Annual Report 2021 (Summary)
Annual Report 2021 (Summary)
Stock Abbreviation: Glodon
Stock Code: 002410
March 2022
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Annual Report 2021 (Summary)
I. Important Notice
This summary of annual report is abstracted from the full text of the Annual Report 2021. In order to fully
understand the Company’s operating results, financial position and future development plans, investors are
advised to carefully read the full text of the Annual Report 2021 on the media designated by the China Securities
Regulatory Commission.
This English version of the Annual Report 2021 (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
Yuan Zhenggang Director Reasons related to work He Ping
Non-standard audit opinion notification:
□ Applicable √ Not applicable
The profit distribution proposal for ordinary shares or the proposal to capital reserve capitalization for the
Reporting Period as considered by the Board of Directors
√ Applicable □ Not applicable
Whether to implement capital reserve capitalization
□ Yes √ No
The Company’s profit distribution proposal for ordinary shares reviewed and approved by the Board of Directors
is as follows: Based on the total share capital on the equity registration date when the profit distribution plan is
implemented in 2022, a cash dividend of 3 Yuan (tax included) for every 10 shares will be distributed to all
shareholders, and there will be no bonus share (tax included) or capital reserve capitalization.
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 Jia Hao
E-13, 10 Xibeiwang East Road, Haidian E-13, 10 Xibeiwang East Road, Haidian
Office address
District, Beijing, China District, Beijing, China
Fax 010-5640 3335 010-5640 3335
Tel 010-5640 3059 010-5640 3059
Email lisj-c@glodon.com jiah-c@glodon.com
2. Main Business of the Company
1. External Environment
In 2021, the first year of the 14th “Five-Year Plan” (FYP), China achieved remarkable results in coordinating
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Annual Report 2021 (Summary)
economic growth and pandemic prevention and control, with steady socioeconomic development recorded.
Specifically, the software and information technology service industry grew by 17.2% yoy, and the investment in
the high-tech industry nationwide rose by 17.1% yoy, which is 9.9 percentage points faster than the average
investment growth; the total research and development (R&D) national expenditure increased by 14.2% yoy, and
double-digit growth that has been maintained since the beginning of the 13th FYP period, indicating consistent
progress in innovation-driven growth and a pleasing trend in industrial transformation. The total output value of
the construction industry came in at RMB29.31 trillion, up by 11.0% yoy. Investment has recovered steadily,
driven by the successive launches of major projects of the 14th FYP and continuous progress made in the “new
infrastructureand new urbanization initiatives and major projects”. The construction sector is playing an
increasingly important role as one of the pillar industries in the country.
Since the beginning of the 13th FYP period, China has intensified the implementation of its digital economy
development strategy, continuously improved digital infrastructure, stepped up the incubation of new business
forms and models, and achieved significant progress in digitalization and industrial digitization. During the 14th
FYP period, China’s digital economy has reached a new stage of development characterized by deepening
application, well-regulated operations, and inclusive sharing with the wider population. A new round of
technological revolution and industrial transformation is in full swing, and digital transformation has become the
general trend going forward. High-priority objectives such as innovation-driven digitalization, incorporation of
digital technology into the real economy, in-depth integration of new-generation information technology with the
construction and advanced manufacturing industries and the transformation of other traditional industries
propelled by digital technology as the driving force are set out in both the 14th Five-Year Plan for Digital
Economy Development released by the State Council and the 14th Five-Year Plan for Construction Industry
Development recently issued by the Ministry of Housing and Urban-Rural Development.
From the perspective of digital economy development, digital transformation covering all production factors
has acted as an important catalyst for increasing the scope for economic development. Digital transformation has
become indispensable to enterprises’ business development. Having gone through the preliminary digital
marketing stages of initial user/customer digitization, it is gradually infiltrating production and business
operational and organizational activities. Whether it is an end-to-end entire-value chain or a process-driven
holistic digital transformation, it helps enterprises acquire data-driven intelligent decision-making capabilities,
improve operational efficiency and make upstream-downstream collaboration across industrial chains more
efficient. From an industrial perspective, data can bring about a substantial multiplier effect on improving
production efficiency. The all-round and end-to-end digital transformation of traditional businesses can greatly
improve production efficiency across an industry, leading to growth in market volume, and creating a prosperous
and orderly industrial innovation ecosystem.
As regards the transformation and upgrading of the construction industry, the 14th FYP provides a window of
opportunity for the implementation of the Urban Renewal campaign and rollout of the New Urbanization strategy,
as well as for the transformation and development of the construction industry. The development goals explicitly
set out in the 14th FYP for the construction industry include substantially improving the degree of industrialization,
digitization and automation of construction work; accelerating the coordinated development of “intelligent
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Annual Report 2021 (Summary)
construction” and “new industrialized construction” has also become an important goal of the 14th FYP. This
involves creating intelligent production and intelligent construction systems and building an internet platform for
the construction industry by promoting digital collaborative design and using new technologies and new models
such as prefabricated buildings and construction robots, all based on the foundation of improving intelligent
construction policy and top-level design of the industrial system, consolidating Building Information Modeling
(BIM) and other technical standards, to ultimately attain the goals of intelligent construction and green
construction. The high-quality development of the construction industry will ultimately pivot towards innovative
development and green development. Increasing the level of industrial chain modernization and the formation of
the green and low-carbon production model will accelerate a shift of focus in the construction industry from
volume expansion and toward improving competitiveness, hence forming the strong basis of a new development
era.
