HLADI(SZ:300649)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥806.34 million, a decrease of 2.62% compared to ¥828.01 million in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately ¥50.30 million, down 24.59% from ¥66.71 million in 2019[22]. - The net cash flow from operating activities increased by 110.81% to approximately ¥51.82 million in 2020, compared to ¥24.58 million in 2019[22]. - The total assets at the end of 2020 reached approximately ¥1.28 billion, an increase of 30.65% from ¥976.38 million at the end of 2019[22]. - The company reported a basic earnings per share of ¥0.39 for 2020, a decrease of 25.00% from ¥0.52 in 2019[22]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, which was approximately ¥48.89 million in 2020, down 24.91% from ¥65.11 million in 2019[22]. - The weighted average return on net assets for 2020 was 11.77%, down from 17.47% in 2019, indicating a decline in profitability[22]. - The total revenue from landscaping design business was CNY 148,512,373.39, a decrease of 17.74% compared to the previous year[55]. - The engineering contracting business generated CNY 656,071,284.19, representing an increase of 1.37% year-on-year[55]. - The company achieved operating revenue of ¥806,344,385.74, a slight decrease of 2.62% compared to the previous year[49]. Dividend Policy - The company plans to distribute a cash dividend of 0.8 yuan per 10 shares, based on a total of 128 million shares[10]. - The cash dividend represents 20.36% of the total distributable profit of RMB 50,303,818.01 for the year[99]. - The company has maintained a consistent dividend distribution policy over the past three years, with cash dividends of RMB 12,800,000, RMB 13,440,000, and RMB 10,240,000 for 2018, 2019, and 2020 respectively[97]. - The cash dividend payout ratio for 2019 was 20.15%, while for 2018 it was 24.46%[99]. - The company is in a growth phase and aims to maintain a minimum cash dividend ratio of 20% during profit distributions[96]. Business Strategy and Expansion - The company is focusing on expanding its business into the upstream and downstream of the industry chain, leveraging its design capabilities[7]. - The company has expanded its business model to include both design services and engineering procurement construction (EPC) services, enhancing its strategic positioning in the landscape architecture industry[30]. - The company has successfully expanded its business from landscape planning and design services to integrated engineering contracting, completing several notable projects such as the Liangzhu Heritage Park infrastructure project and the environmental governance project in Huai Bei City[86]. - The company plans to continue focusing on providing comprehensive landscape design solutions, optimizing its market structure, and expanding its regional presence by establishing design branches across the country[87]. - The company is exploring the "EPC+O (Operation)" business model to enhance its project planning, design, and operational capabilities, aiming to strengthen its competitiveness and risk resistance[87]. Risk Management - The company faces risks from intensified market competition, with many firms competing for market share in the landscape architecture industry[8]. - The company acknowledges potential risks related to economic downturns affecting its profitability and growth prospects[4]. - The company is actively managing project risks to ensure the timely collection of receivables from government clients[5]. - The main risks faced by the company include operational performance decline, accounts receivable risk, macroeconomic fluctuations, and market competition risk[108]. - The company will strengthen internal controls related to accounts receivable to reduce the likelihood of bad debts[108]. Research and Development - Research and development investment amounted to ¥30,418,186.45, representing 3.77% of total revenue, a decrease from 4.52% in 2019[73]. - The company has developed 10 research projects related to ecological landscape construction, enhancing its competitive edge and service quality[72]. - The company will increase R&D investment and establish a research team to enhance forward-looking technology research in landscape design and related architectural design fields[108]. - The R&D budget has been increased to 200 million RMB, emphasizing innovation in eco-friendly materials and technologies[104]. Shareholder Structure and Governance - The company has a structured approach to managing shareholder voting rights to maintain consistency in decision-making[101]. - The board of directors consists of 9 members, including 3 independent directors, meeting legal requirements for composition[192]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operations from its controlling shareholder[196]. - The independent directors actively participated in major business decisions and provided independent opinions on significant matters[200]. - The company respects the rights of stakeholders, balancing the interests of shareholders, employees, and society[193]. Market Presence and User Engagement - User data indicated an increase in active users by 25% compared to the previous year, reaching 2 million active users[104]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[103]. - A strategic acquisition of a local competitor was completed, expected to enhance the company's service offerings and customer base by 30%[104]. - The company has set a performance guidance of 1.75 billion RMB in revenue for the upcoming fiscal year, reflecting a 16.67% increase[103]. Environmental Commitment - The company aims to contribute to carbon neutrality and ecological civilization construction, aligning with national strategic goals[39]. - The company emphasizes a commitment to environmental protection and ecological restoration as part of its long-term mission and corporate culture[87]. - The management emphasized a focus on sustainable practices, aiming for a 40% reduction in carbon footprint by 2025[179]. Employee Management - The total number of employees in the company is 317, with 289 in the parent company and 28 in major subsidiaries[186]. - The company has implemented a labor contract system since its restructuring and provides "five insurances and one fund" for employees[187]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 1,075.2 million CNY[186]. - The company has a training system that includes new employee orientation, on-the-job training, and industry expert training[188].