Securities code: 603176 securities abbreviation: Huitong group Announcement No.: 2022033 Huitong Construction Group Co., Ltd
Announcement of annual profit distribution plan in 2021
The board of directors and all directors of the company 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 0.03 yuan (including tax) per a 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.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the distribution proportion per share unchanged, adjust the total distribution accordingly, and make a separate announcement on the specific adjustment.
The proportion of cash dividends in this year is less than 30%, mainly because: considering the industry characteristics, development stage and business model of the company, the company needs to accumulate appropriate retained earnings for the capital needs of daily operation turnover, supplement the capital needs faced by the company in the process of development, and provide reliable guarantee for the company's development strategy.
1、 Contents of profit distribution plan
According to the audit of Rongcheng Certified Public Accountants (special general partnership), as of December 31, 2021, the distributable profit of the parent company of the company was RMB 11488386829. According to the resolution of the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 0.30 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 466660000 shares. Based on this calculation, the total cash dividend to be distributed is 1399980000 yuan (including tax). In 2021, the net profit attributable to the shareholders of the listed company was 8376166482 yuan, and the distributable profit of the parent company at the end of 2021 was 11488386829 yuan. In this year, the company's cash dividends accounted for 16.71% of the net profit attributable to the owners of the parent company. The company did not give bonus shares or convert capital reserve into share capital.
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 distribution proportion per share unchanged and adjust the total distribution accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan will be implemented after being reviewed and approved by the company's 2021 annual general meeting of shareholders.
2、 Description of cash dividend ratio less than 30% in this year
In 2021, the net profit attributable to the shareholders of the listed company was 8376166482 yuan, the distributable profit of the parent company at the end of 2021 was 11488386829 yuan, and the total cash dividend to be distributed by the company was 1399980000 yuan (tax included), 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:
(I) industry situation and characteristics of the company
In the construction industry where the company is located, the competition is fierce, the asset liability ratio is generally high, the current ratio and quick ratio are relatively low, and the amount of accounts receivable is large.
(II) development stage of the company and its own business model
Focusing on Hebei Province, the company deeply cultivates business opportunities in the process of coordinated development of Beijing, Tianjin and Hebei and infrastructure construction of xiong'an new area. At the same time, it continues to explore markets outside the province. The engineering construction projects cover more than 10 provinces and cities such as Beijing, Shandong, Anhui, Inner Mongolia, Shaanxi, Ningxia, Gansu, Xinjiang, Yunnan and Zhejiang. In the process of business expansion, there is a large demand for funds.
(III) profitability and capital demand of the company
In 2021, the company realized an operating revenue of 236816068209 yuan, a year-on-year decrease of 1.24%; The net profit attributable to the shareholders of the listed company was 8376166482 yuan, a year-on-year decrease of 13.05%.
Engineering construction enterprises occupy a large amount of funds. In the process of operation, they need to pay bid security, performance security, migrant workers' wage payment security and project quality security. Usually, they also need to advance funds such as raw materials and labor services before construction. Investment and construction projects have greater capital demand due to their investment nature.
(IV) reasons for the low level of cash dividends of the company
The company is a newly listed company at the end of 2021. It is mainly considered that the company is in the growth period, the construction of relevant projects is advancing in an orderly manner, the company has major capital expenditure arrangements, and the capital investment will continue to be strengthened; With the growth of the company's operating scale, a large amount of operating funds will be invested to support the company's development; At the same time, the company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market. (V) the exact purpose of retained undistributed profits and the estimated income of the company
The retained undistributed profits are mainly used for the development of the main business and the working capital of the company's daily production and operation, so as to improve the company's core competitiveness and sustainable profitability, and repay the majority of investors with better performance.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 20th meeting of the first board of directors on April 8, 2022, deliberated and adopted the proposal on the company's profit distribution plan in 2021 with 9 affirmative votes, 0 negative votes and 0 abstention, and agreed to submit it to the general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
We believe that the profit distribution plan for 2021 proposed by the board of directors of the company complies with the provisions of relevant laws, regulations and the articles of association, takes full account of the company's operation, capital demand, shareholder return and future development, is conducive to the sustainable and stable development of the company, conforms to the actual situation of the company, and does not damage the legitimate rights and interests of the company's shareholders, especially small and medium-sized shareholders. We unanimously agree to this proposal and agree to submit it to the general meeting of shareholders of the company for deliberation. (III) opinions of the board of supervisors
The seventh meeting of the first board of supervisors of the company deliberated and adopted the proposal on the company's profit distribution plan in 2021 with 3 votes in favor, 0 against and 0 abstention, and agreed to submit it to the general meeting of shareholders of the company for deliberation. The board of supervisors believes that this profit distribution plan takes into account the immediate and long-term interests of the majority of shareholders on the premise of ensuring the normal operation and long-term development of the company, conforms to the interests of the company and the majority of investors, especially small and medium-sized investors, conforms to the provisions of relevant laws, regulations and the articles of association, and is conducive to the sustainable, stable and healthy development of the company.
4、 Relevant risk tips
The profit distribution plan comprehensively considers the development stage of the company, future capital demand and other factors, and will not have a significant impact on the company's operating cash flow, normal operation and long-term development of the company. The profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of shareholders for deliberation and approval.
Please make rational judgment and pay attention to investment risks.
It is hereby announced.
Board of directors of Huitong Construction Group Co., Ltd. April 9, 2022
