Economic Overview - In the first half of 2023, China's GDP grew by 5.5%, with fixed asset investment increasing by 3.8% to CNY 24.31 trillion, while infrastructure investment rose by 7.2%[12]. - The cement production in China reached 953 million tons, the lowest level in 12 years, leading to intensified competition and a decline in cement prices to a five-year low[12]. Company Performance - As of June 30, 2023, the company's cement production capacity was 12.2 million tons per year, with cement business revenue accounting for 62% of total operating income[13]. - Non-cement business revenue contributed 38% to total operating income, with a net profit contribution of 56% from this segment, indicating its growing importance[13]. - The company achieved cement and clinker sales of 29.95 million tons, a year-on-year increase of 2.13%[15]. - The company's revenue for the first half of 2023 reached RMB 15.83 billion, representing a year-on-year growth of 10.02%[17]. - The net profit attributable to shareholders for the same period was RMB 1.19 billion, a decrease of 24.85% year-on-year[15]. - The company’s domestic cement revenue declined by 12.41% to RMB 7.46 billion, while overseas cement revenue increased by 30.57% to RMB 2.30 billion[15]. - The company’s EBITDA contribution from non-cement businesses exceeded 50%, becoming a key support for stable performance[15]. Financial Position - The total equity of the group at the end of the reporting period was RMB 32.062 billion, with equity attributable to the parent company amounting to RMB 27.719 billion[20]. - The total liabilities of the group were RMB 33.500 billion, with interest-bearing liabilities at RMB 14.530 billion, resulting in a debt-to-asset ratio decrease from 52.0% at the beginning of the year to 51.1% at the end of the reporting period[21]. - The group invested approximately RMB 1.819 billion in capital projects during the first half of 2023, with sufficient self-funding and ongoing operating cash inflows to meet capital project funding needs[24]. - The company reported no interim dividend for the first half of 2023, nor any capital reserve conversion into share capital[45]. Market Expansion - The company operates over 300 subsidiaries, covering 16 provinces in China and 14 countries overseas, reflecting its extensive market expansion[13]. - The company completed the acquisition of a 59.58% stake in Oman Cement Company, adding 4.4 million tons/year of cement grinding capacity[16]. - The company expanded its concrete business by adding 28 new projects, increasing annual capacity by 2.12 million cubic meters[16]. Cash Flow and Expenses - The net cash flow from operating activities increased by 67.89% year-on-year to RMB 2.13 billion[18]. - The company's financial expenses increased by 48.78% year-on-year, primarily due to higher interest expenses[17]. - Cash and cash equivalents decreased to RMB 5,552,644,820 from RMB 7,038,341,792, reflecting a decline of approximately 21%[47]. - The company reported a significant increase in other receivables, rising to RMB 5,547,576,218 from RMB 4,853,948,075, an increase of 14.26%[49]. Shareholder Information - The total number of registered shareholders as of June 30, 2023, was 63,229, with 63,226 being A-share shareholders[30]. - The top ten shareholders hold significant stakes, with Hong Kong Central Clearing holding 734,719,989 H shares, representing 35.04%[31]. - Holcim B.V. owns 451,333,201 A shares, accounting for 21.53% of the total shares[31]. Strategic Focus - The company continues to implement strategies for integrated development, environmental transformation, and expansion into new building materials[13]. - In the second half of 2023, the company anticipates a seasonal recovery in cement demand, although the industry will continue to face severe overcapacity and intensified competition[26]. - The company plans to stabilize prices and increase efficiency in its domestic cement business, while also focusing on cost reduction and risk control in its concrete business[26]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the true and complete financial status as of June 30, 2023[71]. - The group recognizes foreign currency transactions at the spot exchange rate on the transaction date, impacting the financial statements