UDC(SZ:000036)2023-04-13 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.34 RMB per 10 shares to all shareholders, based on a total share capital of 1,483,934,025 shares [5]. - The board proposed a cash dividend of CNY 0.34 per 10 shares for 2022, totaling CNY 50.45 million, which represents 11.58% of the net profit attributable to shareholders [59]. - The company has maintained a cumulative cash dividend of CNY 2.684 billion from 2016 to 2022, with an average payout ratio of 45.71% [59]. - A cash dividend of 0.68 CNY per 10 shares was distributed to shareholders, totaling 100,907,513.70 CNY, with no stock dividends issued for the year [142]. - The total distributable profit for the period was CNY 1,267,840,657.77, with the cash dividend amounting to 100% of the total profit distribution [144]. Business Transformation and Strategy - The company has undergone a significant business transformation, shifting its main operations from petrochemical new materials to real estate development and property management since 2009 [20]. - The company is adjusting its project direction from "industrial transformation" to "industrial preservation" to maximize the value of existing industrial land resources and mitigate development risks [49]. - The company is focusing on industry transformation and plans to invest in strategic emerging industries such as new energy, new materials, and new technologies [68]. - The company emphasizes the importance of balancing stability in its real estate operations while actively pursuing industry transformation to address development challenges [62]. - The company plans to enhance its marketing strategies and customer engagement to improve sales conversion rates and maintain stable operations amid market fluctuations [47]. Financial Performance - The company's operating revenue for 2022 was ¥2,343,946,610.94, representing a 24.55% increase compared to ¥1,881,927,155.59 in 2021 [21]. - The net profit attributable to shareholders for 2022 was ¥435,747,116.30, a 7.24% increase from ¥406,315,301.76 in 2021 [21]. - The net cash flow from operating activities reached ¥2,255,056,118.38, a significant increase of 2,067.48% compared to -¥114,616,281.25 in 2021 [21]. - The total assets at the end of 2022 were ¥9,235,911,908.91, a decrease of 3.65% from ¥9,586,088,918.06 at the end of 2021 [21]. - The basic earnings per share for 2022 was ¥0.29, up 7.41% from ¥0.27 in 2021 [21]. Real Estate Market Insights - The real estate market in 2022 saw a significant downturn, with a 26.7% decrease in sales amounting to ¥13.33 trillion compared to the previous year [31]. - The overall real estate sector is experiencing a shift from growth to a focus on existing stock, with increased competition and pressure on cash flow for many firms [33]. - The real estate market is expected to gradually recover due to supportive policies aimed at stabilizing the economy and enhancing housing demand [36]. - The government plans to maintain a "housing is for living, not for speculation" policy, with expectations for further easing of credit and purchase restrictions [35]. - The company anticipates a structural recovery in the real estate market driven by urbanization and policy incentives [36]. Operational Performance - The average occupancy rate for the company's commercial properties is 75.82%, with some properties achieving 100% occupancy [40]. - The company has a total of 8,272.26 m² of commercial space available for lease, of which 6,272.37 m² has been leased [40]. - The company has a total of 43,330.48 m² of office space in UDC Times Building, with an occupancy rate of 87.86% [40]. - The company has a total of 19,702 m² of residential space in Shenzhen, with a pre-sale area of 19,667 m² [39]. - The company is actively involved in urban renewal and affordable housing projects in key economic areas [36]. Risk Management and Compliance - The company emphasizes the importance of risk factors that may affect its operational performance and actual results, urging investors to exercise caution when relying on forward-looking statements [4]. - The company has committed to a comprehensive analysis of industry risks, operational risks, and challenges in its management discussion and analysis section [4]. - The company has established a governance mechanism that ensures clear responsibilities and effective checks and balances, complying with legal regulations [105]. - The internal control audit report confirmed that the company maintained effective financial reporting internal controls without any major defects during the reporting period [150]. - The company continues to comply with regulatory requirements regarding shareholder pledges and financial disclosures [192]. Shareholder Structure and Management - As of December 2021, Hengyu Capital and its affiliates held a total of 70.23% equity in Hualian Group, establishing it as the actual controller of the company [20]. - The largest shareholder, Hualian Development Group Co., Ltd., holds 28.21% of the shares, totaling 418,670,959 shares [185]. - The company maintains independence from its controlling shareholder, Hualian Group, with independent assets, personnel, and financial operations [107]. - The company reported a total of 4,220,790 shares held by senior management at the beginning of the reporting period, with no changes during the period [113]. - The company appointed new board members and senior management on June 17, 2022, including Zhang Mei as Chairperson and Li Yun as General Manager [113]. Customer Satisfaction and Service Quality - The customer satisfaction rate for Hualian Property in the annual third-party assessment was 95.20%, an increase of 2.59% from 2021, indicating strong service quality [55]. - The company plans to improve property service levels and brand image, emphasizing safety and service quality [98]. - The company has improved its investor relations management, enhancing information disclosure quality to ensure equal rights for all shareholders [106]. - Hualian Property received recognition as one of the "Top 500 Comprehensive Strength Property Service Enterprises in China" for its service excellence [55]. - The company aims to improve operational efficiency by 20% through digital transformation initiatives [120]. Future Outlook and Strategic Goals - The company plans to allocate CNY 2 billion for strategic transformation, focusing on digital economy, industrial internet, new infrastructure, and new energy sectors [58]. - The company aims to achieve an annual new sales target of 2 billion yuan for the "Hualian Urban Business Center" project in Shenzhen [94]. - In Hangzhou, the "Qiantang Mansion" project targets a sales revenue of 150 million yuan in 2023, leveraging the opportunity of the Asian Games [95]. - The company is focusing on industry transformation, aiming for breakthrough progress in 2023 by seizing new investment opportunities related to global decarbonization [99]. - The company expects a gradual recovery in domestic economic development, aiming to return to a reasonable growth range in 2023 [99].