According to statistics of the China Construction Industry Association, the proportion of investment in
construction informatization in China to the gross output of the construction industry is merely 0.08%, compared
to the 1% average in the European and American developed countries. The R&D expenditures of large- and
medium-sized Chinese construction companies account for less than 2% of their total revenue, while the average
ratio among the world’s top 500 companies typically ranges between 5% and 10%, indicating there is plenty of
room for increased spending on construction informatization. The construction industry needs to employ
digitalization to drive business transformation, and new industrialized construction needs to be at the core of
upgrading the construction industry. The “new intelligent construction” supported by a construction industry
internet and digitalization will certainly bring greater synergistic value and model innovations, thereby promoting
the rapid development of construction industry digitalization.
2. Overview of Our Business
The Company envisions itself as a digital building platform service provider based in the construction
industry that provides its clients with professional construction engineering software and hardware products and
solutions, as well as value-added services such as industrial big data and new industry finance, covering the entire
lifecycle of construction projects. Since its inception, the Company has adhered to self-sustained product R&D
and self-reliant channel building. Through a nationwide marketing network and with integrated operational
support, it gains insights into users’ needs, iterates products, and sets up an agile and efficient system
incorporating research, marketing, sales and service.
The Company’s businesses are divided into three major business segments and several innovation business
units 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
business units include Digital City, Digital Supply & Procurement, Digital Finance and Digital Education. The
businesses are also divided into domestic and overseas businesses.
The Construction Cost business segment is a mature business segment of the Company. It mainly provides
software products and data services to all entities involved in the construction project, and it includes the
engineering pricing business line, engineering quantity takeoff business line, engineering information business
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Annual Report 2021 (Summary)
line and e-government business line. After more than twenty years of development, this business segment has
obvious competitive advantages in China. Currently, it mainly provides products and services to clients adopting a
subscription-based SaaS model.
The Construction Management segment is the growth business of the Company with key breakthroughs. It
mainly focuses on the construction process of engineering projects, and provides construction companies with
platform-based solutions covering project management and enterprise management through a “platform + modular
components” model. Specifically, this involves BIM+ intelligent site products at the project level, and products
aimed at project-enterprise integration at the construction companies’ enterprise level. Digital transformation is
still in full swing in the construction industry. This business segment is at an early stage of development, and its
market penetration is relatively low.
The Digital Design segment is an emerging business prioritized by the Company. It is oriented toward clients
such as design institutions, providing them with architectural design and urban design products and digitalized
design delivery and filing services. This include Glodon Digital Design Product Family, BIMSpace Architectural
Design Product Family, Computational Analysis Product Family, Civil Municipal Design Product Family, and
Glodon Design Delivery and Filing. Among them, the BIMSpace and Civil Municipal products have attained a
leading position in the market.
The innovative business units are emerging businesses incubated by the Company. Relying on the experience
we have accumulated from our digital project management platform and related products, they target different
market segments of the construction industry, providing support and safeguards for the transformation and
upgrading of the construction industry in multiple aspects including CIM planning, construction and management
and new urban construction, supply chain services and talent training. 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 the
construction cost business, which has been marketed mainly in the Southeast Asian market. The other segment is
the international Construction Management products, including the MagiCAD series of electromechanical design
software operated by our Finland-based wholly-owned subsidiary, and Glodon GSite, an international construction
management platform targeting the European market.
3. Management Discussion and Analysis
The year 2021 marked an important juncture in the implementation of the “8th Three-Year Strategic Plan”.
Staying true to its mission of “making every project a success” and its strategic positioning as a “digital enabler,”
the Company firmly pushed ahead with its data-driven platform + ecosystem business strategy, and continued to
provide digital capabilities for construction companies to jointly promote the digital transformation and upgrading
of the industry. Throughout 2021, it further consolidated its “new construction” business, achieved breakthroughs
in its “new design” business, made overall arrangements for the innovative business, and fulfilled all the pre-set
business targets across the board: the cloud transformation of the Construction Cost segment covers the whole
country; the conversion rate of newly added transformation regions and the renewal rate of existing
transformation regions both increased; the Construction Management segment actively increased its contracts, and
the integrated digital project management platform has started to take shape; the integration of the Digital Design
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Annual Report 2021 (Summary)
business was completed, with major breakthroughs made with the proprietary digitalized architectural design
products; the Company delivered remarkable results in innovative business incubation – in particular, the Digital
City CIM platform has progressed from technologies to products, and then to solutions.
In 2021, the Company recorded a total operating income of RMB5.619 billion, representing a YoY increase
of 40.32%. Operating profit amounted to RMB758 million, a YoY increase of 83.10%. Net profit attributable to
shareholders of the Company amounted to RMB661 million, a YoY increase of 100.06%. As of the end of the
Reporting Period, outstanding cloud transformation-related contract liabilities (the “cloud contract liabilities,”
which is equivalent to the “cloud advance receipts” in 2019 and previous reporting periods) increased to
RMB2.047 billion. These liabilities are collected cloud service fees that cannot be recognized as revenue
generated during the Reporting Period, resulting in a discrepancy between the current period’s apparent income
and actual business income. If the effect of the cloud contract liabilities were included, the total pro-forma
operating income would amount to RMB6.156 billion, representing a YoY increase of 33.21% on the same basis.
The pro-forma net profit attributable to shareholders of the Company would amount to RMB1.144 billion,
representing a YoY increase of 29.19% on the same basis. (Note: total pro-forma operating income = total
operating income+ cloud contract liabilities as at the end of the period – cloud contract liabilities as at the
beginning of the period. The pro-forma net profit attributable to shareholders of the Company = net profit
attributable to shareholders of the Company + (cloud contract liabilities as at the end of the period – cloud
contract liabilities as at the beginning of the period) * 90%).
