Financial Performance - The company's operating revenue for 2021 was ¥774,822,742.86, a decrease of 4.84% compared to ¥814,256,428.06 in 2020[18]. - The net profit attributable to shareholders for 2021 was ¥80,094,651.39, down 10.91% from ¥89,902,304.95 in 2020[18]. - The net cash flow from operating activities was negative at ¥-146,907,460.28, a decline of 380.54% compared to ¥52,366,425.15 in 2020[18]. - Basic earnings per share for 2021 were ¥0.114, a decrease of 10.94% from ¥0.128 in 2020[18]. - The weighted average return on equity was 7.11% in 2021, down from 8.37% in 2020[18]. - The company's total revenue for 2021 was approximately CNY 774.82 million, a decrease of 5.45% compared to the previous year[43]. - Net profit attributable to shareholders was ¥80,094,651.39, down 10.91% year-on-year[40]. - The engineering construction business accounted for 89.61% of total revenue, remaining the primary source of income[40]. Cash Flow and Assets - The total assets at the end of 2021 were ¥2,418,309,898.45, representing a 9.41% increase from ¥2,210,325,497.73 at the end of 2020[19]. - The net cash flow from operating activities dropped by 380.54%, from 52,366,425.15 CNY in 2020 to -146,907,460.28 CNY in 2021, primarily due to slow project payment collections impacted by the pandemic[60]. - Total cash inflow from operating activities decreased by 16.38%, from 729,148,261.42 CNY in 2020 to 609,686,447.52 CNY in 2021[59]. - Total cash outflow from operating activities increased by 11.79%, from 676,781,836.27 CNY in 2020 to 756,593,907.80 CNY in 2021[59]. - Accounts receivable increased by 4.29% from 355,690,347.42 CNY in early 2021 to 491,179,706.39 CNY at year-end, attributed to delayed project payments due to the pandemic[63]. - Contract assets rose to 1,065,146,401.08 CNY, accounting for 44.05% of total assets, up from 43.35% at the beginning of the year[63]. Government Support and Market Trends - The company received government subsidies amounting to 15,176,935.00 CNY in 2021, an increase from 9,647,697.67 CNY in 2020[24]. - The urban landscaping industry in China saw an investment increase from 823.92 billion CNY in 2008 to 2,194.53 billion CNY in 2020, a growth of 166.35%[28]. - The urbanization rate in China reached 63.89% in 2020, with projections to reach around 70% by 2030, indicating a growing market for landscaping services[29]. - The company is positioned to benefit from national policies supporting urban greening, with urban green coverage increasing from 23.9% in 1995 to 42.10% in 2020[29]. Business Operations and Strategy - The company has established seedling bases in Zhejiang, Hubei, and Jiangxi, enhancing self-sufficiency in seedlings and reducing external procurement pressure[39]. - The company holds multiple first-class qualifications, including Grade A for landscape engineering design and Grade 1 for municipal public engineering construction, ensuring competitive advantages in project bidding[37]. - The company has a professional team with 46 senior technical personnel and 26 first-class registered builders, contributing to its competitive edge in large-scale projects[38]. - The company’s integrated business model combines landscape engineering construction, design, and seedling cultivation, enhancing operational efficiency and project quality[38]. - The company has won multiple awards, including the China Construction Engineering Luban Award, highlighting its reputation and project quality in the industry[34]. Risks and Challenges - The company has faced uncertainties regarding its ability to continue as a going concern, as indicated in the audit report[19]. - The company faces market competition risks due to low industry entry barriers and numerous competitors, which may impact its market position if core competitiveness is not maintained[82]. - The ongoing COVID-19 pandemic has significantly impacted the company's project receivables, leading to potential risks of delayed payments and inventory impairment[85]. - Rising human resource costs are a significant risk, driven by increasing living standards and competition for skilled labor in the industry[85]. Governance and Management - The company has established a transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with relevant regulations[92]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, and finances, ensuring autonomous operational capabilities[93]. - The company has a total of 8 directors, with 5 being independent directors, ensuring compliance with governance standards[96]. - The company has a clear succession plan in place, as evidenced by the recent appointments and elections within the board[98]. Shareholder and Dividend Information - The company reported a net profit available for distribution to shareholders of CNY 52,054,113.89, with a cash dividend distribution plan of CNY 0.70 per 10 shares[125]. - The total cash dividend amount is CNY 49,000,000, which represents 100% of the profit distribution total[125]. - The company's undistributed profits as of December 31, 2021, amounted to CNY 636,910,717.79[126]. - The cash dividend distribution is in compliance with the company's profit distribution policy, ensuring normal operations and long-term development[126]. Internal Control and Compliance - The internal control system has been established and effectively executed, with no major defects reported during the period[129]. - The company has maintained effective internal control over financial reporting as of December 31, 2021, with no significant deficiencies reported[135]. - The company has not faced any penalties from regulatory authorities in the past three years, indicating compliance and good governance practices[107]. Future Outlook - The company plans to enhance cost control and project settlement efforts to maintain stable profits amid rising material costs in landscape engineering[81]. - The company aims to become a comprehensive modern ecological enterprise with core competitiveness in technology innovation, brand value, and management optimization by focusing on landscape gardening, water ecology, and soil restoration[81]. - The company plans to enhance its digital marketing strategy, aiming for a 30% increase in online engagement[102].
汇绿生态(001267) - 2021 Q4 - 年度财报