Group 1 - The core viewpoint of the article highlights that the company is solidifying its main brand operations and accelerating its layout in niche markets with growth potential [1] - The company is advancing comprehensive retail strategies, optimizing operational efficiency, and consistently providing substantial cash flow and high, stable dividend rates to shareholders [1] Group 2 - The projected net profit attributable to the parent company for FY2025, FY2026, and FY2027 is estimated to be 1.325 billion, 1.800 billion, and 2.152 billion respectively [2] - A price-to-earnings ratio of 12 times is assigned for FY2026, with an initial coverage rating of "outperform the market" [2]

Group 1 - The core viewpoint is that Lenovo Group is expected to enter a new growth phase due to the iteration of AIPC, recovery in the PC market, and alleviation of GPU supply chain issues in the server upstream [1] - Lenovo is a global ICT company with leading PC sales and is actively promoting the development of "devices + cloud" and "infrastructure + cloud" along with the implementation of intelligent solutions [3] Group 2 - The company's gross margin is expected to stabilize and recover, with projected overall gross margins for FY2025, FY2026, and FY2027 at 17.74%, 18.24%, and 18.74% respectively [2] - The Intelligent Devices Group (IDG) is projected to grow at rates of 8%, 7%, and 7% for FY2025, FY2026, and FY2027, while the company's overall revenue growth rates are expected to be 9.56%, 7.03%, and 6.44% for the same periods [4]

Financial Data and Key Metrics Changes - The U.S. Treasury's net financing forecast for Q3 was revised down from $847 billion to $740 billion, a decrease of $1.06 billion, with an expected cash balance of $850 billion at the end of Q3 [1][2] - The cash balance for Q2 was reported at $778 billion, exceeding the previous forecast of $750 billion by $28 billion [2] Business Line Data and Key Metrics Changes - No specific business line data or metrics were provided in the documents reviewed. Market Data and Key Metrics Changes - The Dow Jones Industrial Average decreased by 0.1%, while the S&P 500 increased by 0.08% to 5463 points, and the Nasdaq rose by 0.07% [1][5] - The VIX index increased slightly to 16.6, indicating a slight rise in market volatility [1] - The 10-year U.S. Treasury yield fell by 3 basis points to 4.17% [1][5] Company Strategy and Development Direction and Industry Competition - The U.S. Treasury's revised borrowing forecast reflects a response to the Federal Reserve's decision to slow down its balance sheet reduction, which alleviates the pressure on the Treasury to finance in the open market [2] - The upcoming debt ceiling negotiations are expected to be influenced by the Treasury's cash balance predictions, as failure to raise the debt ceiling could lead to a cash crisis for the government [2] Management's Comments on Operating Environment and Future Outlook - The management of various companies, such as McDonald's, indicated that the perception of brand value and affordability is shifting positively, with sales of $5 meal deals exceeding expectations [3] - The overall economic environment remains uncertain, as indicated by the Dallas Fed manufacturing activity index, which reported a value of -17.5, worse than the expected -15.5 [3] Other Important Information - Notable company news includes Apple introducing new AI features in October, Abbott facing a $95 million jury verdict, and Alibaba implementing a new service fee for merchants [3][4] - The market is observing significant movements in various stocks, with companies like Philips and Tesla reporting better-than-expected earnings [4] Q&A Session Summary - No specific Q&A session content was provided in the documents reviewed.

美国日报20240711 ...

更多资料加入知识星球：水木调研纪要 关注公众号：水木纪要 [ 研Ta 究bl 报e_ 告Titl Re] e search Report 30 Jun 2024 香港策略 Hong Kong Strategy 7 月交易三中全会预期 July Eyes Third Plenary Session Trades 周林泓Amber Zhou 李加惠Jiahui Li amber.lh.zhou@htisec.com jh.li@htisec.com [观Ta点bl聚e_焦yem Inevie1s] tment Focus [(TPalebalsee_ ssueme mAPaPrEy]N DIX 1 for English summary) 港股6月缩量下跌，科技活跃。恒生指数自5月21日开始已回调10%，抹去4月22日至5月20日的一半涨幅；恒生 科技已回调 14%；上证综指期间跌 6%，创业板指跌 10%。5 月 17 日央行重要地产政策利好落地后，市场随后反而走 出利好出尽的兑现。6月较5月港股大幅缩量30%，A股缩量20%，5月入场的交易资金不断离场，使得指数全月下跌 期间只有弱反弹。同时人民币汇率持续贬值 ...

