Guanghui Logistics Co.Ltd(600603)
Work report of the board of directors in 2021
Dear directors
Now, on behalf of Guanghui Logistics Co.Ltd(600603) board of directors, I’d like to make a report on the work of the board of directors in 2021. Please review and put forward your opinions.
1、 Main operations of the company in 2021
2021 is an extraordinary year. Facing the challenges of economic downturn, strict policy control, sudden changes in the industry and the impact of the epidemic, the board of directors of the company coordinated the epidemic prevention and control and stable operation, always adhered to the guiding ideology of “comprehensively improving the quality of development”, strengthened operation and management, paid close attention to risk prevention, vigorously promoted strategic transformation, reduced speed and improved quality, overcome difficulties, adhered to the bottom line, and maintained the stable and orderly operation of the enterprise, Lay a solid foundation for future development.
In 2021, the company achieved an operating revenue of 3.317 billion yuan, a year-on-year decrease of 24.51%; The net profit attributable to the shareholders of the listed company was 573 million yuan, a year-on-year decrease of 30.46% and earnings per share of 0.48 yuan. As of December 31, 2021, the company has total assets of 14.916 billion yuan and net assets of 6.037 billion yuan. The overall financial situation is safe and stable.
During the reporting period, the operation of the company’s main business segments was as follows:
(I) stable relocation of Meiju Logistics Park
In order to actively respond to the increasingly fierce competition in the home building materials market and the declining market prosperity, and reverse the continuous decline in the rental rate and income of Meiju Logistics Park year by year, the company actively responded to the call for action of the government in its jurisdiction on urban renewal on the basis of striving to create a new business form of KL xingpinhui.com, Taking advantage of the opportunity that some buildings in Meiju logistics park are included in the 2021 old urban upgrading project of Urumqi city and high tech Zone (new urban area) government, the transformation and upgrading of Meiju logistics park is planned with “subversive” transformation. After full communication with the government, Xinjiang Yazhong logistics business network Co., Ltd. (hereinafter referred to as “Yazhong logistics”), a wholly-owned subsidiary of the company, signed the housing expropriation compensation agreement with relevant government departments. The company arranged the relocation in an orderly manner, properly resettled the relocated merchants, and the relevant work was implemented smoothly. With the help of Meiju urban renewal and reconstruction project, the company will build Urumqi’s first super large urban complex guided by public transport (TOD) and integrating central business district (CBD), tourism business district (TBD), leisure business district (RBD) and central residential area (CLD), so as to realize the “three arrows” of urban image, economic benefits and corporate brand.
(II) successful acquisition of Gexin project
On August 6, 2021, Yazhong logistics signed the equity transfer agreement with Xinjiang Guanghui Real Estate Development Co., Ltd. (hereinafter referred to as “Guanghui real estate”) to acquire 65% of the equity of Xinjiang Gexin Investment Co., Ltd. (hereinafter referred to as “Gexin company”) held by Guanghui real estate, and obtained the control right of Gexin company. The existing land of Gexin company is 657317 mu, all of which are close to Urumqi diwobao International Airport. With outstanding transportation advantages and comprehensive land utilization advantages, Gexin company is the core area of the airport economic demonstration zone. After the acquisition of the project is completed, the company will build the “light of the Silk Road” international logistics new city project and build xinmeiju commercial logistics park, automobile industry park, cold chain logistics park according to the overall requirements of the Party committee and government at the two levels of autonomous region and Urumqi on seizing the new opportunities of the “core area” of the Silk Road Economic Belt and the decision-making and deployment of high-level construction of airport economic zone One belt, one road, the other is the new industrial park of the airport, which is a new anchor for airport logistics. At present, the project has been listed as a key investment project in the 14th five year plan of the autonomous region and Urumqi. (III) steady development of cold chain business
In 2021, huilingxian company actively overcame the impact of the epidemic and the obstruction of investment promotion, turned the crisis into an opportunity, made full use of its own software and hardware advantages, launched the epidemic prevention coding platform, and realized the real-time tracking and traceability of goods transfer for the first time in the territory. It was identified as the centralized inspection warehouse of cold chain food in Urumqi, which greatly promoted the increase of business volume, The rental rate of warehousing business increased from 23% at the beginning of the year to 91%, which was subsidized by the government of 1 million yuan per month and supported by the project fund of 5 million yuan from the central government, which effectively ensured the steady development of Urumqi North Railway Station comprehensive logistics base project and cold chain business. The company established Xinjiang Shenzhen Agricultural Products Group Co.Ltd(000061) supply chain system that covers Xinjiang and radiates the whole country, The goal of creating one belt, one road leading supply chain platform has taken a solid step. (IV) steady progress of real estate projects
In 2021, facing the “cold current” in the real estate industry, the company paid close attention to project quality, schedule management and cost control, ensuring the stability and order of all projects under construction. The company has taken many measures to promote real estate sales. The projects on sale, such as Yuyuan phase II, Chengdu Xuelian Tianfu, huirun City Phase I, Yijing courtyard, Yujin City, huimingxuan, Meishan Huiming City, Guilin Huiyue city and so on, have received positive responses from the market. Among them: Xuelian Tianfu project creatively combines art with real estate to create an art life cluster, which has achieved excellent response in the market and achieved basic liquidation in more than a year. Yujincheng project has won the favor of customers with high quality and high standards, and its sales volume has always maintained the leading position in the industry.
