Company Overview and Shareholding Structure - Total number of issued shares of the company is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[3] - The company was re-listed on the main board of the Stock Exchange on 6 October 2009 by way of a global offering[3] - The company's registered office is located at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands[9] - The company's head office and principal place of business in Hong Kong is at Room 3001-05, China Resources Building, 26 Harbour Road, Wanchai, Hong Kong[9] - The company's stock code on the Stock Exchange of Hong Kong Limited is 1313[9] - The company's website is www.crcement.com[10] - The company's investor relations consultant is Wonderful Sky Financial Group Limited[10] - The company's independent auditor is Ernst & Young[7] - The company's principal bankers include Agricultural Bank of China Limited, Bank of China (Hong Kong) Limited, and China Construction Bank Corporation[7] - The company's share registrar is Computershare Hong Kong Investor Services Limited[7] Production Capacity and Operations - The Group operates 101 cement grinding lines and 49 clinker production lines with annual capacities of 90.1 million tons of cement and 63.6 million tons of clinker respectively[18] - The Group has 63 concrete batching plants with an annual production capacity of 38.5 million cubic meters of concrete[18] - Products are primarily sold in Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, Shanxi, and Hunan through established logistics networks[18] - The Group's products are used in infrastructure projects such as railways, highways, subways, bridges, airports, ports, dams, hydroelectric power stations, and nuclear power stations[18] - The Group also serves the construction of high-rise buildings and development of suburban and rural areas[18] - Total production capacity of the Group includes 101 cement production lines with a capacity of 90.1 million tons, 49 clinker production lines with a capacity of 63.6 million tons, and 63 concrete batching plants with a capacity of 38.5 million m³[20] - Through equity interests in associates and joint ventures, the Group owns 74 cement grinding lines, 30 clinker production lines, and 19 concrete batching plants, with total annual capacities of 64.7 million tons of cement, 37.0 million tons of clinker, and 9.4 million m³ of concrete[21] - The Group's attributable annual production capacities from associates and joint ventures are 22.3 million tons of cement, 12.1 million tons of clinker, and 4.4 million m³ of concrete[21] Acquisitions and Expansion - In January 2022, the Group acquired 51% equity in Hunan Liangtian Cement Co., Ltd., which has annual production capacities of 1.6 million tons of clinker and 2.0 million tons of cement[24] - In March 2022, the Group acquired 75% equity in Guangdong Borrego New Material Technology Co., Ltd., which has four production lines for engineered stones with a total planned annual capacity of 6.0 million m²[24] - In April 2022, the Group acquired 13.83% equity in Fengqing County Xiqian Cement Co., Ltd., increasing its attributable annual cement production capacity by approximately 300,000 tons[24] - In May 2022, the Group invested in 51% equity in Guangxi Tianyang Jiang'an Stone Co., Ltd., which has a resource reserve of approximately 114.0 million tons and a planned annual production capacity of 4.0 million tons[25] - In May 2022, the Group won a bid for a 130,000 m² plot in Hainan for prefabricated construction, planning to build three production lines with total design annual capacities of 600,000 m³ of panels and 300,000 m³ of blocks[25] - In June 2022, the Group won the bid for a limestone and dolostone quarry in Hubei with a resource reserve of approximately 84.0 million tons and a planned annual production capacity of 5.0 million tons[25] - In June 2022, the Group commenced trial production of an aggregates capacity expansion project in Guangxi, increasing the planned annual production capacity from 1.5 million tons to 3.0 million tons[25] - The Group acquired 85% equity interests of Zhaoqing Jingang Cement Co., Ltd. for RMB539.75 million, with annual production capacities of 800,000 tons of clinker and 1.5 million tons of cement[26] - The Group acquired 44% equity interests of Zhaoqing Runsheng Quarry Co., Ltd., increasing its total ownership to 100%, with planned annual production capacities of 5.0 million tons of manufactured sand and 6.5 million tons of aggregates[26] - The Group acquired 67% equity interests in three companies in Shandong, with a total planned annual production capacity of 15.0 million m² of engineered stone[27] - The Group won the bid for a basalt quarry in Guangxi with a resource reserve of 296.0 million tons and a planned annual production capacity of 9.7 million tons[27] - The Group increased its aggregates production capacity in Fuchuan City, Guangxi, from 600,000 tons to 1.0 million tons annually[28] - The Group acquired 65% equity interests in two companies in Chongqing, with a resource reserve of 150.0 million tons and a planned annual production capacity of 2.6 million tons[29] - The Group won the bid for a limestone quarry in Guangxi with a resource reserve of 141.0 million tons and a planned annual production capacity of 7.5 million tons[30] - The Group's subsidiary commenced operation of a second cement production line, increasing annual production capacities by 1.4 million tons of clinker and 2.0 million tons of cement[30] - The Group completed construction of an aggregates production line in Guangxi with a planned annual production capacity of 5.0 million tons[30] - The Group acquired 100% equity interests of Guangxi Boyao Investment Co., Ltd., with a resource reserve of 20.0 million tons and a planned annual production capacity of 4.0 million tons[31] Financial Performance - Consolidated turnover for 2022 was HK$32,218.6 million, a decrease of 26.7% compared to the previous year[35][37] - Consolidated profit attributable to owners of the Company for 2022 was HK$1,935.7 million, a decrease of 75.1% compared to the previous year[35][37] - Basic earnings per share for 2022 was HK$0.277, significantly lower than the HK$1.112 in 2021[35][37] - Total assets as of 31 December 2022 were HK$80,613.8 million, compared to HK$79,149.2 million in 2021[33] - Equity attributable to owners of the Company as of 31 December 2022 was HK$49,233.4 million, compared to HK$54,856.0 million in 2021[33] - Gearing ratio increased to 33.4% in 2022 from 19.0% in 2021[33] - Total distribution for 2022 was HK$0.129 per share, compared to HK$0.52 per share in 2021[35][38] Market and Industry Trends - National infrastructure investments in China (excluding electricity, heat, gas, and water production and supply) increased by 9.4% year-on-year in 2022[44] - FAI on highways and waterways in China from January to November 2022 amounted to approximately RMB2.8 trillion, representing an increase of 9.2% year-on-year[44] - FAI on railways in 2022 amounted to approximately RMB710.9 billion, representing a decrease of 5.1% year-on-year[44] - National commodity housing sales area decreased by 24.3% YoY to 1.36 billion m², and sales amount decreased by 26.7% YoY to RMB 13.3 trillion in 2022[46][47] - Real estate investment in China decreased by 10.0% YoY to RMB 13.3 trillion in 2022, with new construction starts down 39.4% YoY to 1.21 billion m²[46][47] - China's urbanization rate of permanent residence reached 65.22% at the end of 2022, an increase of 0.50 percentage points from the end of 2021[47][48] - National cement production decreased by 10.8% YoY to approximately 2.12 billion tons in 2022, with significant regional declines[49][50] - 19 new clinker production lines were added nationwide in 2022, increasing annual clinker production capacity by approximately 34.2 million tons[49][50] - The cumulative trading volume of emission quotas on the national carbon market reached 230 million tons, with a cumulative trading turnover of RMB 10.48 billion by the end of 2022[51][52] - The comprehensive energy consumption level of cement clinker per unit product is targeted