HUCD(SZ:002208)2023-04-24 16:00Financial Performance - The company's operating revenue for 2022 was ¥4,025,884,819.24, a decrease of 46.73% compared to ¥7,557,295,686.94 in 2021[22]. - The net profit attributable to shareholders for 2022 was ¥334,324,543.79, down 61.88% from ¥876,920,607.18 in 2021[22]. - The net cash flow from operating activities was -¥1,885,413,430.04, an improvement of 27.63% compared to -¥2,605,343,515.45 in 2021[22]. - The total assets at the end of 2022 were ¥33,448,916,775.65, an increase of 48.28% from ¥22,557,331,291.60 at the end of 2021[22]. - The basic earnings per share for 2022 were ¥0.42, a decrease of 61.47% from ¥1.09 in 2021[22]. - The net profit after deducting non-recurring gains and losses was ¥305,496,928.43, a decrease of 64.70% from ¥865,339,222.73 in 2021[22]. - The weighted average return on equity for 2022 was 5.32%, down from 15.21% in 2021, reflecting a decline of 9.89%[22]. - Revenue from the real estate sector accounted for 98.58% of total revenue, amounting to approximately ¥3.97 billion, down 47.25% from ¥7.52 billion in the previous year[53]. - The gross profit margin for the real estate sector was 26.03%, a decline of 2.10% from the previous year[55]. Project Development - The company reported a significant decline in residential sales area, down 26.8% year-on-year, with total sales area of 135,836 million square meters[34]. - The total investment in real estate development in 2022 was ¥132,895 billion, a decrease of 10% compared to the previous year[34]. - The company experienced a 39.4% decline in new construction area, with residential new construction area down 39.8%[34]. - The company has 13 residential projects and 5 industrial real estate projects under construction, with one residential and two industrial projects completed during the reporting period[37]. - The total land reserve area is 706,000 square meters, with a total construction area of 1,580,700 square meters and 811,400 square meters remaining available for development[38]. - The company acquired land in Hefei for residential and industrial purposes, with total land prices amounting to 395.44 million RMB and 568.87 million RMB respectively[38]. - The company operates in multiple cities including Hefei, Chao Lake, and Nanjing, focusing on residential, commercial, and industrial real estate development[36]. - The average completion rate for residential projects is currently at 0% for some ongoing projects, indicating a need for progress in construction timelines[39]. Market Conditions and Risks - The company acknowledges potential management risks due to the expansion of its operational scale and the increase in projects outside its home region[3]. - The company anticipates that the reform of property tax and local purchase restrictions may impact sales performance and gross margin[3]. - The company faces uncertainties in project development due to factors such as urban construction, planning adjustments, and fluctuations in building material prices[3]. - In 2022, the number of residential properties registered in Hefei was 37,000, a year-on-year decrease of 38.6%, while the average registration price increased by 11% to 21,052 RMB per square meter[35]. Corporate Governance - The company maintains a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability[89]. - The board of directors consists of 11 members, including 4 independent directors, ensuring a balanced governance structure[91]. - The company has established a performance evaluation and incentive mechanism for senior management, promoting transparency in hiring processes[92]. - The company respects and protects the rights of stakeholders, aiming for a balanced approach to interests among shareholders, employees, and the community[92]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations[93]. - The controlling shareholder has provided significant financial support since the company's listing, with no instances of fund or asset occupation reported[94]. - The participation rate for the first temporary shareholders' meeting in 2022 was 59.55%[95]. - The company has a diverse board of directors with various tenures, including members with shareholdings ranging from 0 to 669.9 shares[96][97]. Employee and Talent Management - The total number of employees at the end of the reporting period was 576, with 97 in the parent company and 479 in major subsidiaries[119]. - The company has established a training program for executives, middle management, technical personnel, and general employees to enhance their skills and knowledge[122]. - The company maintains a competitive salary policy to attract and retain talent, linking compensation closely to performance[121]. - The management team includes professionals with extensive backgrounds in engineering, finance, and real estate, ensuring strategic oversight[100]. Sustainability and Social Responsibility - The company is committed to sustainability, with 100% of new projects adhering to green building standards[41]. - Hefei Urban Construction continued its support for poverty alleviation and rural revitalization by assisting Yangwan Village, a former key poverty-stricken area, throughout 2022[138]. - The company organized community support activities, including visits to low-income families and voluntary blood donation events, fulfilling its social responsibility commitments[137]. - The company actively responded to national environmental protection initiatives, adhering to relevant laws and regulations, and did not face any administrative penalties for environmental issues during the reporting period[136]. Financial Management and Fundraising - The company reported a total financing balance of 8,450,364.16 million with an average financing cost of 3.4%-5.1%[45]. - The company raised a total of 100,000 million CNY, with 98,500 million CNY already utilized[76]. - The balance of the raised funds after deducting the cumulative used amount is 6,047 million CNY[75]. - The company has committed to invest in several projects, including the Liheng Industrial Park and the Hefei Smart Industrial Park, with varying completion statuses[76]. - The company reported a guarantee amount of 29,400,000 for a related party with a guarantee period of 3 years[168]. Audit and Compliance - The audit opinion for the financial statements was a standard unqualified opinion, issued on April 23, 2023, by Rongcheng Accounting Firm[193]. - The internal control system is effective, with no significant deficiencies identified during the reporting period[128]. - The company received a standard unqualified opinion on its internal control audit report for the financial report as of December 31, 2022[132]. - The internal control audit report was fully disclosed on April 24, 2023, with no significant deficiencies identified in non-financial reporting[132]. Future Outlook - The company aims to achieve high-quality development in 2023, emphasizing the importance of adapting to complex external environments[86]. - The company plans to enhance its R&D efforts in new technologies to drive future growth[107]. - The company aims to increase its revenue by 10% in the upcoming fiscal year through strategic initiatives and market expansion[103]. - The projected growth rate for the upcoming fiscal year is estimated at 10%, driven by increased demand in the real estate sector[43].