Financial Performance - In 2021, China Hongqiao Group Limited reported revenue of RMB 114,490,941,000, an increase of approximately 32.9% year-on-year[16]. - Gross profit for the same period was RMB 30,453,096,000, reflecting a year-on-year increase of about 57.3%[16]. - Net profit attributable to shareholders was RMB 16,073,342,000, representing a year-on-year growth of approximately 53.1%[16]. - The basic earnings per share for 2021 was RMB 1.7720, compared to RMB 1.2210 in 2020[16]. - The gross profit margin improved to 26.6% in 2021 from 22.5% in 2020[6]. - The group's revenue for the year ended December 31, 2021, was approximately RMB 114.49 billion, representing a year-on-year increase of about 32.9% due to higher sales prices of aluminum alloy products and increased sales of alumina products[26]. - The group's net profit attributable to shareholders for the year was approximately RMB 16.07 billion, a significant year-on-year increase of about 53.1% driven by rising demand and sales prices for aluminum products[26]. - The overall gross profit margin for the group was approximately 26.6%, an increase of about 4.1 percentage points from approximately 22.5% in the same period last year[30]. - The net profit attributable to shareholders was approximately RMB 16,073,342,000, a significant increase of about 53.1% from approximately RMB 10,495,936,000 in the previous year[37]. - Total revenue for 2021 reached RMB 114,490,941 thousand, a significant increase of 32.8% compared to RMB 86,144,641 thousand in 2020[80]. - Net profit for 2021 was RMB 16,848,799 thousand, up 61.1% from RMB 10,444,751 thousand in 2020[80]. Assets and Liabilities - Total assets as of December 31, 2021, were RMB 188,420,922,000, while total liabilities were RMB 95,982,093,000[7]. - The total liabilities of the group were approximately RMB 95,982,093,000, a decrease from approximately RMB 104,729,330,000 in the previous year, resulting in an improved debt-to-asset ratio of about 50.9%[39]. - Total assets as of December 31, 2021, amounted to RMB 188,420,922 thousand, an increase from RMB 181,531,000 thousand in 2020[81]. Dividends - The company plans to distribute a final dividend of HKD 0.60 per share for 2021, compared to HKD 0.50 per share in 2020[16]. - The company reported a final dividend of HKD 0.60 per share for the year ended December 31, 2021, which is an increase of approximately 61.5% compared to the total dividend of HKD 0.65 per share for the previous year[76]. - The total dividend for the year 2021, including the interim dividend of HKD 0.45 per share, amounts to HKD 1.05 per share[76]. - The company has adopted a dividend policy that allows for the declaration and distribution of dividends to shareholders, subject to board discretion and shareholder approval[74]. Market and Demand - The company highlighted the ongoing demand for aluminum products driven by sectors such as new energy vehicles and infrastructure[16]. - The group anticipates that the demand for aluminum in industries such as infrastructure and high-end manufacturing will continue to rise, driven by China's economic growth[19]. - The average selling price of aluminum alloy products increased by approximately 33.5% year-on-year, reaching about RMB 16,689 per ton (excluding VAT)[26]. - Global primary aluminum production in 2021 was approximately 67.6 million tons, a year-on-year increase of about 3.5%[21]. Financial Management - The group reduced its debt ratio from approximately 57.7% to about 50.9% during the year, enhancing its financial structure[19]. - Financial expenses decreased by approximately 19.5% to about RMB 3,625,974,000 from approximately RMB 4,506,236,000 in the previous year, due to repayment of mid-term notes and bonds[33]. - Cash and cash equivalents increased by approximately 8.3% to about RMB 49,227,282,000 from RMB 45,465,361,000 in the previous year, mainly due to net cash inflow from operating activities[34]. - The group aims to continue expanding financing channels and optimizing its debt structure while controlling production costs to enhance profitability[40]. Employee and Management - As of December 31, 2021, the group had a total of 42,650 employees, an increase of 205 from the previous year, with total employee costs amounting to RMB 3,974,429,000, representing an 18.0% increase year-on-year[42]. - The group emphasizes employee development through training programs and performance-based rewards[50]. - The company’s management team includes experienced professionals with backgrounds in finance, law, and accounting[71]. Corporate Governance - The company confirmed that all independent non-executive directors meet the independence criteria as per the listing rules[122]. - The board consists of four executive directors, four non-executive directors, and four independent non-executive directors, ensuring a balanced governance structure[159]. - The company is committed to enhancing corporate governance to create value for shareholders and ensure responsible business practices[156]. - The company has established a formal and transparent remuneration policy for directors and senior management, with details provided in the financial statements as of December 31, 2021[177]. Strategic Initiatives - China Hongqiao Group Limited aims to accelerate the transformation of new and old growth drivers in 2022, focusing on high-quality development[16]. - The group aims to expand its business in lightweight materials and recycled aluminum, collaborating with various domestic and international partners[19]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[60]. - Research and development investments have increased by 30%, focusing on sustainable technologies and efficiency improvements[59]. Risk Management - The group has implemented a risk management system to identify, assess, and control potential risks affecting its operations[46]. - The board is responsible for the effectiveness of the risk management and internal control systems, which are reviewed annually[196]. - The company’s major risks and uncertainties are detailed in the management discussion and analysis section of the annual report[154].

