Tianjin real estate development (Group) Co., Ltd
Work report of the board of directors in 2021
Dear directors
In 2021, under the positioning of the macro policy of “housing without speculation”, the policies of “three red lines” for real estate enterprise financing and “two red lines” for housing loan management continued to be tightened in the first half of the year. In the second half of the year, as the market continued to turn cold, the sales of some project areas were under pressure, and the company’s business situation was severe. In the face of pressure, under the guidance of Xi Jinping new era socialism with Chinese characteristics and under the leadership of SASAC and major shareholders, the company has united as one and worked hard. The leading group has a unified understanding, performed their duties, dared to take responsibility, carried forward the spirit of Rolling Stones up the mountain and climbing over the ridge, made every effort to tide over one difficulty after another and ensured the stable operation of the company. The work of the board of directors in this year is described as follows:
1、 Completion of main economic indicators
In 2021, the company operated in compliance and its main business remained stable. The company achieved an operating revenue of 4.665 billion yuan, a total profit of -1.551 billion yuan, a net profit of -1.752 billion yuan and a net profit attributable to the owners of the parent company of -1.844 billion yuan. By the end of 2021, the total assets of the company were 18.917 billion yuan, the net assets were 1.053 billion yuan, and the net assets attributable to the owners of the parent company were 490 million yuan.
During the reporting period, the company (including wholly-owned, holding subsidiaries and joint-stock companies, calculated by equity) achieved a contractual sales area of 155700 square meters, a year-on-year decrease of 37.60%; The contract sales amount was 4.056 billion yuan, a year-on-year decrease of 29.21%.
By the end of 2021, the construction area of the company was 1686000 square meters, a decrease of 36.47% over the same period of last year. During the reporting period, the company has no new construction area.
During the reporting period, the company completed an area of 937600 square meters, an increase of 93.72% over the same period last year.
2、 Operation of the company in 2021
(I) strengthen party building and play a leading role
In 2021, the Party committee of the company insisted on taking the thought of socialism with Chinese characteristics in Xi Jinping new era as the guidance, deeply studied and implemented the thought of socialism with Chinese characteristics in Xi Jinping new era and the spirit of the fifth and sixth plenary sessions of the 19th CPC Central Committee, earnestly implemented the requirements of the superior party committee on Comprehensively Strengthening the party building in the new era, strengthened measures and paid close attention to the implementation of the party building objectives formulated at the beginning of the year. The Party committee of the company always puts the party’s political construction in the first place, adheres to the armed theory, and seriously organizes the study and education of party history; Follow the regulations to build and strengthen the party’s organization and give full play to the leading role of the company’s Party committee in “taking direction, managing the overall situation and promoting implementation”; Adhere to laying the foundation at the grass-roots level, highlight the construction of Party branches, and enhance the vitality of grass-roots party organizations; Continue to deepen the reform of the three systems, stimulate motivation and vitality, encourage action and promote the growth and progress of talents; Adhere to strict governance of the party, strict discipline and rules, and constantly enhance the implementation of the system; Firmly grasp the initiative of ideological work, and earnestly do a good job in maintaining stability and epidemic prevention and control. (II) scientifically plan and resolve debt risks
During the reporting period, the company earnestly implemented the relevant requirements of the municipal Party committee and government, the municipal SASAC and the major shareholders on “adhering to the risk bottom line”, made overall planning and scientifically prepared the loan extension plan by means of improving the debt control mechanism, took the initiative, took multiple measures and paid close attention to the implementation.
In 2021, new financing and loan extension were carried out smoothly, effectively alleviating the debt pressure. Complete the land value-added tax rebate of Shengting garden project, and the retention and rebate of Huabo company and Huaheng company. The principal and interest payment and delisting of “13 day house debt” and “16 day House 01” have been completed on schedule.
(III) increase sales efforts and accelerate sales collection
In 2021, the real estate market is still grim. The company takes the initiative to carry out various sales promotion and payment collection work, strive to improve the predictability, rapidity and effectiveness of various sales strategies, and adopt the price strategy close to the market to respond quickly, seize the market peak and help sales. In order to better carry out sales management under the new situation and improve sales management efficiency, the company launched the line management mode, strengthened the line management system, and better promoted each company’s projects to achieve sales tasks. At the same time, in order to improve the scientificity of in transit fund management, the company has formulated a fund circulation plan according to the periodic fund demand, strictly implemented the whole chain control of in transit fund work, tracked and coordinated key links in real time, and maximized the speed of sales collection. In 2021, the company (including wholly-owned, holding subsidiaries and joint-stock companies, calculated by equity) achieved a contract sales area of 155700 square meters and a contract sales amount of 4.056 billion yuan.
