Securities code: China Communications Construction Company Limited(601800) securities abbreviation: China Communications Construction Company Limited(601800) Announcement No.: pro 2022014 China Communications Construction Company Limited(601800)
Announcement of profit distribution plan in 2021
China Communications Construction Company Limited(601800) (hereinafter referred to as the company or the company) 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: the company pays a dividend of RMB 020371 per common share.
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.
Cash dividends accounted for 20% and less than 30% of the net profit attributable to common shareholders of Listed Companies in this year. The main reason is that considering the industry characteristics, development stage and business model of the company, the capital demand of the company’s daily operation turnover is large, and it is necessary to accumulate appropriate retained earnings to meet the capital demand of the company.
1、 Contents of profit distribution plan
According to Chinese accounting standards, the net profit attributable to the shareholders of the listed company in the consolidated financial statements of the company in 2021 is RMB 17993085059. After deliberation and approval at the second meeting of the 5th board of directors, the company plans to distribute profits based on the total share capital registered on the equity registration date of equity distribution in 2021. The profit distribution plan is as follows: the company distributes dividends to all shareholders according to no less than 20% of the net profit of 16465241771 yuan (after deducting 1527843288 yuan of interest on perpetual medium-term notes) attributable to ordinary shareholders in the current year, that is, based on the total share capital of 16165711425 shares at the end of 2021, the company distributes dividends (including tax) of 020371 yuan per share to all shareholders, totaling 3293117074 yuan.
2、 Description of cash dividend ratio less than 30% in this year
The total cash dividend to be distributed by the company in 2021 is about 3293117074 yuan, accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. The specific reasons are as follows:
（1） Development stage of the company and its own business model
At present, the company is in the period of rapid development and strategic upgrading and transformation, and its business scale is expanding year by year. It is gradually deepening and practical on the road of deepening reform, enhancing core competitiveness and improving development quality. At the same time, the investment scale in infrastructure and other fields is relatively high, which increases the financial pressure of the company.
（2） Industry situation and characteristics of the company
The construction industry in which the company is located is a fully competitive industry with fierce market competition. The gross profit margin of the industry is generally low, the asset liability ratio is high, the amount of accounts receivable and inventory is large, there are many construction projects, a wide range, large monomer volume and long production cycle, and there is a large demand for funds to maintain daily operation turnover.
（3） Reasons for maintaining the cash dividend ratio of 20%
In order to seize market opportunities, continue to deepen reform, strengthen structural adjustment, transformation and upgrading, and seek new benefit growth points, the company needs a lot of capital investment in the field of infrastructure investment and M & a business. Therefore, the company plans to accumulate appropriate retained earnings to solve the capital problems faced in the process of development.
In the future, the company will maintain the stability of dividends and appropriately increase the proportion of dividends under the condition of steady improvement of operating performance and abundant cash flow.
3、 Decision making procedures performed by the company
（1） Convening, deliberation and voting of the board meeting
The company held the second meeting of the Fifth Board of directors on March 30, 2022, and the proposal on reviewing the company’s profit distribution and dividend distribution plan in 2021 was deliberated and adopted with the unanimous consent of all directors. （2） Opinions of independent directors
After deliberation, the independent directors believe that the company’s profit distribution policy in 2021 is conducive to ensuring the continuity and stability of the dividend distribution policy, complies with the provisions of the company law, the securities law and other relevant laws and the China Communications Construction Company Limited(601800) articles of association, and does not harm the interests of the company and all shareholders.
（3） Opinions of the board of supervisors
The company held the second meeting of the Fifth Board of supervisors on March 30, 2022. All supervisors unanimously approved the proposal on reviewing the company’s profit distribution and dividend distribution plan in 2021, considered that the profit distribution plan was in line with the long-term interests of the company and all shareholders, the company’s current profit distribution policies and relevant laws and regulations, and agreed to submit the plan to the general meeting of shareholders for deliberation.
It is hereby announced.
China Communications Construction Company Limited(601800) board of directors March 31, 2022
