Glodon Company Limited Annual Report 2023 (Summary)
Stock Code: 002410 Stock Abbreviation: Glodon Announcement No.: 2024-015
Glodon Company Limited
Annual Report 2023 (Summary)
I. Important Notice
This summary of annual report is abstracted from the full text of the Annual Report 2023. 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 2023 on the media designated by the China Securities
Regulatory Commission.This English version of the Annual Report 2023 (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
Liu Qian Director Reasons related to work Wu Zuomin
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 profit distribution plan of the Company considered and approved by the Board of Directors is as follows: a
cash dividend of RMB0.70 (including tax) for every 10 shares held by all the Shareholders based on the total
share capital of the Company as of the date of registration of shareholdings when implementing the profit
distribution plan in 2024 no bonus shares will be issued and no shares will be converted from capital reserve
into share capital.
1Glodon Company Limited Annual Report 2023 (Summary)
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
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 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
industry that provides its clients with professional construction engineering software and hardware products
solutions and services. The Company serves all parties involved in the engineering project life cycle including
developers designers consultants constructors manufacturers suppliers and operators. With specialized
applications in construction engineering serving as the core essential support and industry big data and
industrial chain finance serving as value-added services the Company provides full-lifecycle solutions for
digital buildings drives high-quality development of construction enterprises through systematic digital
capabilities.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 Developer Digital City Digital Supply & Procurement Digital Education and
Digital Finance. The businesses are also divided into domestic and overseas businesses.The Construction Cost segment mainly provides software products and data services to all industry
participants involved in construction project management and it includes traditional cost sets such as Glodon
Quantity Takeoff products National Standard Pricing products and Engineering Information products.
2Glodon Company Limited Annual Report 2023 (Summary)
Leveraging its accumulated advantages in the field of engineering cost management the Company extends its
services to early-stage value management and data management during construction enabling data-driven
business management and offering new digital cost and consultancy products and services to developers
constructors and consultants. Currently it mainly provides products and services to clients adopting a SaaS
model.The Construction Management segment 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 the process of continuous
improvement in the construction industry with relatively low market penetration.The Digital Design segment is oriented toward clients such as design institutions providing them with
fully proprietary 3D forward design platform products and services that cover architectural design and urban
design products and digitalized design delivery and filing services including Glodon NovaDesign set
BIMSpace Architectural Design Product Family Computational Analysis Product Family Glodon NovaDesign
Road product and Glodon Design Delivery and Filing along with collaborative design-cost and design-
construction integration solutions.The Digital City unit is focused on creating a CIM (City Information Modeling) platform to form a digital
foundation for cities and advancing CIM+ application to provide integrated planning construction and
management solutions smart ecosystems and Intelligent Operation Centers (IOC) for cities.The Digital Education unit revolves around the construction of a talent chain system in the building
industry dedicates to providing professional lifelong education services for industry talents. It focuses on
enhancing the cognition and skill levels of key positions linking the talent cultivation supply chain mitigating
the contradiction between supply and demand of professional talents and providing more high-quality
professional talents for the transformation upgrading and healthy development of the construction industry.The Digital Developer unit primarily caters to the digital demands of developers (including central and
local state-owned developers urban investment platforms and self-developers) focusing on the investment
development construction and delivery stages of projects. It offers comprehensive digital solutions covering
corporate level project level operational level and supplier collaboration.
3Glodon Company Limited Annual Report 2023 (Summary)
The Digital Supply & Procurement unit deeply integrates digital technology into the building materials
supply chain to connect supply and demand. It provides group purchasing and e-commerce digital procurement
products for large construction enterprises and sourcing competitive bidding and inspection services for small
and medium-sized construction enterprises. For a vast number of building material suppliers it offers intelligent
marketing solutions under four business scenarios: market insight brand promotion product promotion and
precise customer acquisition.The Digital Finance unit maximizes the use of full real-time business data of business-finance and project-
enterprise integration throughout the engineering project's lifecycle along with algorithms supporting funders'
risk control and regulators' management. It develops digital risk control model products and extends digital
financial technology to the digital credit and financial services in the construction industry.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 MagiCAD series of electromechanical design software and simulation analysis software for building
energy consumption operated by our European subsidiary and Glodon GSite an international construction
management platform targeting the European market.