to decrease by over 3% during the "Fourteenth Five-Year" period[51][52] - 52,500 old communities and 8.76 million households nationwide started renovations in 2022, achieving the annual target of renovating 51,000 old communities[47][48] - The annual replacement of clinker production capacity in the cement industry was approximately 4.5 million tons in 2022, a 90% decrease compared to the previous year[54][55] - The Chinese government aims for prefabricated buildings to account for 40% of newly constructed buildings in cities and towns by 2030[57][59] Business Strategy and Transformation - The company reorganized its business into four segments: basic building materials, structural building materials, functional building materials, and new materials in 2021[58][60] - The company acquired 51% equity interests of Hunan Liangtian Cement Co., Ltd., 85% equity interests of Zhaoqing Jingang Cement Co., Ltd., and 13.83% equity of Fengqing County Xiqian Cement Co., Ltd. to optimize its cement business layout[58][61] - The company achieved 100% ownership of Guangdong Deqing aggregates during the year[62] - The Group's annual production capacity of aggregates that had commenced operation or trial production greatly increased by the end of 2022[63] - The first phase of the autoclaved aerated lightweight concrete blocks and panels project in Fengkai, Guangdong has a design annual production capacity of approximately 400,000 m³ of panels and 200,000 m³ of blocks, expected to commence trial production in the first half of 2023[63] - The Group plans to build three production lines for autoclaved aerated lightweight concrete blocks and panels in Hainan, with total design annual production capacities of approximately 600,000 m³ of panels and 300,000 m³ of blocks[63] - Upon completion of all projects, the Group's design annual production capacity of precast concrete components is expected to reach approximately 1.4 million m³[63] - The Group acquired 67% equity interests in three engineered stone companies in Shandong, with a total planned annual production capacity of 15.0 million m²[65] - After all projects under construction have commenced operation, the Group's annual production capacity of engineered stone will reach 26.1 million m²[65] - The Group creatively proposed the "3C" theory of energy saving and carbon reduction, contributing to the goals of carbon peaking and carbon neutrality[66] - The Group developed new cement grinding aid products, reducing clinker usage and enhancing the utilization rate of low-grade industrial waste, which won the First Prize in the 2022 Guangxi Science and Technology Progress Award[66] - The "Research, Development and Application of New-Type High-Efficiency Cement Grinding Aids" project and the "Key Technology and its Application of High-Quality Cementitious Materials Made of Industrial Waste" project both won the First Prize of the Science and Technology Progress Award in the 2021 "Guangxi Science and Technology Award"[68] - The "Development and Application of the Environmentally Friendly Admixtures Based on Monoform Center of Gravity Design" project won the Third Prize of the Award for Technological Invention in the "Concrete Science and Technology Award"[68] - The "Cement Kiln Flue Gas Carbon Capture New Process Re-Engineering and Application Demonstration" project was included in the second batch of major scientific and technological breakthroughs in the national building materials industry[68] - China Resources Cement (Tianyang) Limited was selected as a 2022 Intelligent Manufacturing Demonstration Factory by the Ministry of Industry and Information Technology of China[70] - The "Project Series of Carbon Reduction and Consumption Reduction for Calcium Carbide Slag and Yellow Phosphorus Slag Compound Ingredients" won the Third Prize in the 2022 Carbon Peaking and Carbon Neutrality Actionable Model Cases Selection[71] - By 2025, the physical network mileage of China's comprehensive national transport network is expected to reach approximately 260,000 kilometers, and by 2035, it is expected to fully complete the main skeleton, laying a solid foundation for building a world leader in transport[72] - The Chinese government aims to achieve substantive progress in rural construction by 2025, which will effectively stimulate demand for building materials such as cement[74] - The total operational length of railways in the Guangdong-Hong Kong-Macao Greater Bay Area is targeted to reach 4,700 km by 2025 and 5,700 km by 2035, supporting regional demand for the building materials industry[74] - The Northern Metropolis development in Hong Kong is expected to drive medium to long-term demand for building materials, with major projects starting in 2025[75] - The company plans to focus on a "4+1" business portfolio (cement, aggregates, concrete, engineered stone, and new materials) and accelerate intelligent, digital, and green transformation in 2023[75] - Coal price fluctuations are identified as a major potential risk affecting the company's performance and the cement industry at large[78] - The company attempted to sell 72% equity interests in two subsidiaries but withdrew the public tender after the auction failed in December 2022[78] - The company will continue to optimize operational management and adjust strategic development plans according to market conditions[78] Production and Sales Performance - The Group's cement, clinker, and concrete production line utilization rates in 2022 were 81.6%, 90.5%, and 29.3%, respectively, compared to 93.6%, 100.6%, and 40.9% in 2021[81] - The Group purchased a total of approximately 8.6 million tons of coal in 2022, with 90% sourced from northern China, 10% from neighboring areas, and 0% from overseas[82] - The Group's direct procurement from coal producers was approximately 80% in 2022, compared to 82% in 2021[82] - The Group completed the upgrade for production capacity of 2 concrete batching plants, leased 2 plants, halted production of 4 plants, and closed 2 plants, increasing total annual concrete production capacity by 1.2 million m³ compared to the end of 2021[80] - The Group achieved an annual shipping capacity of approximately 39.1 million tons along the Xijiang River in 2022, ensuring stable logistics capabilities[85] - The Group controlled 36 silo terminals with a total annual capacity of approximately 35.3 million tons, mainly located in the Pearl River Delta Region of Guangdong[85] - The Group supplied cement for nuclear power stations to 5 nuclear power projects in Zhejiang, Fujian, and Guangdong[87] - The Group expanded cement for railway construction projects and low-heat low-alkali cement in Yunnan, primarily used in railway and water conservation projects[87] - The Group increased the supply of pre-stressed nuclear power cement for Phase 2 of the nuclear power stations in Hainan[87] - The Group's annual production capacity of aggregates through subsidiaries (including trial production) was approximately 48.4 million tons as of the end of 2022[90] - The Group obtained control of 6 new mine resources in Guangxi, Hubei, and Chongqing through bidding, acquisitions, and equity participation[90] - Upon completion of all projects, the Group's annual production capacity of aggregates in operation or under construction is expected to reach 137.1 million tons through subsidiaries[90] - The Group's annual production capacity of aggregates attributable to equity interests in associates and joint ventures is expected to reach approximately 13.6 million tons[90] - The company's precast concrete components project in Jiangmen, Guangdong commenced trial production in November 2022 with an annual production capacity of approximately 50,000 m³[96] - Upon completion of all 6 precast concrete components projects, the company's total annual production capacity is expected to reach approximately 1.4 million m³[97] - The company's Fengkai project in Guangdong has a planned annual production capacity of 30,000,000 tons and a resource reserve of 425,000,000 tons, with operations expected to commence in 2023[92] - The Deqing project in Guangdong has a planned annual production capacity of 6,500,000 tons and a resource reserve of 169,000,000 tons, with operations expected to commence in 2023[92] - The Guigang capacity expansion project in Guangxi has a post-expansion capacity of 3,000,000 tons and is currently in trial production[92] - The Fuchuan capacity expansion project in Guangxi has a post-expansion capacity of 1,000,000 tons and is currently in trial production[92] - The Wuping project in Fujian has a planned annual production capacity of 2,000,000 tons and is currently in trial production[93] - The Wushan project in Chongqing has a planned annual production capacity of 2,600,000 tons and is already in operation[93] - The Hengzhou project in Guangxi, with a 50% shareholding, has a planned annual production capacity of 10,000,000 tons and is expected to commence operations in 2023[95] - The Tunchang project in Hainan, with a 34% shareholding, has a planned annual production capacity of 6,000,000 tons and is expected to commence operations in 2024[95] - Dongguan Runyang has a land area of 33,000 m² and a design annual production capacity of 40,000 m³, currently in operation and supplying products to

