Annual Report 2022 (Summary)
Stock Abbreviation: GlodonStock Code: 002410
March 2023
I. Important Notice
This summary of annual report is abstracted from the full text of the Annual Report 2022. In order to fullyunderstand the Company’s operating results, financial position and future development plans, investors are advisedto carefully read the full text of the Annual Report 2022 on the media designated by the China Securities RegulatoryCommission.This English version of the Annual Report 2022 (Summary) is translated from the Chinese version of the same.In case of discrepancy, the Chinese version disclosed by the Company shall prevail.All Directors attended the board meeting to review this report in person, except for the following director:
| Name of the absent director | Title of the absent director | Reason for absence | Name of the delegate |
| Guo Xinping | Independent Director | Reasons related to work | Ma Yongyi |
Non-standard audit opinion notification:
□ Applicable ? Not applicable
The profit distribution proposal for ordinary shares or the proposal to capital reserve capitalization for the ReportingPeriod as considered by the Board of Directors? Applicable □ Not applicable
Whether to implement capital reserve capitalization
□ Yes ? No
The profit distribution plan of the Company considered and approved by the Board of Directors is as follows: a cashdividend of RMB 4.00 (including tax) and nil bonus shares (including tax) for every 10 shares held by all theShareholders, based on the total share capital of the Company as of the date of registration of shareholdings(excluding the number of shares repurchased but not cancelled by the Company) when implementing the profitdistribution plan in 2023, and an increase of 4 shares for every 10 shares held by all the Shareholders converted outof the capital reserve.Profit distribution proposal for preferred shares during the Reporting Period passed by the Board of Directors
□ Applicable ? Not applicable
II. Company Profile
1. Company Information
| Stock abbreviation | Glodon | Stock code | 002410 | |
| Stock Exchange | Shenzhen Stock Exchange | |||
| Contact information | Board secretary | Securities affairs contact | ||
| Name | Li Shujian | Cheng Yan | ||
| Office address | E-13, 10 Xibeiwang East Road, Haidian District, Beijing, China | E-13, 10 Xibeiwang East Road, Haidian District, Beijing, China | ||
| Fax | 010-5640 3335 | 010-5640 3335 | ||
| Tel | 010-5640 3059 | 010-5640 3059 | ||
| ir@glodon.com | ir@glodon.com | |||
2. Main Business of the Company
1. Overview of Our Business
The Company envisions itself as a digital building platform service provider based in the construction industrythat provides its clients with professional construction engineering software and hardware products, solutions andservices. The Company serves all parties involved in the engineering project life cycle, including developers,intermediaries, administrators, designers, constructors, suppliers, and operators. With specialized applications inconstruction engineering serving as the core essential support and industry big data and industrial chain financeserving as value-added services, the Company provides full-lifecycle solutions for digital buildings.
The Company’s businesses are divided into three major business segments and several innovation businessunits based respectively on business stages and client type, namely the Construction Cost business segment,Construction Management business segment, and Digital Design business segment; the several innovative businessunits include Digital Developer, Digital City, Digital Supply & Procurement, Digital College and Digital Finance.The businesses are also divided into domestic and overseas businesses.
The Construction Cost segment is a mature business segment of the Company. It mainly provides softwareproducts and data services to all industry participants involved in the construction project, and it includes theengineering pricing business line, engineering quantity takeoff business line, engineering information business line,new digital cost solutions and digital transaction (e-government) business line. After more than twenty years ofdevelopment, this business segment has obvious competitive advantages in China. Currently, it mainly providesproducts and services to clients adopting a subscription-based SaaS model.
The Construction Management segment is the growth business of the Company with key breakthroughs. Itmainly focuses on the construction process of engineering projects, and provides construction companies withplatform-based solutions covering project management and enterprise management through a “platform + modularcomponents” model. Specifically, this involves BIM+ intelligent site products at the project level, and productsaimed at project-enterprise integration at the construction companies’ enterprise level. Digital transformation is stillin full swing in the construction industry. This business segment is at an early stage of development, and its marketpenetration is relatively low.