| --- | --- | --- | --- | |----------------------------------------------------|-------|-------|-------| | | | | | | China Hongqiao Group Limited | | | | | 中國宏橋集團有限公司 | | | | | (板據開曼群島法例成立的有限公司}股份代號：1378 | | | 2021 | 目錄 公司資料 2 財務摘要 4 主席報告 5 管理層討論與分析 8 補充資料 17 中期簡明綜合財務資料之審閱報告 25 中期簡明綜合損益及其他全面收益表（未經審核） 26 中期簡明綜合財務狀況表（未經審核） 27 中期簡明綜合權益變動表（未經審核） 29 中期簡明綜合現金流量表（未經審核） 31 中期簡明綜合財務資料附註（未經審核） 33 1 中國宏橋集團有限公司 公司資料 非執行董事 張波先生 楊叢森先生 張月霞女士 獨立非執行董事 香港 文献軍先生 邢建先生 韓本文先生 董新義先生 中國總辦事處 財務總監 中國 山東省 張瑞蓮女士 公司秘書 張月霞女士 審核委員會 執行董事 ...

China Hongqiao Group Limited 中國宏橋集團有限公司 (根據開曼群島法例成立的有限公司) 服份代號：1378 年 度 報 告 2020 VOTE 目錄 財務摘要2 公司資料3 股東參考數據5 主席報告6 管理層討論與分析8 董事及高級管理層 18 董事會報告 24 企業管治報告 51 獨立核數師報告 65 綜合損益及其他全面收益表 72 綜合財務狀況表 73 綜合權益變動表 75 綜合現金流量表 77 綜合財務報表附註 80 財務摘要 （按國際財務報告準則編製） 重要財務數據比較 業績 | --- | --- | --- | --- | --- | --- | |--------------------------|------------|-------------------------------|----------------------------------------------------------|------------|------------| | | 二零一六年 | 二零一七年註 1 \n（經重列） | 截至十二月三十一日止年度 \n二零一八年 \n（人 ...

Financial Performance - The company's revenue for 2019 was approximately RMB 84,179,288,000, a decrease of about 6.7% year-on-year[11]. - Gross profit for 2019 was approximately RMB 16,464,253,000, an increase of about 6.9% year-on-year[11]. - Net profit attributable to shareholders for 2019 was approximately RMB 6,095,335,000, an increase of about 12.7% year-on-year[11]. - Basic earnings per share for 2019 was approximately RMB 0.7087, compared to RMB 0.6218 in the same period of 2018[11]. - The group's revenue for the year ended December 31, 2019, was approximately RMB 84.18 billion, a decrease of about 6.7% year-on-year, primarily due to a reduction in aluminum alloy product production and sales[17]. - The group's net profit attributable to shareholders for the year was approximately RMB 6.10 billion, an increase of about 12.7% year-on-year, benefiting from lower procurement prices of raw materials and improved production efficiency[17]. - The overall gross profit margin for the company was approximately 19.6%, an increase of about 2.5 percentage points from the previous year's 17.1%[20]. - The company reported a total comprehensive income of RMB 6,455,143 thousand for the year, compared to RMB 6,095,335 thousand in the previous year, an increase of about 5.9%[167]. Production and Sales - Aluminum alloy product sales reached approximately 5.06 million tons, a decrease of about 13.8% compared to approximately 5.87 million tons in the previous year[17]. - The production of aluminum alloy products decreased by approximately 11.3% to about 5.64 million tons, influenced by government production restrictions and adverse weather conditions[15]. - The production of aluminum processing products increased by approximately 25.3% to about 630,000 tons, driven by active market expansion efforts[15]. - For the year ended December 31, 2019, the company's revenue from aluminum alloy products was approximately RMB 61,891,049,000, accounting for 73.5% of total revenue, a decrease from the previous year's 79.3%[19]. Investments and Projects - The company plans to launch the second phase of a one million-ton alumina project in Indonesia, expected to commence production by the end of 2020[11]. - The company is actively developing alumina and bauxite mining operations in Africa, which will enhance the stability of raw material supply[11]. - The group plans to add new recycled aluminum production lines to enhance primary aluminum capacity and product development[12]. - The group aims to improve energy efficiency and environmental protection investments, utilizing various clean energy sources[12]. Dividends and Shareholder Returns - The company recommended a final dividend of HKD 0.34 per share for the year 2019[11]. - The company has adopted a dividend policy allowing for the distribution of dividends to shareholders while retaining sufficient reserves for future growth[48]. - The board of directors will consider the company's business, profitability, financial condition, cash needs, and capital expenditures when proposing dividends[48]. - The company has maintained a consistent approach to its dividend declarations, reflecting its commitment to shareholder returns while ensuring financial stability[48]. Financial Position and Liabilities - The total assets of the company as of December 31, 2019, were approximately RMB 179,604,445,000[5]. - As of December 31, 2019, the total liabilities of the group were approximately RMB 113.59 billion, with a debt-to-asset ratio of about 63.2%[26]. - The