through translation differences[77]. - The company evaluates contracts to determine if they contain leases, recognizing right-of-use assets and lease liabilities for leases beyond 12 months[126]. Taxation and Incentives - The corporate income tax rate for subsidiaries in the western development regions is reduced to 15% from 2021 to 2030[145]. - The group enjoys a VAT refund policy with a rebate rate of 70% for certain subsidiaries under the resource comprehensive utilization products and services[147]. - The corporate income tax rate for Huaxin Cement (Henan Xinyang) Co., Ltd. has been reduced to 15% from 25% following its high-tech enterprise certification[143]. Inventory and Receivables - The total inventory as of June 30, 2023, is RMB 3,805,641,532, an increase from RMB 3,517,821,387 at the beginning of the period, reflecting a growth of approximately 8.2%[181]. - The accounts receivable at the end of the period totaled RMB 2,168,543,120, an increase of 57% from RMB 1,382,631,200 at the beginning of the period[155]. - The provision for bad debts increased to RMB 228,631,721, up from RMB 177,857,087, reflecting a rise of 28%[165]. Fixed Assets and Investments - Fixed assets increased to RMB 26,332,148,241 from RMB 22,713,408,318, indicating a growth of approximately 15.5%[190]. - The total fixed assets at the end of the period amounted to RMB 48,577,192,953, an increase from RMB 41,320,856,587 at the beginning of the period, reflecting a growth of approximately 17.5%[193]. - The company reported a total of RMB 7,351,662,552 in new fixed asset additions during the period, with major contributions from construction transfers and business acquisitions[193].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 華新水泥股份有限公司 HUAXIN CEMENT CO., LTD. * （於中華人民共和國註冊成立的股份有限公司） （股份代號：6655） 截至二零二三年六月三十日止半年度業績 | --- | --- | |-------|--------------------------------------------------------------------------------------| | | | | | 截至二零二三年六月三十日止六個月，本集團未經審核收入為人民幣 15,832 百萬元，較二 | | | 零二二年同期增长 10.02% 。 | | | 截至二零二三年六月三十日止六個月，本集團未經審核權益持有者應佔利潤為人民幣 1,193 | | | 百萬元，較二零二二年同期下降 24.85% 。每股基本盈利為人民幣 0.58 元。 | 華新水泥股份有限公司（「本公司」或「公司」）董事會（「 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 華新水泥股份有限公司 HUAXIN CEMENT CO., LTD.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：6655） 二零二三年第一季度報告 本公告乃根據《香港聯合交易所有限公司證券上市規則》第13.09條和第13.10B條及《證券 及期貨條例》（香港法例第571章）第XIVA部刊發。 | --- | --- | |--------------------------------------------------------------------------------|-------| | | | | 根據中華人民共和國（「中國」）上海證券交易所的適用規則，華新水泥股份有限公司（ | | | 「本公司」或「公司」）及其附屬公司（與本公司合稱為「本集團」）由二零二三年一月 | | | 一日至二零二三年三月三十一日（「報告期」）第一季度報告（「季度報告」）將於二零 | | | 二 ...

Financial Performance - The company's operating revenue for 2022 was CNY 30,470,382,363, a decrease of 6.14% compared to CNY 32,464,083,379 in 2021[14]. - Net profit attributable to shareholders for 2022 was CNY 2,698,868,510, down 49.68% from CNY 5,363,525,692 in 2021[14]. - Basic earnings per share for 2022 were CNY 1.30, a decline of 49.61% from CNY 2.58 in 2021[16]. - The company's total assets increased by 22.25% to CNY 64,241,676,265 as of December 31, 2022, compared to CNY 52,549,618,050 in 2021[15]. - The net cash flow from operating activities for 2022 was CNY 4,567,694,220, a decrease of 39.86% from CNY 7,594,957,122 in 2021[14]. - The weighted average return on equity for 2022 was 10.03%, down 11.27 percentage points from 21.30% in 2021[16]. - Non-recurring gains and losses totaled CNY 120,234,058 for 2022, compared to CNY 58,647,574 in 2021[18]. - The company's net profit attributable to shareholders decreased by CNY 2,666,510,000 (–49.68%) compared to the previous year, influenced by declining sales volumes and rising energy costs[68]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.51 per share (including tax) for the 2022 fiscal year[3]. - The board proposed a cash dividend of RMB 0.51 per share for the year 2022, amounting to a total distribution of approximately RMB 1,068,424,438[41]. - The company’s cash dividend policy complies with the requirements of the articles of association and shareholder resolutions[169]. Governance and Compliance - The company reported a standard unqualified audit opinion from Ernst & Young Huaming[3]. - The board of directors confirmed the accuracy and completeness of the annual report's financial