During the Reporting Period, the Company stepped up forward-looking technology development and
integrated innovation efforts, and continued to make breakthroughs in high-priority areas such as graphics, AI, and
open platform for the construction industry. R&D expenditure for the year totaled RMB1.626 billion, accounting
for 29.23% of operating income. On the “technology support business” front, we continued to improve the design
scene processing performance capability and drawing expression of graphics engines, and supported the release of
Digital Design Products. The FalconV rendering engine for architectural design and construction process
animation and other related products were released to seamlessly connect the Glodon Digital Design Product and
BIMMAKE software. Our device-edge-cloud integrated AI technology system can satisfy various requirements on
construction safety, progress, quality and cost control, with the total number of hidden danger algorithm categories
increasing to 35, covering more than 20,000 projects. In terms of the “technology-driven business,” AI
conversation technology has started to apply to automatic reporting of construction safety hazards; the AI concept
design platform has started to take shape; and the master data management at customers’ corporate level is now
complete, ensuring the uniformity of enterprises’ master data. In terms of “technology become the business,” the
number of active applications of the proprietary lightweight BIM engine BIMFace reached 500, and more than 10
new privatized clients were acquired. We successfully launched the BIM + GIS platform, and brought CIM
engine development to completion. In 2021, the Company continued to improve and deepen the intellectual
property system to protect the R&D findings of the Company and individuals: we took out five new patents
related to BIMMAKE, quantity takeoff software and the Magical Index Tool. We filed 80 new software
copyrights concerning the market-based pricing platform, BIM construction management, BIMFACE platform
and Glodon Digital Design Product for Architectural Design; and registered 168 new trademarks for Gldjc.com,
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Annual Report 2021 (Summary)
public resource trading service platforms and developer platforms.
In 2021, the Company stepped up the transformation into a “Digital Glodon” in line with its positioning as a
champion of digital management, and initially set up a closed loop that leverages the customer success indicator
system to drive construction of processes and organizational upgrades. Customer services have been made entirely
digital, enabling us to investigate an online precise matching model to improve large-scale service capabilities.
Based on the unique characteristics of online services, we have built a multi-channel closed loop connecting
customer feedback with the product value chain and the operation value chain, so as to facilitate continuous
business improvement. On the business side, we pushed forward the development of the Group-level LTC (from
Lead to Cash) process and system, and connected the data from key business lines to achieve a
mutually-supporting data-driven business analysis. In digitizing our own office administration systems, we
completed the design for financial digital transformation by bringing the budgeting/accounting management
system entirely online, as well as steadily pushing forward towards the basic digitalized system for human
resources management, and continuing to improve supplier management, production and research management,
IT process management and data security management.
While promoting digital management, the Company also built a functional safeguards covering business
strategies, remuneration and corporate culture. During the Reporting Period, we completed the DSTE (Develop
Strategy to Execution) 1.0 version of the strategic management methodology, and implemented a closed-loop
management system covering the entire management process from strategy development all the way through to
execution. We released the core value 3.0 - G-Star, and continued to build a “learning organization” through
special activities such as C-level study tours and digital learning activities for all staff. We continued to optimize
the short-, medium- and long-term remuneration system using tools such as equity incentives and the Glodon
Time Unit Plan, to achieve institutionalized and standardized remuneration and performance appraisal systems.
Specializing in the construction IT industry, the Company drew on its extensive theoretical and practical
experience and expertise to maintain thought leadership in the digital transformation and upgrading of the industry.
In 2021, we released industry reports such as the Digital Design White Paper, Digital Security White Paper, CIM
Application and Development Report, Informatization Application Analysis of Construction Industry Enterprises,
China Construction Industry BIM Application Analysis Report (2021) and China Construction Industry
Informatization Development Report (2021) - Application and Development of Intelligent Construction, exploring
the different directions of intelligent construction with the focus on prominent issues in the industry. Leveraging
the construction digitalization resources it acquired over the years, Glodon has played a leading role in the
“National Key R&D Program – City Information Modeling (CIM) Platform Key Technology Research and
Demonstration” project, the “Research on Digital Transformation and Upgrading of End-to-End Engineering
Consulting Industry” of the National Development and Reform Commission and several other high-profile
projects, contributing to essential areas of national interest. Continuing its efforts in promoting the “digital
building” concept, the Company has held the “China Digital Building Summit” for 12 consecutive years to
provide the industry with the latest multi-position and diversified digital solutions. In more than 30 national and
industry conferences such as the “China Digital Construction Summit”, China (Beijing) International Service
Trade Fair,” “China International Digital Economy Expo” and “China International Intelligent Industry Expo” as
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Annual Report 2021 (Summary)
well as national and provincial satellite television and other main media channels, we communicated Glodon’s
insights and practices on the digital transformation and upgrading of the construction industry to construction
practitioners across the country and the world, attesting to its growing global professional influence.
In 2021, the Company made substantial headway in improving its corporate and product influence as a
participant in the capital market and a responsible corporate citizen. It was once again selected as one of the “Top
100 Private Enterprises in Beijing” awarded by the Beijing Federation of Industry and Commerce, and was
included in the lists of “Top 100 Private Enterprises in Technology Innovation in Beijing in 2021” and “Top 100
Socially Responsible Private Enterprises in Beijing in 2021.” Our core product “Digital Project Management
Platform” won the “China’s Most Competitive Product Award for Digital and Software Services” at the China
International Digital and Software Services Fair hosted by the Ministry of Commerce. We received a number of
prestigious awards in the capital market, in recognition of our consistently and prudently managed business and
legally compliant operations. We successively won the “2020 Annual Results Announcement Best Practices” from
the China Association for Public Companies, the “Party Building Best Practices of Beijing-based Private Listed
Companies” from the Listed Companies Association of Beijing, as well as “Top 100 Most Valuable Companies
Listed on the Main Board,” “A-Share Listed Company Social Responsibility Award” and “Best Board of Directors
Award” elected by multiple media organizations. Glodon’s Chairman Diao Zhizhong was once again awarded the
“Golden Bull Enterprise Leader Award” by the China Securities Journal and the first “China Listed Company
Jinglun Award – Best Company Captain of the Year” by ChinaFund.