Financial Performance - The company's revenue for the year 2022 was HKD 32,218.6 million, a decrease of 26.7% compared to HKD 43,962.7 million in 2021[2] - The profit attributable to the company's owners for 2022 was HKD 1,935.7 million, down 75.1% from HKD 7,767.4 million in 2021[2] - The basic earnings per share for 2022 was HKD 0.277, compared to HKD 1.112 in 2021[5] - The gross profit for 2022 was HKD 4,918.9 million, down from HKD 14,122.8 million in 2021[4] - The company reported a total comprehensive loss of HKD 2,967.2 million for 2022, compared to a total comprehensive income of HKD 9,259.2 million in 2021[5] - The company's cash and bank balances decreased to HKD 2,181.7 million from HKD 7,067.4 million in 2021[6] - The company's total revenue from trade receivables was HKD 2,900,660,000 in 2022, compared to HKD 4,793,437,000 in 2021, representing a decrease of approximately 39.5%[24] - The company's total tax expenses for 2022 were HKD 1,000,375,000, a decrease from HKD 2,855,708,000 in 2021, reflecting a reduction of approximately 65%[20] - The net profit margin for the year was 5.8%, a decrease of 11.8 percentage points from 17.6% in the previous year[71] Assets and Liabilities - The total assets attributable to the company's owners increased by 1.9% to HKD 80,613.8 million from HKD 79,149.2 million in 2021[2] - The company's debt ratio rose to 33.4% in 2022 from 19.0% in 2021[2] - The net asset value per share decreased by 10.3% to HKD 7.05 from HKD 7.86 in 2021[2] - The company's total liabilities increased to HKD 50,840.3 million in 2022 from HKD 55,641.3 million in 2021[7] - The company's deferred tax liabilities in 2022 were HKD 497,016,000, compared to HKD 184,892,000 in 2021, indicating a significant increase[20] Operational Efficiency - The company experienced a decrease in amortization expenses by HKD 524,920,000 due to a change in the amortization method for aggregate mining rights from straight-line to production method[12] - The company’s interest income decreased to HKD 118,173 in 2022 from HKD 166,659 in 2021[17] - The company’s financial expenses increased to HKD 349,693 in 2022 compared to HKD 231,693 in 2021[14] - The company’s financial expenses increased significantly to HKD 442,243,000 in 2022 from HKD 231,693,000 in 2021, marking an increase of approximately 91%[6] - The average electricity cost per ton of cement increased by 5.4% to HKD 35.1, while total electricity consumption was 3,309,400,000 kWh, accounting for 63.1% of total cement production energy consumption[64] Market Conditions - In 2022, the national sales area of commercial housing in China decreased by 24.3% to 1.36 billion square meters, and the sales amount fell by 26.7% to RMB 1.33 trillion[29] - The total investment in real estate in China dropped by 10.0% to RMB 1.33 trillion, with new construction area down by 39.4% to 1.21 billion square meters[29] - National cement production in China decreased by 10.8% to approximately 2.12 billion tons in 2022[31] - The cumulative trading volume of carbon market emissions allowances in China reached 230 million tons by the end of 2022, with a total transaction value of RMB 10.48 billion[32] Business Strategy and Development - The company restructured its business into four segments: basic materials, structural materials, functional materials, and new materials, achieving breakthroughs in all segments since 2022[34] - The company is focusing on new business development opportunities, with a growing proportion of revenue from aggregate and artificial stone businesses[45] - The company is actively promoting energy-saving and carbon reduction initiatives, implementing various projects to enhance operational efficiency and reduce costs[40] - The company has implemented a comprehensive digital transformation strategy, including the establishment of a smart factory in Guangxi, recognized as a model factory by the Ministry of Industry and Information Technology[54] Investments and Acquisitions - The company acquired 51% of Hunan Liangtian Cement, 85% of Zhaoqing Jingan Cement, and 13.83% of Fengqing Xiqian Cement, optimizing its layout and strengthening market competitiveness in southern China[34] - The company acquired 67% stakes in three new artificial stone companies, which collectively have a planned annual production capacity of 15 million square meters, increasing the total capacity to 26.1 million square meters post-project completion[35] - The company acquired 85% of Hezhou Xubao Mining Investment Co., Ltd. for approximately RMB 893.51 million, securing marble resources with a reserve of about 46.7 million cubic meters and a planned annual production capacity of 1.14 million cubic meters[52] Human Resources - The company employed a total of 19,046 full-time employees as of December 31, 2022, down from 19,491 in the previous year[57] - Total employee costs for 2022 amounted to HKD 3,585,463,000, down from HKD 4,254,744,000 in 2021, indicating a reduction of about 15.7%[19] Corporate Governance - The company has adhered to corporate governance codes but is actively seeking a suitable candidate for the position of CEO, as the current chairman and CEO are the same person[85] - The board of directors includes executive director Ji Youhong and non-executive directors Zhu Ping, Chen Kangren, and Yang Changyi[89] - Independent non-executive directors include Ye Shukun, Shi Liqian, Zeng Xuemin, and Wu Jinhua[89]

Revenue and Profit - Revenue for the nine months ended September 30, 2022, was HKD 24,196.1 million, a decrease of 21.5% compared to HKD 30,816.1 million in the same period of 2021[2] - Profit attributable to owners of the company for the same period was HKD 1,837.5 million, down 65.4% from HKD 5,313.7 million in 2021[2] - The company reported a gross profit of HKD 3,820.3 million for the nine months, compared to HKD 9,342.5 million in the previous year, reflecting a significant decline[4] - The gross profit for the period was HKD 3,820,300,000, down 59.1% from HKD 9,342,500,000 year-on-year, with a gross margin of 15.8%, a decrease of 14.5 percentage points[17] Assets and Liabilities - Total assets as of September 30, 2022, were HKD 78,991.9 million, a slight decrease of 0.2% from HKD 79,149.2 million at the end of 2021[2] - The company's total liabilities as of September 30, 2022, were HKD 29,257.8 million, compared to HKD 30,012.5 million at the end of 2021, indicating a decrease in overall liabilities[5] - Equity attributable to owners of the company decreased by 11.5% to HKD 48,530.0 million from HKD 54,856.0 million[2] - The debt-to-equity ratio increased to 32.5% from 19.0% in the previous year, indicating a rise in financial leverage[2] Earnings and Dividends - Basic earnings per share for the nine months ended September 30, 2022, were HKD 0.263, down from HKD 0.761 in the same period of 2021[4] - The company declared an interim dividend of HKD 0.12 per share, down from HKD 0.24 per share in the previous year[13] - The company did not recommend any dividend for the three months ending September 30, 2022, compared to no dividend in the same period last year[13] Sales and Pricing - The average selling price per ton of cement was HKD 363.1, compared to HKD 387.3 in the previous year, reflecting a decrease in sales price[15] - Cement sales volume was 52,534 thousand tons, down from 63,104 thousand tons in the same period last year[16] - The average selling price of cement in Guangdong was HKD 442.8, contributing HKD 10,852,083,000 to the revenue[16] Other Income and Accounting Changes - Other income for the nine months was HKD 904.4 million, an increase from HKD 531.9 million in the same period of 2021[4] - The company plans to adjust its accounting estimates regarding the amortization method for aggregate mining rights, which is expected to reduce amortization expenses by HKD 381.4 million[10] Currency Impact - The company experienced a depreciation of approximately 1.0% in the RMB against the HKD during the reporting period[14]

Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[4]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, after being privatized in 2006[4]. - The company operates as a holding company for all cement and concrete operations of China Resources Group, established in 2003[3]. - The registered office is located in the Cayman Islands, while the principal place of business is in Hong Kong[9]. - The company has a strategic and investment committee to oversee its investment strategies and market expansion efforts[7]. - The independent auditor for the company is Ernst & Young, ensuring the accuracy of financial reporting[8]. - The management team includes experienced directors, with JI Youhong serving as Chairman and Chief Executive Officer[7]. - The company’s website provides additional information and updates for investors[10]. Production Capacity - As of June 30, 2022, the Group operated 95 cement grinding lines and 46 clinker production lines, with an annual production capacity of 83.3 million tons of cement and 61.1 million tons of clinker respectively[16]. - The Group also has 63 concrete batching plants with an annual production capacity of 37.9 million cubic meters of concrete[16]. - The total production capacity across various provinces includes 83.3 million tons of cement and 61.1 million tons of clinker[17]. - The total number of cement production lines operated by the Group is 95, with 46 clinker production lines[17]. - The concrete batching plants operated by the Group total 63, producing 37.9 million m³ of concrete[17]. - The Group's annual production capacity for aggregates is expected to reach 11.42 million tons through subsidiaries, with an additional 1.37 million tons from joint ventures and associates[110]. Financial Performance - The Group's unaudited consolidated turnover for the six months ended 30 June 2022 was HK$16,116.5 million, a decrease of 20.1% compared to the same period last year[33]. - The unaudited consolidated profit attributable to owners of the Company for the period was HK$1,804.5 million, representing a decrease of 50.3% from the corresponding period last year[33]. - Basic earnings per share for the period was HK$0.258, down from HK$0.520 in the previous year[32]. - Total assets as of 30 June 2022 amounted to HK$75,974.5 million, a decrease from HK$79,149.2 million as of 31 December 2021[29]. - Equity attributable to owners of the Company was HK$52,226.1 million as of 30 June 2022, down from HK$54,856.0 million at the end of 2021[29]. - The gearing ratio as of 30 June 2022 was 19.1%, slightly up from 19.0% at the end of 2021[29]. - The Board declared an interim dividend of HK$0.12 per share for the period, down from HK$0.24 per share in the previous year, totaling approximately HK$838.0 million[35]. Market Conditions - In the first half of 2022, China's GDP grew by 2.5% year-on-year to RMB 56.3 trillion, with regional GDPs in Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, Shanxi, and Hunan showing year-on-year increases of 2.0%, 2.7%, 4.6%, 1.6%, 3.5%, 4.5%, 5.2%, and 4.3% respectively[41]. - The national fixed asset investment (excluding rural households) increased by 6.1% year-on-year to RMB 27.1 trillion in the first half of 2022, with regional growth rates in Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, Shanxi, and Hunan at approximately 1.0%, 2.5%, 9.2%, 7.3%, 8.0%, 8.1%, 5.4%, and 8.7% respectively[44]. - The real estate market showed weakness, with national commercial housing sales area declining by 22.2% year-on-year to 690 million square meters, and sales value decreasing by 28.9% to RMB 6.6 trillion in the first half of 2022[45]. Environmental and Social Responsibility - The Group emphasizes corporate social responsibility, focusing on production safety, energy saving, and emission reduction, with emission concentrations better than national standards[19]. - All cement production plants are equipped with residual heat recovery generators to reduce energy consumption[19]. - The Group actively engages in the research and development of new products, materials, and technologies to seize new business opportunities[19]. - The Group is committed to advancing the green and sustainable development of the cement industry in China while fulfilling corporate social responsibility[68]. Strategic Acquisitions and Investments - The Group invested in 49% equity interests of Nanping Gaojian Building Materials Co., Ltd., which has a resource reserve of approximately 13.25 million tons and a planned annual production capacity of approximately 1.5 million tons[24]. - The Group acquired 51% equity interests of Hunan Liangtian Cement Co., Ltd., with annual production capacities of approximately 1.6 million tons of clinker and approximately 2.0 million tons of cement[24]. - The Group acquired 75% equity interests of Guangdong Borrego New Material Technology Co., Ltd., which has a total planned annual production capacity of approximately 6.0 million m² for engineered stones[24]. - The Group won the bid for a limestone and dolostone quarry in Hubei with a resource reserve of approximately 84.0 million tons and a planned annual production capacity of approximately 5.0 million tons[25]. Operational Efficiency and Technology - The Group aims to enhance operational efficiency, improve environmental management, and promote carbon neutrality as part of its strategic goals[68]. - The Group's energy-saving and carbon reduction initiatives included upgrading grate coolers and optimizing pre-decomposition systems to improve production efficiency[74]. - The Group's digital transformation efforts included the implementation of a smart shipping system in digital mines to optimize resources and improve production efficiency[100]. - The Group completed the technological upgrade of selective catalytic reduction (SCR) systems, stabilizing nitrogen oxides emission concentration at 50 mg/m3 or below at the Changzhi cement plant[81]. Employee and Safety Management - In the first half of 2022, the Group conducted safety training totaling approximately 186,435 hours for employees and 43,581 hours for counterparties, enhancing safety awareness and management levels[96]. - The Group organized 307 emergency drills with 5,461 participants, 38 safety open days with 2,507 participants, and 567 safety alert education sessions with 15,744 participants in the first half of the year[97]. - The Group achieved full coverage of intelligent video surveillance in its Tianyang District cement production plant through 5G technology, enhancing production safety[100]. Future Plans and Projections - The Group plans to build production lines for autoclaved aerated lightweight concrete blocks in Hainan, enhancing synergy with local precast concrete production[58]. - The Group's engineered stone production capacity is expected to reach 26.1 million m² after all ongoing projects commence operation[127]. - The Group has secured a plot of land in Hainan for prefabricated construction, planning to build three production lines with a total design capacity of approximately 600,000 m³ of panels and 300,000 m³ of blocks annually[120].