statements[3]. - The company maintains a strong governance structure, ensuring compliance with regulatory requirements[3]. - The company emphasizes strict adherence to corporate governance standards, ensuring independent operations of the board and supervisory committee, and compliance with relevant laws and regulations[141]. - The company has established a robust compliance and legal framework to support its operations and investor relations[123]. - The company has adopted the Corporate Governance Code and has complied with its principles and provisions throughout the reporting period[142]. Market and Operational Strategy - The company is focused on expanding its market presence and enhancing product offerings, including high-value products[9]. - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[19]. - The company aims to achieve a clinker capacity utilization rate of 30% above the benchmark level by 2025, as part of national energy efficiency and carbon reduction goals[20]. - The company is committed to a strategy of rational competition, integration optimization, and environmental transformation, focusing on vertical integration within the cement industry[25]. - The company is actively investing in low-carbon technologies and alternative energy sources to improve industry efficiency and sustainability[20]. Risks and Challenges - The company has detailed potential risks outlined in the report, particularly in the section discussing operational conditions[3]. - The company faces risks from rising production costs driven by geopolitical tensions, supply-demand imbalances, and stricter energy and environmental regulations[81]. - Domestic cement demand has significantly declined, with a notable drop in 2022 due to multiple factors, including a downturn in the real estate market and ongoing economic pressures[80]. Research and Development - The company's research and development expenses totaled RMB 113,199,061, representing 0.37% of operating revenue, with capitalized R&D accounting for 30.95% of the total[48]. - The company has established a new research and development center, with an annual budget of 50 million RMB dedicated to innovation in cement technology[118]. Employee and Executive Compensation - The total pre-tax remuneration payable to the company's directors, supervisors, and senior management at the end of the reporting period was 65.8572 million yuan[127]. - The actual total remuneration received by the company's directors, supervisors, and senior management during the reporting period was 65.8572 million yuan[128]. - The company has implemented a comprehensive compensation system to align employee remuneration with company performance[134]. Shareholder Structure - Holcim Limited holds a total of 869,235,668 shares in the company, representing 41.46% of the total equity[103]. - The largest shareholder, Holcim Limited, holds 451,333,201 A shares (21.53%) and 417,902,467 H shares (19.93%)[103]. - The company reported a significant shareholding concentration, with Holcim Limited and its subsidiaries controlling over 39% of the total shares[106]. Sustainability Initiatives - The company is committed to sustainable practices, including the use of alternative raw materials[6]. - The company emphasizes the importance of energy conservation and carbon reduction, with a target of achieving a heat value substitution rate of over 20% in 2023[79]. - The management team emphasized a focus on sustainability, with plans to reduce carbon emissions by 20% over the next five years[117]. International Expansion - The company has established a strategic layout in economically vibrant regions and is expanding its presence in countries along the Belt and Road Initiative[30]. - The company is actively pursuing international expansion as one of its four major development strategies, despite the complexities of the current global landscape[81]. Audit and Internal Controls - The company engaged Ernst & Young Huaming to audit the effectiveness of internal controls related to financial reporting, receiving a standard unqualified audit opinion[175]. - The audit committee assessed the company's risk management system and internal controls, confirming compliance with the requirements set by the China Securities Regulatory Commission[161].