：能源与ESG周报 ...

：印度研究总结 ...

Equity – Asia Research 日本老龄化下医药市场机遇 Opportunities in the Pharmaceutical Market Amidst Japan's Aging Society 孟科含 Kehan Meng kh.meng@htisec.com 孙旭东 Xudong Sun xd.sun@htisec.com 2024年6月12日 本研究报告由海通国际分销，海通国际是由海通国际研究有限公司，海通证券印度私人有限公司，海通国际株式会社和海通国际证券集团其他各成员单位的证券 研究团队所组成的全球品牌，海通国际证券集团各成员分别在其许可的司法管辖区内从事证券活动。关于海通国际的分析师证明，重要披露声明和免责声明，请 参阅附录。(PleaseseeappendixforEnglishtranslationofthedisclaimer) 东证医药股市值集中，大药企主导 ...

Financial Data and Key Metrics - The Tokyo Stock Exchange's pharmaceutical sector has a market capitalization of $4,247 billion, accounting for 6.5% of the total market capitalization [3] - The A-share pharmaceutical market has a total market capitalization of $847.7 billion, accounting for 7.1% of the total A-share market capitalization, slightly higher than the Tokyo Stock Exchange [3] - The total market capitalization of the Tokyo Stock Exchange is $6.5 trillion [4] Business Line Data and Key Metrics - The Japanese pharmaceutical market is highly concentrated, with major pharmaceutical companies dominating. The top 10 companies account for 74.8% of the market capitalization [6] - In contrast, the Chinese pharmaceutical market is less concentrated, with the top 10 companies accounting for only 19.5% of the market capitalization [6] - The market capitalization of Japanese pharmaceutical companies has increased significantly over the years, with companies like Daiichi Sankyo and Takeda Pharmaceutical showing substantial growth [6] Market Data and Key Metrics - Japan's aging society presents significant opportunities for the pharmaceutical market. The proportion of the population aged 65 and above is 29%, compared to 15% in China [9] - Japan entered a moderately aging society in 1994, while China entered this phase in 2021, indicating a similar trajectory to Japan's 1990s [8] - The healthcare expenditure growth rate in Japan during its aging period (70s-90s) was 10.2%, significantly higher than the GDP growth rate of 7.5% [10] Company Strategy and Industry Competition - Japanese pharmaceutical companies have successfully expanded overseas, leveraging partnerships with multinational corporations (MNCs) and technological advancements. For example, Takeda Pharmaceutical's overseas revenue accounted for 87% of its total revenue in 2022 [15] - Japanese medical device companies, such as Terumo, have also seen significant growth through overseas expansion, with overseas revenue accounting for 75% of total revenue in 2022 [15] - The Chinese pharmaceutical market, while larger in size, has not yet seen companies of the same scale as Japanese pharmaceutical giants. However, the market is expected to grow significantly due to the aging population [25] Management Commentary on Operating Environment and Future Prospects - The aging population in Japan has driven demand for healthcare products and services, particularly in areas such as mental health, respiratory diseases, and cancer [18] - Companies like Hisamitsu Pharmaceutical have benefited from the growing demand for pain relief products, driven by an aging workforce and increased prevalence of chronic pain [18] - The Japanese government has implemented policies to control healthcare costs, but the proportion of healthcare expenditure to GDP continues to rise [10] Other Important Information - The Japanese pharmaceutical market is expected to remain resilient and show growth potential during the moderate aging period [7] - The Chinese pharmaceutical market is expected to benefit from the aging population, with healthcare expenditure growing at a rate of 24.7% from 2000 to 2021, compared to a GDP growth rate of 14.2% [10] - The Chinese market offers significant opportunities for pharmaceutical companies due to its large population and growing healthcare needs, with the market size being twice that of Japan [25] Summary of Q&A Session - No specific Q&A session content was provided in the documents

