CCD(002811)2021-04-28 16:00Dividend Distribution - The company plans to distribute a cash dividend of 4 RMB per 10 shares (including tax) to all shareholders, with no bonus shares issued[6]. - The company has established a cash dividend policy, committing to distribute over 10% of its distributable profits annually, with a planned cash dividend of 4 yuan per 10 shares for the 2020 fiscal year, totaling approximately 108 million yuan[138]. - The cash dividend amount for 2020 was CNY 108,007,662.40, with no dividends distributed in other forms such as share buybacks[141]. - The total distributable profit for the company was CNY 428,528,760.91, with the cash dividend accounting for 0% of the total profit distribution[141]. - The company’s profit distribution or capital reserve transfer plan requires a minimum of 20% of cash dividends in future distributions[141]. Financial Performance - The company's operating revenue for 2020 was CNY 1,893,152,108.65, a decrease of 24.62% compared to CNY 2,511,416,237.22 in 2019[18]. - The net profit attributable to shareholders for 2020 was CNY 27,426,449.99, down 79.42% from CNY 133,283,868.10 in 2019[18]. - The basic earnings per share for 2020 was CNY 0.10, a decline of 79.59% from CNY 0.49 in 2019[18]. - The net profit attributable to the parent company's ordinary shareholders for 2020 was CNY 108,007,662, representing a significant increase of 393.81% compared to 2019[140]. - The total revenue for the company was CNY 1,893,152,108, with a year-on-year decrease of 24.62%[85]. Business Operations and Strategy - The company operates in the architectural decoration industry, which is subject to fluctuations due to external economic factors[6]. - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[6]. - The company has a comprehensive service model that integrates design, engineering, and supporting services[11]. - The company is committed to high-quality, low-carbon decoration activities based on environmental sustainability[11]. - The company focuses on original design services, with project acquisition primarily through brand reputation and competitive bidding[36]. Market and Industry Trends - The interior design industry in China is projected to grow at an annual rate of approximately 12%, with an estimated market size of around 467.5 billion RMB by 2024[29]. - The number of enterprises in the Chinese construction decoration market has decreased from 145,000 in 2011 to 125,000 in 2018, indicating increased industry concentration[30]. - The COVID-19 pandemic negatively impacted the company's overall business, prompting a strategic shift to emphasize design services[31]. - The company anticipates continued growth in the residential decoration market driven by urbanization and rising consumer income levels[124]. Risk Factors - The company faces risks from policy adjustments in the real estate industry, rising labor costs, and management challenges due to rapid growth[6]. - The cyclical nature of the real estate industry, influenced by government regulations, may negatively affect the company's business as major clients reduce investments in high-end projects[130]. - The company is facing risks from macroeconomic fluctuations and the pandemic, which could impact demand for high-end public building decoration projects, particularly in the hotel and real estate sectors[129]. Project Management and Quality Control - The company maintains a quality control system certified by ISO9001:2008, ISO14001:2004, and GB/T28001-2011, ensuring strict supervision and control over all business processes[49]. - The project management team is composed of various roles including project manager, material staff, safety officer, quality officer, and financial personnel, ensuring comprehensive project oversight[45]. - The company adheres to a self-operated policy without subcontracting, minimizing risks related to quality, safety, and finance[46]. - The company offers a warranty period of 2-5 years for completed projects, providing free repairs for quality issues arising within this timeframe[48]. Research and Development - Research and development expenses were ¥98,141,660.80, which is 5.18% of operating revenue, up from 3.90% in the previous year[98]. - The number of R&D personnel decreased to 377, but their proportion of total employees increased to 23.00%[98]. - The company has developed a range of proprietary technologies and designs, evidenced by its extensive patent portfolio[71]. Corporate Governance - The company has established a comprehensive corporate governance structure to protect shareholder rights and ensure fair information disclosure[175]. - The company confirmed that all commitments made by major shareholders and management were fulfilled during the reporting period[144]. - The company has not engaged in any significant contracts or entrusted loans during the reporting period[173][172]. Awards and Recognition - Cheng Chung Design (CCD) ranked first in the Asia-Pacific region in the "2020 Global Interior Design Top 100" list and third globally in the "2019 Global Hotel Design Top 100" list[27]. - CCD was recognized as one of the "Top 500 Most Valuable Brands in China" in 2020, marking its first appearance on the list as a design brand[62]. - The company received multiple international design awards in 2020, including the Gold Award at the 2020 WIN Awards for its Shenzhen headquarters office[63]. Shareholder Information - The total share capital increased from 180,002,965 shares to 270,019,156 shares due to a 5-for-10 bonus share issuance and the conversion of 11,102 convertible bonds[182]. - The largest shareholder, Shenzhen Yatai Yizhao Investment Co., Ltd., holds 47.24% of the shares, totaling 127,554,750 shares[187]. - The company reported a total of 14,149 shareholders at the end of the reporting period, an increase from 14,131 in the previous month[187].