Cccg Real Estate Corporation Limited(000736) : work report of the board of directors in 2021

Cccg Real Estate Corporation Limited(000736)

Work report of the board of directors in 2021

In 2021, Cccg Real Estate Corporation Limited(000736) the board of directors conscientiously performed the functions and powers conferred by the articles of association in strict accordance with the company law and the regulatory provisions of China Securities Regulatory Commission and Shenzhen Stock Exchange, and worked diligently and actively throughout the year.

1、 Review of the company's main business development in 2021

(I) brief analysis on the macroeconomic situation and industrial policy environment changes of national real estate in the reporting period

In 2021, China's real estate market experienced a transformation from high fever in the first half of the year to deep adjustment in the second half of the year. In terms of transaction scale, the transaction volume was high before and low after, and the market activity decreased sharply in the second half of the year; In terms of supply and demand, both supply and demand in the market flourished in the first half of the year and weakened at both ends in the second half of the year; In terms of the land market, the heat of the land market was high in the first half of the year. In the second half of the year, the land auction rules for centralized land supply in key cities were adjusted, the effect of stabilizing land prices was obvious, the willingness of real estate enterprises to acquire land was reduced under the adjustment of the trading market and capital pressure, and the national land market was significantly cooled down; In terms of industrial policies, the overall market policies in the first three quarters were tight, the regulation policies of the real estate market were continuously improved and upgraded, and the regulatory policies made efforts from financing, loans, land transfer and other aspects to limit the excessive expansion of the real estate industry and guide the market to return to rational competition. The policy effect was also obvious. Since the third quarter, the regulators have released the signal of maintaining stability, the real estate industry has ushered in the relaxation period of regulatory policies, the marginal improvement of credit environment, and the financing environment of real estate enterprises has gradually improved, but it still needs a process to transmit the marginal improvement of credit environment to the market. Since the second half of 2021, the scale growth of the real estate industry has been slow and the market differentiation has intensified, which has posed a challenge to the traditional high leverage and extensive development model of the real estate industry. The high turnover and excessive financialization model of the real estate industry needs to be changed. The real estate industry has gone through industry structure adjustment, capacity clearance and policy guidance, and the business model will change to the stage of high-quality growth and fine management. (II) main businesses of the company during the reporting period

During the reporting period, the company's main business was real estate development, operation and sales. At the same time, it actively explored and developed emerging businesses such as financing agency construction, characteristic town, Tod urban complex, urban renewal, industrial real estate and logistics real estate. The company's main business has not changed significantly. The company's product types are mainly to meet the needs of rigid demand and improved housing, supplemented by commerce, apartments, industrial parks, characteristic towns, urban complexes, etc. The company's products take "the builder of a better life" as the brand vision and "products to beauty, start with appearance and finally experience" as the product concept. It is committed to building a Cccg Real Estate Corporation Limited(000736) characteristic product pedigree and forming a competitive advantage of product power + service power. As the only A-share real estate listed company under CCCC group, the company closely focuses on the national strategy, gives full play to the holding advantages of central enterprises, constantly optimizes and upgrades the development strategy, focuses on the main business, strengthens the specialty, deepens the reform, optimizes the management, and continuously improves the brand value and brand strength. In recent years, the company's land reserve and sales performance have increased significantly, and gradually constructs a diversified product system, It shows the advantages and determination of the company's "better life builder", and the company's brand value and industry status have been significantly improved.

(III) review of operation during the reporting period

Financial indicators: as of December 31, 2021, the total assets of the company were 141962 billion yuan, an increase of 42.67% over the end of the previous year, and the net assets attributable to shareholders of listed companies were 3.259 billion yuan, an increase of 6.44% over the end of the previous year; From January to December 2021, the operating revenue was 14.542 billion yuan, an increase of 18.23% over the previous year, the total profit was 1.522 billion yuan, an increase of 4.00% over the same period of the previous year, and the net profit attributable to shareholders of listed companies was 236 million yuan, a decrease of 32.19% over the same period of the previous year.

In terms of business indicators, the company achieved a contracted sales area of 2.2851 million square meters from January to December 2021 (full caliber), a decrease of 5.79% over the same period last year; The contracted sales amount was 56 billion yuan, an increase of 5.07% over the same period last year; Sales receipts amounted to 59.1 billion yuan, an increase of 56.35% over the same period last year; From January to December of 2021 (according to the equity standard), the contracted sales amount was 39.8 billion yuan, an increase of 7.28% over the same period of last year; Sales receipts amounted to 41.9 billion yuan, an increase of 51.26% over the same period last year. In 2021, the contracted sales area of agent construction business was 22300 square meters, and the contracted sales amount was 1.024 billion yuan.

