Annual report of building decoration listed companies shows unchanged long-term growth trend of the industry

Every year in December is the peak of the annual report's hype. The data shows that as of December 8th, 811 companies in Shanghai and Shenzhen have already announced their annual performance forecast. Among them, there were 167 pre-increases, accounting for 20.6% of the total, and 59 pre-injury or loss reductions, accounting for 7.3%.

In many buildings and related companies, the same is the growth of performance, some because of the sale of equity, assets, some of which is the growth of the main business, and some because of receiving government subsidies.

The main industry was sluggishly reducing its shareholding in the annual report Since the fourth quarter, COFCO Real Estate, State Power Nanrui and Hebei Xuangong have successively reduced their holdings, involving an amount ranging from RMB 10 million to RMB 50 million. According to statistics, 4,650 shareholders of more than 630 listed companies in the A-share market this year have reduced their holdings, collectively reducing their holdings by about 7 billion shares, and the amount of nearly 10,000 million yuan. In November, a total of 502 executives were retired in Shenzhen, and major reductions occurred in mid-November. Among them, palm garden executives reduced their holdings by more than 100 million yuan. Yang Jingliang reduced holdings of more than RMB16.03 million on November 24, 25, 28 and December 1, and Lin Congxiao on November 8 and November 10. The daily reduction of **5641 million yuan.

On October 10, COFCO Real Estate (Group) Co., Ltd. issued an announcement regarding the sale of certain gold products. According to the announcement, to support the company's main business development, as of September 30, 2011, the company had sold 5,214,605 ​​shares of China Merchants Securities held by the company through the trading system of the Shanghai Stock Exchange. Through the disposal of available gold for sale, COFCO Land's profit after tax is approximately RMB 40 million.

On November 15th, Guodian NARI Technology Co., Ltd. issued an announcement on the company’s shareholder reduction of shares in the company, saying that the company’s second largest shareholder Guodian Power passed the stock exchange of Shanghai Stock Exchange from August 22, 2011 to November 11, 2011. The trading system accumulatively sold 12,474,367 shares of the company, which accounted for 1.19% of the company's total share capital. After the above shares were sold, Guodian Power held 91,965,947 shares of the company, which accounted for 8.76% of the company's total share capital.

On November 22nd, Hebei Xuangong announced the sale of Zhonggong International's shares, saying that during the period from November 9 to November 21, the company sold 188.489 million shares of Zhonggong International through the Shenzhen Stock Exchange and retained 640.0511 million shares. The average transaction price of all transactions was 28.62 yuan/share. After deducting costs, related taxes, and 25% income tax, the net profit generated from the transaction was 37,090,200 yuan, accounting for 186.97% of the net profit for the previous fiscal year. Due to bad main business, this year has been the year that Hebei Xuangong has reduced its shareholding in China International International at the end of the third year. According to the announcement, in December 2009 and October 2010, Hebei Xuangong had sold 1.5 million shares and 900,000 shares of Zhonggong International respectively, and the average transaction price was 23.8844 yuan and 58.64 yuan respectively, and **238.23 million yuan and 38.457 million yuan. Yuan, while in 2009 and 2010, the annual net profit of Hebei Xuangong was 13.1126 million yuan and 19,837,300 yuan respectively. According to the third quarterly report of Hebei Xuangong, the total operating revenue of Hebei Xuangong was 474,323,437.35 yuan in the first three quarters of this year, a year-on-year decrease of 11.46%; the net profit attributable to the shareholders of the listed company was 2,579,003.47 yuan. The year-on-year decline was 26.26%. However, after 7 consecutive visits to China International Engineering, Hebei Xuangong earned profit after tax of 37,090,200 yuan, which is much higher than the company's 2010 net profit.

The government subsidy exerts force to look forward to the annual performance report. It is reported that as of December 8, a total of 108 companies in the Shanghai and Shenzhen cities disclosed financial subsidies announcements, accumulatively subsidizing funds of about 4.078 billion yuan. Based on past experience, more companies will receive “red envelopes” from the government in December. From December 1 to the end of last year, 44 companies disclosed the phenomenon of “red packets”. According to statistics, there are 28 local financial companies that support incentives for listed companies this year. The accumulated award funds amount to 516 million yuan, accounting for 17.75% of the total profits in the third quarter. Among them, the local financial incentive subsidy funds obtained by Conch Profile contributed over one-tenth of the performance, which was 97.13%, and the subsidy amounted to 79.63 million yuan.

During the three years from 2008 to 2011, the percentage of shares held was raised from 5% to 15.05%. Conch's third placard for Jidong Cement immediately attracted market attention. According to the simplified equity changes report released by Jidong Cement on December 8, from September 2011 to December 7, 2011, Conch Cement accumulatively increased holdings of 45,740 shares of Jidong Cement, trading at a price range of 14.88 yuan. 16.51 yuan. As of December 7, Conch Cement held a total of 182.55 billion shares of Jidong Cement, which accounted for 15.05% of the total shares. This is the commercial behavior of Conch Cement based on the current investment value of Jidong Cement, and Conch will decide whether to continue to increase its holdings depending on the operation and development of Jidong Cement and its stock price. On December 7, Conch Profile was suspended. On December 8, Wuhu Conch Profile Technology Co., Ltd. released the announcement of the resolution of the second extraordinary general meeting of shareholders in 2011. According to the announcement, the Second Extraordinary Shareholders' Meeting of 2011 of Wuhu Conch Profile Technology Co., Ltd. reviewed and approved the "Proposal on Changing the Company's 2011 Auditing Institutions".