(V) factoring and supply chain business were carried out steadily
Huiyingxin factoring company effectively transformed its business model, adjusted its business structure, carried out business with familiar customers in familiar fields, controlled the scale, strengthened the clearing and collection, and effectively controlled the business risks. Huirongtong supply chain company has actively innovated its business model, maintained supply chain business cooperation with large central enterprises and leading enterprises in Xinjiang, and achieved remarkable results.
(VI) strong promotion of main business transformation
The company started with equity participation in jiangnao railway project, steadily carried out various work to strengthen the main business, worked hard to promote the establishment and strategic transformation of the main business of logistics, and opened a blueprint for future development. The jiangnao railway project (18.92% equity) was started in April 2021. It is expected to be completed in the third quarter of 2023 and reach the operation state. The project connects Afu Zhun railway and hongnao railway, opens up the large railway channel of the north line of the “Silk Road”, runs through the two national coal bases of “Hami Zhundong”, meets the export demand of coal, coal chemical products and electrolytic aluminum in Zhundong, Santanghu and Naomaohu mining areas, and becomes a new channel for materials from northern Xinjiang, with good profit prospects, It will lay a solid foundation for accelerating the consolidation of the main business of logistics and enhancing the ability of sustainable management.
2、 Daily work of the board of directors in 2021
In 2021, the board of directors of the company actively promoted the optimization of the corporate governance structure in strict accordance with the company law, the securities law, the Listing Rules of Shanghai Stock Exchange, the articles of association, the rules of procedure of the board of directors and other relevant laws and regulations, departmental rules, normative documents and the company’s system, in combination with the actual situation of the company, Earnestly promote the orderly progress of all work to maximize the interests of the company and shareholders.
(I) convening of the general meeting of shareholders
In accordance with the relevant requirements of the articles of association and the rules of procedure of the general meeting of shareholders, the board of directors convened an annual general meeting and four extraordinary general meetings of shareholders, deliberating 19 proposals in total, ensuring the shareholders’ right to know, participate and make decisions.
The board of directors of the company shall timely implement the resolutions of the general meeting of shareholders and complete the work authorized by the general meeting of shareholders. (II) convening of the board of directors
The board of directors of the company organized and held 9 meetings in accordance with the provisions of the articles of association and the rules of procedure of the board of directors. The convening and holding of the meeting met the provisions of relevant laws and regulations and the articles of association. A total of 36 proposals were considered, mainly for the company’s periodic report, equity incentive, entrusted financial management, financing, fund-raising, profit distribution, signing of expropriation compensation agreement Important matters such as the acquisition of equity of related parties and related party transactions were deliberated, and the responsibilities entrusted by the general meeting of shareholders were performed according to law.
(III) meetings of special committees of the board of directors
All special committees of the board of directors actively perform their duties and provide good support for the decision-making of the board of directors. Among them, the audit committee of the board of directors held 6 meetings, the Strategic Investment Committee held 4 meetings, and the remuneration and assessment committee held 1 meeting.
(IV) profit distribution and dividend distribution of the company
1. Implemented cash dividend in 2020
On June 11, 2021, in order to give back to investors, a cash dividend of 3.00 yuan (including tax) was distributed for every 10 shares, with a total cash dividend of 35866054530 yuan.
2. No profit distribution is proposed in 2021
Audited by Daxin Certified Public Accountants (special general partnership), the company realized the net profit attributable to the shareholders of the parent company of 57289924986 yuan in the consolidated statement in 2021. The net profit of the parent company in 2021 was 1875143442 yuan. As of December 31, 2021, the accumulated undistributed profit of the parent company was 27519352600 yuan.
As of the disclosure date of the annual report, the company’s short-term debt and interest due in the next year totaled 1.084 billion yuan. At the same time, as the company’s supporting fund-raising investment project “Urumqi North Station comprehensive logistics base project” (phase II) will continue to be constructed, the supporting fund-raising fund of 505 million yuan temporarily used to supplement working capital needs to be returned, The company has a large amount of deterministic cash expenditure in the next year. At the same time, affected by covid-19 pneumonia epidemic, real estate regulation policies and other factors, the business environment faced by the company will remain severe, complex and changeable in the foreseeable future. In 2021, it is very important to ensure the company’s stable cash flow and long-term capital reserve, so as to better protect the company’s long-term capital reserve and enhance the company’s ability to resist risks.