In terms of investment expansion: in 2021, under the new policy of "two centralized" land supply, the company adhered to the concept of "value investment, rational investment and high-quality investment", cooperated efficiently internally, simplified and optimized the process, improved the efficiency of fund raising and allocation, grasped market opportunities, and actively obtained 24 new projects; Focus on deeply cultivating the city, give full play to the experience and advantages in market, development and operation, and ensure the investment accuracy and operation efficiency of the project; Based on the current market situation, carefully carry out project research and judgment, strictly control investment risk, and select high-quality enterprises as partners to ensure the safety of project capital chain and company credit.

In terms of marketing work: the company has established operation guidelines for the whole marketing process management, refined marketing actions, improved marketing management efficiency, accurately grasped the window period of sales recovery, focused on value marketing, amplified project value, deeply explored brand letters, improved brand exposure and brand influence by means of new media, continuously improved customers' purchase confidence through central enterprise brand endorsement, and maintained concentration in multiple projects, Achieve a double breakthrough in sales premium. In 2021, the company's contracted sales rose against the trend, and the sales collection index increased significantly year-on-year.

In terms of financing: in 2021, when the financing environment of real estate enterprises became more and more strict, the company further strengthened the capital control and use efficiency, successfully registered the storage rack with AA + credit for the first time, realized the balance of houses to be purchased in advance through the ABS business of house purchase balance, and successfully issued RMB 2.1 billion of CCCC bonds, continuously expanded the new situation of financing and strongly supported the sustainable development of the company. In terms of project quality improvement: continue to practice the product design concept of "products to beauty, start with appearance and finally experience", focus on the construction of product and service capacity, and iteratively upgrade the product line and product pedigree; The design management platform was fully launched to further improve the review efficiency, refine the management process, and basically realize the comprehensive digital design control; Establish and improve a series of quality management standards and codes; Strengthen the flight inspection and remote supervision of the project, carry out the normal management of on-site safe and civilized construction and project quality, and comprehensively promote the further improvement of the company's product strength.

In terms of ensuring completion and delivery: compared with previous years, the number of projects delivered by the company in 2021 is large, and the task is heavy. The company overcomes the adverse factors such as the continuous and repeated covid-19 epidemic and the increase of severe weather such as rainstorm and high temperature. The company cooperates from top to bottom, closely tracks and anticipates the project delivery risks in advance, implements hierarchical management, scientifically allocates resources, comes up with targeted solutions one by one, and strengthens supervision and management of project quality risks Implement rectification, and use specialized and information-based means such as smart engineering platform to ensure the quality delivery of the project.

In terms of management efficiency improvement: all departments and professional lines of the company face up to the existing management shortcomings, earnestly promote the refinement of management, seek benefits from management, comprehensively sort out the current systems, norms and guidelines of the company, and further improve the system of the company; Strictly control the operation nodes of each project, effectively implement them, and continuously improve the operation efficiency; In 2021, a number of information systems such as bidding and procurement platform and design management platform will be launched to support the daily operation stably and efficiently; Strictly control financial, legal and audit risks, and effectively standardize the company's business compliance.

Party Building: the Party committee of the company insists on integrating party building into corporate governance and operation management, gives full play to the leading core role of the Party committee, and raises the flag and orientation for the development of the enterprise; Carry out a series of Party building activities in combination with the actual situation of the company, give full play to the political, organizational and talent advantages of state-owned enterprises, constantly improve the quality and efficiency of grass-roots party building, and promote the systematic, scientific, standardized and normalized level of Party building; Focus on high-quality development, strengthen the construction of Party style and clean government, improve the system and mechanism of comprehensively and strictly administering the party, adhere to mutual integration and progress, and release the momentum of development. 2、 Daily work of the board of directors

(I) 21 board meetings were held in 2021.

1. On January 13, 2021, the company held the 58th meeting of the 8th board of directors, which deliberated and adopted the proposal on the loan limit from related parties, the proposal on providing guarantee limit for the project company, the proposal on providing financial assistance limit for the project company, the proposal on providing financial assistance for the project company, and the proposal on jointly transferring the surplus funds of the project company with partners Proposal on carrying out re factoring business and proposal on convening the second extraordinary general meeting of shareholders in 2021.

2. On January 22, 2021, the company held the 59th meeting of the 8th board of directors, which deliberated and approved the proposal of Cccg Real Estate Corporation Limited(000736) on the company meeting the conditions for issuing corporate bonds, the proposal of Cccg Real Estate Corporation Limited(000736) on the scheme of public issuance of corporate bonds, and the proposal of Cccg Real Estate Corporation Limited(000736) on requesting the general meeting of shareholders to authorize the board of directors to handle all matters related to the issuance of corporate bonds Proposal on jointly transferring surplus funds of the project company with partners and proposal on convening the third extraordinary general meeting of shareholders in 2021.