Financial Performance - For the year ended December 31, 2022, the company's operating revenue was approximately RMB 30.47 billion, a decrease of 6.14% compared to 2021[2] - The net profit attributable to shareholders for 2022 was approximately RMB 2.70 billion, down 49.68% from the previous year[5] - Basic earnings per share for 2022 were RMB 1.30, a decline of 49.61% compared to 2021[5] - The weighted average return on equity decreased to 10.03% in 2022, down 11.27 percentage points from 2021[6] - The net cash flow from operating activities for 2022 was RMB 4.57 billion, a decrease of 39.86% compared to 2021[6] - The company's operating profit decreased by 45.96% to CNY 4,022,570,540 compared to CNY 7,444,360,170 in the same period last year[25] - The net profit attributable to shareholders decreased by 49.68% to CNY 2,698,868,510 from CNY 5,363,525,692 year-on-year[25] - Financial expenses increased by 169.29% to CNY 458,488,171, primarily due to increased exchange losses and interest expenses[24] - The company's total interest-bearing debt increased by 46.02% to CNY 14,494,878,839 from CNY 9,926,870,636 year-on-year[29] - The current ratio fell by 31.5% to 0.87, indicating a decline in liquidity[29] - The total assets-liabilities ratio increased by 7.90 percentage points to 52.00%[29] Revenue Breakdown - In 2022, the company's total revenue was CNY 30.47 billion, a decrease of 6.14% year-on-year[20] - The cement segment generated revenue of CNY 18.83 billion, down 21.76% from the previous year, with a gross margin of 25.94%, a decrease of 7.89 percentage points[20] - The concrete segment saw revenue increase by 61.64% to CNY 5.13 billion, with a gross margin of 15.81%, down 2.99 percentage points[20] - Aggregate revenue reached CNY 3.06 billion, up 49.25% year-on-year, with a gross margin of 55.27%, down 10.35 percentage points[20] - Overseas operations generated revenue of CNY 4.19 billion, a 62.3% increase year-on-year, with EBITDA exceeding CNY 1.4 billion, up 40%[18] - Revenue from the Chinese market was CNY 26,279,374,714 in 2022, down 12.0% from CNY 29,881,187,845 in 2021[65] Shareholder Information - As of December 31, 2022, the total number of registered shareholders was 63,357, which decreased to 53,154 by February 28, 2023[7] - The top shareholder, Hong Kong Central Clearing Limited, held 734,719,989 shares, representing 35.04% of the total shares[8] - Holcim Limited remains the controlling shareholder and actual controller of the company as of December 31, 2022[10] - The company plans to distribute a cash dividend of RMB 0.51 per share, totaling RMB 1,068,424,438, based on a total share capital of 2,096,599,855 shares[38] Investment and Capital Expenditure - The company plans to sell approximately 57 million tons of cement and clinker, 130 million tons of aggregates, and 25 million cubic meters of concrete in 2023, with expected revenue of 35 billion RMB[34] - The company will invest about 11 billion RMB in capital expenditures in 2023, focusing on capacity construction for aggregates and concrete, as well as environmental and new materials business expansion[34] - The company is in the process of issuing corporate bonds not exceeding RMB 3 billion to professional institutional investors[37] - The company has signed an agreement to acquire a 59.58% stake in Oman Cement Company for approximately USD 193.1 million, subject to adjustments[37] Operational Efficiency and Innovation - The company implemented 356 digitalization projects, achieving a 90% operational rate for the HIAC system across six factories[19] - The company is focusing on technological innovation to create highly automated "unmanned factories" to improve operational efficiency and reduce production costs[36] - The company completed nearly 40 solid waste incineration and pre-treatment projects to enhance energy efficiency and carbon reduction[17] - The company has accelerated the development of ultra-high-strength concrete and grinding aids, achieving industry-leading performance levels[17] Risk Management and Compliance - The company emphasizes the importance of safety and environmental compliance, conducting annual health and safety audits to ensure clean and civilized production standards[34] - The company will continue to enhance compliance monitoring to mitigate potential business risks and ensure 100% product quality compliance[34] - The company recognizes the risk of declining domestic cement demand and severe overcapacity, which may negatively impact performance due to ongoing economic pressures[35] - The company aims to enhance its competitive strength and risk resistance by adhering to national policies on supply-side structural reform and carbon reduction[36] Future Outlook - The company anticipates a stable cement demand in 2023, with a potential rebound due to supportive infrastructure policies and reduced downward pressure from the real estate sector[31] - The company will focus on energy efficiency and carbon reduction as key measures for supply-side reform in the cement industry[32] - The company aims to achieve a combined heat value substitution rate of over 20% for alternative fuels in 2023[34]