2. Management Discussion and Analysis
Since its renewed entrepreneurial that began in 2017 (2017-2025) the Company has been steadfast in its
mission to make every project a success and to enable every builder to achieve greatness. Through digital means
we strive to address challenges related to project scheduling costs quality safety and environmental protection
thereby accelerating the construction industry's digital transformation and upgrade. During the Seventh Three-
year Plan (2017-2019) the Company went through a cloud transformation journey transforming not just its
product offerings but also its ways of thinking and business strategies. During the Eighth Three-year Plan
(2020-2022) it improved values of multiple businesses by consolidating dual business segments (construction
cost and construction management) making new breakthroughs in digital design and putting our integrated
digital project management platform PaaS into operation. As we enter the Ninth Three-year Plan (2023-2025)
the Company strides towards the climax of its renewed entrepreneurial venture during which the construction
industry's demand for high-quality development has grown significantly. The value of digitization in reducing
costs and enhancing efficiency has become particularly evident providing a stronger growth impetus for the
industry's digital transformation. Amidst the landscape of opportunities and hurdles characterizing the current
digital revolution in the construction industry the Company stands firm in its pursuit of a bold second chapter
4Glodon Company Limited Annual Report 2023 (Summary)
preserving its strategic focus driving proactive innovation and stable development to steer its renewed
entrepreneurial initiative towards assured success.
2023 marks the opening year of our Ninth Three-year Plan however the pace of the Company's overall
business operations has been impacted by the state of construction industry project commencements. During the
year the Company achieved an operating income of RMB6.525 billion and a net profit of RMB116 million
down 0.42% and 88.02% year-on-year respectively. Our profit saw a significant decline largely due to
increases in labor costs depreciation amortization and asset impairment. From the perspective of segments
our Construction Cost business segment achieved an operating income of RMB5.17 billion up 8.33% year-on-
year. During the Reporting Period the Company signed cloud contracts of RMB3.564 billion down 9.08%
year-on-year the performance remained essentially flat year-on-year excluding the impact of three-year
contracts. While our Construction Management business segment and Digital Design business segment
achieved an operating income of RMB862 million and RMB87 million down 35.00% and 27.53% year-on-year
respectively.
(1) Organizational structure upgrade to address systematic digital needs of clients
In response to the evolving landscape and new demands for digital transformation within the construction
industry we initiated a proactive transformation at the beginning of 2023 by adjusting our organizational
structure. Dismantling from the previous three BG segments it established a networked transparent organization
centered around customer base product lines and business platforms forming a business management system
that cascades from customer base to solutions product lines products and platforms. It propelled the
Company's internal capabilities towards greater systematization platformization and networking thereby
offering clients a complete solution-oriented service system built on a platform+ module mode. Following a
year of integration in 2023 this organizational restructuring is expected to enhance operational effectiveness by
2024.
(2) Construction cost products weathering challenges with solid growth in new digital cost products
During the Reporting Period the construction cost products achieved cloud revenue of RMB3.224 billion
representing a year-on-year increase of 11.20% primarily due to the recognition of previously signed cloud
contracts and the carryforward of new ones. Cloud contracts worth RMB3.029 billion were signed representing
a year-on-year decrease of 6.47%. The Company's construction cost products maintained high renewal rate
application rate and user engagement levels comparable to the same period last year.
5Glodon Company Limited Annual Report 2023 (Summary)
During the Reporting Period the Construction Cost business continued its evolution from single-role sets
to full-process cost management applications achieving a breakthrough with comprehensive coverage of deep
application across benchmark enterprises. During the Reporting Period the new digital cost products achieved
cloud revenue of RMB598 million representing a year-on-year increase of 52.36%. Cloud contracts worth
RMB535 million were signed representing a year-on-year decrease of 21.50%. With a focus on customer value
creation in 2023 these products helped enhance usage rates and value for customers to nurture benchmark users.The delivery and benchmarking of the new digital cost products made significant progress effectively boosting
the product application rate; the renewal rate rose consistently nearing parity with the construction cost
products' renewal rate meeting the Company's preset goals. The Company successfully created 270 single-
scenario benchmarks 50 cost-management value benchmarks and 7 pavement benchmarks laying a strong
foundation for future product promotions.