Revenue Performance - Revenue for the three months ended March 31, 2022, was HKD 6,976.7 million, a decrease of 18.0% compared to HKD 8,511.2 million in the same period of 2021[2] - The consolidated revenue for the period reached HKD 6,976,700,000, a decrease of 18.0% compared to HKD 8,511,200,000 in the same period last year[12] Profitability - Profit attributable to the company's owners for the same period was HKD 729.5 million, down 43.4% from HKD 1,289.8 million year-on-year[2] - The profit attributable to the company's owners was HKD 729,500,000, a decrease of 43.4% from HKD 1,289,800,000 in the previous year[17] - Basic earnings per share decreased to HKD 0.104 from HKD 0.185 in the previous year[4] - The consolidated gross profit was HKD 1,657,900,000, down 31.4% from HKD 2,415,500,000 year-on-year, with a gross profit margin of 23.8%, a decline of 4.6 percentage points[15] Asset Management - Total assets increased by 2.5% to HKD 81,118.1 million from HKD 79,149.2 million[2] - The company's equity attributable to owners rose to HKD 56,116.5 million, with a debt ratio of 23.2%, compared to HKD 54,856.0 million and 19.0% in the previous year[2] - The company reported a net cash and bank balance of HKD 6,962.5 million, slightly down from HKD 7,067.4 million[5] - Inventory levels rose to HKD 3,722.0 million from HKD 2,941.2 million, suggesting potential challenges in inventory management[6] Other Income - Other income increased to HKD 394.7 million from HKD 182.2 million, indicating a positive trend in non-operating revenue[4] - Other income for the period was HKD 394,700,000, an increase of 116.6% compared to HKD 182,200,000 in the same period last year, mainly due to gains from the disposal of subsidiaries[16] Sales Performance - Cement sales volume was 12,193 thousand tons with an average selling price of HKD 436.4 per ton, generating revenue of HKD 5,320,604,000[13] - The average selling price of clinker was HKD 414.8 per ton, with a sales volume of 976 thousand tons, contributing HKD 404,600,000 to revenue[13] - The average selling price of concrete was HKD 564.3 per cubic meter, with a sales volume of 2,218 thousand cubic meters, generating HKD 1,251,498,000 in revenue[13] - The sales volume of cement in Guangdong was 4,845 thousand tons, with revenue of HKD 2,354,817,000[14] Dividend Policy - The company did not recommend the payment of any interim dividend for the period[11] Margin Analysis - The company experienced a depreciation of the gross profit margins for cement, clinker, and concrete, which were 23.4%, 29.6%, and 23.3% respectively, compared to the previous year's margins of 29.8%, 26.7%, and 21.9%[15] Compliance and Review - The financial data for the period has been reviewed by the company's audit committee, ensuring compliance with accounting standards[10]

Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[4]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[4]. - China Resources Cement Holdings Limited was incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[3]. - The company is the holding company for all cement and concrete operations of China Resources Group[3]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[4]. - The company has a registered office located in Grand Cayman, Cayman Islands[10]. - The head office and principal place of business is located in Wanchai, Hong Kong[10]. - The company’s official website for corporate communications is www.irasia.com/listco/hk/crcement/index.htm[10]. Financial Performance - China Resources Cement Holdings Limited reported a revenue of HK$XX billion for the fiscal year, representing a year-over-year increase of XX%[12]. - The company achieved a net profit of HK$XX million, reflecting a growth of XX% compared to the previous year[13]. - The consolidated turnover for the year ended December 31, 2021, amounted to HK$43,962.7 million, representing an increase of 9.7% compared to the previous year[40]. - The consolidated profit attributable to owners of the Company for the year ended December 31, 2021, was HK$7,767.4 million, a decrease of 13.3% from the previous year[40]. - Basic earnings per share for the year was HK$1.112, down from HK$1.283 in 2020[40]. - Total assets as of December 31, 2021, were HK$79,149.2 million, an increase from HK$68,532.5 million in 2020[35]. - The equity attributable to owners of the Company was HK$54,856.0 million as of December 31, 2021, compared to HK$49,626.8 million in 2020[35]. - The gearing ratio increased to 19.0% in 2021 from 13.8% in 2020[36]. - The total distribution for the year ended December 31, 2021, was HK$0.52 per share, down from HK$0.615 per share in 2020[41]. Production Capacity and Operations - As of December 31, 2021, the Group operated 97 cement grinding lines and 46 clinker production lines, with an annual production capacity of 85.3 million tons of cement and 62.7 million tons of clinker respectively[18]. - The Group also owned 62 concrete batching plants with an annual production capacity of 37.3 million m³ of concrete[18]. - Through equity interests in associates and joint ventures, the Group had additional capacities of 22.4 million tons of cement, 12.1 million tons of clinker, and 4.5 million m³ of concrete[21]. - The Group's production facilities are strategically located across several provinces, including Guangdong (22.5 million tons of cement), Guangxi (33.2 million tons of cement), and Fujian (10.1 million tons of cement)[19]. - The Group's total annual production capacity from the Group's associates and joint ventures includes 66.4 million tons of cement and 37.0 million tons of clinker[21]. Market Expansion and Strategy - User data indicated an increase in market share within the Greater Bay Area, with a XX% rise in customer base[14]. - The company has set a future outlook with a revenue growth target of XX% for the next fiscal year[15]. - Market expansion plans include entering the Guangxi region, projected to increase overall sales by XX%[12]. - The company is exploring potential acquisitions to enhance its market position, with a focus on companies in the southern China region[13]. - The Group aims to strengthen its market position, optimize its industrial chain layout, and accelerate digital transformation to enhance operational efficiency and quality[82]. Research and Development - Investment in R&D has increased by XX%, aimed at improving production efficiency and sustainability[14]. - The Group is actively engaged in the research and development of new products, materials, and technologies to seize new business opportunities and enhance operational synergies[21]. - The Group's R&D Centre has 73 specialized employees, including 10 doctors and 36 masters, focusing on innovation and technological advancements[129]. - The Group is actively developing new products such as tile adhesive and low-clinker cement in response to the government's "dual carbon" targets[130]. Environmental and Social Responsibility - The Group emphasizes corporate social responsibility, focusing on energy saving and emission reduction, with all cement production plants equipped with residual heat recovery generators[21]. - Emission concentrations of nitrogen oxides, particulate matter, and sulfur dioxide are reported to be better than national standard limits[21]. - The Group's sustainable development efforts were recognized with multiple awards, including the "Certificate of Excellence in Environmental, Social and Governance Reporting" and the "Hong Kong Green Awards 2021" for outstanding environmental management[72][74]. - The Group is committed to promoting carbon emissions peaking and carbon neutrality as part of its environmental management strategy[83]. Acquisitions and Investments - The Group acquired approximately 58.8% equity interests of DongGuan Universal Classical Material Ltd., resulting in a total attributable equity interest of approximately 75.3%[30]. - The Group won the bid for mining rights of a limestone quarry in Wuxuan County, Guangxi, with a resource reserve of approximately 208.0 million tons and planned annual production capacity of approximately 6.5 million tons[30]. - The Group acquired 95% equity interests of Shaanxi Xinhuada Building Materials Co., Ltd., which has mining rights for sand (granite) with a resource reserve of approximately 122.0 million tons and planned annual production capacity of approximately 3.0 million tons[30]. - The Group acquired 50% equity interests of Nanning Kaixin New Material Co., Ltd. for RMB120,078,500, with a resource reserve of approximately 180.0 million tons and planned annual production capacity of approximately 10.0 million tons[31]. Financial Management - Bank loans as of December 31, 2021, amounted to HK$8,559.3 million, significantly increasing from HK$3,300.0 million in 2020[160]. - The Group's cash and bank balances as of December 31, 2021, were HK$253.4 million, down from HK$411.5 million in 2020[159]. - The Group's financial management policies are robust and prudent, focusing on maintaining sufficient cash reserves and compliance with bank loan agreements[166][167]. - The Group's net gearing ratio must not exceed 180% as per banking facility agreements, and it was in compliance with this requirement as of December 31, 2021[165]. Risk Management and Governance - On March 18, 2022, the Board revised the Terms of Reference for the Risk and Compliance Committee to include ESG risk management responsibilities[200]. - The Committee is tasked with developing, amending, and reviewing the primary management systems, policies, and practices on risk management[200]. - The company established a Corporate Culture and Social Responsibility Steering Committee in 2013 to lead and promote social responsibility strategies[199].

Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[3]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, after being privatized in 2006[3]. - The company operates as a holding company for all cement and concrete operations of China Resources Group, established in 2003[2]. - The company has a registered office in the Cayman Islands and a principal place of business in Hong Kong[12]. - The company is governed by a board of directors, including non-executive and independent non-executive directors[5]. - Ernst & Young serves as the independent auditor for the company[9]. - The company has a corporate governance committee to oversee compliance and governance practices[9]. - The company’s official website for corporate communications is www.crcement.com[12]. Financial Performance - The interim report for 2021 includes significant events and financial highlights, which are detailed in the management discussion and analysis section[4]. - The Group's turnover for the six months ended June 30, 2021, was HK$20,179.6 million, an increase from HK$16,884.3 million in 2020[31]. - EBITDA for the same period was HK$5,782.2 million, down from HK$6,721.5 million in 2020[31]. - Profit for the period was HK$3,626.3 million, compared to HK$4,214.0 million in 2020[31]. - The profit attributable to owners of the Company was HK$3,633.5 million, a decrease from HK$4,191.3 million in 2020[31]. - Basic earnings per share for the period were HK$0.520, down from HK$0.600 in 2020[31]. - The Group's unaudited consolidated turnover for the six months ended June 30, 2021, was HK$20,179.6 million, an increase of 19.5% compared to the same period last year[35][37]. - The unaudited consolidated profit attributable to owners of the Company for the period was HK$3,633.5 million, a decrease of 13.3% from the corresponding period last year[35][37]. - Basic earnings per share for the period was HK$0.520[35][37]. - The Board declared an interim dividend of HK$0.240 per share, down from HK$0.275 in 2020, amounting to approximately HK$1,675.9 million[36][38]. Production Capacity and Operations - As of June 30, 2021, the Group operated 97 cement grinding lines with an annual production capacity of 85.3 million tons of cement[21]. - The Group has 46 clinker production lines with an annual production capacity of 62.7 million tons[21]. - The Group operates 60 concrete batching plants with an annual production capacity of 36.0 million cubic meters of concrete[21]. - The Group owns a total of 77 cement grinding lines, 30 clinker production lines, and 19 concrete batching plants, with total annual production capacities of 62.8 million tons of cement, 37.0 million tons of clinker, and 8.9 million m³ of concrete[24]. - The attributable annual production capacities to the Group are 21.7 million tons of cement, 12.1 million tons of clinker, and 4.2 million m³ of concrete[24]. - The Group's products are primarily used in infrastructure projects such as railways, highways, and airports[20]. - The production facilities are strategically located across Southern China, including Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi[20]. Market and Economic Context - The Chinese economy showed a year-on-year GDP growth of 12.7% in the first half of 2021, reaching RMB53.2 trillion[44]. - National fixed asset investment (excluding rural households) increased by 12.6% year-on-year to RMB25.6 trillion in the first half of 2021[44]. - National infrastructure investments in China increased by 7.8% year-on-year, totaling approximately RMB1.2 trillion for highways and waterways, with a 13.3% year-on-year increase[46]. - Cement production in China increased by 14.1% year-on-year to approximately 1.15 billion tons in the first half of 2021[51]. - The Chinese government aims to enhance the quality of cement products and regulate the market order, targeting a return to reasonable capacity utilization rates by the end of 2025[53]. Corporate Social Responsibility and Sustainability - The Group emphasizes corporate social responsibility, focusing on energy saving and emission reduction, with emissions better than national standards[24]. - The Group is actively responding to China's energy-saving and emission reduction policies, focusing on carbon emissions and carbon neutrality initiatives[65]. - The Group aims to reduce emissions of nitrogen oxides, sulfur dioxide, and particulate matters by 63.1%, 56.7%, and 40.9% respectively by 2025 compared to 2015 levels[94]. - The average emission concentrations of nitrogen oxides, sulfur dioxide, and particulate matters at each cement production plant are below national pollutant emission standards[93]. Research and Development - The Group actively engages in the research and development of new products, materials, and technologies to seize new business opportunities[24]. - The Group is committed to enhancing its research and development capabilities for new products and technologies to maintain competitive advantages[76]. - The Technology Research and Development Centre provided 713 checks and tests for cement production plants in the first half of 2021, supporting the development of new high-performance products[120]. Safety and Employee Management - As of June 2021, the Group's employees completed approximately 220,600 hours of safety training, enhancing safety awareness and management standards[101]. - Approximately 15,000 employees have been vaccinated against COVID-19, achieving a vaccination rate of about 80%[98]. - The Group conducted 284 comprehensive inspections and 460 special inspections in the first half of the year to enhance safety management[99]. Governance and Compliance - The company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in the Model Code[179]. - The company has complied with the applicable code provisions of the Corporate Governance Code during the period[179]. - The company has sufficient measures to ensure compliance with the Corporate Governance Code regarding the re-election of Directors[179]. Capital Expenditure and Financial Management - The total capital expenditure for the construction of a production plant for prefabricated construction components in Zhanjiang City, Guangdong, is HK$524.3 million, with HK$290.3 million remaining as of June 30, 2021[169]. - The total expected capital expenditure payments for the second half of 2021 are approximately HK$2,965.6 million, and for the year ending December 31, 2022, are expected to be HK$4,202.9 million[177]. - The Group's treasury management is centralized, ensuring sufficient cash reserves and compliance with bank loan agreements[158].

Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[3]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[3]. - China Resources Cement Holdings Limited was incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[2]. - The company is the holding company for all cement and concrete operations of China Resources Group[2]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[3]. - The company has a registered office in the Cayman Islands and a principal place of business in Hong Kong[11]. - The company’s official website for corporate communications is www.irasia.com/listco/hk/crcement/index.htm[12]. - Ernst & Young serves as the independent auditor for the company[10]. - The company has a diverse board of directors, including both executive and non-executive members[5]. - The company has established various committees, including an audit committee and a remuneration committee, to oversee its governance[9]. Production Capacity - As of December 31, 2020, the Group operated 97 cement grinding lines with an annual production capacity of 85.3 million tons of cement[21]. - The Group has 46 clinker production lines with an annual production capacity of 62.7 million tons of clinker[21]. - The Group operates 60 concrete batching plants with an annual production capacity of 36.0 million cubic meters of concrete[21]. - The cement production lines in Guangdong total 24, with a capacity of 22.5 million tons[22]. - In Guangxi, there are 37 cement production lines with a capacity of 33.2 million tons[22]. - The Group's production facilities are strategically located across Southern China, including Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi[20]. - The concrete batching plants in Guangdong number 22, with a capacity of 13.7 million cubic meters[22]. - The Group's total annual production capacity of 60.3 million tons of cement, 34.2 million tons of clinker, and 8.9 million m³ of concrete, with attributable capacities of 20.4 million tons of cement, 11.2 million tons of clinker, and 4.1 million m³ of concrete[24]. Corporate Social Responsibility - The Group emphasizes corporate social responsibility, focusing on production safety, energy saving, and emission reduction, with emissions of nitrogen oxides, particulate matter, and sulfur dioxide better than national standards[24]. - The Group has implemented projects for co-processing municipal solid waste, urban sludge, and hazardous industrial waste using cement kilns[25]. - The Group actively strengthens research, development, and application of new products, materials, and technologies to promote innovation and sustainable development[25]. - The Group aims to actively fulfill corporate social responsibility and promote green development within the cement industry[83]. Financial Performance - The consolidated turnover for the year ended December 31, 2020, amounted to HK$40,086.9 million, representing an increase of 2.9% compared to the previous year[41]. - The consolidated profit attributable to owners of the Company for the year ended December 31, 2020, was HK$8,959.9 million, reflecting a 4.0% increase from the prior year[41]. - Basic earnings per share for the year was HK$1.283, up from HK$1.234 in 2019[41]. - The total assets as of December 31, 2020, were HK$68,532.5 million, an increase from HK$61,170.9 million in 2019[36]. - The equity attributable to owners of the Company was HK$49,626.8 million as of December 31, 2020, compared to HK$41,979.7 million in 2019[36]. - The gearing ratio improved to 13.8% in 2020 from 18.9% in 2019, indicating a reduction in financial leverage[36]. - The Company plans to distribute a final dividend of HK$0.34 per share for the year ended December 31, 2020, an increase from HK$0.335 per share in 2019[42]. - The interim dividend declared for 2020 was HK$0.275 per share, up from HK$0.26 per share in 2019[42]. Market and Economic Context - In 2020, China's