[Company Profile and Key Financial Indicators](index=6&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and presents its key financial performance metrics for the reporting period [Company Information](index=6&type=section&id=Company%20Information) Huaxin Cement Co., Ltd. is dual-listed on the Shanghai Stock Exchange (A-shares) and Hong Kong Stock Exchange (H-shares), with Li Yeqing as its legal representative | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | SSE | Huaxin Cement | 600801 | | H-share | HKEX | Huaxin Cement | 06655 | [Key Financial Data and Indicators](index=7&type=section&id=Key%20Financial%20Data%20and%20Indicators) In 2023, the company achieved a 10.79% revenue growth to 33.76 billion yuan and a 2.34% net profit increase to 2.76 billion yuan Near Three-Year Key Accounting Data (Unit: Yuan) | Indicator | 2023 | 2022 | YoY Change (%) | 2021 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 33,757,087,272 | 30,470,382,363 | 10.79 | 32,464,083,379 | | **Net Profit Attributable to Shareholders of Listed Company** | 2,762,116,715 | 2,698,868,510 | 2.34 | 5,363,525,692 | | **Net Profit Attributable to Shareholders (Excluding Non-recurring Items)** | 2,322,113,737 | 2,578,634,452 | -9.95 | 5,304,878,118 | | **Net Cash Flow from Operating Activities** | 6,235,555,071 | 4,567,694,220 | 36.51 | 7,594,957,122 | | **Net Assets Attributable to Shareholders of Listed Company** | 28,932,949,847 | 27,446,305,028 | 5.42 | 26,729,911,468 | | **Total Assets** | 68,800,268,263 | 64,241,676,265 | 7.10 | 52,549,618,050 | Near Three-Year Key Financial Indicators | Key Financial Indicator | 2023 | 2022 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 1.33 | 1.30 | 2.31 | | Diluted Earnings Per Share (Yuan/share) | 1.32 | 1.28 | 3.13 | | Weighted Average Return on Net Assets (%) | 9.82 | 10.03 | Decreased by 0.21 percentage points | 2023 Quarterly Key Financial Data (Unit: Yuan) | Item | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 6,628,435,263 | 9,203,137,237 | 8,333,304,379 | 9,592,210,393 | | Net Profit Attributable to Shareholders of Listed Company | 247,979,284 | 944,581,111 | 681,763,299 | 887,793,021 | | Net Cash Flow from Operating Activities | 331,923,337 | 1,795,243,944 | 1,375,754,217 | 2,732,633,573 | - In 2023, non-recurring gains and losses totaled **440 million yuan**, primarily from non-current asset disposal gains (**418 million yuan**) and government subsidies (**130 million yuan**)[18](index=18&type=chunk) [Company Business Overview](index=10&type=section&id=Company%20Business%20Overview) This section details the company's industry position, main business segments, operating model, and core competitive advantages [Industry Overview and Company Position](index=10&type=section&id=Industry%20Overview%20and%20Company%20Position) In 2023, China's cement industry faced challenges from real estate adjustments and declining demand, with company clinker capacity ranking fourth nationally - In 2023, China's cement industry experienced a decline in total demand, with annual cement output reaching **2.023 billion tons**, a **5% year-on-year decrease**, leading to the lowest industry profit in nearly sixteen years[21](index=21&type=chunk) - Severe overcapacity is a major issue in the current cement industry, with the estimated clinker capacity utilization rate for 2023 at **59%**, a **7 percentage point decrease** from 2022[21](index=21&type=chunk) - As of the end of 2023, the company's total clinker capacity ranked **fourth nationally**, with domestic clinker capacity ranking **sixth** and overseas clinker capacity ranking **second**[22](index=22&type=chunk) [Main Business and Operating Model](index=11&type=section&id=Main%20Business%20and%20Operating%20Model) The company has evolved into a global building materials group with a full industry chain, including cement, concrete, and aggregates, with cement business contributing 57% of revenue - The company's business has expanded to include cement, concrete, aggregates, environmental protection, equipment manufacturing and engineering, and new building materials, becoming a global building materials group with integrated full industry chain development[23](index=23&type=chunk) Key Capacities as of End of 2023 | Business Segment | Capacity | | :--- | :--- | | Cement | 127 million tons/year | | Ready-mix Concrete | 122 million cubic meters/year | | Aggregates | 277 million tons/year | | Waste Disposal | 16.32 million tons/year | - At the end of 2023, cement business revenue accounted for **57%** of the company's total operating revenue, maintaining its dominant position, while non-cement businesses have become significant profit contributors[23](index=23&type=chunk) [Core Competencies](index=12&type=section&id=Core%20Competencies) The company's core competencies include scale, green development, technological innovation, brand strength, and strategic global layout - The company has a presence in **14 provinces and cities domestically** and **11 countries