The Digital Design segment is an emerging business prioritized by the Company. It is oriented toward clientssuch as design institutions, providing them with architectural design and urban design products and digitalizeddesign delivery and filing services. This include Glodon NovaDesign Housing set, Glodon NovaDesign Roadproduct, BIMSpace Architectural Design Product Family, Computational Analysis Product Family , and GlodonDesign Delivery and Filing. Among them, the BIMSpace and Civil Municipal products have attained a leadingposition in the market.
The innovative business units are emerging businesses incubated by the Company. Relying on the experiencethe Company have accumulated from our digital project management platform and related products, they targetdifferent market segments of the construction industry, providing support and safeguards for the transformation andupgrading of the construction industry in multiple aspects including digital transformation of developers, CIMplanning, construction and management and new urban construction, supply chain services, talent training and newindustry finance. During the Reporting Period, the innovative business units remained focused on product
optimization and benchmark project verification.As regards our overseas business, one segment is Cubicost, a series of international products for theconstruction cost business, which has been marketed mainly in the Southeast Asian market. The other segment isthe international Construction Management products, including the MagiCAD series of electromechanical designsoftware operated by our Finland-based wholly-owned subsidiary, and Glodon GSite, an international constructionmanagement platform targeting the European market.
2. Management Discussion and Analysis
The year 2022 was the last year of the period of our “Eighth Three-year Plan (2020-2022)” strategy, and alsoa key milestone year for the Company to seek further growth through internal transformation. During the ReportingPeriod, a critical period in which Glodon people embraced opportunities amidst challenges, the Company as a wholeworked hard to respond to external uncertainties in an active manner while maintaining its strategic focus. TheCompany forged ahead on the journey to develop digital buildings. In this regard, it improved values of multiplebusinesses by consolidating dual business segments (construction cost and construction management), making newbreakthroughs in digital design and launched integrated digital project management platform, which enabled it toachieve a milestone victory under the “Eighth Three-year Plan (2020-2022)” strategy.
(1) Overview of the Company's overall operations during the Reporting Period
During the Reporting Period, the Company managed to maintain relatively rapid growth in its principaloperating revenue and operating profit despite of the changing macro conditions at home and abroad, businesspressure suffered by certain customers and other external factors, and achieved a total operating revenue of RMB
6.591 billion throughout the Year, representing a year-on-year increase of 17.29%; operating profit of RMB 1.096billion, representing a year-on-year increase of 44.53%; and net profit attributable to shareholders of the Companyof RMB 9.67 billion, representing a year-on-year increase of 46.26%.
In terms of construction cost business, the Company completed a comprehensive cloud transformation, andachieved rapid expansion from position-based application to enterprise-level cost management solutions. Driven bythe comprehensive cloud transformation, the construction cost business continued to grow steadily in various sectors,including, cloud-based pricing, cloud-based quantity takeoff products and engineering information service, and thenew digital cost solutions, which has expanded into the sector of enterprise cost management, achieved rapid growth.The construction management business has witnessed initial scaled growth and created a number of benchmarkenterprises highlighting in integration of projects and enterprises. During the reporting period, the Company hasachieved satisfying results in greatly promoting the in-depth operation of major customers and major projects, withrapid growth in the number of new projects and customers. In terms of digital design business, the Company madea breakthrough in Glodon NOVADesign product sets by releasing Glodon NOVADesign Housing (Architecture,Structure and MEP) set and Glodon NOVADesign Road. It focused on product development, customer validationand market promotion based on its own graphics platform during the reporting period. The integrated digital projectmanagement platform has been shaped completely, with initial capability for rapid development of standardizedSaaS applications and scalable delivery of personalized solutions. With respect to innovative businesses, digitaldeveloper, digital city, digital supply and procurement, digital college and digital finance are competing fordevelopment, among which, the digital developer business has achieved a rapid breakthrough in business scale by
deeply exploring customers' refined management needs though challenged by the changing external market anddepressed real estate industry. At the same time, the Company continued to improve its comprehensive budgetcontrol covering sectors from strategy to execution, focusing on improving the cost-efficiency ratio and input-outputratio to drive steady growth in operating revenue and net profit.