Economic Performance - In the first half of 2022, China's GDP grew by 2.5% year-on-year, with a 0.4% increase in the second quarter[10]. - National fixed asset investment (excluding rural households) reached CNY 27.14 trillion, a year-on-year increase of 6.1%[10]. - The cumulative cement production in China for the first half of 2022 was 977 million tons, a decrease of 15.0% year-on-year, marking an 11-year low[10]. Company Overview - The company operates nearly 290 subsidiaries across 14 provinces in China and eight countries overseas[11]. - The company is recognized as one of China's top 500 manufacturing enterprises and one of the Fortune China 500 companies[11]. - The company has a cement production capacity of 118 million tons per year, including joint ventures[11]. - The company has a concrete production capacity of 60.1 million cubic meters per year[11]. - The company has a waste disposal capacity of 12.36 million tons per year, including projects that have received environmental approval but are not yet operational[11]. Financial Performance - The company's operating revenue for the reporting period was CNY 14.39 billion, a decline of 2.41% compared to the previous year[14]. - Net profit attributable to shareholders was CNY 1.59 billion, down 34.92% year-on-year[13]. - The cement business generated operating revenue of CNY 10.28 billion, a year-on-year decrease of 13.8%, while non-cement business revenue increased by 45.8% to CNY 3.95 billion[13]. - The company reported a significant increase in aggregate production, reaching 36.60 million tons, a year-on-year growth of 83%[13]. - The average fuel cost per ton increased by CNY 47, or 21.9%, leading to a decrease in gross profit per ton for cement to CNY 89[13]. Cash Flow and Investments - The net cash flow from operating activities decreased by 44.72% to CNY 1.27 billion due to declining cement sales and rising costs[15]. - The company invested approximately RMB 3.65 billion in capital projects during the reporting period, with sufficient self-funding and ongoing cash inflows to meet capital needs[23]. - The company plans to expand its production capacity with new projects in Nepal and Tanzania, and has added 13 new concrete projects in various provinces[13]. Assets and Liabilities - The total assets at the end of the reporting period amounted to RMB 26.896 billion, with a debt ratio increasing from 44.1% at the beginning of the year to 47.8%[19]. - Accounts receivable increased by 39.81% to RMB 1.337 billion, primarily due to the expansion of concrete business operations[17]. - Construction in progress rose by 38.38% to RMB 5.811 billion, driven by increased investments in aggregate and concrete projects[18]. - Long-term receivables increased by 213.75% to RMB 112.745 million, mainly due to increased turnover funds from local governments[18]. - Other payables increased by 119.60% to RMB 1.661 billion, attributed to unpaid dividend distributions at the end of the reporting period[18]. Shareholder Information - As of June 30, 2022, the total number of registered shareholders is 63,731, with 63,728 holding A-shares and 3 holding H-shares[29]. - The largest shareholder, Hong Kong Central Clearing Limited, holds 35.04% of H-shares, while Holcim B.V. holds 21.53% of A-shares[30]. - Holcim Ltd has a total stake of 41.46% in the company, combining both A and H shares[32]. Corporate Governance - The company has complied with all applicable principles and rules of the Corporate Governance Code since its H-share listing on March 28, 2022[43]. - The audit committee has reviewed the interim results for the six months ending June 30, 2022[42]. - The board of directors decided not to declare an interim dividend for the first half of 2022[43]. Research and Development - Research and development expenses rose significantly to CNY 45,693,691, compared to CNY 23,001,179 in the same period last year, reflecting a 98.5% increase[50]. - The company plans to continue focusing on R&D and market expansion strategies to enhance future growth prospects[50]. Employee Information - As of June 30, 2022, the company had a total of 19,451 employees, including overseas staff[41]. - The company adopted a comprehensive compensation system to align employee remuneration with organizational goals[41]. - The company has implemented various training programs to enhance employee skills and leadership capabilities[41]. Financial