GREATTOWN(SH:900940)2021-04-23 16:00Financial Performance - In 2020, the company achieved a net profit attributable to the parent company of CNY 448,171,839.20, with a cumulative undistributed profit of CNY 4,533,858,259.46 by year-end[5] - The parent company reported a net profit of CNY 1,639,132,405.80 for 2020, with a cumulative undistributed profit of CNY 1,512,708,230.77 as of December 31, 2020[5] - The company's operating revenue for 2020 was approximately ¥14.84 billion, an increase of 13.75% compared to ¥13.04 billion in 2019[22] - The net profit attributable to shareholders for 2020 decreased by 39.73% to approximately ¥448.17 million from ¥743.56 million in 2019[22] - Basic earnings per share for 2020 were ¥0.1811, down 39.71% from ¥0.3004 in 2019[24] - The total assets at the end of 2020 were approximately ¥37.83 billion, a decrease of 9.82% from ¥41.95 billion at the end of 2019[22] - The net cash flow from operating activities for 2020 was negative at approximately -¥2.42 billion, compared to ¥10.30 billion in 2019[22] - The weighted average return on equity for 2020 was 3.43%, down from 5.93% in 2019, a decrease of 2.5 percentage points[24] - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which was approximately ¥425.27 million, down 43.01% from ¥746.23 million in 2019[22] Dividend Distribution - The proposed cash dividend distribution is CNY 0.25 per 10 shares (including tax), totaling CNY 61,883,126.43, based on a total share capital of 2,475,325,057 shares[5] - The company has implemented a cash dividend policy, with a total cash dividend of 18,564.94 million RMB over the last three years, representing 31.96% of the average annual distributable profit of 58,079.86 million RMB[102] - The company has set a cash dividend of 0.25 RMB per share for 2020, with a net profit attributable to ordinary shareholders of 44,817.18 million RMB, resulting in a payout ratio of 13.81%[104] Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[8] - The company emphasizes the importance of risk awareness regarding forward-looking statements and plans[6] - The company acknowledges potential risks from regulatory policies and market uncertainties, emphasizing the need for risk management and balanced growth strategies[99] Audit and Compliance - The company has a standard unqualified audit report issued by Tianzhi International Accounting Firm[4] - The company has not faced any issues with a majority of directors being unable to ensure the authenticity, accuracy, and completeness of the annual report[7] - The audit report indicates that there were no significant misstatements identified in the financial statements[199] - The company must ensure that revenue is recognized in the appropriate period according to accounting policies[196] Market and Sales Performance - The company achieved a sales area of 1.1785 million square meters and a sales amount of 15.026 billion yuan, with a revenue increase of 13.75% year-on-year[50] - The overall gross margin decreased due to higher land costs and delayed project approvals, impacting profitability despite increased sales revenue[50] - The real estate market showed resilience in key cities, with a national sales area of 1.76086 billion square meters, a 2.6% increase year-on-year[40] Strategic Initiatives - The company aims to balance scale, efficiency, and risk prevention in response to regulatory pressures and market adjustments in the real estate sector[33] - The company is focusing on enhancing its product design and development capabilities to meet customer needs and improve competitiveness[60] - The company plans to maintain a stable internal land acquisition and development model while increasing participation in land auctions and engaging in urban renewal projects[96] Financial Structure and Debt Management - The company’s financial leverage remained stable with a debt-to-asset ratio of 62.68% and a net debt ratio of 70.90% as of the end of 2020[56] - The company issued bonds with a total scale of CNY 1.459 billion at a coupon rate of 7.5%[57] - The total financing amount at the end of the period was RMB 123.63 billion, with an average financing cost of 7.93%[88] Corporate Governance - The company maintains strong governance with independent directors and a dedicated supervisory board, ensuring compliance and oversight[154] - The leadership structure includes a mix of experienced executives and independent directors, promoting a balanced approach to governance and management[154] - The company has not reported any changes in the tenure of its board members during the reporting period, suggesting stability in leadership[155] Employee Management - The number of employees in the parent company is 95, while the total number of employees in major subsidiaries is 1,110, resulting in a total of 1,205 employees[161] - The company has established a competitive salary system by benchmarking against similar listed real estate companies in the same region and industry[162] - The company plans to implement a comprehensive training program to enhance employees' professional skills and overall capabilities[163] Community Engagement - The company has been actively involved in various charitable and community initiatives, reflecting its commitment to corporate social responsibility[152] - The company donated RMB 100,000 to support the construction of Dongshan Village, enhancing the village environment[133] Related Party Transactions - The company has significant related party transactions, indicating a growing reliance on these relationships for operational activities[124] - The company has provided guarantees amounting to 550,125,000 RMB, with a guarantee period starting from the signing date[125] Future Outlook - The real estate market is expected to slow down in 2021, with a focus on urban agglomerations and central cities to maximize urbanization benefits[92] - The company anticipates that the urbanization rate in China will reach 70% by 2030, indicating significant long-term development potential in the real estate market[93]