(2) Detailed operation of the principal businesses
During the Reporting Period, the Company successfully carried out its principal businesses as planned, detailsof which are as follows:
1) Construction cost segment:
In 2022, the construction cost business achieved an operating income of RMB 4.773 billion, representing ayear-on-year increase of 25.16%. During the Reporting Period, the Company signed cloud contracts of RMB 3.901billion, representing a year-on-year increase of 25.84%. As at the end of the Reporting Period, cloud contractliabilities related to construction cost business amounted to RMB 2.675 billion, representing an increase of 30.69%from the beginning of the year. By the end of 2022, nationwide cloud transformation has been fully completed forthe construction cost business. The cloud revenue recognized during the Reporting Period was RMB 3.275 billion,representing a year-on-year increase of 27.89%.
As the digital transformation of the construction industry has entered a deep-water zone, customers have beendemanding more refined cost management, bringing the construction cost business into a transformation from costestimation to whole life cycle digital cost management, and from position-end tools to enterprise-level costmanagement solutions. Under the subscription model, the Company has kept improving the cost effectiveness ofour products and services, and always focus on customers to help them succeed. The application rates of the cloud-based pricing and cloud-based quantity takeoff products and engineering information services such as Gldjc.comand Guangcai Assistant hit new highs. As at the end of the Reporting Period, the Company served customers withfull range of pricing and quantity takeoff products in all regions of the country on a subscription basis, with cloudtransformation rate exceeding 90% and the renewal rate of 80% for 2022, remarking a complete cloudtransformation in construction cost business.
Data on Construction Cost cloud transformation (unit: million Yuan)
| Product line | Operating income from cloud services | YoY change | Cloud contract | YoY change | Year-end outstanding contract liabilities from cloud transformation |
| Cloud-based pricing | 1047 | 16.16% | 1120 | 5.38% | 781 |
| Cloud-based quantity takeoff | 1003 | 20.86% | 1127 | 13.79% | 767 |
| Engineering information | 833 | 14.70% | 972 | 15.16% | 698 |
| New digital cost solutions | 393 | 277.71% | 682 | 236.07% | 429 |
Total
| Total | 3275 | 27.89% | 3901 | 25.84% | 2675 |
Notes: The new digital cost solution inherits and upgrades the market-based comprehensive unit pricing incloud-based pricing products, the Enterprise Materials Library, Enterprise Indicators Library and Indicator ArtifactApp in the pool of engineering information products. Therefore, the cloud contracts and cloud revenue for the cloud-based pricing and engineering information products have been retrospectively adjusted for 2021.
Against the backdrop of the market-based transformation of cost estimation, the Company continued topromote the conceptual upgrade of “making cost estimation better with warmth in science and technology”. Newdigital cost solutions have become a new driving force. The Company continuously expanded the number ofbenchmark customers and projects, focusing on the cost control for construction organizations and developers,creating new growth potential for construction cost business. When it comes to the full range of quantity takeoffproducts, the Company continued to explore the transformation towards full life cycle instead of budget quantitytakeoff. 3D BIMQ has been deeply integrated with Glodon NOVADesign architecture products. The integratedquantity calculation and design products were launched into the market with the localization upgrading strategy.The engineering information service was upgraded from material price information service to cost informationservice business. We also released the Index Network products to help enterprises compare and benchmark withexcellent typical projects in the same industry in order to improve their own refined cost management. Cloud pricingGCCP6.0 released services such as collaboration model, algorithm for enterprise to determine the comprehensiveunit price and quality control rules to further improve organizational efficiency and the quality of achievementdocumentation.
In terms of the service, the construction cost business continued to promote the development of digital systems，upgraded the call center to the customer operation center. The number of intelligent customer service consulting hasreached 1.5 times of the number of manual support, and the success rate of intelligent customer service formainstream products has risen to more than 80%. At the same time, we continued to promote the online operationsystem in relation to construction cost business, and explored diversified operation plans by using new technologiessuch as online live streaming and integrated media centers.