3. On February 25, 2021, the company held the 60th meeting of the 8th board of directors, deliberated and adopted the proposal on providing financial assistance to the project company, the proposal on providing counter guarantee to related parties for Cccg Real Estate Corporation Limited(000736) issuing corporate bonds, and the proposal on convening the fourth extraordinary general meeting of shareholders in 2021.

4. On March 12, 2021, the company held the 61st meeting of the 8th board of directors, deliberated and adopted the proposal on providing financial assistance to the project company and the proposal on convening the fifth extraordinary general meeting of shareholders in 2021.

5. On March 30, 2021, the company held the 62nd meeting of the 8th board of directors, deliberated and adopted the proposal on related party transactions with related parties to jointly invest and establish the project company and the proposal on convening the sixth extraordinary general meeting of shareholders in 2021.

6. On April 13, 2021, the company held the 63rd meeting of the 8th board of directors, deliberated and passed the proposal on the president's work report in 2020, the proposal on the self-evaluation report on internal control in 2020, the proposal on the work report of the board of directors in 2020, the proposal on the provision for asset impairment and credit impairment, the proposal on the report and summary in 20202020 profit distribution plan, proposal on risk continuous assessment report of Cccg Real Estate Corporation Limited(000736) handling deposit and loan business in CCCC Finance Co., Ltd., proposal on daily connected transactions expected in 2021, proposal on Amending the articles of association and proposal on convening 2020 annual general meeting of shareholders.

7. On April 28, 2021, the company held the 64th meeting of the 8th board of directors, deliberated and adopted the proposal on accounting policy change, the proposal on the report of the first quarter of 2021, the proposal on transferring the surplus funds of the project company according to the equity ratio with the partner, and the proposal on convening the 7th extraordinary general meeting of shareholders in 2021.

8. On May 24, 2021, the company held the 65th meeting of the 8th board of directors, deliberated and adopted the proposal on related party transactions with related parties to jointly invest and establish the project company and the proposal on convening the 8th extraordinary general meeting of shareholders in 2021.

9. On June 7, 2021, the company held the 66th meeting of the 8th board of directors, deliberated and approved the proposal on appointing Mr. Wang Jianping as Cccg Real Estate Corporation Limited(000736) president and the proposal on appointing Mr. Sun Weidong as Cccg Real Estate Corporation Limited(000736) executive president.

10. On June 10, 2021, the company held the 67th meeting of the 8th board of directors, deliberated and adopted the proposal on carrying out non-standard supply chain financial asset securitization business with Ping An Financial Management Co., Ltd., the proposal on carrying out non-standard supply chain financial asset securitization business with Centennial Insurance Asset Management Co., Ltd., and the proposal on related party transactions with related parties to jointly invest and establish a project company Proposal on providing counter guarantee to related parties for Cccg Real Estate Corporation Limited(000736) issuing corporate bonds and proposal on convening the 9th extraordinary general meeting of shareholders in 2021.

11. On June 25, 2021, the company held the 68th Meeting of the 8th board of directors, deliberated and adopted the proposal on providing financial assistance to the project company, the proposal on providing financial assistance to wholly-owned subsidiaries, the proposal on Amending the articles of association and the proposal on convening the 10th extraordinary general meeting of shareholders in 2021.

12. On July 21, 2021, the company held the 69th meeting of the 8th board of directors, deliberated and passed the proposal on providing financial assistance to foreign companies by wholly-owned subsidiaries, the proposal on the budget of external donations in 2021, the proposal on carrying out the factoring business of the balance of house purchase, and the proposal on convening the 11th extraordinary general meeting of shareholders in 2021.

13. On August 12, 2021, the company held the 70th meeting of the 8th board of directors, deliberated and passed the proposal on providing financial assistance to the project company, the proposal on jointly transferring the surplus funds of the project company with partners, and the proposal on convening the 12th extraordinary general meeting of shareholders in 2021.

14. On August 24, 2021, the company held the 71st meeting of the 8th board of directors, deliberated and passed the proposal on Cccg Real Estate Corporation Limited(000736) 2021 semi annual report and summary, the proposal on Cccg Real Estate Corporation Limited(000736) continuous risk assessment report on deposit and loan business in CCCC Finance Co., Ltd., and the proposal on carrying out asset securitization business of house purchase balance Proposal on supporting the project company to carry out the asset securitization business of house purchase balance, proposal on providing external financial assistance by wholly-owned subsidiaries, and proposal on convening the 13th extraordinary general meeting of shareholders in 2021.

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