(IV) innovate and revitalize ideas and carry out projects to tap potential
In 2021, affected by the epidemic and the overall market environment in Tianjin, the company made concerted efforts and took multiple measures. The annual rental income was 592822 million yuan and the contract amount of asset revitalization was 217.82 million yuan. Shuanggang 118 project completed the handling of sales license and project opening on schedule during the year. The potential tapping work of Shaliu road project has also made phased progress. The company actively negotiated with partners to broaden the fund source channels of the project and lay a solid foundation for follow-up work. Part of the equity transfer of Geely building is progressing smoothly. The company cooperates closely with relevant institutions to ensure that the work is completed on schedule and optimize the company’s debt structure.
(V) promote project construction and ensure smooth occupancy
During the reporting period, the company actively promoted the construction of key projects and key projects. Under the pressure of debt repayment, the company ensured the steady construction of all projects under construction by means of financing, capital turnover, reasonable arrangement of construction cycle and rational use of the advance ability of the construction unit. In 2021, buildings 16-19 of Shengting garden Centennial residential project and Suzhou liufengya courtyard have completed centralized occupancy.
(VI) acceptance of demonstration projects and brand building
In 2021, the company successfully completed the acceptance of the Centennial residence demonstration project of Shengting garden, obtained the Centennial residence license and obtained the 3A level certification of Centennial residence performance, which fully reflected the strength of the company in comprehensive development as a real estate enterprise, established a good reputation for the company’s projects, formed a social brand effect and improved the recognition of the company’s development and construction products, Further established the company’s development concept of “developing high-quality products, establishing brands and improving image”.
(VII) deepen system reform and build talent echelon
The company continues to further promote the three system reforms. According to the optimized and adjusted organizational structure and responsibilities of the company, the company will compete for the positions of junior and lower management personnel, effectively ensure that cadres can be promoted and demoted, broaden the channels of personnel selection and employment, and maximize the matching of personnel and posts and the best use of talents, so as to promote the healthy and benign development of the company. At the same time, the company continued to improve the professional manager system of “market-oriented selection and employment, contractual management, differentiated salary and market-oriented exit”, completed the social recruitment of general manager and three deputy general managers, and established and improved professional manager salary management measures and performance evaluation management measures.
(VIII) improve the governance structure and improve the standard level
During the reporting period, the company continuously improved the corporate governance structure and improved the standard operation level of the company in strict accordance with the company law, the securities law, the Listing Rules of Shanghai Stock Exchange and other laws, regulations and relevant provisions. In April 2021, the company revised the internal control manual (version 2021) and other system documents in combination with regulatory requirements. During the reporting period, the company actively organized directors, supervisors and senior managers to participate in various trainings organized by local securities regulatory authorities and Shanghai Stock Exchange, organized relevant departments and personnel to learn laws, regulations and rules such as the new securities law and the new stock listing rules, as well as knowledge of the securities market, and regularly analyzed violation cases, which effectively improved the standardized operation and scientific decision-making level of the company. During the reporting period, the company strictly implemented the functions and powers of the board of directors, completed the assessment work in accordance with the standard deployment of “six functions and powers”, combed and self inspected the six aspects of the company’s medium and long-term development decision-making power, manager selection power, performance assessment power, salary management power and management power of major financial matters, submitted relevant documents, and all work met the requirements of the superior.
(IX) actively interact and communicate to protect legitimate rights and interests
The company has always attached importance to the construction and maintenance of investor relations. During the reporting period, the company expanded communication channels and actively interacted in accordance with the measures for the management of investor relations. The company has set up investor e-mail and investor special line telephone to actively interact with investors through the “E-interaction” platform, maintain communication with investors through multiple channels and angles, fully listen to investors’ opinions and demands, enhance investors’ understanding of the company’s production and operation, and protect the legitimate rights and interests of investors.
3、 Corporate governance and standardized operation
(I) work of the general meeting of shareholders and the board of directors
1. The company held 10 board meetings. The company reviewed and approved the proposal on the changes of the accounting system for the first half of 2020, the quarterly report on the provision for impairment of assets and the final accounts of the third half of 2020, the proposal on the revision of the accounting system for the third half of 2020, the proposal on the provision for impairment of assets and the proposal on the quarterly report of the third half of 2020 to the accounting firm, the proposal on the revision of the accounting system for the third half of 2020, the proposal on the provision for impairment of assets and the final accounts of the third half of 2020, and the.
2. The company held four meetings of the board of supervisors, which respectively deliberated and approved the work report of the board of supervisors, provision for impairment, financial final accounts in 2020, annual report and summary in 2020, profit distribution in 2020, changes in accounting policies, first quarter report, semi annual report and summary in 2021, third quarter report and other proposals.