During the Reporting Period, the digital transaction business, originally known as e-government business,achieved operating income of RMB 400 million, of which the proportion of operation and maintenance andoperation income from the public resources transaction management system continued to increase. The market-oriented bid analysis and review products achieved rapid growth. The Company successfully delivered severalmajor projects such as Tibet Project, Shanghai Project and Shenzhen Digital Trading Platform Phase I, and won thebid for the Shenzhen Phase II Project. The Company continued its efforts in the first-tier cities in Beijing, Shanghai,Guangzhou and Shenzhen, and expanded the coverage of provincial capital cities to fully support the digitaltransformation and upgrading of the construction industry.
2) Construction management segment:
During the year, the construction management segment achieved an operating income of RMB 1.326 billion,representing a year-on-year increase of 9.99%. By the end of 2022, the Company has served more than 90,000projects with its smart site products, involving more than 7,000 customers. In 2022, 21,000 new projects wereinitiated, involving 1,600 new customers.
In the face of the complex and ever-changing external environment, the Company developed its constructionmanagement segment with a focus on promoting the in-depth operation of leading customers and key projects, andpromoted the implementation of enterprise-level management products and project-level smart construction sitesolutions by virtue of the integrated project management demands of construction enterprises. The Company alsocarried out strategic cooperation with a number of leading construction enterprises, focusing on expansion into
central government-owned enterprises and state-owned enterprises (especially targeting at infrastructure clients)and strengthening in-depth application support for private-funded enterprises, to ensure the rapid growth of contracts.In terms of delivery in the construction management segment, the Company mainly serves construction enterprises,and the delivery, acceptance and payment of products are significantly seasonal. The proportion of revenue achievedin the fourth quarter is usually the highest of the whole year. However, due to the high infection in the fourth quarterof last year, the implementation, delivery and customer acceptance of the construction management segment wereaffected, resulting in a slowdown in the growth of annual revenue even though the Company recorded a revenuegrowth of over 30% in this segment during the first three quarters of the year.In terms of the product of the construction management segment, the Company leveraged the customer successindicator system to drive the product value improvement. In 2022, the Company completed the definition andregular review of the key customer success indicators for six key products. Material management, labor management,BIM + smart construction site and safety management products have established a closed value loop of productsand channels driven by customer business success. The loop has been in iteration and verification, increasing theproduct-level customer success indicators by 10%-20%.
In terms of enterprise-level solutions, the Company focused on cooperation with the central government-owned,infrastructure and provincial construction systems, and developed stable strategic cooperation with a group ofleading customers. During the Reporting Period, the Company propelled three integrated solutions: integrated safetysolution, integrated production solution and integrated cost solution. It provided customers the management valueof business connectivity and data interoperability horizontally, and realized information connectivity fromenterprise-level to project-level vertically to enhance the operational efficiency of customers. The enterprise-levelproject management system marked the launch of the new generation of products from 0 to 1 in the platform +module mode. Shanghai Baoye’s integrated solutions for project-enterprise integration and business-financeintegration were fully launched. These solutions have been promoted across more than 400 projects underconstruction of the Group, the production planning system has been implemented, and the production risk indicatorshave become stable. In The 20 MCC, engineering management and control platform has fully gone live, and theplatform has been deeply applied in more than 300 projects under construction. Thanks to the platform, theenterprise value indicators of production business were improved, with excellence in the overall application ofsafety business. PMCore, a lightweight project management system, was launched for the segment market of smalland micro enterprises, and the product value and marketing model were preliminarily verified.During the Reporting Period, the digital project integration management platform accumulated and improvedthe core digital capabilities of the industry through the “platform + module”. The PaaS platform has been developed,and the platform is equipped with the ability to rapidly develop standardized SaaS applications and deliverpersonalized solutions on a large scale. In the second half of the year, the open platform portal was established,offering access to industry customers and ISVs, thus providing the industry with digital building base capacity. Wedelivered and launched the first phase of enterprise-level project management platform + component model forBCEG, one of our benchmark customers. The phase 1 of data governance project of BCEG went live, markingthat group data standards are formulated and data can be accessed for key projects.