On the evening of October 14, Conch Profile issued three quarterly reports, claiming that the company's total operating income for the first three quarters was 2.987 billion yuan, down 0.59% year-on-year; net profit attributable to shareholders of listed companies was 435.8819 million, down 68.33% year-on-year; basic earnings per share 0.1211 yuan, down 68.32% year-on-year. On October 21, 2006, Wuhu Conch New Material Co., Ltd. and Hailuo Color Printing Co., Ltd. of Hailuo Profile Holding Co., Ltd. respectively received RMB39.856 million and RMB5.7740 million subsidies for the infrastructure of state-owned investment units in Qujiang District of Wuhu City, totaling RMB 45,628,600. ***, Conch Profile enjoys a revenue of 28,127,800 yuan. In addition to the above subsidy payments, from the beginning of the year to the date of publication of this announcement, Hailuo Profiles and its subsidiary holding subsidiaries and wholly-owned subsidiaries have received a total of 121.01 million yuan in government subsidies of various types, and Hailuo Profile enjoys a gain of 11.4242 million yuan.

In addition, Changzhou Amanton Co., Ltd. also issued a government subsidy announcement on November 9. According to the announcement, on August 9, 2011, the company received the “Circular on Implementing the Policies on Promoting the Listing of Companies by the Municipal Government” of the Financial Affairs Office of Changzhou Municipal Finance Bureau and Changzhou Municipal People’s Government, giving the company corporate income tax policy a subsidy of RMB 407.36 million. At the same time, Changzhou Tianning District Finance Bureau has a matching capital of 4.0737 million yuan, a total of 8.167 million yuan. According to the third quarter report issued by Amanda on the evening of October 26, the company’s total revenue for the first three quarters was 440,196,850.11 yuan, an increase of 2.53% year-on-year; net profit attributable to the shareholders of the listed company was 163,795,166.48 yuan. Increased 0.90% year-on-year; basic earnings per share was 1.36 yuan, up 0.74% from the same period last year.

Contrary to the rising trend of the five major building decoration companies, the annual report has no worries. From the third quarter data, the performance of listed companies has shown an overall decline, but there are still many companies that have grown against the trend. Excluding companies that only publish business plans, judging from the companies that have announced the full-year performance forecast, there are 508 companies with pre-increase and pre-earnings for the year, accounting for 62.56%. According to the data released by the top three listed decoration companies in the third quarterly report, it is expected that the overall net profit growth of the industry in 2011 will be over 30%, and the industry leader Jin Hao will increase by 80% to 100% year-on-year. It is also between 50% and 90%.

In the first three quarters of the year, the total operating revenue of Golden Harvest was 6,432,177,806.42 yuan, the main business income was 643.218 million yuan, an increase of 473.97%, and the net profit attributable to the shareholders of the listed company was 435,803,618.31 yuan. The year-on-year increase of 91.64%; the main business profit of 868.43 million yuan, an increase of 503.65%, net profit rose 661.34%.

Yachai's operating income for the first three quarters was 5,034,230,572.35 yuan, an increase of 63.86% over the same period of the previous year, mainly due to the company's efforts to expand its business and accelerating the construction progress, contract orders and completed projects In the same period last year, there was a substantial increase. Total profit increased by 56.92% over the same period of last year, mainly due to the substantial increase in operating income during the reporting period, and the gross profit margin remained stable with a slight increase. The net profit attributable to the shareholders of the listed company was 284,656,342.76 yuan, an increase of 71.88% over the same period of last year. Comparing to the net profit of 262,245,844.77 yuan attributable to the shareholders of the listed company in 2010, the company's business expanded rapidly in the first three quarters of this year. The project construction proceeded smoothly and the cost management was better. It is expected to be attributable to the shareholders of the listed company. Profit increased by 50% to 90% over the same period of last year.

In addition, according to the third quarterly report, the expected range of the year-on-year changes in Swisscom's net profit for 2011 is 25% to 50%. Hong Tao’s total profit increased by 65.48% compared with the same period of last year, and the expected range of 2011 year-on-year net profit changes ranged from 30% to 60%. At the same time, Hong Tao’s shares have recently won the bid for the fourth bid section of the public works of the T3 terminal public area expansion project of the Shenzhen Airport Terminal Area expansion project, with a winning bid of 10105.71516106 million yuan. For Hong Tao, the company has basically no residential business, and only a small amount of real estate business is concentrated in the commercial real estate fields such as office buildings. Therefore, under the background of normalization, the company is expected to further expand in contrarian directions. The predicted range of the year-on-year changes in the net profit of Hirota in 2011 is 25% to 50%.

Industry analysts believe that although the real estate industry is still in the depth of adjustment, but the decoration industry, especially the public sector, has not been greatly affected. Under the explosive growth of commercial real estate and the strong expansion of branded businesses, the long-term growth trend of the industry remains unchanged. The more comprehensive industry leaders are expected to enjoy greater market share. According to the "12th Five-Year Plan" of the architectural decoration industry, the output value of public buildings' decoration and decoration (including the renovation of residential real-estate building in residential development) will reach 2.6 trillion yuan in 2015, an average annual increase of 18.9%. It can be seen that the period of the “12th Five-Year Plan” will be a period of rapid development in the decoration of public buildings and the fine decoration of residential buildings. The building decoration industry will have a happy growth, and it will have no control. There is reason to believe that the annual report of the five major architectural decoration companies is worry-free and dividends are bullish.

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