overseas**, boasting **127 million tons of cement capacity**, making it one of the few industry players with a complete and vertically integrated industrial chain[26](index=26&type=chunk) - The company demonstrates significant advantages in green and low-carbon development; as of the end of 2023, the thermal substitution rate for domestic kiln lines using alternative fuels reached **23%**, with **63%** of kiln lines achieving benchmark comprehensive energy consumption levels[27](index=27&type=chunk) - The company has achieved breakthroughs in ultra-high performance concrete (UHPC) products, successfully developing the Super Klong® series and achieving commercial application in four major engineering fields[28](index=28&type=chunk) - The company's brand value continues to increase, reaching **87.856 billion yuan** in 2023, ranking **79th** on the "China's 500 Most Valuable Brands" list, and has been listed on "Fortune China 500" for **14 consecutive years**[29](index=29&type=chunk) [Board of Directors' Report](index=14&type=section&id=Board%20of%20Directors%27%20Report) This section covers the company's investment activities, profit distribution, key customer and supplier relationships, and research and development expenditures [Investment Status](index=14&type=section&id=Investment%20Status) Long-term equity investments increased by 16.86% to 513 million yuan, with major subsidiaries achieving significant net profits Operating Performance of Major Holding Subsidiaries (Unit: Yuan) | Company Name | Total Assets | Net Assets | Net Profit | Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Huaxin Cement (Wuxue) Co., Ltd. | 2,818,741,684 | 1,966,011,264 | 464,960,252 | 2,415,036,770 | | Huaxin Green Building Materials (Wuxue) Co., Ltd. | 1,426,862,899 | 845,421,805 | 312,238,245 | 1,080,618,963 | | Huaxin Cement Jizzakh LLC | 680,611,904 | 628,475,459 | 229,784,396 | 682,228,912 | [Profit Distribution](index=15&type=section&id=Profit%20Distribution) The company distributed a cash dividend of 0.51 yuan per share for 2022 and proposes 0.53 yuan per share for 2023 - The 2022 profit distribution plan was completed on July 21, 2023, with a cash dividend of **0.51 yuan per share** (tax inclusive)[39](index=39&type=chunk) - The Board of Directors proposes a 2023 profit distribution plan of a cash dividend of **0.53 yuan per share** (tax inclusive) to all shareholders based on the total share capital at the end of 2023[40](index=40&type=chunk)[41](index=41&type=chunk) [Major Customers and Suppliers](index=16&type=section&id=Major%20Customers%20and%20Suppliers) The company maintains low customer and supplier concentration, with the top five customers accounting for 3.8% of sales and top five suppliers for 12.2% of purchases - Sales to the top five customers totaled **1.284 billion yuan**, accounting for **3.8%** of the annual sales, with the largest customer's sales accounting for **1.9%**[44](index=44&type=chunk)[45](index=45&type=chunk) - Purchases from the top five suppliers totaled **2.588 billion yuan**, accounting for **12.2%** of the annual procurement, with the largest supplier's purchases accounting for **6.5%**[46](index=46&type=chunk)[47](index=47&type=chunk) [R&D Investment](index=17&type=section&id=R%26D%20Investment) In 2023, total R&D investment was 325 million yuan, representing 0.96% of operating revenue, with 7.3% capitalized 2023 R&D Investment (Unit: Yuan) | Item | Amount | | :--- | :--- | | Expensed R&D Investment for the Period | 301,098,955 | | Capitalized R&D Investment for the Period | 23,795,650 | | **Total R&D Investment** | **324,894,605** | | Total R&D Investment as % of Operating Revenue | 0.96 | | Capitalized R&D Investment as % | 7.3 | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational performance, key financial analysis, 2024 outlook, and risk management strategies [Overview of Business Development](index=19&type=section&id=Overview%20of%20Business%20Development) In 2023, the company achieved resilient growth by advancing its four key strategies, expanding aggregates and concrete businesses, and acquiring overseas assets - Annual cement cost decreased by **10.29%**, with domestic cement cost decreasing by **12.79%** year-on-year[56](index=56&type=chunk) - Aggregates business added **67 million tons** of new capacity, reaching an annual capacity of **277 million tons**, with third-party sales of **131 million tons**, a **100% year-on-year increase**[56](index=56&type=chunk) - Concrete