3) Digital design segment:
The digital design business achieved operating income of RMB 120 million, down 7.91% year-on-year. Duringthe Reporting Period, the digital design business focused on the development, customer validation and marketingof Glodon NOVADesign products based on our graphics platform with independent intellectual property rights.For the Glodon NOVADesign Housing (Architecture, Structure and MEP), the Company has realized thediscipline-wide collaborative design and production of drawing for ordinary residential and simple public buildingswith the concept of "data-driven integrated design". In this regard, the Company also achieved the integration ofBIM design and quantity takeoff through the BIM data interoperability. The rising efficiency and great accuracyfacilitate customers effectively to improve the economic rationality of design. Since the release of our GlodonNOVADesign Housing (Architecture, Structure and MEP) set in July 2022, a total of nine design institutes haveused the set in their 14 projects to design and deliver construction drawings by the end of the year, and the set hasbeen promoted in three of those institutions at a large scale.The Company successfully launched a road conceptual design product under Glodon NOVADesign Road. Withthis product, we could provide services in the two-dimensional drawing production, landscape design, road design,three-dimensional modeling, roaming display and other multi-use scenarios, achieving100% coverage of "road +bridge + tunnel + traffic facilities + landscape + ancillary facilities", and we therefore realize the goal of designinga comprehensive scheme with only one software. Since its release in July 2022, the Glodon NOVADesign Roadproduct has proven its value in 26 projects of 43 design institutes. It has been successfully applied in complexproductive projects, helping customers to improve the success rate of bidding. By the end of 2022, the projectscovered by Glodon NOVAdesign Road involved more than 100 km of roads, more than 70 bridges, 11 tunnels and10 interchanges.During the Reporting Period, GFC3, the digital building data exchange standard, was released, unifying thedata interfaces of design, cost and construction products, thus promoting the application of BIM data throughout itslife cycle. The design platform based on our graphics technology with independent intellectual properties reachedthe international mainstream level in terms of stability, performance and graphics modeling capability, supportingthe successful release of the digital dimensional design products. In addition, we have conducted in-depth externalecological cooperation in the fields of water conservancy and hydropower, railroad, power grid, and ship design,etc.
4) Innovative business unit:
We focused the digital developer business on project development stage to develop design management system,engineering management system and cost data system for developers in order to meet the digital transformationneeds of developers (including property developers, urban investment companies and owner builders). Based on thecore business concept of "integration between enterprise and projects, and interaction between the developer andthe construction enterprise", we achieved rapid growth in business scale under our major account managementsystem characterized by collaboration among customer managers, solution experts and delivery experts. To bespecific, we served nearly 100 developers during the Reporting Period, involving more than 1,000 projects.
We continued to focus the digital city business on the planning, construction and management and intelligentecosystem business to create a benchmark for the planning, construction, management and operation project inXinjin, Chengdu. The ecological value of the Guangyang Island project was highlighted. Based on those, we
developed preliminary ecosystem products. In terms of the platform construction, we steadily promote theintegration of Citymaker engine of Gvitech and our graphics platform to rapidly enhance the massive spatial datamanagement, 3DGIS capability, large scene scheduling and rendering capability. The CIM platform has taken initialshape with project scale application capability.When it comes to the digital college business, the digital teaching platform was launched and successfullycovered more than 1,000 target colleges and universities. In terms of majors, the platform was expanded from costestimation to construction management and design majors. Based on the new decoration industry workers, we haveorganized "Glodon + construction enterprises + colleges" to build a new industry college so as to supply talents formore than 10 first-class construction enterprises, such as China Construction Fourth Engineering Division, ChinaConstruction Fifth Engineering Division and China Construction Bureau and Bridge Engineering of CTCE, basedon the resources of students from existing colleges.In terms of the digital supply and procurement business, the bilateral matchmaking mode has basically takenshape under the supply chain platform, resulting in improvement in the business scale and service standard. Theupgrading of the platform was recognized by customers. The demand-side purchaser operation achieved scalegrowth. The supply-side products were upgraded to solutions, and were extended to marketing growth and greenbuilding materials on the basis of the original supply-side smart marketing services, helping customers upgradefrom value in efficiency to value in new revenue streams.To develop the digital finance business, we firmly consolidated the foundation of digital credit business,optimized digital risk control products, established digital asset management system for the core scenarios of largeenterprises, and developed supply chain financial service platforms for two construction groups of the State-ownedAssets Supervision and Administration Commission of the province during the Reporting Period. The platformcovers data access to multiple scenarios such as material acceptance and smart construction sites, helping all partiesinvolved in the customer's supply chain system to achieve efficient financing and reduce overall costs.