During the Reporting Period, the Company’s primary businesses ran smoothly according to schedule, as
follows:
1) Construction Cost segment
The operating income of the Construction Cost business came in at RMB3.813 billion in 2021, a YoY
increase of 36.64%. If the outstanding cloud-based contract liabilities were included, the adjusted operating
income would amount to RMB4.353 billion, representing a YoY increase of 27.90% on the same basis.
Cloud-based contracts executed during the Reporting Period amounted to RMB3.1 billion, a YoY increase of
38.77%, and the year-end outstanding cloud contract liabilities were RMB2.047 billion, an increase of RMB537
million compared to the start of the year. Cloud revenue recognized during the Reporting Period was RMB2.561
billion, accounting for 67.15% of the total revenue of the Construction Cost segment.
In 2021, cloud transformation of the Construction Cost services was rolled out in the four remaining regions
of Jiangsu, Zhejiang, Anhui and Fujian, and it progressed smoothly throughout the year. For the first time, a
positive revenue growth after restoration was achieved during the year of transformation. The subscription model
improved the cost-effectiveness of related products and services, and the application rates of the cloud-based
pricing and cloud based quantity takeoff products and engineering information services such as Gldjc.com and
Guangcai Assistant hit new highs, which translated into customer satisfaction and gains in conversion rate and
renewal rate. As of the end of 2021, both the conversion rate and renewal rate in the regions where cloud
transformation was initiated in 2017 and 2018 exceeded 85%; the conversion rate in regions where the
transformation was initiated in 2019 exceeded 85%, with a renewal rate of 90%; the conversion rate in regions
where the transformation was initiated in 2020 was 80%, with the renewal rate exceeded 85%; and the conversion
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Annual Report 2021 (Summary)
rate in regions where the transformation was initiated in 2021 exceeded 60%, indicating increases in first-year
conversion rate compared to previous years.
Data on Construction Cost cloud transformation (unit: million Yuan)
Year-end
Operating income outstanding Change from the
Product line from cloud YoY change Cloud contract YoY change contract liabilities beginning of the
services from cloud period
transformation
Cloud-based
924 63.30% 1153 43.70% 774 42.16%
pricing
Cloud-based
830 61.33% 990 38.47% 645 33.13%
quantity takeoff
Engineering
807 49.04% 957 33.53% 628 31.32%
information
Total 2561 57.91% 3100 38.77% 2047 35.82%
Against the backdrop of the market-based transformation of construction cost budgeting services, the
Company continued to promote the conceptual upgrade from “budgeting” toward “cost management.”
Market-oriented pricing products which have adapted effectively to the budgeting service reform have been
formally adopted by a large number of state-owned investment pilot projects. Following the principle of “ensuring
reliable pricing and improved benefits”, Guangcai Data Services further increased its number of benchmark
clients and projects and started commercialized exploration. Two new products, the cost index application
platform integrated with the “Magical Index Tool” and the “Index Network”, went on line to help users greatly
improve efficiency through fast and efficient index calculation and accurate auditing. We continued to drive
product transformation away from “budgeting” towards services for the whole-project lifecycle. BIMQ, the
three-dimensional cost calculation and estimation product, has completed the first forward design project for a
benchmark client, representing a breakthrough in the design of cost estimation products.
On the service front, the Construction Cost business continued to promote the development of digital systems
such as the LTC (from Lead to Cash) and ITR (from Issue to Resolution) processes, and completed the digital
upgrade of our call center, boosting both client satisfaction and internal operating efficiency. In the meantime, we
continued with our online operations system against the backdrop of living with COVID, built an integrated media
center for the Construction Cost business, and promoted a “technology upgrade” of the Construction Cost brand.
During the Reporting Period, the operation and maintenance revenue from public resource transaction
management systems, as part of the e-government business, continued to increase relative to total revenue, and
market-oriented bid clearing products logged strong revenue growth. In September, the Company won the bid for
the RMB103 million Shenzhen Smart Government Service Platform project, thus completing its market reach
covering all of the first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen), and facilitating the digital
transformation and upgrading of the industry on a comprehensive scale.
2) Construction Management segment
The operating income of the Construction Management segment came in at RMB1.206 billion in 2021, a
YoY increase of 27.82%. This business grew rapidly, driven by a sharp increase in the value of newly executed
contracts. As of the end of 2021, the Construction Management project-level products served more than 55,000
projects and over 5,000 clients; new projects and new clients acquired in 2021 amounted to 16,000 and 1,600,
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Annual Report 2021 (Summary)
respectively.
