Benefiting from the enhancement of acquisition synergy and the significant improvement of the company’s core competitiveness and brand influence, Shenzhen Weiye Decoration Group Co.Ltd(300621) since its listing in 2017, the operating revenue has exceeded the 10 billion yuan mark for the first time.
On April 22, Shenzhen Weiye Decoration Group Co.Ltd(300621) ( Shenzhen Weiye Decoration Group Co.Ltd(300621) , SZ) released the performance report for 2021. The annual operating revenue of the company was 10.021 billion yuan, an increase of 115.19% year-on-year. The net profit attributable to the shareholders of the listed company was 368167 million yuan, and the net cash flow from the company’s operating activities was 285 million yuan.
Shenzhen Weiye Decoration Group Co.Ltd(300621) was established in 1994 with a registered capital of 208 million yuan. It is a listed company controlled by key state-owned enterprises in Zhuhai. Its business areas mainly include civil engineering construction, building decoration construction, building decoration design, etc.
As the first and only decoration enterprise listed on the gem in China, Shenzhen Weiye Decoration Group Co.Ltd(300621) has been ranked among the top 10 architectural decoration enterprises in China for many consecutive years. The management of the company said that in the future, the company will continue to cultivate the main business of architectural decoration, expand resources around the upstream and downstream of the industry, expand the industrial scale, and take “maximizing enterprise value” as the goal, focus on green buildings, energy-saving and environmental protection building materials and other fields, and empower and Integrate industrial chain resources, optimize capital platform and strengthen comprehensive strength.
acquisition synergy thickening performance expectation
In 2021, affected by the debt risk of real estate enterprises and the impact of negative factors such as the sharp rise in the price of raw materials, the whole construction industry struggled to move forward Shenzhen Weiye Decoration Group Co.Ltd(300621) by strengthening internal construction and seizing development opportunities, we completed the equity acquisition of HUAFA Jinglong and Jiantai construction, improved the layout of the company’s industrial chain, expanded the company’s business scale, and provided strong support for building the company into a construction platform.
HUAFA Jinglong is mainly engaged in batch fine decoration business. At present, it has registered ratings and carried out bidding business on Zhuhai public resources trading platform, Guangdong provincial government procurement network, Hubei Province and Wuhan trading platform. After years of business accumulation, HUAFA Jinglong has a stable relationship channel and is quite competitive in the bidding of high-quality business.
Hengqin has been recognized as the first-class enterprise in China’s construction of Hengqin City, which has made a number of contributions to the development of municipal construction projects. According to the evaluation of Hengqin City, Hengqin city has been recognized as the first-class enterprise in the economic development of Hengqin city since 2021.
After the acquisition, Shenzhen Weiye Decoration Group Co.Ltd(300621) holds 50% equity of HUAFA Jinglong and 61% equity of Jiantai construction, which can not only meet the needs of downstream customers for product diversification, but also play a synergistic effect in terms of technology, capital, experience, channels and economies of scale. By managing the product portfolio, it can improve the overall production efficiency, realize scale effect and sustainable growth, and enhance the company’s competitive advantage in the industry.
Up to now, the business structure of Shenzhen Weiye Decoration Group Co.Ltd(300621) has been adjusted. It has become a comprehensive enterprise group focusing on building decoration construction and civil engineering construction. It also provides strong support for Shenzhen Weiye Decoration Group Co.Ltd(300621) to build a construction platform of HUAFA system.
In addition, on April 9, Shenzhen Weiye Decoration Group Co.Ltd(300621) announced that the controlling shareholder Huashi holdings planned to transfer 29.99% of the total share capital of the company to Zhuhai urban construction free of charge. This equity change will not touch the tender offer and has been approved by relevant departments.
After the free transfer, the controlling shareholder of Shenzhen Weiye Decoration Group Co.Ltd(300621) will be changed from Huashi holdings to Zhuhai urban construction, and the actual controller is still Zhuhai SASAC. Statistics show that Zhuhai urban construction is a wholly-owned state-owned enterprise in Zhuhai. It is an excellent urban comprehensive operator in the construction of three major patterns of transportation, industry and city in Zhuhai. It is the main force in the field of urban construction in Zhuhai and has strong strength. In terms of industrial coordination, Zhuhai urban construction and Shenzhen Weiye Decoration Group Co.Ltd(300621) have stronger relevance in business and closer coordination in industrial resources. If Zhuhai urban construction becomes the controlling shareholder of Shenzhen Weiye Decoration Group Co.Ltd(300621) in the future, it will provide strong support for the business deepening and expansion of Shenzhen Weiye Decoration Group Co.Ltd(300621) and Shenzhen Weiye Decoration Group Co.Ltd(300621) will have more obvious brand and regional advantages in undertaking major local construction projects.
revenue exceeded 10 billion for the first time
With the completion of the acquisition, the industrial synergy has gradually become prominent, Shenzhen Weiye Decoration Group Co.Ltd(300621) the ability to obtain orders in the industry has also been significantly improved, and the revenue of relevant businesses of the company has also increased significantly.