3. The company held four general meetings of shareholders, which respectively considered the 2020 annual report and summary, financial final accounts, profit distribution, guarantee amount in 2021, by election of non independent directors, by election of independent directors, financing guarantee and other proposals.
(II) implementation of the company’s internal control
The board of directors considered that the company’s internal control system was not effective in accordance with the provisions of the company’s internal financial reporting standards, and that there were significant defects in the company’s internal control system on the date of internal financial reporting. According to the internal control audit report issued by Zhongxi Certified Public Accountants (special general partnership), Tianjin Realty Development (Group) Co.Ltd(600322) has maintained effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations on December 31, 2021.
(III) work on Investor Relations
On May 19, 2021, according to the unified arrangement of Tianjin Securities Regulatory Bureau, the company completed the online investor reception day of Listed Companies in 2021. Relevant senior managers of the company attended the meeting and exchanged and interacted with investors through the online interactive platform. On the basis of strictly implementing the “three public” principle of information disclosure, it has effectively improved the recognition of investors to the company.
On September 16, 2021, the company held the semi annual performance presentation of 2021 through network interaction. Some directors and senior managers of the company conducted interactive exchanges and communication with investors on the specific conditions of operating results and financial indicators in the half year of 2021, and answered the questions generally concerned by investors within the scope of information disclosure.
In the daily work of investor relations management, the company strictly implements various regulations on investor relations management and strictly abides by relevant regulations on information disclosure in the process of receiving visits from institutional investors. Especially for some sensitive issues concerned by investors, they can explain patiently and have been recognized by investors.
(IV) implementation of profit distribution plan by the board of directors
In order to achieve the company’s business objectives in 2021, further enhance the company’s competitive strength, meet the needs of the company’s sustainable development, and maximize the interests of the company and shareholders, after comprehensive consideration, the company will not pay dividends in 2020, and the remaining undistributed profits will be carried forward to the next year. Therefore, the company did not implement profit distribution during the reporting period. (V) stock market performance
By the end of 2021, the number of shareholders of the company was 63000. In 2021, the lowest price of the company’s stock is 1.69 yuan / share, and the highest price is 2.52 yuan / share.
4、 Working ideas for 2022
(I) consolidate party building and promote new development of the company
In 2022, the company will continue to focus on the centralized learning of Party building theory, further unify ideas and understanding, and improve relevant systems based on problems, especially strengthen the implementation of the responsibilities of Party members and leading cadres among the company’s middle and senior managers, and promote a series of key and difficult work such as the stability, innovation, development and reform of the company. We will continue to strengthen the ideological construction of Party members and cadres closely around the two major themes of in-depth study and implementation of the Xi Jinping new era socialism with Chinese characteristics and the spirit of the Sixth Plenary Session of the 19th CPC Central Committee. Focusing on the theme of “learning party history, understanding ideas, doing practical things and opening up a new situation”, Conscientiously implement the principle of “learning history is rational, learning history is credible, learning history is moral, and learning history is vigorous.” “It is required to learn comprehensively, systematically and follow up, focus on the series of important speeches of Xi Jinping general secretary and the spirit of the Sixth Plenary Session of the 19th CPC Central Committee, carefully examine the problems, seriously carry out criticism and self-criticism, and take corrective measures; comprehensively promote the reform, development and stability of the company, effectively transform the organizational advantages of the party into development advantages, and transform the organizational vitality into the driving force for the development of the company, with the attitude and drive of a striver in the new era, Concentrate, work in unity and pay close attention to the implementation to promote the new development of the company.
(II) meet the difficulties and realize the sustainable development of the company
In 2022, the company will continue to implement capital arrangements, transfer funds to key work, continue to pay attention to capital balance and resolve debt risks; Win the two key battles of debt payment and ensuring cash flow, vigorously promote sales, revitalize assets and project transfer around capital balance, and do a good job in project tax rebate. At the same time, coordinate and communicate with bondholders and financial institutions, and manage public opinion.
Fully carry out the project transfer and tapping potential. The company will promote the overall transfer of relevant projects through multiple channels and angles, conduct in-depth communication with the intended partners on the transfer, and make every effort to do a good job in project construction, sales management, petition and stability maintenance while carrying out the transfer, so as to promote the smooth completion of the transfer.
Further increase the vitality of commercial housing sales and asset inventory, find new ways to meet the settlement needs of foreign buyers, tap potential customers to the greatest extent, create conditions for sales and supplement cash flow in time. Continue to vigorously carry out asset revitalization and strive to alleviate the company’s capital shortage.
In addition, combined with the 14th five year plan, the company has made beneficial exploration in urban renewal, urban operation, urban service providers and asset management, and tried to optimize the operation quality
