% from ¥1.17 in 2019 [21]. - The weighted average return on equity fell to 11.08%, a decrease of 5.30 percentage points from 16.38% in 2019 [21]. - The company's total assets at the end of 2020 were approximately ¥2.93 billion, a slight decrease of 0.17% from ¥2.94 billion in 2019 [20]. - Cash flow from operating activities showed a significant improvement, with a net cash flow of approximately ¥17.68 million compared to a negative cash flow of ¥140.83 million in 2019 [20]. - The company achieved a revenue of ¥1,424,936,454.71 and a net profit of ¥109,742,502.34 for the year 2020 [43]. - The company reported a net profit of CNY 110,335,938.67, down 22.02% year-on-year, while net profit attributable to shareholders was CNY 109,742,502.34, a decrease of 22.48% [48]. - Total assets as of December 31, 2020, amounted to CNY 2,934,555,938.28, a slight decrease of 0.17% from the end of the previous year [48]. - The gross profit margin for the main business was 20.92%, an increase of 1.60 percentage points compared to the previous year [55]. Dividend Policy - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling approximately 16,123,740.80 yuan based on a total share capital of 161,237,408 shares [5]. - The company implements a stable, sustainable, and reasonable profit distribution policy, prioritizing cash dividends, with a minimum of 10% of distributable profits allocated annually as cash dividends when profitable [95]. - In 2020, the company's net profit attributable to ordinary shareholders was 109,742,502.34 RMB, resulting in a cash dividend payout ratio of 14.69% [107]. - The company aims to distribute at least 30% of the average distributable profits over the last three years in cash dividends [96]. - The board of directors is responsible for ensuring that the profit distribution policy aligns with the company's operational status and financial health [100]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin 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 [8]. - The audit report confirmed that the financial statements present a fair view of the company's financial position as of December 31, 2020 [181]. - The company has no significant uncertainties regarding its ability to continue as a going concern, based on the audit evidence obtained [188]. Industry and Market Position - The company operates in the landscaping industry, focusing on municipal public landscaping projects and ecological restoration [30]. - The landscaping industry in China has entered a rapid development phase due to urbanization and increased government focus on urban greening, with significant growth opportunities arising from policies promoting "garden cities" and "eco-cities" [32]. - The company holds a prominent position in the industry, serving in leadership roles within various associations, enhancing its reputation and influence [34]. - The company aims to become a leading enterprise in ecological construction services by enhancing planning design and technology R&D investments, focusing on ecological restoration and construction [86]. Risk Management - The company has detailed various risk factors it may face during operations in the report [7]. - The company faces macroeconomic risks, as its business is heavily reliant on government investment, particularly in municipal landscaping projects [90]. - Operational funding risks are present due to the company's reliance on timely payments from clients for project progress, which can affect cash flow and business sustainability [92]. - The company is at risk of bad debts and inventory depreciation losses due to the increasing scale of its landscaping projects and potential delays in payment from clients [92]. Research and Development - The company has completed 60 R&D technology projects and obtained 67 patents, including 32 invention patents and 35 utility model patents [39]. - The company has established partnerships with several universities and research institutions, enhancing its talent management and development [41]. - The company is focusing on research and development of new products to meet market demands [162]. Corporate Governance - The company has a strong governance structure with independent directors overseeing its operations [164]. - The company has established a reasonable performance evaluation system and incentive mechanism for senior management, linking compensation to company performance [176]. - The company conducted a total of 8 board meetings in 2020, with all procedures compliant with relevant laws and regulations [172]. Shareholder Relations - The company will communicate with shareholders, especially small and medium-sized shareholders, through various channels to gather their opinions before the profit distribution plan is finalized [101]. - The company has established a dividend return plan to ensure continuous and stable returns to shareholders, particularly small and medium-sized investors [99]. - The company has committed to not transferring or managing shares held by major shareholders for 36 months post-IPO, ensuring stability in shareholding [110].