group had bank borrowings totaling approximately RMB 32.57 billion, with 36.5% at fixed interest rates and 63.5% at floating interest rates[26]. - The company's cash and cash equivalents were approximately RMB 41,857,116,000, a decrease of about 7.8% from RMB 45,380,413,000 in the previous year[23]. Management and Governance - The company’s management team includes experienced professionals with significant backgrounds in finance and production, contributing to operational efficiency[46]. - The company has established a risk management system to identify and control operational risks, including financial security and compliance[29]. - The company has maintained compliance with relevant laws and regulations throughout its operations in China and its listing on the Hong Kong Stock Exchange[31]. - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors as of December 31, 2019[114]. Environmental and Social Responsibility - The company has established a green aluminum innovation industrial park in Yunnan Province, marking a significant step in adjusting its energy structure[11]. - The company is committed to increasing investments in energy conservation and environmental protection, utilizing various clean energy sources[35]. - The company donated RMB 500,000 to Central South University for scholarships and approximately RMB 1,460,000 to the Yunnan Weiqiao "Rainbow Home" charity project in 2019[72]. Audit and Compliance - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2019, in accordance with International Financial Reporting Standards[146]. - The audit committee reviewed the group's financial reporting processes and internal control systems for the year ending December 31, 2019[130]. - The company has a risk management and internal audit function that was assessed for effectiveness during the year[130]. Future Outlook - The group is confident in the future development of the aluminum industry, driven by the increasing demand for lightweight automotive applications and growth in construction and home appliance sectors[12]. - The company plans to continue exploring market expansion opportunities and new product development in the upcoming fiscal year[52].

Financial Performance - Total revenue for 2018 reached RMB 90,194,924, a decrease of 7.1% compared to RMB 97,941,916 in 2017[4] - Gross profit for 2018 was RMB 15,400,562, resulting in a gross margin of 17.1%, down from 16.7% in 2017[4] - Profit attributable to shareholders for 2018 was RMB 5,407,422, reflecting a net profit margin of 6.4%, compared to 5.4% in 2017[4] - The company's revenue for 2018 was approximately RMB 90.19 billion, a year-on-year decrease of about 7.9%[11] - Gross profit for the year was approximately RMB 15.40 billion, a year-on-year decrease of about 6.0%[11] - Net profit attributable to shareholders was approximately RMB 5.41 billion, a year-on-year increase of about 5.4%[11] - For the year ended December 31, 2018, the group's revenue was approximately RMB 90,194,924,000, a decrease of about 7.9% year-on-year, primarily due to the shutdown of certain aluminum alloy production lines in the second half of 2017[17] - The net profit attributable to shareholders for the year was approximately RMB 5,407,422,000, an increase of about 5.4% year-on-year, despite a decrease in gross profit and foreign exchange losses[17] - The company reported a total comprehensive income of RMB 5,940,932 thousand for 2018, an increase from RMB 5,186,418 thousand in 2017, representing a growth of approximately 14.5%[146] Assets and Liabilities - Total assets increased to RMB 176,726,892 in 2018, up from RMB 158,684,987 in 2017[5] - Total liabilities rose to RMB 114,107,395 in 2018, compared to RMB 104,947,420 in 2017[5] - The group's total liabilities as of December 31, 2018, were approximately RMB 114,107,395,000, compared to RMB 104,947,420,000 as of December 31, 2017, with a debt-to-asset ratio of approximately 64.6%[23] - The company's net asset value reached RMB 62,619,497 thousand in 2018, up from RMB 53,737,567 thousand in 2017, indicating a growth of approximately 16.5%[148] Cash Flow and Capital Expenditures - The company maintained a stable cash flow and significantly reduced capital expenditures during the year[12] - The group's cash and cash equivalents increased by approximately 106.8% to RMB 45,380,413,000, driven by net inflows from operating, investing, and financing activities[21] - Capital expenditures for the year were approximately RMB 4,168,941,000, primarily for environmental protection project upgrades