business sales reached **27.27 million cubic meters**, a **66% year-on-year increase**[56](index=56&type=chunk) - Successfully completed the acquisitions of Oman Cement and South Africa's Natal Portland Cement, bringing overseas effective cement grinding capacity to **20.91 million tons/year**[56](index=56&type=chunk) [Analysis of Key Operating Performance](index=20&type=section&id=Analysis%20of%20Key%20Operating%20Performance) Operating revenue grew 10.79% in 2023, driven by strong concrete and aggregates sales, while overseas revenue increased by nearly 30% Main Business by Product (Unit: Yuan) | Product | Operating Revenue | Operating Cost | Gross Margin (%) | YoY Change in Operating Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Cement | 18,331,734,881 | 13,425,727,572 | 26.76 | -2.64 | | Concrete | 7,652,223,198 | 6,467,900,216 | 15.48 | 49.08 | | Aggregates | 5,363,828,939 | 2,902,999,002 | 45.88 | 75.01 | | Clinker | 947,002,919 | 843,819,065 | 10.90 | -46.14 | | **Total** | **33,757,087,272** | **24,741,414,727** | **26.71** | **10.79** | Key Product Production and Sales Volume | Main Product | Unit | Production Volume | Sales Volume | YoY Change in Sales Volume (%) | | :--- | :--- | :--- | :--- | :--- | | Cement | 10,000 tons | 6,526 | 5,818 | 6.38 | | Clinker | 10,000 tons | 5,243 | 372 | -34.85 | | Aggregates | 10,000 tons | 17,779 | 13,137 | 99.69 | | Concrete | 10,000 cubic meters | 2,727 | 2,727 | 66.39 | - By region, overseas revenue grew by **29.99%**, with revenue in East China, Central China, South China, and Southwest China all increasing, primarily due to significant growth in concrete and aggregates sales[60](index=60&type=chunk)[62](index=62&type=chunk) - Financial expenses increased by **52.35%** year-on-year, mainly due to increased interest payments[64](index=64&type=chunk) - As of the end of the reporting period, the company's asset-liability ratio was **51.60%**, a **0.39 percentage point decrease** from the end of the previous year[71](index=71&type=chunk) [2024 Outlook and Strategy](index=25&type=section&id=2024%20Outlook%20and%20Strategy) The company anticipates continued challenges in domestic demand for 2024 and will advance its four core strategies, targeting 37.1 billion yuan in total revenue - Domestic demand for cement, aggregates, and concrete is expected to remain subdued in 2024, while global cement demand (excluding China) is projected to increase by **2.4%** year-on-year, driven by markets in India, the Middle East, and Africa[74](index=74&type=chunk)[76](index=76&type=chunk) 2024 Operating Plan | Item | Target | | :--- | :--- | | Cement and Clinker Sales | Approx. 63 million tons | | Aggregates Sales | 156 million tons | | Concrete Sales | 30.52 million cubic meters | | Total Revenue Forecast | 37.1 billion yuan | | Capital Expenditure | Approx. 6.9 billion yuan | - The company will continue to advance its "integrated transformation, overseas development, new materials business expansion, and traditional industry + digital innovation" strategies, accelerating its green, intelligent, and international transformation[77](index=77&type=chunk) [Risk Analysis and Response](index=27&type=section&id=Risk%20Analysis%20and%20Response) The company faces risks from declining domestic demand, overcapacity, environmental compliance, and international operations, addressed through supply-side reform and technological innovation - Major risks include: declining domestic demand and overcapacity, safety and environmental compliance (especially ultra-low emission policies), rising production costs due to energy market uncertainties and increased technological transformation investments, and geopolitical and financial market volatility in international operations[81](index=81&type=chunk) - Response measures include: promoting supply-side reform, increasing investment in safety and environmental protection, cost reduction through technological transformation and digital innovation, strengthening refined marketing, and implementing risk hedging strategies[82](index=82&type=chunk) [Significant Matters](index=29&type=section&id=Significant%20Matters) This section highlights key events and transactions during the reporting period, including guarantees and major corporate actions [Guarantees](index=31&type=section&id=Guarantees) At the end of the reporting period, external guarantees totaled 10.02 billion yuan, all for subsidiaries, representing 30.08% of