In 2021, Shenzhen Weiye Decoration Group Co.Ltd(300621) revenue exceeded 10 billion yuan for the first time, with a year-on-year increase of 115%. Among them, the revenue of civil engineering business was 5.807 billion yuan, the revenue of decoration construction business was 4.093 billion yuan, and the net profit attributable to shareholders of listed companies was 368167 million yuan. In the context of tight market liquidity, the net cash flow generated by the company’s operating activities was 285 million yuan, maintaining a relatively stable cash flow.
It has the market competitiveness to participate in the bidding of various engineering projects. At the same time, it has the advantages of qualification, brand and engineering project management. The subsequent performance growth of Shenzhen Weiye Decoration Group Co.Ltd(300621) Shenzhen Weiye Decoration Group Co.Ltd(300621) .
Up to now, Shenzhen Weiye Decoration Group Co.Ltd(300621) has built a large number of high-quality projects and accumulated rich experience in project construction management. Nearly 100 projects have won Luban Award, National Architectural Decoration Engineering Decoration Award Guangdong excellent architectural decoration Engineering Award, Tianshan cup, Taishan cup, Jinpeng award and other national, provincial and municipal high-quality engineering awards.
Shenzhen Weiye Decoration Group Co.Ltd(300621) management said that in 2022, the company will closely focus on the 16 character policy of “improving control, introducing talents, improving performance and risk prevention and control”, give full play to the maximum combat effectiveness of the team through management empowerment, steadily improve business performance through strategic empowerment, accelerate enterprise transformation and upgrading through science and technology empowerment, and fully stimulate the potential of employees through talent empowerment.
Northeast Securities Co.Ltd(000686) once released a research report, saying that China’s investment in infrastructure and real estate development increased steadily. With the upgrading of residents’ consumption structure and the impact of covid-19 epidemic, the industry concentration is expected to further improve. As one of the top 100 enterprises in the construction and decoration industry, Shenzhen Weiye Decoration Group Co.Ltd(300621) is expected to further improve its market share and give the company a “overweight” rating.
fighting the epidemic and taking responsibility
Although impacted by various factors, the construction industry is moving forward with a heavy load, Shenzhen Weiye Decoration Group Co.Ltd(300621) while the demand opportunities break through the development, it still does not forget its original intention, bravely shoulder social responsibility, practice the spirit of public welfare, and actively play the leading role of state-owned holding listed companies.
Shenzhen Weiye Decoration Group Co.Ltd(300621) always adhere to the principle of paying equal attention to economic and social benefits, and unremittingly support social public welfare undertakings such as culture, education and disaster relief while making outstanding contributions to national economic construction and industrial development. The company has made many donations to poor children and teenagers, provided grants to excellent students, donated materials to flood, earthquake and other disaster areas, donated ambulance vehicles to Luhe County People’s Hospital, and donated money to build Hetian middle school maintenance gymnasium, etc.
Since the covid-19 epidemic occurred, the company has insisted on paying attention to epidemic prevention on the one hand and promoting the resumption of production on the other. It has urgently purchased epidemic prevention materials, donated money and materials to the frontline of epidemic resistance such as streets and public security, and sent 70 volunteers to assist in nucleic acid detection, with a service time of nearly 300 hours.
Especially before the Spring Festival in 2022, the epidemic broke out in Zhuhai. Under the severe situation, HUAFA Jinglong and Jiantai construction, the subsidiaries of Shenzhen Weiye Decoration Group Co.Ltd(300621) holding, were brave enough to undertake the transformation and upgrading project of Gree Pearl Plaza Apartment. As the construction unit, HUAFA Jinglong called on all employees of the company in Zhuhai to actively participate in the epidemic prevention upgrading and transformation project. From January 21 to 24, 2022, a total of 104 employees of HUAFA Jinglong participated in the renovation and upgrading project of Gree Pearl Plaza Apartment; Jiantai construction immediately organized a team of volunteers with more than 300 people to go to the site and carry out desk and chair handling, bed erection, curtain hanging and other work all night long.
After 72 hours of continuous operation, Jiantai construction has equipped more than 700 isolation rooms with nearly 400 fire extinguishers, more than 1200 chairs, more than 2000 tables and 1600 curtains, cleared and transported garbage about 10 times, and exceeded the established tasks with good quality, providing a timely and powerful team guarantee for Zhuhai to overcome the epidemic.
When the epidemic broke out in Shenzhen in March 2022, Shenzhen Weiye Decoration Group Co.Ltd(300621) again quickly formed a 10 person anti epidemic vanguard to rush to the front line of the epidemic for 7 days, contributing to the maintenance of Shenzhen’s anti epidemic defense line and anti epidemic safety net.