(3) Streamline construction business and continuous improvement in operational quality
Amidst a decline in the number of construction project kick-offs and slower progress on some projects
coupled with intensifying competition in the industry construction firms have become more cautious about
digital investments which has impacted the expansion of the Company's digital construction business orders
and deliveries to some extent. Responding to both internal and external shifts the Company refined its digital
construction business strategy and persistently upgraded value proposition in its solutions. It pivoted from
pursuing scale to emphasizing quality in its business operations strategically managing profitability and cash
flow to guide adjustments in the construction business strategy aiming for high-quality scalable expansion in
the long run. In 2023 construction products became increasingly tailored to address core business scenarios of
customers with a rising share of proprietary hardware and software. Applications rate in labor material BI
GEPS and other products steadily improved and over 200 enterprise and large-project benchmarks were
established. As a result of these concerted efforts sales collections from Construction Management business
saw an improvement compared to 2022.
(4) Focus on quality improvement of NOVADesign and breakthroughs in collaborative design and
integration
In 2023 the key task for Glodon NOVADesign products is to validate product value establish a value loop
construct a value benchmark and achieve scalable product application. During the Reporting Period Glodon
NOVADesign increased the efficiency and quality of collaborative design in the drawing design phase creating
integrated design calculations. Over 70 benchmark companies were established along with more than 260
6Glodon Company Limited Annual Report 2023 (Summary)
benchmark projects. A value loop for collaborative design and drawing was completed for residential and
general public building formats with 193 core scenarios successfully validated for functionality performance
and quality across multiple projects.
(5) Orderly layout of overseas business and steady progress in internationalization
During the Reporting Period the overseas business achieved operating income of RMB194 million up
26.43% year-on-year mainly due to the consolidation of the energy simulation software company EQUA
Simulation AB (Sweden) acquired by subsidiary MagiCAD Group Oy (Finland) as well as robust development
in other business. In terms of internationalization of Construction Cost business segment efforts were
intensified to deepen operations with key clients in major regions and expand into niche markets resulting in
stable orders and continuous improvement in operating profit margins. The application rates for quantity takeoff
products for civil and installation and BQ pricing products in key regions remained stable. In terms of
internationalization of Construction Management business the upgrade of Gsite 2.0 product responded to core
customer needs combined with the Company's business platform capabilities to enhance product
competitiveness. Through a series of marketing activities brand awareness was increased to create a solid
market foundation for business development. In terms of internationalization of Digital Design business
MagiCAD2024 was officially released supporting efficient calculation of VAV air conditioning system to
improve MEP design efficiency.
(6) Continuous advancement of core technologies supports key business development
In recent years as the leading unit the Company has undertaken a number of national-level major
scientific and technological breakthrough projects initiated by the Ministry of Industry and Information
Technology the Ministry of Science and Technology and the Ministry of Housing and Urban-Rural
Development. With outstanding technical strength the Company continuously tackles critical challenges for
industry development and facilitates the conversion of scientific and technological achievements consistently
receiving high recognition from government departments for its product innovation capabilities and value. The
Company continues to increase its investment in R&D consolidating its core technological barrier. During the
Reporting Period the total R&D investment of the Company amounted to RMB1.963 billion representing a
year-on-year increase of 5.65% accounting for 30.09% of the operating income. During the Reporting Period
the Company continued to upgrade its core graphics technology significantly enhancing the rendering
7Glodon Company Limited Annual Report 2023 (Summary)
performance and realistic effect of large infrastructure and CIM scenarios the performance and stability of 2D
graphics processing as well as the curved surface modeling capability for complex buildings. At the same time
the Company actively explored applied algorithms integrating virtual and real scenarios in infrastructure sites
achieving effective integration and innovation with business operations. The Company launched the first digital
core competency platform with independent intellectual property rights in the construction industry - the
Construction Business Platform which provides a PaaS platform for the entire construction industry covering
services for the whole lifecycle of buildings including design construction operation and maintenance. The
Company achieved breakthroughs in artificial intelligence technology and independently developed a large AI
model tailored for the construction industry which is capable of knowledge-enhanced question answering
automation analysis and generation-augmented basic capability calculations for construction industry data. We
have established an AI platform that offers end-to-end tools for the development of industry AI applications and
the MaaS (Model as a Service) service model. Furthermore the Company applied core AI technology across
various sectors such as architectural design contract and procurement and construction accelerating the
intelligent transformation and value upgrade of the Company's products.
3. Work Plan for 2024
In 2023 rapid changes in the external market led to significant resource investments by the Company
resulting in high costs and a considerable decline in profits. In 2024 the Company will actively adjust its
strategy by concentrating resources and focusing on key areas so to achieve stable growth in revenue and
profits.