During the Reporting Period, the Company seized the opportunities arising from the digital transformation of
construction enterprise clients, boosted earnings growth by acquiring new contracts as the first priority in the first
half of the year; and in the second half, we focused on the implementation of an income and receipts generation
strategy to scale up business operations. Of all the new contracts executed in 2021, enterprise and
project-enterprise integrated solution contracts accounted for roughly 15%, indicating a sharp rise in product
penetration among top-tier clients. Project-level BIM + intelligent site contracts made up roughly 85% – the
large-scale corporate procurement model for project-level products has been rolled out at a fast pace, resulting in
more than half of labor and material contracts coming from large-scale procurement. With the rapid expansion of
contracts, we sped up deliveries related to the Construction Management business in the second half of the year,
and adopted various methods such as self-reliance + ecosystem, online delivery at scale (where delivery is shared
between ourselves and our partners), delivery by client, and delivery centered around major project component
channels and product integration, thereby accelerating the conversion of contract growth into operating revenues.
During the Reporting Period, the Company’s project-level BIM + intelligent site products and
project-enterprise integration products for construction enterprises continued to bring greater value. In
project-level products, Material Management has achieved breakthroughs, assisting more than 100 companies in
over 7,000 projects. It has verified the closed loop of client success indicators in site-entry and site-exit operations,
resulting in an approximately 3% savings on material costs for clients through digitalization. We continued to
iteratively upgrade the Labor Management products in line with the evolving market, covering more than 10,000
projects and over 8 million industrial workers, and connecting more than 100 government departments, greatly
broadening the coverage of Glodon’s Labor Management products in the industry. Enterprise-level solutions now
have in-depth partnerships with several market leaders. In response to clients’ differing requirements, we released
a project management platform for medium and large construction companies to help them manage the production
and contract performance processes involved in construction projects, based on the actual progress of project
implementation. A lightweight project management system has been released for small and medium-sized
construction enterprises. Project-enterprise integration has proven its value along the “material chain,” with
several model projects implemented for clients in Chongqing.
The Construction Cloud product line (BIM Technology product line) achieved rapid growth in the total
number of clients and projects alike. Some 180,000 new users of the Zebra Progress product have been acquired
since the launch of the “BIM Tool Product Promotion Plan” in February 2021, covering more than 70,000 projects.
As a BIM rapid modeling and detailing software covering the entire construction process and developed based on
proprietary graphics and parametric modeling technology which are protected by intellectual property rights,
BIMMAKE has been universally recognized by academics and experts as a successful application in a super
high-rise building in Shenzhen developed by China Construction Third Engineering Bureau. The construction
quantity takeoff product has been tested on both material and cost products, and has been applied in dozens of
projects, further improving its accuracy and scope, and broadening the quantity application scenarios for the
verified products. Having passed the tests for its capability, the products will be gradually rolled out.
For infrastructure clients, the Company released a general digital infrastructure solution in June 2021. This
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Annual Report 2021 (Summary)
includes tool products (such as the BIM parametric modeling and the Zebra Progress product) and project-level
digital solutions (such as the Infrastructure Materials, Infrastructure Labor, Infrastructure Progress, Digital
Infrastructure Command and Adjustment platforms), designed to satisfy the remote command and allocation needs
of infrastructure projects over time. These products and solutions solve the issues arising from remotely managing
infrastructure projects, enhance the projects’ allocation efficiency, reduce wastage of resources and avoid project
delays. Many benchmark projects had started during the Reporting Period, leading the way and setting an example
for the digitization of the infrastructure industry, and starting the preliminary study on the digital transformation of
infrastructure enterprises.
During the Reporting Period, multiple breakthroughs were made in the development of the digital project
integration management platform: the business middle platform completed the v2.0 modular architecture upgrade,
the data middle platform completed the construction of the master data management system and data governance
system, and released 150+ standard data interfaces; the technical middle platform completed the transition from
project-level support towards project-enterprise integration support to meet the system integration requirements of
700+ tenants; the AI middle platform’s CV algorithm continued to focus on the construction industry; the
knowledge middle platform’s “knowledge graph” facility encompasses more than 100 knowledge
specifications/standards, and uses NLP (Natural Language Processing) technology to train the algorithms of
chatbots and contract robots, which have been continuously tested in project-level and enterprise-level products.
In terms of ecosystem building, the digital project integration management platform collaborated with leading
construction companies such as Beijing Construction Engineering and China Construction Seventh Engineering
Division to drive the commercial co-operation of the IoT platform and the data middle platform, making the
formerly internal services available to external users.
On the basis of rapid business expansion, the Construction Management segment continued to ramp up our
internal digital operation management, with improved operating efficiency through technological innovation and
digital means. During the Reporting Period, we completed the development of an end-to-end operational system
covering the entire process from client and business opportunity management, quotation and contract management,
procurement supply management and project implementation management to financial management, thereby
achieving internal-facing digital constructions by the Construction Management business and providing support to
the long-term high-efficiency operations and strategic decision-making of that business segment.
3) Digital Design segment
The operating income of the Digital Design segment came in at RMB131 million in 2021, a YoY increase of
250.12%.
During the Reporting Period, we successfully completed the integration of the Digital Design business unit
with Hongye Technology to ensure effective connection of the R&D management, marketing and customer
service systems, HR and remuneration systems, digital operation management and IT infrastructure between
Glodon’s design business and Hongye Technology, and conducted discussions on core value 3.0 – G-Star to
accelerate team integration. After integration, the teams shared sales and marketing systems, and improved
customer satisfaction concerning product quality management, brand management, and customer service
management. With a sales strategy focusing on our core products, we stepped up marketing efforts giving priority
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Annual Report 2021 (Summary)
to the three-dimensional forward design solution BIMSpace and the Civil Municipal Design products;
strengthened the target management system related to sales management through organizational planning and
service support; fostered the Glodon brand image through specifically scheduled marketing events; and leveraged
the data system to manage business opportunities and sales leads, which improved the efficiency of sales
conversion and led to rapid sales growth.
