HUATU CENDES(SZ:300492)2022-05-10 16:00Financial Performance - The company's operating revenue for 2021 was ¥110,006,824.99, a decrease of 12.31% compared to 2020[25]. - The net profit attributable to shareholders for 2021 was ¥12,777,843.31, down 9.78% from the previous year[25]. - The net profit after deducting non-recurring gains and losses was ¥6,179,147.73, reflecting a significant decline of 57.69% year-over-year[25]. - The net cash flow from operating activities was ¥2,825,688.20, a decrease of 76.96% compared to 2020[25]. - The total assets at the end of 2021 amounted to ¥322,952,284.19, showing a slight increase of 0.79% from the end of 2020[25]. - The net assets attributable to shareholders increased by 2.83% to ¥296,365,299.46 at the end of 2021[25]. - The basic earnings per share for 2021 was ¥0.09, a decrease of 10.00% from the previous year[25]. - The diluted earnings per share also stood at ¥0.09, reflecting the same percentage decrease[28]. - The company reported a total of ¥6,598,695.58 in non-recurring gains for 2021[35]. - The company achieved operating revenue of 110,006,824.99 yuan, a year-on-year decrease of 12.31%[51]. - The net profit attributable to shareholders was 1,277.78 million yuan, down 9.78% year-on-year[51]. - The gross profit margin for the main business was 40.71%, an increase of 7.06% compared to the previous year[51]. - The average number of design personnel decreased by 19.05% to 170, while the per capita output value increased by 4.68% to 610,900 yuan[51]. - The company reported a significant increase of 117.56% in other business income, totaling 6,197,139.39 yuan[55]. - The revenue from residential projects decreased by 36.05% to 42,597,635.97 yuan, while revenue from urban complexes increased by 22.56% to 24,348,676.55 yuan[55]. - The company's total revenue for the design segment was approximately ¥103.81 million, a decrease of 15.33% year-over-year[59]. - Public architecture revenue reached ¥31.12 million, showing a growth of 6.67% compared to the previous year[59]. - The Southwest region accounted for ¥72.17 million in revenue, down 15.23% from the previous year[59]. - Direct sales contributed 100% of the revenue, totaling ¥110.01 million, which is a decline of 12.31% compared to the previous year[59]. - The company reported a significant increase in revenue from other businesses, which rose by 117.56% to ¥6.20 million[59]. Dividend Distribution - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares to all shareholders, totaling 140,486,470 shares[8]. - The company distributed a cash dividend of 0.30 CNY per 10 shares, totaling 4,214,594.10 CNY based on a total share base of 140,486,470 shares[171]. - The cash dividend accounted for 100% of the total distributable profit of 96,969,983.37 CNY[173]. - The company plans to distribute a cash dividend of 0.20 CNY per 10 shares, totaling 2,809,729.40 CNY, based on 140,486,470 shares[176]. Corporate Governance - The company held 1 annual general meeting and 1 extraordinary general meeting during the reporting period, passing a total of 24 resolutions[104]. - The board of directors completed the election of the fourth board, consisting of 9 members, including 3 independent directors, in compliance with legal requirements[104]. - The company held 9 board meetings, passing a total of 41 resolutions, ensuring compliance with relevant laws and regulations[107]. - The supervisory board held 6 meetings, with all resolutions legally valid and in accordance with regulations[107]. - The company published 4 periodic reports and 58 announcements in 2021, ensuring timely and accurate information disclosure[107]. - The company maintains an independent business system, with no reliance on shareholders or related parties for operations[108]. - The company has established independent governance structures, including a general meeting, board of directors, and supervisory board[108]. - The independent directors actively participated in meetings and provided independent opinions on significant matters[107]. - The company has a robust internal control system, ensuring compliance with laws and regulations in its operations[107]. - The annual shareholders meeting had a participation rate of 59.79% on May 17, 2021[111]. - The company approved the 2020 annual financial report and profit distribution plan during the annual shareholders meeting[111]. - The first extraordinary shareholders meeting in 2021 had a participation rate of 73.09% on November 17, 2021[112]. - The company approved the proposal to cancel repurchased shares and reduce registered capital during the first extraordinary shareholders meeting[112]. - The board of directors and supervisory board elections were conducted, with new candidates nominated for the fourth board[112]. - The company has not experienced any resignations of directors, supervisors, or senior management during the reporting period[124]. - The term of the current board members and senior management is set to end on November 16, 2024[120]. - The company has made amendments to various internal governance rules, including the shareholder meeting rules and board meeting rules[111]. - No changes in shareholding were reported for the board members during the reporting period[120]. - The company continues to maintain a stable governance structure with no differential voting rights arrangements[117]. - The company appointed new board members on November 17, 2021, including Zhang Shiyou as Chairman and Wu Zhenggang as Co-Chairman[128]. - The company reported a total share reduction of 5,967,000 shares through the acquisition by Huatuo Hongyang Investment Co., Ltd., with a total value of approximately 4,475,457[125]. - The company has undergone a complete board and supervisory committee reshuffle, with all previous members leaving their positions on November 17, 2021[128]. - The company’s new management team includes Wang Qiang as General Manager and Zhang Dan as Deputy General Manager and Secretary of the Board, both appointed on November 17, 2021[128]. - The company is focused on ensuring timely and efficient decision-making to protect the rights of all shareholders[156]. - The board approved the 2021 first quarter report on April 26, 2021[147]. - The company is actively monitoring its operational compliance and governance practices[156]. - The board approved the 2021 semi-annual report on August 9, 2021[150]. - The board did not receive any objections from directors regarding company matters during the reporting period[155]. - The board is committed to maintaining a high level of diligence and responsibility in its operations[156]. Risk Management - The company emphasizes the importance of risk