(1) Concentrating resources
The core rational behind concentrating resources is to optimize resource allocation focusing on core
products key regions and key customers.Core products include mature products such as quantity takeoff pricing and engineering information
products for which the Company will strive for steady growth and increased profits. For growth products such
as engineering data service bid analysis and review products Glodon NOVADesign labor management
material management and Zebra Progress the Company aims to achieve rapidly scale-up and revenue
contribution. Key regions include 14 regions such as Beijing Shanghai and Guangdong where the Company
will focus on growth products to achieve effective scale-up. Key customers include central enterprises local
state-owned enterprises and leading private enterprises.
8Glodon Company Limited Annual Report 2023 (Summary)
Furthermore the Company will further tap into internal potential and strive to reduce costs and increase
efficiency. We will implement the 2 Pizza Team mechanism to maximize innovation and collaboration through
the formation of small teams. We will strengthen budget management and expense control effectively
controlling expenses from the source and throughout the process reducing unnecessary expenses.
(2) Focusing on key areas
In respect of the pricing products in the construction cost business we will take the opportunity of the
release of the new list to comprehensively upgrade market-oriented services and data-based services adapted to
the new list cover the prefabricated business and expand into to industrial park-related businesses. We aim to
achieve stable growth by continuously enhancing product value. For new digital cost products we will
continue to enhance solution value and expand business scenarios accelerating the scale-up promotion by
building on the benchmark customers established in 2023.In respect of the construction management business we will continue to optimize the product structure
focusing on advantageous products and high-potential products including enterprise management project
management as well as labor management material management tower crane and Zebra Progress products.For the enterprise management product we aim to continuously improve market expansion capabilities through
project-enterprise integration and data-driven strategy. For the project management product we aim to enhance
project profitability for project managers by making breakthroughs in key value scenarios. For the labor
management product we aim to create labor quotas that are combined with construction quantity takeoff and
material management. For material management products we aim to achieve transparent control of project
materials through mobilization and automation. For the tower crane product we focus on making breakthroughs
in anti-collision technology to enhance product value. For Zebra Progress we will bringing a brand-new
planning and progress control experience through AI transitioning from a free traffic-attracting product to a
subscription-based fee model. Infrastructure is an important growth point for the construction management
business in 2024. The Company has adjusted its management approach based on the business characteristics of
infrastructure transitioning the channel advantages established over the years with central and state-owned
enterprise infrastructure clients in the housing construction business to the infrastructure business. Targeting the
road and bridge and civil municipal markets the Company aims to leverage products such as material
management labor management Zebra Progress and road quantity takeoff to establish competitive advantages
from the enterprise to the project level and replicate the capabilities across regions to achieve higher growth
rates.
9Glodon Company Limited Annual Report 2023 (Summary)
In respect of the design business the Company will continuous to create a value BIM benchmark
leveraging collaborative design and integrated value to enhance the quality and efficiency of design.Furthermore the Company will vigorously expand its various businesses into infrastructure fields such
as urban renewal affordable housing municipal public buildings industries industrial parks self-built
buildings as well as roads and bridges.
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
Year-on-
2022 year 2021
Change
2023
After
Before adjustment After adjustment adjustmen Before adjustment After adjustment
t
Operating
income 6524575067.70 6552355812.47 6552355812.47 -0.42% 5562216443.14 5562216443.14
(Yuan)
Net profit
attributable
to
shareholder
115837537.09966734779.17967170402.70-88.02%660974286.88660559791.78
s of the
listed
company
(Yuan)
Net profit
attributable
to
shareholder
s of the
listed
company 54428701.01 919252904.33 919688527.86 -94.08% 651128119.78 650713624.68
after
deduction of
non-
recurring
profit and
loss (Yuan)
Net cash
flow from
operating 636957826.53 1647598520.47 1647598520.47 -61.34% 1601350833.93 1601350833.93