On the product front, a new version the BIMSpace 2022 was launched and iteratively upgraded during the
Reporting Period, which further improved the efficiency of pipeline comprehensive engineering adjustments and
the quality of BIM deepening design. October 2021 saw the release of the Digital Design Product for Architectural
Design (open beta version) developed for the house building industry and based on Glodon’s proprietary BIM
graphics platform, and a speeding up of structural, MEP, component library and collaborative platform R&D, in
line with our commitment to create architectural design solutions which incorporate design, management and
budgeting. Operating in a digitally integrated design environment showcasing a “terminal + cloud” architecture,
and through the component-level cloud collaboration mechanism based on unified data standards, the Digital
Design Product Family provides interdisciplinary collaborative design solutions for the design of residential
building drawings in the domain of civil architecture, enabling end-to-end management covering the entire
process from project planning, design and production, delivery to data application. As of the end of 2021, the
number of installations of the Digital Design Product for Architectural Design (open beta version) exceeded
1,700.
During the Reporting Period, the Digital Design division continued to build on its brand influence, and
created a unified Glodon Digital Design brand after finishing its integration with the Hongye brand. In September
2021, the Company first proposed “digital design” in the 2021 Digital Architecture White Paper – Digital Design,
which answered the central questions concerning the transformation and upgrading of the design business in the
digital era, stressing that intelligent design tools will gain in popularity over time, the design process will be
synchronized on the cloud, and the ultimate design products will be completely digitized. Considering the delivery
of fully digitized samples, digital design should allow an integrated and collaborative working model backed by a
digital design platform, and a pre-simulation and integrated delivery process that supports the construction,
operation and maintenance scenarios. From the perspective of eco-friendliness, digitization and industrial
transformation of the construction industry, digital design should include lean design, industrial design approaches
and digital design techniques. The notion of “digital design” will provide a new methodology for the
transformation of the traditional design business, and serve as a theoretical starting point for the transformation of
design companies, blazing a trail for the transformation of the survey and design industries.
4) Innovative business units
The Digital City business has expanded in scope to cover urban planning, construction and governance, and
new urban construction, with two industry solutions developed: CIM-based urban planning, construction and
governance, and CIM-based new urban construction. During the Reporting Period, the Chongqing Smart
Guangyang Island (Phase I) construction project, Fujian Quanzhou Xingu Smart Park project, and Fujian Fuzhou
Binhai Integrated Platform of Planning, Construction and Management project all passed acceptance checks, and
we released the smart ecological index system and a white paper on smart ecosystem, raising the public’s
12
Annual Report 2021 (Summary)
awareness of the Glodon CIM brand.
The Digital Supply and Procurement business unit provides bilateral services for construction project
procurement and building materials suppliers, facilitates the transformation and upgrading of the digital
construction engineering supply chain, and helps supply and procurement enterprises integrate into the digital
construction industry ecosystem. By creating a digital transaction service B2B platform “m2.com.cn,” we
extended the business along the supply chain while providing information services, so as to enhance service
efficiency throughout the supply chain. During the Reporting Period, we set up a database of 300,000 suppliers on
m2.com.cn, solved some 30,000 requests from procurement clients, and helped more than 100,000 suppliers to
match online referral purchases with offline services.
The Digital Finance business offered supply chain finance based on clients’ digital business scenarios and
financial demand scenarios. We have served more than 300 construction units through the fin-tech platform, and
launched a collective query platform combining professional application data and external public data. We have
also developed a transaction authentication digital risk control product, which has been widely applied in
self-operated businesses.
As for the Digital Education business unit, we established a digital talent training platform revolving around
the talent service chain of higher education institutions offering architecture programs. We developed and
designed digital teaching platforms and professional courses based on the teaching practices of the institutions,
and supported the digital upgrading of universities and colleges alike. During the Reporting Period, we helped
more than 300,000 teachers and students participate in online job fairs, improving their employment prospects;
and organized more than 30,000 student assessment sessions focusing on the “1 + X” policy adopted by the
Ministry of Education, removing major hurdles for students to complete post-specific training.
5) Overseas businesses
Overcoming the difficulties brought about by the pandemic, operating income from our overseas business
came in at RMB153 million in 2021, a YoY increase of 3.89% .
In terms of internationalization of the Construction Cost business, we rolled out Cubicost on an extensive
scale in Singapore, Malaysia, Hong Kong and other major regional markets in Southeast Asia. We entered into
strategic partnerships with JTC Corporation (Singapore), the Malaysian Construction Industry Development
Board’s National Construction Cost Centre portal (N3C) and the National University of Singapore to further
develop the digital transformation of the construction industry, and provide integrated industry digital services for
construction clients in Southeast Asia.
As for internationalization of the Construction Management business, the MagiCAD business continues to
tap further into the Northern European markets where the Company has an established presence. Furthermore, we
actively promoted digital transformation partnerships with key-account clients, and stepped up client prospecting
efforts in the UK, Germany, Italy and other European markets. We partnered with a British company on GSite, a
product based on the Integrated Digital Project Management Platform, marking GSite’s first international foray.