Reporting - The financial statements were approved by the board of directors on August 24, 2022, ensuring compliance with regulatory requirements[67]. - The financial report reflects the company's financial position and operating results as of June 30, 2022, in accordance with the requirements of accounting standards[74]. - The company adheres to the accounting standards issued by the Ministry of Finance and complies with relevant disclosure requirements under the Hong Kong Companies Ordinance and the Listing Rules[69]. Accounting Policies - The company recognizes goodwill as an asset in business combinations when the acquisition cost exceeds the fair value of identifiable net assets acquired[74]. - The company has established specific accounting policies and estimates based on its operational characteristics, including methods for bad debt provisions and asset depreciation[74]. - The company recognizes employee benefits liabilities for retirement and severance benefits, which are accounted for in the current profit or loss[23]. Taxation - The company’s subsidiaries in the western development regions benefit from a reduced corporate income tax rate of 15% from 2021 to 2030[160]. - The company’s subsidiary in Cambodia has been in a tax-exempt period from 2013 to 2021 according to local tax laws[160]. - The company’s subsidiaries engaged in environmental engineering projects enjoy a tax exemption for the first three years and a 50% reduction for the next three years[160]. Financial Assets and Liabilities - Financial assets are recognized when the group becomes a party to the financial instrument contract, with regular purchases or sales recognized on the transaction date[79]. - The company manages financial assets with the objective of collecting contractual cash flows, which includes cash, receivables, and long-term receivables[80]. - Financial liabilities are classified based on the contractual terms and economic substance, not just legal form, at initial recognition[92]. Inventory and Receivables - The inventory balance as of June 30, 2022, is RMB 3,983,760,089, with a provision for inventory impairment of RMB 103,098,375[191]. - The total accounts receivable at the end of the period is RMB 1,546,687,230, an increase from RMB 1,120,810,092 at the beginning of the period, representing a growth of approximately 38%[169]. - The provision for bad debts totals RMB 209,246,897, which is an increase of RMB 45,016,957 from the beginning balance of RMB 164,229,940[177].

Financial Performance - The company's operating revenue for 2021 was CNY 32,464,083,379, representing a year-on-year increase of 10.59% compared to CNY 29,356,515,691 in 2020[11]. - The net profit attributable to shareholders for 2021 was CNY 5,363,525,692, a decrease of 4.74% from CNY 5,630,598,812 in 2020[11]. - The net cash flow from operating activities for 2021 was CNY 7,594,957,122, down 9.64% from CNY 8,405,472,760 in 2020[11]. - The total assets as of December 31, 2021, were CNY 52,549,618,050, an increase of 19.63% from CNY 43,928,509,151 at the end of 2020[12]. - The net assets attributable to shareholders increased by 13.4% to CNY 26,729,911,468 as of December 31, 2021, compared to CNY 23,571,375,317 at the end of 2020[12]. - The basic earnings per share for 2021 was CNY 2.58, a decrease of 4.09% from CNY 2.69 in 2020[12]. - The weighted average return on net assets for 2021 was 21.30%, down from 25.03% in 2020, a decrease of 3.73 percentage points[12]. - The company achieved a net profit of CNY 3,256,784,379 for the year 2021, with a consolidated net profit attributable to shareholders of CNY 5,363,525,692[36]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 1 per share (including tax) for the 2021 fiscal year[3]. - The company’s cash dividend distribution for 2020 was CNY 2,261,384,322, which accounted for 40.16% of the net profit attributable to shareholders[34]. - As of December 31, 2021, the total number of registered shareholders was 88,708, which decreased to 81,804 by February 28, 2022[82]. - The company’s total share capital structure consists of 2,096,599,855 shares, with A-shares accounting for 64.96% and H-shares for 35.04%[81]. - The company has not issued any preferred shares during the reporting period, and there are no rights for existing shareholders to purchase new shares based on their holdings[88]. Market Presence and Expansion - The company plans to continue expanding its market presence and invest in new product development to drive future growth[11]. - The company has over 270 subsidiaries across 14 provinces in China and eight countries, showcasing its extensive market presence[18]. - The company is actively pursuing mergers and acquisitions to expand its market reach and enhance its competitive advantage in the cement industry[21]. - The