(V) performance of information disclosure obligations
This year, the board of directors of the company adhered to the principles of authenticity, accuracy, integrity, timeliness and fairness in strict accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange and the management system of company information disclosure, faithfully fulfilled the obligation of information disclosure, ensured that investors understood the major matters of the company in time and protected the interests of investors to the greatest extent. In addition to the first quarter report of 2021 and the third quarter report of 2021, the company has also completed the regular report of 2021 and other relevant work in accordance with the provisions of the CSRC, 68 temporary announcements issued; At the same time, the company interacts with investors through online performance briefing, visual interpretation of regular reports, “SSE E interaction”, corporate email, investor hotline and other ways, patiently listens to investors’ voices and suggestions, and earnestly maintains investor relations.
(VI) performance of directors
All directors are conscientious, diligent and responsible, can actively pay attention to the company’s daily operation and management, financial status, major investment and financing and other matters, carefully review and discuss various proposals submitted to the board of directors for deliberation, offer suggestions for the company’s operation and development, effectively improve the scientificity of the board of directors’ decision-making, and promote the continuous, stable and Healthy development. During the reporting period, the directors of the company did not raise objections to various proposals and other related matters considered by the board of directors.
The independent directors of the company can independently perform their duties in accordance with the provisions of the company law, the securities law, the articles of association, the working system of independent directors and other laws and regulations, strictly review various proposals, make independent, objective and fair judgments, express independent opinions on major events, and effectively safeguard the interests of the company and minority shareholders.
3、 Industry pattern and trend
(I) comprehensive park construction — Airport Economic Demonstration Zone
In recent years, the state has attached great importance to and actively encouraged the development of the airport economic zone, successively issued the guiding opinions on the construction and development of the airport economic demonstration zone and other policy documents, emphasizing the need to form a “airport industry town” development model, strengthen the industrial transformation and upgrading of the airport economic zone, and promote the development of Commerce, logistics, culture, science and education, Build the agglomeration of aviation advantageous industries. The “opinions on further promoting the development of civil aviation in Xinjiang” of the autonomous region proposes to further strengthen the support for civil aviation in Xinjiang and help civil aviation in Xinjiang achieve leapfrog development. The focus is to highlight the strategic position of Urumqi International Airport as the country’s five gateway airports and actively build the air silk road. Therefore, the role of Urumqi airport economic demonstration zone has become increasingly prominent.
Urumqi airport economic demonstration zone is planned to cover an area of 135.6 square kilometers. The goal is based on the advantageous location of Xinjiang in the hinterland of Asia and Europe, relying on the gateway status of Urumqi airport, linking export-oriented functional areas such as comprehensive bonded area and international dry port area, and focusing on the three functional blocks of “large hub, new manufacturing and excellent service”, Build into China’s first-class airport economic demonstration zone with “integrated development of people, industry and city, distinctive characteristics of airport industry, perfect supporting facilities and beautiful ecological environment”. The construction of Urumqi airport economic demonstration zone is an important measure to implement the national and regional development strategy. It is of great significance to the construction of the economic core area of the Silk Road and further give full play to the important node role of Urumqi connecting the Eurasian Continental Bridge Economic Corridor. At present, with the full capping of the main structure of the North corridor of the terminal building of the reconstruction and expansion project of Urumqi International Airport, the construction of the airport economic demonstration area is accelerating.
(II) cold chain logistics industry
In recent years, the scale of China’s cold chain logistics market has grown rapidly, and the construction of national backbone cold chain logistics base and cold chain facilities for producing and selling land has been steadily promoted. According to the research data of Ping An Securities, in 2020, the scale of China’s cold chain logistics market exceeded 380 billion yuan, the storage capacity of cold storage was nearly 180 million cubic meters, and the number of refrigerated vehicles was about 287000, which was about 2.4 times, 2 times and 2.6 times higher than that at the end of the 12th Five Year Plan, respectively. A cold chain logistics service system integrating origin and sales, transportation and warehousing, and logistics and industry was initially formed. The outbreak of covid-19 has had a significant impact on China’s cold chain logistics industry, especially on cold storage. Due to social isolation, residents began to use more e-commerce platforms for online shopping, resulting in a huge online shopping volume of fresh food and drugs, which further led to the continuous warming of the overall cold chain logistics market. According to the data of China business industry research, the transaction scale of fresh e-commerce in China in 2020 was 364.13 billion yuan, a year-on-year increase of 42.54%, about four times that of 2016.
On December 12, 2021, the general office of the State Council issued the first Five-Year Plan for the development of cold chain logistics in China’s cold chain logistics field, the “14th five year plan”, which proposed that by 2025, a cold chain logistics network connecting the origin and land sales, covering urban and rural areas and connecting China International would be initially formed, and basically completed in line with China’s national conditions and the characteristics of industrial structure Cold chain logistics system to meet the needs of economic and social development. Basically build a national backbone cold chain