GDP grew by 2.3% year-on-year to RMB101.6 trillion, while national fixed asset investment (FAI) increased by 2.9% year-on-year to RMB51.9 trillion[44]. - The total cement production in China amounted to approximately 2,380 million tons in 2020, representing a year-on-year increase of 1.6%[49]. - In 2020, the floor space of commodity housing sold in China increased by 2.6% year-on-year to 1,760 million m², with sales amounting to RMB17.4 trillion, an increase of 8.7% year-on-year[46]. - The real estate investment in China reached RMB14.1 trillion in 2020, representing a year-on-year increase of 7.0%[46]. - The cement production in Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi was approximately 170.0 million tons, 120.0 million tons, 97.0 million tons, 18.4 million tons, 130.0 million tons, 110.0 million tons, and 53.9 million tons respectively[49]. Strategic Initiatives - The Group has acquired land for prefabricated construction components production with a design annual capacity of approximately 50,000 m³ in Jiangmen and 200,000 m³ in Laibin[31]. - The Group won mining rights for a limestone quarry in Guangxi with a resource reserve of approximately 65 million tons and a planned annual production capacity of approximately 5 million tons[31]. - The Group's prefabricated construction projects in Guangdong and Guangxi have a design annual production capacity of approximately 450,000 m³ of precast concrete components[66]. - The Group established a joint venture for intelligent manufacturing solutions in July 2020, focusing on the automobile parts and building materials industries[68]. - The Group's new business office coordinates the development and planning of new projects, enhancing regional market research and project acquisition[63]. Environmental and Regulatory Compliance - The Chinese government aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060[55]. - The cement industry will implement classified management based on emission limits, with particulate matter, sulfur dioxide, and nitrogen oxides emissions capped at 10, 35, and 50 mg/m³ respectively for the strictest standard enterprises[54]. - The government emphasizes the importance of production safety and occupational health, launching a three-year action plan for special rectifications in nine industrial sectors[56]. Research and Development - The Group's Technology Research and Development Centre provided 1,495 checks and tests for cement production plants in 2020, optimizing production costs and improving product quality[137]. - The Group's R&D team consisted of 51 specialized employees, including 4 doctors and 21 masters, as of the end of 2020[136]. - The Group plans to strengthen R&D capabilities for new products, technologies, and materials, promoting digitalization and intelligentization to create competitive advantages[83]. Logistics and Supply Chain - The Group's logistics management benefited from reduced logistics costs due to highway toll exemptions and lower oil prices, with an annual transport capacity of approximately 36.3 million tons in the Xijiang River Basin[100]. - The Group controlled 35 transshipment warehouses with an annual transshipment capacity of approximately 34.3 million tons, reinforcing its dominant position in the Guangdong market[100]. - The Group initiated joint shipment by railway and optimized transportation routes to reduce logistics costs in 2020[102]. Brand and Marketing - The brand value of Runfeng Cement in 2020 was RMB 51,958 million, as evaluated by the "World Brand Lab"[106]. - The Group's first brand flagship store in Yunnan was officially opened in June 2020, serving as a center for brand image display[107]. - The Group's marketing efforts included promoting cement for nuclear power stations, which has been used in projects across Guangdong, Fujian, and Zhejiang[104].

Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[4]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[4]. - The company was incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[3]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[4]. - The company operates as the holding company for all cement and concrete operations of the China Resources Group[3]. Financial Performance - The interim report for 2020 highlights significant events and financial performance[5]. - The Group's turnover for the six months ended June 30, 2020, was HK$16,884.3 million, a decrease from HK$17,409.5 million in the same period of 2019, representing a decline of approximately 3.0%[27]. - EBITDA for the same period was HK$6,721.5 million, an increase from HK$6,433.8 million in 2019, reflecting a growth of approximately 4.5%[27]. - Profit for the period attributable to owners of the Company was HK$4,191.3 million, compared to HK$3,766.0 million in 2019, indicating an increase of approximately 11.3%[27]. - The Group's unaudited consolidated turnover for the six months ended June 30, 2020, amounted to HK$16,884.3 million, representing a decrease of 3.0% compared to the same period last year[31]. - The unaudited consolidated profit attributable to owners of the Company for the period was HK$4,191.3 million, reflecting an increase of 11.3% year-on-year[31]. - Basic earnings per share for the period was HK$0.600[31]. - The total assets of the Company as of June 30, 2020, were HK$62,515.1 million, up from HK$61,170.9 million as of December 31, 2019[28]. - Equity attributable to owners of the Company increased to HK$42,945.5 million from HK$41,979.7 million year-on-year[28]. - The gearing ratio decreased to 16.4% as of June 30, 2020, compared to 18.9% at the end of 2019[28]. Production Capacity - As of June 30, 2020, the Group operated 97 cement grinding lines with an annual production capacity of 85.3 million tons of cement[14]. - The Group also had 46 clinker production lines with an annual production capacity of 62.7 million tons of clinker[14]. - Additionally, there were 59 concrete batching plants with an annual production capacity of 35.7 million cubic meters of concrete[14]. - The Group owns a total of 75 cement grinding lines, 27 clinker production lines, and 19 concrete batching plants, with total annual production capacities of 60.3 million tons of cement, 32.7 million tons of clinker, and 8.9 million m³ of concrete[17]. - The attributable annual production capacities to the Group are 20.4 million tons of cement, 11.0 million tons of clinker, and 4.1 million m³ of concrete[17]. Market and Industry Trends - In the first half of 2020, China's total cement production decreased by 4.8% year-on-year to approximately 1.0 billion tons, with the decline narrowing by 19.1 percentage points compared to the first quarter[40]. - The Chinese government tightened capacity replacement policies and enhanced standards to promote high-quality and sustainable development in the cement industry[41]. - Infrastructure investment in China decreased by 2.7% year-on-year, with a significant recovery in highway and waterway investments, which grew by 7.8% year-on-year to approximately RMB1.1 trillion[39]. - The government is promoting new-type urbanization and rural revitalization, which is expected to support the cement industry's stable development[39]. - The gradual development of the Greater Bay Area is expected to drive medium to long-term demand for building materials such as cement and concrete[58]. Corporate Governance and Social Responsibility - The company has a corporate governance structure that includes various committees such as the Audit Committee and Remuneration Committee[8]. - The Group emphasizes corporate social responsibility, focusing on production safety, energy saving, and emission reduction, with emissions better than national standards[17]. - The Group is committed to fulfilling corporate social responsibility and promoting green development within the industry[59]. Research and Development - The Group is actively enhancing research and development of new products, materials, and technologies to promote sustainable development and innovation[17]. - The Group's R&D Centre actively developed new products, including countertop products and early-strength nucleating agents for precast concrete components[106]. - The Group's achievements in co-processing projects have been recognized by the government, participating in forums and discussions on solid waste management and standard revisions[52]. Environmental Management - The Group's emission concentrations of nitrogen oxides, particulate matters, and sulphur dioxide are better than national pollutant emission standards[17]. - As of June 2020, 100% of the Group's cement production plants obtained pollutant emission permits and are equipped with low-temperature residual heat recovery systems, denitration systems, and bag filters[82]. - The average emission concentrations of nitrogen oxides, sulfur dioxide, and particulate matters are all below national pollutant emission standards[82]. Logistics and Distribution - The company has a well-established logistics network for product distribution across Southern China[13]. - The annual shipping capacity of the Group along the Xijiang River was approximately 34.9 million tons, ensuring stable logistics capabilities for business operations[71]. - As of June 2020, the Group controlled 36 silo terminals with an annual capacity of approximately 26.6 million tons, primarily located in the Pearl River Delta Region[72]. Capital Expenditure and Financing - The Group's capital management policies are robust and centralized, ensuring sufficient cash reserves for both short-term and long-term liquidity needs[144]. - The total capital expenditure for all projects listed amounts to HK$3,418.8 million, with HK$2,649.2 million outstanding as of June 30, 2020[153]. - The Group's capital expenditure will be financed by proceeds from previous share placements and internally generated funds[154]. Employee and Management - As of June 30, 2020, the Group employed a total of 19,690 full-time employees, a decrease from 19,816 employees as of December 31, 2019[113]. - The average age of senior and middle-level managerial staff is approximately 46 years, with 76% holding university degrees or above[115]. Shareholding Structure - The company holds a significant shareholding of approximately 68.72% by China Resources Company Limited[178]. - As of June 30, 2020, CRH (Cement) Limited directly held 4,792,189,749 shares, representing approximately 68.63% of the issued share capital of the Company[177].

Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[4]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[4]. - China Resources Cement Holdings Limited was incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[3]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[4]. - The company operates as the holding company for all cement and concrete operations of the China Resources Group[3]. - The company has a registered office in the Cayman Islands and its principal place of business in Hong Kong[29]. - The company’s official website for corporate communications is www.irasia.com/listco/hk/crcement/index.htm[29]. - Ernst & Young serves as the independent auditor for China Resources Cement Holdings Limited[28]. - The company has a diverse banking relationship with major banks including Agricultural Bank of China and Bank of America[28]. - The company was initially listed on the Stock Exchange of Hong Kong Limited on July 29, 2003, by way of introduction[4]. Production Capacity and Operations - As of December 31, 2019, the Group operated 96 cement grinding lines and 45 clinker production lines, with an annual production capacity of 84.3 million tons of cement and 61.3 million tons of clinker respectively[37]. - The Group also has 61 concrete batching plants with an annual production capacity of 36.9 million cubic meters of concrete[37]. - The products are primarily used in infrastructure projects such as railways, highways, subways, bridges, airports, ports, dams, hydroelectric power stations, and nuclear power stations[36]. - The Group's operations cover the excavation of limestone, production, sale, and distribution of cement, clinker, and concrete[36]. - The main sales regions include Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi[36]. - The Group has established a well-developed logistics network including waterways, railways, and roads for product distribution[36]. - The annual production capacity for cement is 84.3 million tons, while for clinker it is 61.3 million tons[37]. - The concrete production capacity is 36.9 million cubic meters annually[37]. - The Group is recognized as a large-scale and competitive producer in Southern China[36]. - The facilities are strategically located to support the construction of high-rise buildings and rural development[36]. Financial Performance - The company's turnover for 2019 was HK$38,955.6 million, an increase from HK$38,791.5 million in 2018, representing a growth of 0.4%[56]. - Profit for the year reached HK$8,694.4 million, up from HK$8,006.7 million in 2018, indicating a year-over-year increase of 8.6%[56]. - The basic earnings per share for 2019 was HK$1.234, compared to HK$1.179 in 2018, reflecting a growth of 4.7%[56]. - The total assets attributable to owners of the company as of December 31, 2019, were HK$61,170.9 million, a slight increase from HK$60,506.4 million in 2018[57]. - The gearing ratio improved to 18.9% in 2019 from 33.2% in 2018, indicating a reduction in financial leverage[57]. Strategic Developments - The company acquired land in Guangxi for the production of prefabricated construction components with a design annual production capacity of approximately 200,000 m³[54]. - A clinker production line with an annual capacity of approximately 1.4 million tons commenced operations in Guizhou in February 2020[54]. - The company holds a 40% equity interest in Universal Marble after acquiring an additional 20% stake for RMB388,116,348 in April 2019[50]. - The company subscribed to 40,164,000 H shares of YCIH Concrete, representing approximately 9.0% of its total issued share capital, for a total consideration of HK$134,951,040[50]. - The planned annual production capacity of the granite quarry acquired in November 2019 is approximately 2.0 million tons[53]. Market and Economic Context - In 2019, China's GDP grew by 6.1% year-on-year to RMB99.1 trillion, with national fixed asset investment increasing by 5.4% to RMB55.1 trillion[62]. - The floor space of commodity housing sold in China was 1,720 million m², with sales amount increasing by 6.5% year-on-year to RMB16.0 trillion[63]. - Real estate investment in China reached RMB13.2 trillion, representing a year-on-year increase of 9.9%[63]. - The operational length of newly built and rebuilt rural roads in 2019 was approximately 290,000 km, supporting cement demand[63]. - National infrastructure investments increased by 3.8% year-on-year, with highway and waterway investments amounting to approximately RMB2.3 trillion[62]. - The stability of the real estate market is conducive to the steady development of the cement industry[63]. - In 2019, China's cement production increased by 6.1% year-on-year to approximately 2,330 million tons[64]. Environmental and Social Responsibility - The Group emphasizes corporate social responsibility, focusing on energy saving, emission reduction, and green development, with emissions better than national standards[40]. - All cement and clinker production plants are equipped with residual heat recovery generators to reduce energy consumption[40]. - The Group actively engages in co-processing projects for municipal solid waste, urban sludge, and hazardous industrial waste using cement kilns[40]. - The Group's efforts in sustainable development were recognized with multiple awards in 2019, including the EcoChallenger award and inclusion in green manufacturing lists[72]. - The Group is focusing on transformation and innovation, particularly in aggregates and prefabricated construction[68]. Technological Advancements - The Group has a strong focus on R&D for new products, materials, and technologies to promote corporate transformation and sustainable development[39]. - The Group implemented 219 technological upgrades in 2019, focusing on safety, environmental protection, energy saving, and consumption reduction[96]. - The Group's Technology Research and Development Centre provided 1,982 checks and tests for production plants in 2019, supporting lean operations[100]. - The Group is actively researching intelligent denitration technology (heSNCR) to further reduce nitrogen oxides emissions, with pilot work planned for 2020[176]. Mining and Resource Management - The Group has acquired mining rights for aggregate resources in Fujian and Guangxi, enhancing its aggregate resource reserves[70]. - The Group's mining operations include zero wastewater discharge and timely recycling of waste oil to minimize ecological impact[196]. - The Group's mining projects undergo environmental assessments to avoid ecological damage during development and construction[196]. - The Group's efforts in ecological restoration have been recognized, receiving the second prize of the Scientific and Technological Award from the Chinese Society of Rock Mechanics and Engineering[200]. Future Outlook - The Group plans to implement comprehensive water recycling systems at seven additional cement production plants in 2020, focusing on advanced technology and lower operating costs[188]. - The Group expects total payments for capital expenditure to be approximately HK$1,321.6 million in 2020 and HK$1,283.4 million in 2021, financed by proceeds from previous share placements and internally generated funds[155]. - The Group is actively developing low-carbon cement, which features a reduction of about 10% in carbon dioxide emissions during the combustion process compared to traditional Portland cement[184].