company plans to accelerate the development of overseas markets and new material businesses to ensure capacity increase and benefit expansion[67]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[94]. Operational Efficiency and Strategy - The company has implemented a procurement strategy that includes centralized purchasing and a digital procurement platform to enhance efficiency and transparency[20]. - The company has established a matrix organizational structure to support its business strategy and improve operational efficiency[19]. - The company has established a digital operation system with 272 digital projects implemented across all 33 industrial parks, enhancing operational efficiency and competitiveness[27]. - The company has implemented a strategy focusing on green and low-carbon development amid challenges in the cement industry[46]. - The company plans to optimize energy consumption indicators through collaborative utilization and centralized procurement to continuously reduce procurement costs[69]. Compliance and Governance - The company reported a standard unqualified audit opinion from Deloitte Huayong[3]. - The company emphasizes the importance of accurate and complete financial reporting in its annual report[3]. - The company has no violations of regulatory decision-making procedures for external guarantees[4]. - The company has established a risk management internal control system that complies with regulatory requirements, significantly enhancing its risk prevention capabilities[153]. - The company strictly adheres to corporate governance regulations, ensuring compliance with laws and maintaining transparency in operations[120]. Research and Development - The total R&D investment for the period was CNY 79,744,173, accounting for 0.25% of the operating revenue[42]. - The company holds 48 invention patents and 81 utility model patents as of the end of 2021, showcasing its strong technical innovation capabilities[23]. - The company plans to invest in new technology development, allocating 50 million RMB towards R&D initiatives[97]. - Research and development expenses rose to RMB 17,301,729, up from RMB 11,635,683, indicating a growth of approximately 48.5% year-over-year[188]. Environmental and Sustainability Initiatives - The company has implemented a green and low-carbon development strategy, achieving a peak carbon reduction path by 2025-2060, and has launched the world's first automated production line for CO2 absorption bricks from cement kiln flue gas[22]. - The company aims to enhance compliance monitoring to mitigate potential business risks and ensure 100% product quality compliance[68]. - The management team emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon emissions by 2030[95]. - The company is focusing on enhancing its digital marketing strategies, aiming for a 15% increase in online sales channels[99]. Financial Health and Liabilities - The debt-to-asset ratio increased to 44.1% in 2021 from 41.4% in 2020, reflecting a 2.7% rise[166]. - The company maintained a loan repayment rate of 100% and an interest payment rate of 100% during the reporting period[166]. - The company’s total liabilities increased to CNY 23,172 million in 2021 from CNY 18,189 million in 2020[169]. - The company’s total equity increased to RMB 25,739,938,498, up from RMB 23,367,682,745, representing an increase of approximately 10%[194]. Employee and Management Information - The total compensation for directors, supervisors, and senior management in 2021 amounted to RMB 33.95 million, with 20 executives receiving RMB 35.23 million from virtual stock incentives for 2018[91]. - The company employed a total of 16,283 personnel, including 6,054 production staff, 1,070 sales personnel, and 6,061 technical staff[110]. - The company has implemented a diverse training program for employees, adapting to different levels and types, to enhance core competitiveness[116]. - The company has maintained a liability insurance for directors and senior management to provide protection against legal actions[110]. Audit and Internal Controls - The audit fees for the domestic accounting firm Deloitte Huayong amounted to CNY 4,202,500, with a total of CNY 2,455,681 paid for external audit services[70]. - The company confirmed that all directors are responsible for the preparation of the financial statements, ensuring compliance with applicable accounting policies[151]. - The company has conducted special audits on 26 subsidiaries and implemented 22 business process audits in high-risk areas such as procurement, sales, and logistics[155]. - The independent auditor confirms compliance with ethical requirements related to independence and communicates any relationships that may reasonably be thought to affect independence[179].