net assets Summary of Guarantees (Unit: Yuan) | Item | Amount | | :--- | :--- | | Total Guarantees for Subsidiaries at End of Reporting Period | 10,016,014,939 | | Total Guarantees as % of Company's Net Assets | 30.08 | | Debt Guarantees Provided for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% | 7,297,637,010 | [Major Impact Events](index=32&type=section&id=Major%20Impact%20Events) The company completed several significant events, including bond issuance, share repurchases, employee stock plans, and two major overseas acquisitions - The company was approved to issue corporate bonds not exceeding **3 billion yuan**, with the first tranche of **800 million yuan** completed on December 5, 2023, at a coupon rate of **3.12%**[101](index=101&type=chunk) - Completed the acquisition of **64.66%** equity in Oman Cement Company SAOG for a total consideration of **210.8 million USD**[104](index=104&type=chunk) - Completed the acquisition of **100%** equity in Natal Portland Cement Company (Pty) Ltd. for a total consideration of **231.6 million USD**[105](index=105&type=chunk) [Share Changes and Shareholder Information](index=34&type=section&id=Share%20Changes%20and%20Shareholder%20Information) This section details the company's shareholding structure, including major shareholders and the ultimate controlling party [Shareholder Information](index=34&type=section&id=Shareholder%20Information) As of December 31, 2023, the company had 54,007 shareholders, with Holcim Limited as the ultimate controlling shareholder holding 41.81% of shares Top Three Shareholders as of December 31, 2023 | Shareholder Name | Number of Shares Held | Percentage (%) | Share Type | | :--- | :--- | :--- | :--- | | HKSCC Nominees Limited | 734,719,919 | 35.34 | H-share | | HOLCHIN B.V. | 451,333,201 | 21.71 | A-share | | Huaxin Group Co., Ltd. | 338,060,739 | 16.26 | A-share | - The company's controlling shareholder and ultimate actual controller is Holcim Limited, which indirectly holds a total of **41.81%** of the company's shares through its wholly-owned subsidiaries Holderfin B.V. and Holchin B.V.[110](index=110&type=chunk)[113](index=113&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=38&type=section&id=Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section provides details on the company's board, supervisory board, senior management, and overall employee structure, including compensation and equity incentive plans [Basic Information and Shareholding of Directors, Supervisors, and Senior Management](index=38&type=section&id=Basic%20Information%20and%20Shareholding%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The report details the tenure, shareholdings, and annual remuneration of the company's directors, supervisors, and senior management, with many increasing their holdings - During the reporting period, several directors, supervisors, and senior management increased their shareholdings through secondary market purchases, including Director and President Li Yeqing, who acquired **185,900 shares**[117](index=117&type=chunk) [Employee Information](index=49&type=section&id=Employee%20Information) As of the end of 2023, the group had 20,804 employees, with production and technical personnel forming the largest groups, and approximately 47% holding college degrees or higher Employee Professional Composition | Professional Category | Number of People | | :--- | :--- | | Production Personnel | 7,735 | | Sales Personnel | 1,367 | | Technical Personnel | 7,743 | | Financial Personnel | 868 | | Administrative Personnel | 3,091 | | **Total** | **20,804** | Employee Education Level | Education Level Category | Number of People | | :--- | :--- | | Master's Degree and Above | 585 | | Bachelor's Degree | 3,920 | | Associate Degree | 5,508 | | Other | 10,791 | | **Total** | **20,804** | [Equity Incentive Plan](index=50&type=section&id=Equity%20Incentive%20Plan) The company settled its 2020-2022 employee stock ownership plan, repurchasing and canceling some shares, and launched a new 2023-2025 plan, purchasing 2.92 million A-shares for its first phase - The 2020–2022 core employee stock ownership plan resulted in the repurchase and cancellation of some shares due to unmet performance targets, with the first lock-up period expiring on October 28, 2023[139](index=139&type=chunk)[140](index=140&type=chunk) - The company launched the 2023–2025 core employee stock ownership plan, with the first phase completing the purchase