Securities code: China State Construction Engineering Corporation Limited(601668) stock abbreviation: China State Construction Engineering Corporation Limited(601668) No.: pro 2022020 announcement on profit distribution 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 0.25 yuan per share (tax included).
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 date of equity distribution and equity registration, the company plans to maintain the distribution proportion per share unchanged, adjust the total distribution accordingly, and announce the specific adjustment separately.
Brief reasons for the cash dividend ratio of less than 30% in this year: considering the industry characteristics, development stage and business model of the company, the company needs a large amount of capital to maintain daily operation turnover, so it is necessary to accumulate appropriate retained earnings to solve the capital problems faced in the process of development.
1、 Main contents of profit distribution plan
According to the audit of Ernst & Young Huaming Certified Public Accountants (special general partnership), as of December 31, 2021, the net profit available for distribution to ordinary shareholders of China State Construction Engineering Corporation Limited(601668) (hereinafter referred to as “the company”) parent company in 2021 was 48.666 billion yuan. According to the resolution of the board of directors, the company’s profit distribution plan for 2021 is as follows: the company plans to distribute a cash dividend of 2.50 yuan (including tax) to all shareholders for every 10 shares. As of the disclosure date, the total share capital of the company is 41940858844 shares. Based on this calculation, the total cash dividend to be distributed is about 10.49 billion yuan (including tax). The company’s cash dividends accounted for 20.40% of the net profit attributable to the shareholders of the parent company in the consolidated statements this year.
If the total share capital of the company changes before the date of equity distribution and equity registration, the company plans to maintain the distribution proportion per share unchanged, adjust the total distribution accordingly, and announce the specific adjustment separately.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the net profit attributable to the shareholders of the company in the consolidated statements of the company was 51.408 billion yuan, and the accumulated undistributed profit of the parent company was 48.666 billion yuan. The total cash dividend to be distributed by the company was about 10.49 billion yuan (including tax), accounting for 20.40% of the net profit attributable to the shareholders of the listed company in this year. The ratio of the cash dividend to be distributed by the company in this year to the net profit attributable to the shareholders of the listed company in that year was less than 30%, The specific reasons are described below.
(I) industry situation and characteristics of the company
The construction industry in which the company is located is a fully competitive industry, and the market competition is very fierce. The projects undertaken are characterized by large monomer volume and long production cycle, and the capital demand for maintaining daily operation turnover is large. (II) development stage of the company and its own business model
In 2021, the newly signed contract amount and operating revenue of the company reached a new record, the advantages of the whole industrial chain were further consolidated, and the development quality of each business segment was continuously improved. The company takes the initiative to integrate into the national strategy, promote a more reasonable regional layout, accelerate the pace of reform, highlight the “high-quality” development trend, benchmark the new development concept, benchmark the world-class enterprises, and constantly improve the global competitiveness and brand influence.
(III) profitability and capital demand of the company
Since the listing of the company, the return on net assets has remained at an industry high level of about 15%, creating a stable return on investment for shareholders. As the company strengthens reform and innovation, it is necessary to increase investment in innovative business and new technology. In addition, in order to meet the needs of daily operation and turnover and the smooth performance of the project, the company needs to keep a certain amount of retained earnings.
(IV) reasons why the company retains a certain proportion of retained undistributed profits
At present, the downward pressure on the world economy is increasing, and the international situation is changing rapidly. Objectively, it is necessary to preserve retained earnings to enhance the anti risk ability of enterprises. The retained earnings accumulated by the company over the years belong to all investors. As the company accelerates the transformation from high-speed development to high-quality development, the profitability of the enterprise will be steadily improved, which can provide investors with more generous returns in the future.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
Retained undistributed profits will be used to support enterprises to seize strategic development opportunities, continuously deepen the company’s strategy, strengthen structural adjustment, transformation and upgrading, and seek new benefit growth points China State Construction Engineering Corporation Limited(601668) the stable dividend policy over the years reflects the ability of China State Construction Engineering Corporation Limited(601668) steady development and continuous dividend. In 2022, the company will continue to take “one innovation and five strong” as the development goal, strive to improve its value creation ability and repay shareholders with excellent operating performance.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 15th meeting of the third board of directors on April 15, 2022, and adopted the proposal on profit distribution plan of China State Construction Engineering Corporation Limited(601668) 2021 with 6 affirmative votes, 0 negative votes and 0 abstention votes.
(II) opinions of independent directors
Independent directors believe that in order to continuously and stably repay shareholders and let shareholders share the company’s growth and development achievements, combined with the external macroeconomic situation, industry characteristics, development stage, capital demand, epidemic impact and other factors of the company, according to the articles of association, the company proposes to distribute cash dividends of 2.50 yuan (including tax) to all shareholders for every 10 shares based on 41940858844 shares as of the disclosure date, A total of 10.49 billion yuan (including tax) of cash dividends is proposed to be distributed. The distribution plan complies with the provisions on cash dividends in the articles of association. The level of cash dividends is reasonable, can give consideration to the reasonable return of investors and the sustainable development of the company, meets the needs of the company’s long-term development, and does not damage the interests of minority shareholders. The company’s deliberation and voting procedures on the distribution plan comply with the provisions of relevant laws, regulations and the articles of association. Agree to the China State Construction Engineering Corporation Limited(601668) 2021 annual profit distribution plan and submit the plan to the 2021 annual general meeting of shareholders of the company for deliberation and approval.
(III) opinions of the board of supervisors
The company held the 10th meeting of the third session of the board of supervisors on April 15, 2022, and deliberated and adopted the proposal on the profit distribution plan for China State Construction Engineering Corporation Limited(601668) 2021 with 5 affirmative votes, 0 negative votes and 0 abstention votes. The board of supervisors considered that the profit distribution plan and its decision-making procedures complied with the provisions of laws and regulations, the articles of association and other internal management systems of the company, taking into account the expectations of the capital market The overall cash flow arrangement and other factors can not only enable investors to obtain a reasonable return on investment, but also take into account the company’s production and operation, which is in line with the long-term interests of the company and all shareholders. It is agreed to submit the scheme to the general meeting of shareholders for deliberation.
4、 Relevant risk tips
1. The profit distribution plan fully considers the company’s industry characteristics, development stage, its own business model, 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.
2. The profit distribution proposal can only be implemented after being submitted to the 2021 annual general meeting of the company for deliberation and approval.
3. The information disclosure media designated by the company are China Securities News, Shanghai Securities News, Securities Daily, securities times and the website of Shanghai Stock Exchange (www.sse. Com. CN), The information about the company shall be subject to the information published in the above designated media. Please pay attention to it.
It is hereby announced.
China State Construction Engineering Corporation Limited(601668) board of directors April 15, 2002
