SESPACE(002135)2023-04-24 16:00Financial Performance - The company reported a total revenue of 1,165,549,740 shares, with a cash dividend distribution of 1 RMB per 10 shares (including tax) for all shareholders[4]. - The company's operating revenue for 2022 was approximately ¥12.06 billion, an increase of 6.89% compared to ¥11.29 billion in 2021[18]. - The net profit attributable to shareholders decreased by 41.03% to approximately ¥290.67 million from ¥492.89 million in 2021[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 60.97% to approximately ¥183.54 million from ¥470.23 million in 2021[18]. - Basic earnings per share decreased by 47.92% to ¥0.25 from ¥0.48 in 2021[18]. - The company reported a significant decline in quarterly net profit, with a loss of approximately -¥85.81 million in Q4 2022, compared to profits in the first three quarters[22]. - In 2022, the company achieved operating revenue of CNY 1,206,443.46 million, a year-on-year increase of 6.89%, while net profit attributable to shareholders decreased by 41.03% to CNY 29,066.86 million[62]. - The engineering general contracting business revenue grew by 66.51% to CNY 310,304.35 million, while the chemical fiber business revenue declined by 13.63% to CNY 266,556.39 million[62]. - The company reported a gross margin of 15.04% in the construction sector, slightly down from 15.89% in the previous year[73]. Dividend Distribution - The company has a total of 1,149,598,194 shares as the base for the dividend distribution after deducting the shares repurchased[4]. - The company distributed a cash dividend of RMB 1 per 10 shares, totaling RMB 114,959,819.40, based on a total share capital of 1,149,598,194 shares[199]. - The proposed cash dividend per 10 shares is 1 yuan (including tax)[200]. - There were no bonus shares distributed per 10 shares[200]. Governance and Management - The company has a comprehensive governance structure with all board members present for the report's approval[4]. - The company emphasizes the importance of risk awareness regarding forward-looking statements due to potential uncertainties from macroeconomic and market conditions[4]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company strictly adheres to corporate governance regulations, ensuring compliance with laws and enhancing operational standards[152]. - The board of directors operates under established rules, ensuring objective and scientific decision-making processes[153]. - The company actively engages with stakeholders to balance interests among shareholders, employees, and society[156]. - The company has established a comprehensive accounts receivable management system to enhance project management and contract performance, aiming to improve accounts receivable turnover rate[146]. Market and Industry Outlook - The construction industry in China is expected to maintain stable growth, supported by government investment and infrastructure projects[29]. - The company is positioned to benefit from the increasing demand for steel structure buildings, with the current market penetration of steel structure residential buildings in China being less than 5%, compared to nearly 50% in developed countries, indicating significant growth potential[34]. - The government aims for prefabricated buildings to account for over 30% of new construction area by 2025, with steel structure buildings making up 40% of prefabricated buildings, reflecting a strong policy push towards green and low-carbon construction[33]. - The chemical fiber industry is experiencing a downward trend due to global economic pressures, with challenges such as high cost volatility and declining terminal demand impacting profitability[38]. - The industry is expected to see a gradual recovery as global economic conditions improve and terminal consumption demand begins to rebound[38]. Research and Development - The company is committed to advancing green manufacturing, with a goal for green fibers to account for over 25% of production and a 20% annual growth in biodegradable fiber materials by 2025[37]. - The company recognizes the importance of digital transformation, aiming for an 80% digitalization rate in management and an 80% CNC rate in key processes[37]. - The company has created multiple innovation platforms and collaborates with several prestigious universities to enhance its research and development capabilities[58]. - The company reported a 14.08% increase in R&D expenses, totaling 459,265,886.41 CNY in 2022 compared to 402,578,878.21 CNY in 2021[90]. - The proportion of R&D investment to operating revenue increased to 3.81% in 2022 from 3.57% in 2021, marking a 0.24% rise[94]. Strategic Initiatives - The company is transitioning from specialized subcontracting to EPC (Engineering, Procurement, and Construction) contracting, enhancing its economic returns and cash flow[45]. - The company aims to become the leading brand in green low-carbon prefabricated steel structure buildings in China, focusing on hospitals, schools, and public buildings[46]. - The company is committed to transforming into a new type of prefabricated EPC general contracting model, responding to national calls for green development[60]. - The company aims to implement a dual-engine development strategy of "EPC general contracting + No. 1 project" to drive growth in differentiated and specialized brand projects[131]. - The company is exploring potential acquisitions in the technology sector to enhance its product offerings and increase operational efficiency[174]. Subsidiaries and Investments - The company operates multiple wholly-owned subsidiaries, enhancing its market presence and operational capabilities[10]. - The company has established partnerships with over 10 design institutes and 8 enterprises to promote collaborative innovation in prefabricated steel structure projects[50]. - The company has established several subsidiaries during the reporting period, including Zhejiang Southeast Longyan Investment New Energy Co., Ltd., with no significant impact on overall operations[121]. - The company has invested RMB 68,388.68 million in the Hangzhou Bay Smart Valley Phase II project, achieving a cumulative gross profit of RMB 29,940.99 million and a gross profit margin of 18.88%[114]. Risks and Challenges - The company faces macroeconomic cycle risks that could impact its long-term development, particularly in fixed asset investment and infrastructure construction[140]. - The company is exposed to significant risks from fluctuations in raw material prices, particularly steel, which constitutes a high proportion of its main business costs[142]. - The company has a high level of accounts receivable, which poses risks to cash flow and operational performance if collection efforts are unsuccessful[144]. Employee and Remuneration Policies - The total remuneration for directors, supervisors, and senior management amounted to 661.02 million CNY for the reporting period[184]. - The company emphasizes performance-based bonuses for senior management at year-end[181]. - The company encourages employee participation in vocational qualification exams and provides incentives for those who pass[198]. - The company has established an annual training plan to enhance employee skills and overall work efficiency[198].