5) Overseas business：
We actively responded to multiple severe challenges such as international geopolitics and economic downturn,and maintained stable development of the overseas business, achieving an operating income of RMB 153 millionduring the year, basically the same as the previous year.As for the international cost estimation, the subscription revenue from Cubicost products accounted for over60%, and the application rate of pricing and quantity takeoff products was further increased. As a part of our attemptto develop new digital cost solutions in overseas market, we cooperated with JTC Corporation of Singapore, andMinistry of Public Works of Indonesia and its 29 provincial centers on construction cost management.In terms of international development of construction management segment, we released AI-aided designfunction for MagiCAD and continued to expand its leading position in core regions, while maintaining good growthmomentum in key regions such as UK, Germany and Italy.
(3) Continuous advancement of core technologies supports key business development
During the Reporting Period, the Company focused its investments on graphics technology and artificialintelligence to ensure that the core technology supports development of key businesses. The core graphicstechnologies were expanded from housing construction to infrastructure and CIM scenarios, further supporting the
performance improvement in the Glodon NOVADesign Housing (Architecture, Structure and MEP) set and GlodonNOVADesign Road product, as well as the application of drawings for construction infrastructure products in high-volume component scenarios. In terms of artificial intelligence, thanks to its active efforts in the industry AIapplication innovation and technology research, the Company has made breakthroughs in deep learning-basedinteractive generation technology, and it has applied Foundation Model technology in construction cost business toprovide services such as intelligent determination of comprehensive unit price and intelligent quantity calculation.The general building arrangement tool in intelligent design (arranging buildings in accordance with mandatorybuilding codes) has been used by users for verification purpose, enabling the Company to be the domestic leader inreal-time daylight analysis performance. Mass production has been achieved for labor face recognition terminals,and a number of CV safety hazard identification algorithms have been integrated into hummingbird box products(an industrial-grade edge computing endpoint applied at construction sites). As a part of its commitment toprotection of intellectual property rights, the Company issued its Patent Management System in 2022. In the sameyear, the Company was granted 22 new invention patents, and registered 281 new software copyrights and 78 newtrademarks. Thanks to those, the Company was granted the honorary title of "National Intellectual PropertyAdvantage Enterprise for 2022" by China National Intellectual Property Administration.
(4) Value chain was optimized and upgraded by focusing on customer successBased on its positioning as a "digital enabler", the Company continued to deepen the application of customersuccess indicators so that they cover all of its key products. In terms of the pilot products, an end-to-end closed loophas been created, which means values of those products have been realized, and the pilot products attainedimprovement in both key scenarios and key indicators. Customer success indicators have driven implementation ofkey sales and service actions, thus creating interconnection between customer needs and the Company's productionand research, marketing, service and functional departments.