13
Annual Report 2021 (Summary)
3. Major accounting data and financial indicators
(1) Major accounting data and financial indicators for the previous three years
Whether the Company need to retrospectively adjust or restate its accounting data for previous years
□ Yes √ No
Unit: Yuan
Change from end of
2021 Year-end 2020 Year-end previous year to end of 2019 Year-end
this year
Total assets 10,067,626,141.36 9,547,097,154.33 5.45% 6,167,316,188.03
Net assets attributable to
5,787,737,027.21 6,402,241,169.54 -9.60% 3,269,226,858.97
shareholders of the listed company
2021 2020 Year-on-year Change 2019
Operating income 5,562,216,443.14 3,947,083,029.86 40.92% 3,464,151,444.58
Net profit attributable to
660,974,286.88 330,388,350.03 100.06% 235,072,017.67
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
651,128,119.78 301,547,467.71 115.93% 190,912,170.61
after deduction of non-recurring
profit and loss
Net cash flow from operating
1,601,350,833.93 1,876,130,837.67 -14.65% 640,918,549.42
activities
Basic earnings per share
0.5636 0.2867 96.58% 0.2087
(Yuan/share)
Diluted earnings per share
0.5636 0.2858 97.20% 0.2086
(Yuan/share)
Weighted average ROE 10.59% 6.94% 3.65% 7.47%
(2) Quarterly major accounting data
Unit: Yuan
Q1 Q2 Q3 Q4
Operating income 834,036,024.85 1,315,499,007.16 1,406,478,977.91 2,006,202,433.22
Net profit attributable to
shareholders of the listed 76,656,251.98 209,337,570.60 189,383,874.72 185,596,589.58
company
Net profit attributable to
shareholders of the listed
75,179,421.06 199,061,684.54 180,225,143.97 196,661,870.21
company after deduction of
non-recurring profit and loss
Net cash flow from operating
-121,777,328.48 275,554,453.62 323,883,935.91 1,123,689,772.88
activities
Whether the above financial indicators or their sums are significantly different from those disclosed in the
Company’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 and
the shareholdings of top 10 shareholders
Unit: share
Total number of 33,460 Total number of 39,955 Total number of 0 Total number of 0
14
Annual Report 2021 (Summary)
ordinary ordinary shareholders preferred shareholders preferred
shareholders as of at the end of the with restored voting shareholders
the end of the month immediately rights at the end of the with restored
reporting period before disclosure reporting period voting rights at
date of annual report the end of the
month before
disclosure date
of annual report
Shareholding of top-10 shareholders
Pledged/labeled/frozen
Nature of Shareholding Number of Number of shares subject to
Name of shareholder Status of
shareholder percentage shares held trading restrictions Quantity
shares
Domestic natural
Diao Zhizhong 15.98% 190,064,845 142,548,634 Pledged 27,399,253
person
Hong Kong Securities Overseas legal
11.05% 131,378,229 0
Clearing Company Ltd. person
Domestic natural
Chen Xiaohong 4.71% 55,970,000 0
person
Domestic natural
Wang Jinhong 4.29% 51,023,602 40,236,625
person
Domestic natural
Tu Jianhua 3.72% 44,293,489 0
person
Overseas legal
UBS AG 3.26% 38,739,273 0
person
HHLR Management
Overseas legal
Pte. Ltd - China Value 2.50% 29,714,738 0
person
Fund(Exchange)
Domestic natural
An Jinghe 1.91% 22,730,084 0
person
MERRILL LYNCH Overseas legal
1.85% 21,974,722 0
INTERNATIONAL person
Domestic natural
Wang Xiaofang 1.68% 20,000,000 0
person
There is no connection among the above natural person shareholders, nor are they
Explanation on any connections or persons acting in concert as regulated in the Measures for the Administration of the
acting-in-concert among the above Takeover of Listed Companies. The Company is also not aware of any connection
shareholders 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
Not applicable
Margin Trading (if any)
Note: The Company’s controlling shareholder Mr Diao Zhizhong pledged 1,000,000 shares and 2,940,000 shares
on March 8, 2022 and March 11, 2022 respectively. These shares represent 0.08% and 0.25% of his shareholding
in the Company, respectively. The purpose was to supplement pledges. As at the disclosure date, Mr Diao
Zhizhong had pledged a total of 31,339,253 of the Company’s shares, corresponding to 16.49% of his
shareholding in the Company, and 2.63% of the Company’s total share capital. For details, see the announcement
made on www.cninfo.com.cn on March 12, 2022, entitled Public announcement concerning the pledging of
shares by controlling shareholder of Glodon Company Limited (Announcement no. 2022-009).
(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 the
Company.
15
Annual Report 2021 (Summary)
(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
1. Stock incentive scheme
During the Reporting Period, the Company released the 2021 restricted stock incentive scheme, and
completed the registration of the first grant of 5.4409 million restricted shares to 345 recipients on November 3,
2021, and the registration of a postponed grant of 220,000 restricted shares to two recipients on January 7, 2022.
The source of the shares is the A-share repurchase performed by the Company on the secondary market, with the
grant price set at RMB30.48 per share. The three phases of the lock-up period for the restricted shares granted via
the incentive scheme are 12 months, 24 months and 36 months from the registration date of the restricted shares
granted to the recipients, with the unlock ratios set for the phases being 40%, 30% and 30% respectively; the
corresponding performance appraisal targets at the Company level are: generating net profit (net profit attributable
to shareholders of the listed company, similarly hereinafter) of no less than RMB650 million in 2021, net profit of
no less than RMB950 million in 2022, and net profit of no less than RMB1.25 billion in 2023. For more details,
refer to the relevant announcements and other documents (Announcements no. 2021-066, 2021-067, 2021-070,
2021-082, 2021-103, 2022-002) published on the cninfo website (www.cninfo.com.cn).