of **2,917,577 A-shares** on September 27, 2023[144](index=144&type=chunk)[145](index=145&type=chunk) [Corporate Governance Report](index=54&type=section&id=Corporate%20Governance%20Report) This section outlines the company's corporate governance structure, specialized board committees, and internal control and risk management systems [Overview of Corporate Governance](index=54&type=section&id=Overview%20of%20Corporate%20Governance) The company maintains a robust corporate governance structure compliant with dual-listing regulations, ensuring independence and equitable shareholder rights - The company's corporate governance structure complies with the "Company Law," "Guidelines for Corporate Governance of Listed Companies," and the HKEX "Corporate Governance Code," with adherence to code provisions during the reporting period[148](index=148&type=chunk)[149](index=149&type=chunk) - The company maintains strict "five separations" from its controlling shareholder in terms of personnel, assets, finance, organization, and business, ensuring independent operation[148](index=148&type=chunk) [Board Committees](index=62&type=section&id=Board%20Committees) The Board of Directors has five specialized committees—Audit, Nomination, Remuneration and Appraisal, Strategy, and Governance and Compliance—all actively fulfilling their responsibilities - The Board of Directors has five specialized committees: Audit Committee, Nomination Committee, Remuneration and Appraisal Committee, Strategy Committee, and Governance and Compliance Committee[165](index=165&type=chunk) - During the reporting period, the Audit Committee held **4 meetings**, the Nomination Committee **1**, the Remuneration and Appraisal Committee **3**, the Strategy Committee **2**, and the Governance and Compliance Committee **2**, with all committee members personally attending[169](index=169&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Internal Control and Risk Management](index=66&type=section&id=Internal%20Control%20and%20Risk%20Management) The company maintains a risk-oriented internal control system with a "three lines of defense" mechanism, confirmed effective by the Board and external auditors - The company's Board of Directors is responsible for establishing and effectively implementing the internal control system, and has built a "three lines of defense" risk management mechanism involving business departments, internal audit, and external audit[180](index=180&type=chunk)[181](index=181&type=chunk) - Ernst & Young Hua Ming audited the effectiveness of the company's internal controls related to financial reporting and issued a standard unqualified audit opinion[182](index=182&type=chunk)[185](index=185&type=chunk) - The Board of Directors has assessed and confirmed that the company's internal control system was effective and sufficient during the reporting period[182](index=182&type=chunk) [Corporate Bonds Information](index=70&type=section&id=Corporate%20Bonds%20Information) This section provides an overview of the company's outstanding domestic and overseas corporate bonds, including credit ratings and fund utilization [Overview of Corporate Bonds](index=70&type=section&id=Overview%20of%20Corporate%20Bonds) The company has multiple outstanding domestic and overseas bonds, with Moody's Baa1 rating for overseas bonds and AAA for domestic bonds, all funds used as committed Credit Ratings of Major Outstanding Bonds | Bond Name | Credit Rating Agency | Credit Rating Level | Rating Outlook | | :--- | :--- | :--- | :--- | | Overseas Bonds Issued in 2020 | MOODY'S INVESTORS SERVICE | Baa1 | Negative | | Domestically Publicly Issued Bonds | China Chengxin International Credit Rating Co., Ltd. | AAA | Stable | - All bond proceeds were used consistently with the committed purposes and plans in the offering circulars, primarily for overseas M&A projects and Belt and Road investment projects[192](index=192&type=chunk)[193](index=193&type=chunk) Debt Repayment Capacity Indicators for the Past Two Years | Key Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Asset-Liability Ratio (%) | 51.6% | 52.0% | | EBITDA to Total Debt | 0.12 | 0.11 | | Interest Coverage Ratio | 7.51 | 9.93 | | Loan Repayment Rate (%) | 100% | 100% | | Interest Payment Rate (%) | 100% | 100% | [Five-Year Financial Summary](index=72&type=section&id=Five-Year%20Financial%20Summary) This section presents a five-year overview of the company's financial performance, highlighting