awareness in its future business operations[8]. - The company is actively tracking industry trends and has established a project risk warning mechanism to manage potential defaults from major developers[54]. - The company faces risks related to industry policy changes, increased accounts receivable, and potential declines in gross profit margins due to operational inefficiencies[97]. - The company is committed to improving its governance structure and internal management systems to enhance operational efficiency and risk control[93]. - The company will closely monitor industry trends and manage risks effectively in response to the evolving economic landscape[93]. Strategic Initiatives - The company is focusing on integrating design and construction services, aligning with national strategies for urbanization and green building innovations[46]. - The company aims to enhance its design resource integration capabilities and improve comprehensive design management to maximize project value[93]. - The company plans to invest in new technologies such as BIM design, green buildings, and prefabricated construction to support innovation and comprehensive capabilities[93]. - The company is focusing on expanding its market presence and enhancing its product offerings as part of its strategic initiatives[127]. - The company has emphasized the importance of new product development and technological innovation in its future growth strategy[127]. - The company aims to improve operational efficiency and increase shareholder value through strategic acquisitions and partnerships[127]. - The company plans to leverage its existing resources to explore new business opportunities and enhance its competitive edge in the market[127]. Employee Management - The total number of employees at the end of the reporting period was 224, with 158 in technical roles, 12 in sales, 11 in finance, and 43 in administration[166]. - The company has a total of 22 employees with a master's degree or higher, and 166 with a bachelor's degree[166]. - The company plans to continue internal training as the primary method for enhancing professional skills, supplemented by external training[168]. - The company has established a performance evaluation system to incentivize employees based on team and individual performance metrics[167]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to 3.9974 million yuan, which includes social security and provident fund contributions[138]. - The company had 22 individuals serving as directors, supervisors, and senior management during the reporting period[138]. - Wang Qiang, the general manager, received a total remuneration of 76.23 thousand yuan in 2021[143]. - The company’s board of directors includes 6 members, with 4 of them receiving remuneration from related parties[139]. - The remuneration structure for directors and senior management consists of basic salary, bonuses, and social security contributions, with bonuses linked to company performance[138]. - The company completed the election of the supervisory board on November 17, 2021, following the departure of a supervisor[142]. - The company has a total of 10 independent directors, with some receiving remuneration from related parties[139]. - The financial director, Zheng Tianxiang, received a remuneration of 51.38 thousand yuan in 2021[143]. - The company’s remuneration policy is based on job level and performance, ensuring alignment with company objectives[138]. Internal Control and Compliance - The company has established a comprehensive internal control system in compliance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange[177]. - The board of directors is responsible for formulating annual financial budgets and profit distribution plans, ensuring clear governance structures[178]. - The company has implemented a robust internal audit system to monitor the effectiveness of internal controls and report any significant deficiencies directly to the board[182]. - There are no significant deficiencies in financial reporting internal controls as of the evaluation report date[183]. - The company emphasizes corporate culture and ethical values, promoting green and sustainable building practices[182]. - The governance structure includes a shareholder meeting, board of directors, and supervisory board, ensuring independent and balanced operations[177]. - The internal control management system has been effectively promoted and standardized across the company and its subsidiaries[181]. - The company has made timely adjustments to its internal regulations to adapt to changes in the environment and policies[181]. - The company reported a total asset amount included in the evaluation scope accounting for 100.00% of the consolidated financial statement assets[187]. - The company reported a total revenue amount included in the evaluation scope accounting for 100.00% of the consolidated financial statement revenue[187]. - There were no significant defects identified in financial reporting, with both financial and non-financial reporting showing zero significant defects[191]. - The company has established a relatively complete and reasonable corporate governance structure and internal control system, but recognizes the need for further improvement due to business scale growth and external market changes[192]. Market Trends and Opportunities - In 2021, China's GDP reached 114 trillion yuan, growing by 8.1%, providing a solid foundation for the architectural design industry[46]. - The total construction area of housing in China was 15.755 billion square meters, an increase of 5.41% year-on-year, while the completed housing area was 4.083 billion square meters, up by 6.11%[46]. - The average price of new residential properties nationwide was 10,396 yuan per square meter, marking a year-on-year increase of 4.2%[46]. - The per capita disposable income of residents in 2021 was 35,128 yuan, reflecting a growth of 9.1% year-on-year, with a real increase of 8.1% after adjusting for inflation[46]. - The introduction of policies aimed at increasing the supply of affordable housing and improving rental housing markets presents new opportunities for the real estate sector[46]. - The architectural design industry is transitioning towards high-quality, specialized services, driven by rising consumer demand for improved housing[46]. - The company is focusing on the application of new technologies, including VR in architectural design, while responding to trends in prefabricated and green buildings[51]. - The company is exploring partnerships with local governments to enhance educational outreach and accessibility, aiming for a 15% increase in community engagement[133].