HEC(SZ:000886)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 120,238,211.70, representing a decrease of 30.86% compared to CNY 173,901,168.58 in 2019[17] - The net profit attributable to shareholders was ¥92,754,746.92, an increase of 48.74% compared to ¥62,362,068.82 in the previous year[18] - The operating income for 2020 was ¥120,238,211.70, down 30.83% from ¥173,901,168.58 in 2019[18] - The net cash flow from operating activities was -¥157,067,510.43, a significant decline of 6,394.27% compared to -¥2,418,555.73 in the previous year[18] - The basic earnings per share increased by 50% to ¥0.09 from ¥0.06 in 2019[18] - The total assets at the end of 2020 were ¥3,226,570,219.51, a decrease of 0.95% from ¥3,257,537,701.64 at the end of 2019[18] - The total operating revenue for 2020 was ¥120,238,211.70, a decrease of 30.86% compared to ¥173,901,168.58 in 2019[43] - The company reported a total investment of ¥482,000,000 in the current period, a 100% increase compared to ¥0 in the same period last year[67] Shareholder Information - The company plans to distribute a cash dividend of CNY 0.5 per 10 shares to all shareholders, based on a total of 988,828,300 shares[7] - The proposed cash dividend for 2020 is CNY 0.50 per share, totaling CNY 49.44 million, with no stock dividends or capital reserve transfers planned[90] - In 2020, the company distributed cash dividends totaling ¥98,882,830, representing 106.61% of the net profit attributable to ordinary shareholders[92] - The cash dividend per 10 shares was set at ¥0.50, with a total of 988,828,300 shares as the basis for distribution[93] - The company's net profit attributable to shareholders for 2020 was ¥105,264,415.99, with a retained earnings balance of ¥302,938,605.80 after dividend distribution[95] - The total cash dividends accounted for 100% of the total profit distribution for the year[94] Business Diversification and Investments - The company has diversified its business since 2001, including investments in transportation infrastructure, real estate, hotel services, and advertising[16] - The company achieved sales revenue of ¥75,120,000 from real estate projects during the reporting period[27] - The company recognized highway compensation income of ¥18,200,000 as part of its infrastructure investment[27] - The company plans to diversify its real estate business towards sports and cultural properties in line with the Hainan Free Trade Port development[40] - The company aims to enhance its cultural and sports health industry projects, focusing on the Hainan (Wenchang) International Racing Sports Park and other leisure fishing projects[85] Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding future plans and development strategies, as stated in the report[7] - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[6] - The company operates under the supervision of the China Securities Regulatory Commission and the Shenzhen Stock Exchange[7] - The company has established a legal dispute handling model to improve the management of litigation cases and ensure compliance in operations[36] - The company has committed to ensuring fair and just related transactions to protect minority shareholders' rights[96] Corporate Governance - The company has maintained a stable board composition with several members serving since 2019, ensuring continuity in governance[180] - The company is focused on maintaining strong corporate governance practices through its diverse and experienced board of directors[180] - The board includes a diverse group of professionals with backgrounds in finance, engineering, and management, enhancing the company's strategic capabilities[179] - The company has a clear succession plan in place, as evidenced by the structured management transitions and board appointments[177] Employee and Community Engagement - The company invested a total of 1.4447 million yuan in poverty alleviation efforts throughout the year[141] - A total of 6 poverty alleviation projects were implemented, benefiting 519 households through direct assistance[142] - The company emphasizes employee rights protection by adhering to labor laws and providing various insurance benefits[139] - The company has organized community service activities, including blood donation drives[139] Legal and Regulatory Matters - The company faced litigation involving a total claim of 7,298,000 yuan related to a construction contract dispute, which is currently in the first-instance judgment stage[110] - Another litigation involves a claim of 3,396,300 yuan, also in the first-instance stage, with an uncertain outcome[110] - The company reported no penalties or rectification issues during the reporting period[112] Financial Management - The company has engaged Da Hua Accounting Firm for auditing services during the reporting period[17] - The audit firm Dahuah was retained for the 2020 annual audit, with a fee of 700,000 yuan, and has been providing services for two consecutive years[107] - The company has no significant impact from related party debts on its operating results and financial status[118] Market Conditions - In 2020, the real estate market in Hainan saw a 9.4% decline in sales area and a 3.4% decrease in sales revenue, with the company’s project in Qionghai facing significant purchase restrictions[38] - The real estate market is expected to slow down due to ongoing regulatory policies emphasizing "housing for living, not speculation" and "city-specific policies" during the 14th Five-Year Plan period[86]