trends in revenue, profit, and asset growth [Five-Year Financial Summary](index=72&type=section&id=Five-Year%20Financial%20Summary) Over the past five years, operating revenue fluctuated, while total profit and net profit attributable to the parent company significantly declined after 2021, despite continuous asset expansion Five-Year Financial Summary (Unit: Million RMB) | Item | 2023 | 2022 | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 33,757 | 30,470 | 32,464 | 29,357 | 31,439 | | Total Profit | 4,326 | 3,988 | 7,373 | 7,664 | 8,716 | | Net Profit Attributable to Parent Company Owners | 2,762 | 2,699 | 5,364 | 5,631 | 6,342 | | Total Assets | 68,800 | 64,242 | 52,550 | 43,929 | 36,646 | | Total Liabilities | 35,505 | 33,403 | 23,172 | 18,189 | 13,278 | [Independent Auditor's Report](index=73&type=section&id=Independent%20Auditor%27s%20Report) This section presents the independent auditor's opinion on the financial statements and highlights key audit matters [Audit Opinion and Key Audit Matters](index=74&type=section&id=Audit%20Opinion%20and%20Key%20Audit%20Matters) Ernst & Young Hua Ming issued an unqualified audit opinion on the 2023 financial statements, with "Expected Credit Losses on Accounts Receivable" identified as a key audit matter - Auditor Ernst & Young Hua Ming issued a standard unqualified audit opinion, stating that the financial statements fairly present the company's financial position as of December 31, 2023, and its operating results and cash flows for 2023[199](index=199&type=chunk) - The key audit matter is "Expected Credit Losses on Accounts Receivable." As of the end of 2023, the carrying amount of accounts receivable in the consolidated financial statements was **2.26 billion yuan**, with **236 million yuan** provided for impairment. The auditor performed procedures including internal control testing, model review, and sample review[201](index=201&type=chunk)[202](index=202&type=chunk) [Financial Statements](index=78&type=section&id=Financial%20Statements) This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the reporting period [Consolidated Balance Sheet](index=79&type=section&id=Consolidated%20Balance%20Sheet) As of year-end 2023, total assets reached 68.80 billion yuan, a 7.10% increase, with total liabilities at 35.51 billion yuan, resulting in a 51.6% asset-liability ratio Consolidated Balance Sheet Summary (Unit: Yuan) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | 15,219,588,022 | 14,450,298,165 | | **Total Non-current Assets** | 53,580,680,241 | 49,791,378,100 | | **Total Assets** | **68,800,268,263** | **64,241,676,265** | | **Total Current Liabilities** | 18,934,215,066 | 16,624,884,300 | | **Total Non-current Liabilities** | 16,571,170,755 | 16,778,611,504 | | **Total Liabilities** | **35,505,385,821** | **33,403,495,804** | | **Total Equity Attributable to Parent Company Shareholders** | 28,932,949,847 | 27,446,305,028 | | **Total Shareholders' Equity** | **33,294,882,442** | **30,838,180,461** | [Consolidated Income Statement](index=82&type=section&id=Consolidated%20Income%20Statement) In 2023, operating revenue increased by 10.79% to 33.76 billion yuan, with net profit attributable to parent company shareholders rising 2.34% to 2.76 billion yuan Consolidated Income Statement Summary (Unit: Yuan) | Item | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Revenue** | 33,757,087,272 | 30,470,382,363 | | **Operating Cost** | 24,741,414,727 | 22,481,901,607 | | **Operating Profit** | 4,351,500,618 | 4,022,570,540 | | **Total Profit** | 4,326,247,137 | 3,988,085,596 | | **Net Profit** | 3,218,098,102 | 3,023,554,873 | | **Net Profit Attributable to Parent Company Shareholders** | 2,762,116,715 | 2,698,868,510 | | **Basic Earnings Per Share** | 1.33 | 1.30 | [Consolidated Cash Flow Statement](index=86&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities increased by 36.51% to 6.24 billion yuan in 2023, while investment and financing activities resulted in net outflows Consolidated Cash Flow Statement Summary (Unit: Yuan) | Item | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 6,235,555,071 | 4,567,694,220 | | **Net Cash Flow from Investing Activities** | (6,453,904,653) | (8,383,336,829) | | **Net Cash Flow from Financing Activities** | (951,747,856) | 1,771,835,223 | | **Net Increase in Cash and Cash Equivalents** | (1,245,905,793) | (1,934,453,363) | | **Cash and Cash Equivalents at Year-End** | 5,370,115,985 | 6,616,021,778 |