In 2022, the Company further promoted the standardized organization management. Digital Glodon establishedpreliminary procedures, indicating the transformation of process development from management to operation. Thedigital system supports business procedures, thus improving operational efficiency across the board. The digitalsystem is characterized by data-driven efficient decision-making through a unified database to support scenariossuch as operational analysis and asset management. In the face of the complex and changing external environment,the Company especially allocates more resources to human resource management. To be specific, the Companycarries out campus recruitment and development program and grassroots cadre development program, and optimizesthe job qualification system to promote the internal flow of talents. The Company also continuously improvedperformance management and value distribution, thus driving the rapid upgrade of its talent pool.
(5) Empower digital transformation for the construction industry to expand brand influence
Based on the current systematic trend of enterprises in the digital transformation, the Company provides theindustry with concepts, paths, methods, solutions and best practice benchmark cases for digital transformation. Inthis regard, the Company raised a groundbreaking proposition of "systematic digital reshaping of enterprise controland expansion". Such proposition gains resonance in the industry as it hits the pain points and mistaken areas ofenterprises in their transformation. During the Reporting Period, the Company participated in the compilation ofseveral national standards and industry specifications, such as the Standard for Collaborative Management of
Intelligent Construction and Building Industrialization, providing guidance for the digital transformation of theindustry. Focusing on the value proposition of "systematic digitalization", the Company has announced itsproposition to the market and actively participated in the Digital China Summit and other events to convey to globalpractitioners Glodon's thoughts and practical insights on the digital transformation and upgrading of the constructionindustry, thus expanding its global influence.In 2022, the Company continued to grow its corporate influence, strengthen its product influence, and enhanceits capital market and social responsibility influence. With its continuous outstanding contribution in the technologyinnovation, the Company has been ranked as one of the "Top 100 Enterprises in Comprehensive Strength of BeijingSoftware and Information Technology Service Industry" by the Beijing Software and Information Service IndustryAssociation for seven consecutive years and one of the "Top 100 Private Enterprises in Beijing" by the BeijingFederation of Industry and Commerce for five consecutive years. The Company was also ranked eighth in the "Top100 Beijing Private Enterprises in Science and Technology Innovation". Several of our products such as "GlodonBIM Material Management Software" were selected into the list of "Beijing New Technology and New Products(Services)" jointly recognized by five departments such as Beijing Municipal Science and Technology Commission,and Beijing Municipal Development and Reform Commission. The integrated digital developer solution wasawarded the "2022 Big Data Sands Award" in the 7th Big Data Industry Ecology Conference. During the ReportingPeriod, the Company was granted multiple awards, such as the "Top Ten Excellent Corporate Governance Cases in2022", "Golden Bull Most Valuable Investment Award", "Top 100 Value Companies Listed on the Main Board" and"Top 100 ESG Companies" by various mainstream securities and financial media for its standardized corporategovernance, excellent investor relations and good ESG performance. The Company saw a stronger brand influenceand recognition in the capital market.
3. Major accounting data and financial indicators
(1) Major accounting data and financial indicators for the previous three yearsWhether the Company need to retrospectively adjust or restate its accounting data for previous years
□ Yes ? No
Unit: Yuan
| 2022 Year-end | 2021 Year-end | Change from end of previous year to end of this year | 2020 Year-end | |
| Total assets | 11,545,493,530.94 | 10,067,626,141.36 | 14.68% | 9,547,097,154.33 |
| Net assets attributable to shareholders of the listed company | 6,311,747,170.12 | 5,787,737,027.21 | 9.05% | 6,402,241,169.54 |
| 2022 | 2021 | Year-on-year Change | 2020 | |