Stock incentives granted to directors and senior managers
Unit: share
Number
Number of
Strike price Number of of
Number of Number Market price restricted Number of
(RMB/share) restricted restricted
exercisable of shares as of the end shares shares Grant price
of shares shares shares
shares exercised of the held at the unlocked of restricted
Name Position exercised granted in held at
during the during the reporting beginning in the shares
during the the the end of
reporting reporting period of reporting (RMB/share)
reporting reporting the
period period (RMB/share) reporting period
period period reporting
period
period
Director
Yuan
and 0 0 186,000 186,000 504,000 34.91/30.48 504,000
Zhenggang
President
Wang Director
and 0 0 141,000 141,000 180,000 34.91/30.48 180,000
Aihua
Senior
16
Annual Report 2021 (Summary)
Vice
President
Director
and
Liu Qian Senior 0 0 418,000 278,800 0 - 139,200
Vice
President
Director,
Senior
Vice
He Ping President 0 0 108,000 108,000 169,000 34.91/30.48 169,000
and Chief
Financial
Officer
Senior
Vice
Li Shujian President 0 0 108,000 108,000 176,000 34.91/30.48 176,000
and Board
Secretary
Senior
Yun
Vice 0 0 141,000 141,000 146,000 34.91 146,000
Langsheng
President
Senior
Zhi Fei Vice 0 0 131,000 66,800 65,000 30.48 129,200
President
Senior
Wang
Vice 0 0 125,000 60,800 80,000 30.48 144,200
Shaoshan
President
Total -- 0 0 -- -- 1,358,000 1,090,400 1,320,000 -- 1,587,600
The Company’s three incentive schemes – the 2018 stock option and restricted stock incentive scheme, 2020
stock option and restricted stock incentive scheme, and 2021 restricted stock incentive plan – were being
implemented during the Reporting Period. The Company’s stock option and restricted stock incentive schemes
accrued equity incentive expenses of RMB146.1855 million during the Reporting Period, which affected the net
profit by RMB146.1855 million, accounting for 20.27% of the total net profit. This includes RMB25.2268 million
of equity incentive expenses for core technical personnel which accounted for 17.26% of the current period’s
equity incentive expenses.
2. Share repurchases
During the Reporting Period, the Company released two tranches of share repurchase programs.
On March 26, 2021, the Proposal Concerning the 2021 Share Repurchase Plan was reviewed and approved
at the 10th meeting of the fifth Board of Directors. The total amount spent on the repurchase shall not be less than
RMB300 million (inclusive) and shall not exceed RMB400 million (inclusive); the repurchase price shall not
exceed RMB80 per share. Implementation of the plan was completed on August 3, and 5,983,476 shares were
repurchased in total, with the transaction price coming in at RMB399, 982,487 (exclusive of transaction fees). Of
all the shares repurchased, 5,617,000 have been used to grant shares under the 2021 restricted stock incentive
scheme. For more details, refer to the relevant announcements and other documents (Announcements no.
2021-019, 2021-021, 2021-023, 2021-032, 2021-035, 2021-037, 2021-044) published on the cninfo website
(www.cninfo.com.cn).
On September 1, 2021, the Proposal Concerning the Share Repurchase Plan was reviewed and approved at
17
Annual Report 2021 (Summary)
the 14th meeting of the fifth Board of Directors. The total amount spent on the repurchase shall not be less than
RMB800 million (inclusive) and shall not exceed RMB1 billion (inclusive); the repurchase price shall not exceed
RMB80 per share. As of December 31, 2021, the Company repurchased 10,055,330 shares through centralized
bidding via the special securities repurchase account, with the transaction amount coming in at
RMB644,491,364.74 (exclusive of transaction fees). The repurchased shares will also be used for subsequent
stock incentives or employee stock ownership plans. For more details, refer to the relevant announcements and
other documents (Announcements no. 2021-056, 2021-063, 2021-065, 2021-074, 2021-081, 2021-090, 2022-001)
published on the cninfo website (www.cninfo.com.cn).
Progress in share repurchase implementation
Proportion of
shares
repurchased
(if any) to the
Amount of
Number of % of Purpose for which Number of total number
Date of plan repurchase Repurchase period
shares to be total share the shares will be shares of the target
disclosure proposed proposed
repurchased capital used repurchased shares
(RMB)
involved in
the stock
incentive
scheme
Stock incentive or
March 30, 300,000,000-40 March 26, 2021 - March
0 0.00% employee stock 5,983,476 -
2021 0,000,000 25, 2022
ownership plan
Stock incentive or
September 2, 800,000,000-1,0 September 1, 2021 -
0 0.00% employee stock 10,055,330 -
2021 00,000,000 August 31, 2022
ownership plan
3. Important Contracts
On December 7, 2020, the Company formed a consortium with Taiji Computer Corporation Limited and
Glodon Digital Technology (Chongqing) Co., Ltd., and entered into the contract for the Smart Guangyang Island
(Phase I) Construction Project with Chongqing Guangyang Island Green Development Co., Ltd. to carry out the
Smart Guangyang Island (Phase I) project. The project mainly involves developing the EIM spatiotemporal
information database, digital twin support platform, smart ecological application, intelligent construction
applications and other modules, with a total contract value of RMB175, 980,800. As of December 31, 2021, the
performance status of the contract is as follows:
Unit: Yuan
Reason for
project
Has the
Revenue execution
Project Aggregate project
Contract recognized in Cash falling
Project name Business type execution revenue progressed as
amount reporting collection behind
progress recognized scheduled or
period schedule or
expected?
slower than
expected
Smart
Guangyang
Island (Phase 175,980,800. Smart Cities 120,546,798. 120,546,798. 130,346,400.
64.62% Yes
I) 00 development 99 99 00
Construction
Project
18
Annual Report 2021 (Summary)
Glodon Company Limited
Chairman: Diao Zhizhong
March 25, 2022
19