activities
(Yuan)
10Glodon Company Limited Annual Report 2023 (Summary)
Basic
earnings per
share 0.0702 0.5866 0.5869 -88.04% 0.4027 0.4025
(Yuan/share
)
Diluted
earnings per
share 0.0700 0.5855 0.5857 -88.05% 0.4024 0.4022
(Yuan/share
)
Decreased
Weighted
by 14.69
average 1.89% 16.57% 16.58% 10.59% 10.58%
percentage
ROE
points
Change
from end
of
2022 Year-end previous 2021 Year-end
year to
2023 Year-end end of this
year
After
Before adjustment After adjustment adjustmen Before adjustment After adjustment
t
Total assets 10675950410.0 11545493530.9 11545514659.3 10067626141.3 10067259898.0
-7.53%
(Yuan) 5 4 7 6 9
Net assets
attributable
to
shareholder
5882546802.946311747170.126311768298.55-6.80%5787737027.215787737027.21
s of the
listed
company
(Yuan)
(2) Quarterly major accounting data
Unit: Yuan
Q1 Q2 Q3 Q4
Operating income 1300372807.13 1749528639.69 1699632468.59 1775041152.29
Net profit attributable to shareholders of
119763441.45128398493.9413425908.84-145750307.14
the listed company
Net profit attributable to shareholders of
the listed company after deduction of 94002727.79 116940771.54 1250282.90 -157765081.22
non-recurring profit and loss
Net cash flow from operating activities -924433593.88 213591761.89 293882396.20 1053917262.32
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
11Glodon Company Limited Annual Report 2023 (Summary)
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 Total
ordinary number of
Total
shareholder preferred
number of Total number of preferred
s at the end shareholder
ordinary shareholders with restored
of the s with
shareholder voting rights at the end of
67652 month 70457 restored 0 0
s as of the the month before
immediatel voting
end of the disclosure date of annual
y before rights at the
Reporting report
disclosure end of the
Period
date of Reporting
annual Period
report
Shareholding of top-10 shareholders (Excluding shares lent through refinancing)
Shareholdi Pledged/labeled/frozen
Name of Nature of Number of shares subject
ng Number of shares held
shareholder shareholder to trading restrictions Status of
percentage Quantity shares
Domestic
Diao
natural 15.98% 266090783 0 Pledged 62900000
Zhizhong
person
Hong Kong
Securities Overseas
Not
Clearing legal 13.96% 232409778 0
applicable
Company person
Ltd.Domestic
Chen Not
natural 4.71% 78358000 0
Xiaohong applicable
person
Domestic
Wang Not
natural 4.29% 71433043 53574781
Jinhong applicable
person
Domestic
Not
Tu Jianhua natural 2.26% 37558241 0
applicable
person
National
Social
Security Not
Others 1.95% 32486599 0
Fund 102 applicable
Combinatio
n
Domestic
Not
An Jinghe natural 1.91% 31822118 0
applicable
person
Domestic
Wang Not
natural 1.68% 28000000 0
Xiaofang applicable
person
Glodon Others 1.06% 17659300 0 Not
12Glodon Company Limited Annual Report 2023 (Summary)
Company applicable
Limited –
2023
Employee
Stock
Ownership
Plan
abrdn Asia
Limited－
Aberdeen
Fun－ Overseas
Not
China A legal 0.98% 16282841 0
applicable
Share person
Sustainable
Equity
Fund
There is no connection among the above natural person shareholders nor are they persons acting in
Explanation on any
concert as regulated in the Measures for the Administration of the Takeover of Listed Companies.connections or acting-in-
The Company is also not aware of any connection among other shareholders or whether they are
concert among the above
acting in concert as regulated in the Measures for the Administration of the Takeover of Listed
shareholders
Companies.Description of
shareholders participating Not applicable
in Margin Trading (if any)
Information on the top ten shareholders participate in the refinancing and securities lending business
□Applicable □Not applicable
Changes of the top ten shareholders compared with last period
□Applicable □Not applicable
Changes of the top ten shareholders compared with last reporting period
The shares held by the shareholders
The outstanding shares of refinancing through ordinary account and credit
Add/exit during and securities lending business and not account as well as the outstanding shares
Name of
the Reporting yet repaid at the end of Reporting Period of refinancing and securities lending
shareholder
Period business at the end of Reporting Period
Percentage of total Percentage of total
Number of shares Number of shares
share capital share capital
HHLR
Management Pte.Exit 0 0.00% Not available Not available
Ltd - China Value
Fund (Exchange)
Glodon Company
Limited – 2023
Add 0 0.00% 17659300 1.06%
Employee Stock
Ownership Plan
(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.
13Glodon Company Limited Annual Report 2023 (Summary)
(3) Chart of equity and controlling relationship between the Company and the acting controller
Diao Zhizhong
15.98%
Glodon Company Limited
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
please refer to Section 6 "Important Matters" of the "Annual Report 2023" published by www.cninfo.com.cn
Glodon Company Limited
Chairman: Yuan Zhenggang
March 25 2024
14
