Securities code: Holsin Engineering Consulting Group Co.Ltd(603909) securities abbreviation: Holsin Engineering Consulting Group Co.Ltd(603909) Announcement No.: 2022011 Holsin Engineering Consulting Group Co.Ltd(603909)
Announcement of profit distribution plan in 2021
The board of directors and all directors guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Distribution ratio per share: cash dividend of 0.42 yuan (including tax) for every 10 shares.
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to keep the total distribution unchanged and adjust the distribution proportion per share accordingly. The specific adjustment will be announced separately.
Brief reasons why the proportion of cash dividends in this year is less than 30% are as follows: the engineering and technical service industry in which the company is located generally has the characteristics of low overall engineering consulting rate, wide range of engineering projects served, large amount of accounts receivable and so on. According to the company’s annual business plan, the company will continue to develop high-quality stock business in 2022, focusing on expanding new business in the construction sector. To sum up, the company needs to have sufficient cash reserves to maintain the daily operation of stock business and the early investment of new business.
1、 Profit distribution plan of the company in 2021
Audited by Beijing Xinghua Certified Public Accountants (special general partnership) (hereinafter referred to as “Xinghua certified public accountants”), the net profit attributable to the common shareholders of the parent company in the consolidated financial statements of Holsin Engineering Consulting Group Co.Ltd(603909) (hereinafter referred to as “the company”) in 2021 was 4042692590 yuan, and the distributable profit of the parent company was 16033444967 yuan as of December 31, 2021.
According to the current overall operation of the company and the development stage of the growth period of the company, in order to ensure the health of the company
On the premise of sustainable development, the company plans to distribute a cash dividend of RMB 0.42 (tax included) for every 10 shares to all shareholders based on the total share capital of 200517800 shares as of December 31, 2021, with a total cash dividend of RMB 842174760 (tax included). The cash dividend ratio of the company in this year is 20.83%.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly. If the subsequent total share capital changes, the specific adjustment will be announced separately.
The above profit distribution plan for 2021 needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of the situation that the ratio of the total cash dividends in 2021 to the net profit attributable to the shareholders of the listed company in that year is less than 30%
（1） External macro environment and industry characteristics
In 2022, the state will focus on major strategic deployment and the 14th five year plan, and moderately advance infrastructure investment. As the demand for steady growth of national policies continues to be strengthened and multiple measures for steady growth continue to be taken, municipal infrastructure, new infrastructure, affordable housing construction, urban pipeline transformation and construction will become the focus of a new round of infrastructure development.
The amount of funds collected by engineering consulting companies is relatively large, and it is difficult to maintain the turnover rate of some engineering services in the local engineering market, which is very low.
To sum up, the company needs sufficient cash reserves for future development to seize opportunities, meet challenges and achieve long-term healthy, stable and rapid development.
（2） Development stage of listed companies and their own business model
Founded in 1995, the company is an enterprise providing technical services for the whole life cycle of the project. At present, it has formed four industrial sectors: design and engineering management services, operation and maintenance services, testing services and construction construction. It provides customers with comprehensive, cross-stage and integrated management consulting and technical services from the whole life cycle of project decision-making, engineering construction, operation and maintenance. At the end of 2021, the controlling shareholder of the company was changed to Xiamen Yiyue Real Estate Co., Ltd. with state-owned assets and industrial background, and the actual controller was changed to Xiamen SASAC. Through business collaboration, the company will make full use of the high-quality industrial resources of controlling shareholders in real estate, engineering and other fields to enhance the company’s core competitiveness and promote the company to become bigger and stronger.
2022 is the first year for state-owned assets to enter the holding company and the second year for the implementation of the company’s “20212025” strategic plan. At present, the company’s development is in the growth stage and has significant capital expenditure. According to the annual business plan, in 2022, we will continue to develop high-quality stock business, quickly launch incremental business, and focus on expanding new business in the construction sector. New business needs early-stage input, and the output lags behind, so it needs sufficient financial support.
The company mainly obtains various engineering and technical services through bidding, bid negotiation and direct entrustment of customers, and provides customers with comprehensive, cross stage and integrated engineering and technical services by relying on the collectivized collaborative value-added mode “1 + X”. Among them, public bidding is the main mode for the company to undertake business.