| Operating income | 6,552,355,812.47 | 5,562,216,443.14 | 17.80% | 3,947,083,029.86 |
| Net profit attributable to shareholders of the listed company | 966,734,779.17 | 660,974,286.88 | 46.26% | 330,388,350.03 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit and loss | 919,252,904.33 | 651,128,119.78 | 41.18% | 301,547,467.71 |
| Net cash flow from operating activities | 1,647,598,520.47 | 1,601,350,833.93 | 2.89% | 1,876,130,837.67 |
| Basic earnings per share (Yuan/share) | 0.8215 | 0.5636 | 45.76% | 0.2867 |
| Diluted earnings per share (Yuan/share) | 0.8193 | 0.5636 | 45.37% | 0.2858 |
| Weighted average ROE | 16.57% | 10.59% | 5.98% | 6.94% |
(2) Quarterly major accounting data
Unit: Yuan
| Q1 | Q2 | Q3 | Q4 | |
| Operating income | 1,123,010,514.36 | 1,631,888,429.03 | 1,683,217,562.89 | 2,114,239,306.19 |
| Net profit attributable to shareholders of the listed company | 108,780,897.31 | 288,086,473.50 | 241,439,279.31 | 328,428,129.05 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit and loss | 93,990,853.99 | 275,119,435.92 | 240,610,900.56 | 309,531,713.86 |
| Net cash flow from operating activities | -383,987,214.57 | 306,176,861.83 | 424,928,117.45 | 1,300,480,755.76 |
Whether the above financial indicators or their sums are significantly different from those disclosed in theCompany’s quarterly financial reports or interim financial reports
□ Yes ? No
4. Share capital and shareholders
(1) Table of number of ordinary shareholders and preferred shareholders with restored voting rights andthe shareholdings of top 10 shareholders
Unit: share
| Total number of ordinary shareholders as of the end of the reporting period | 27,323 | Total number of ordinary shareholders at the end of the month immediately before disclosure date of annual report | 29,299 | Total number of preferred shareholders with restored voting rights at the end of the reporting period | 0 | Total number of preferred shareholders with restored voting rights at the end of the month before disclosure date of annual report | 0 | ||||
| Shareholding of top-10 shareholders | |||||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares held | Number of shares subject to trading restrictions | Pledged/labeled/frozen | ||||||
| Status of shares | Quantity | ||||||||||
| Diao Zhizhong | Domestic natural person | 15.95% | 190,064,845 | 142,548,634 | Pledged | 36,608,300 | |||||
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 14.41% | 171,674,300 | 0 | |||||||
| Chen Xiaohong | Domestic natural person | 4.70% | 55,970,000 | 0 | |||||||
| Wang Jinhong | Domestic natural person | 4.28% | 51,023,602 | 38,267,701 | |||||||
| Tu Jianhua | Domestic natural person | 2.74% | 32,686,765 | 0 | |||||||
| HHLR Management Pte. Ltd - China Value Fund(Exchange) | Overseas legal person | 2.49% | 29,714,738 | 0 | |||||||
| An Jinghe | Domestic natural person | 1.91% | 22,730,084 | 0 | |||||||
| Wang Xiaofang | Domestic natural person | 1.68% | 20,000,000 | 0 | |||||||
| National Social Security Fund 102 Combination | Others | 1.39% | 16,504,842 | 0 | |||||||
| Aberdeen Asset Management Asia Limited- Aberdeen Standard SICAV I - China | Overseas legal person | 1.15% | 13,708,561 | 0 | |||||||
| A Share Sustainable Equity Fund | ||
| Explanation on any connections or acting-in-concert among the above shareholders | There is no connection among the above natural person shareholders, nor are they persons acting in concert as regulated in the Measures for the Administration of the Takeover of Listed Companies. The Company is also not aware of any connection among other shareholders or whether they are acting in concert as regulated in the Measures for the Administration of the Takeover of Listed Companies. | |
| Description of shareholders participating in Margin Trading (if any) | Not applicable | |
(2) Table of number of preferred shareholders and the shareholding of top 10 preferred shareholders
□ Applicable ? Not applicable
During the Reporting Period, there is no information about the shareholding of preferred shareholders of theCompany.
(3) Chart of equity and controlling relationship between the Company and the acting controller
5. Information of bonds outstanding on the date of annual report issuance approval
□ Applicable ? Not applicable
III. Important Matters
During the reporting period, there were no significant changes in the company’s operations. For details, pleaserefer to Section 6 "Important Matters" of the "Annual Report 2022" published by www.cninfo.com.cn
Glodon Company Limited
Chairman: Diao Zhizhong
March 23, 2023