（3） Profitability and capital demand of listed companies
1. The company’s earnings per share for the last three years are as follows:
Annual net profit earnings per share (yuan)
Basic earnings per share diluted earnings per share
Net profit attributable to common shareholders of the company 0.2016 020162021 net profit attributable to common shareholders of the company after deducting non recurring profits and losses
0.1833 0.1833
Net profit attributable to ordinary shareholders of the company 0.2354 023482020 net profit attributable to ordinary shareholders of the company after deducting non recurring profits and losses
0.2029 0.2024
Net profit attributable to ordinary shareholders of the company 0.3745 037452019 net profit attributable to ordinary shareholders of the company after deducting non recurring profits and losses
0.3376 0.3376
The plan of converting capital reserve into share capital will be implemented in 2021, that is, the total share capital before the implementation of the plan
Taking 143227000 shares as the base, the capital reserve is used to increase 4 shares for every 10 shares to all shareholders, with a total increase
57290800 shares. After the conversion, the total share capital of the company increased to 200517800 shares.
The above changes in share capital have diluted the basic earnings per share and other indicators of the company in 2019, 2020 and 2021. Then, affected by the epidemic situation and the structural adjustment of survey and design business, the basic earnings per share and the basic earnings per share index after deducting non recurring profits and losses decreased in 2021.
2. Analysis of the company’s future capital demand
Unit: RMB 10000
Annual operating activities generate investment activities generate financing activities generate cash at the end of the period and is now expected to be in the next year
Net cash flow net cash flow net cash flow cash equivalents balance fund demand
2021 8,873.37 -3,826.88 2,273.80 27,352.46 35,000.00
Note: the above data are the data of the company’s consolidated statements
The capital sources required for the development of the company are mainly the enterprise’s own funds, bank loans, etc. To ensure that the company holds
Continued, healthy and stable development. The capital demand of the company in 2022 mainly includes the capital demand for daily operation of each business segment, capital project investment, and repayment of loans and interests of financial institutions. In order to achieve the development goal of 2022, the company will reasonably arrange the fund demand according to the business development needs, perform the necessary approval and announcement procedures in strict accordance with the procedures specified in relevant laws and regulations, further optimize the use of funds, coordinate the fund scheduling, strictly control various non productive expenses, improve the fund use efficiency and support the sustainable and healthy development of the company, Combined with long-term and short-term bank loans and other financing methods to meet the capital demand.
（4） Exact purpose and estimated income of retained undistributed profits
The undistributed profits retained by the company are used to supplement the working capital on the one hand and to invest in various business segments on the other hand. From the perspective of increasing the company’s capacity and retained assets, the return on investment of the company will be better than that of the bank in recent years.
To sum up, considering the company’s current capital structure, development stage in the growth period and future development plan, the above dividend plan is formulated in order to achieve sustainable, healthy, stable and rapid development and bring long-term and sustainable returns to investors. This profit distribution plan meets the requirements of the company law, the securities law, the articles of association and other laws and regulations, conforms to the company’s sustainable and stable profit distribution policy, is also in line with the long-term interests of the majority of shareholders, and is conducive to the long-term sustainable development of the company. Comprehensively consider various factors related to profit distribution, actively implement the company’s profit distribution system, and share the results of the company’s growth and development with shareholders. 3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
On March 22, 2022, the company held the third meeting of the Fourth Board of directors and deliberated and adopted the proposal on profit distribution plan in 2021.
(II) opinions of independent directors
Agree to the proposal on profit distribution plan for 2021. The profit distribution plan for 2021 formulated by the company complies with the provisions of relevant laws and regulations and the articles of association. It is an important decision made based on the company’s current operating conditions, financial conditions, capital needs and the company’s future development. It is conducive to repay investors and will not affect the company’s normal operation and long-term development. We agree to submit the proposal to the general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
On March 22, 2022, the company held the third meeting of the Fourth Board of supervisors and deliberated and adopted the proposal of profit distribution plan for 2021.
The board of supervisors believes that the company’s profit distribution plan for 2021 complies with relevant laws and regulations, the articles of association and the shareholder return plan for the next three years (20192021), and strictly implements the profit distribution decision-making procedures. The company’s profit distribution plan for 2021 has comprehensively considered internal and external factors, the company’s business status, future development plan, future capital demand, the opinions of directors and the expectations of shareholders. The board of supervisors agreed to the company’s profit distribution plan for 2021.
4、 Relevant risk tips
1. This profit distribution plan has no significant adverse impact on the company’s earnings per share, cash flow status and production and operation, and will not affect the company’s normal operation and long-term development.
2. This profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Holsin Engineering Consulting Group Co.Ltd(603909) board of directors
March 23, 2002