and quality assurance deposits for construction projects[21] - Cash and cash equivalents rose to RMB 45,380,413 thousand in 2018, compared to RMB 21,947,939 thousand in 2017, representing an increase of about 106.5%[147] Operational Efficiency - Current ratio improved to 156% in 2018, compared to 119% in 2017[5] - Accounts receivable turnover days increased to 18 days in 2018, up from 5 days in 2017[5] - Inventory turnover days decreased to 86 days in 2018, compared to 73 days in 2017[5] - The group's average accounts receivable turnover days increased to approximately 18 days, up 13 days from about 5 days in the previous year, due to extended credit terms to quality customers and increased trade receivables from higher sales of aluminum alloy products[22] - The group's inventory turnover days were approximately 86 days, an increase of 13 days from about 73 days in the previous year, primarily due to increased raw material reserves[22] Market and Production Insights - In 2018, China's primary aluminum consumption was approximately 37.13 million tons, a year-on-year growth of about 4.7%[15] - China's primary aluminum production was approximately 36.59 million tons, a year-on-year decrease of about 0.2%[15] - The average price of LME aluminum for the year was approximately USD 2,110 per ton, an increase of about 7.2% compared to 2017[15] - The sales volume of aluminum alloy products reached approximately 5.865 million tons, a decrease of about 18.0% compared to approximately 7.155 million tons in the same period last year[17] - The sales volume of alumina products increased to approximately 4.090 million tons, a year-on-year growth of about 117.9%, attributed to the increased availability for external sales following the shutdown of aluminum alloy production lines[17] Expenses and Financial Management - Distribution and selling expenses increased by approximately 37.4% to RMB 371,206,000, mainly due to increased transportation costs related to alumina sales growth[20] - Administrative expenses rose by approximately 85.6% to RMB 3,867,211,000, influenced by increased asset depreciation and personnel costs due to production capacity shutdowns[20] - Financial expenses for 2018 were RMB 4,433,389 thousand, up from RMB 4,080,942 thousand in 2017[51] Shareholder and Governance Matters - The company reported a final dividend of HKD 0.24 per share for the year ended December 31, 2018, subject to shareholder approval at the annual general meeting on May 22, 2019[48] - The company has adopted a dividend policy allowing for the declaration and distribution of dividends to shareholders, contingent upon board discretion and shareholder approval[47] - The board of directors has not received any arrangements from shareholders to waive or agree to waive any dividends during the year[48] - The company emphasizes effective communication with shareholders and investors, maintaining a diverse communication platform since its listing in March 2011[133] Risk Management and Compliance - The group has implemented a risk management system to identify, assess, and control potential risks, covering financial security, production, and compliance[28] - The environmental department monitors compliance with environmental regulations and has installed pollution control equipment at power plants to reduce emissions[29] - The company has established a rigorous securities trading code aligned with the standards set out in the listing rules[102] - The company has established procedures for handling and disclosing inside information, adhering to guidelines set by the Hong Kong Securities and Futures Commission[129] Management and Leadership - The board of directors consists of four executive directors, three non-executive directors, and three independent non-executive directors as of December 31, 2018[100] - The company’s management team includes experienced professionals with backgrounds in finance, law, and engineering, contributing to strategic decision-making[43][44] - The company provides training programs for new directors to enhance their understanding of the group's culture and operations[105] Accounting Policies and Standards - The company adopted IFRS 9 and IFRS 15 for the first time this year, with no significant impact on financial performance or disclosures from previous years[157] - The company recognizes revenue when control of goods or services is transferred to customers, following five steps as per IFRS 15[177] - The company applies the equity method for investments in associates, recognizing share of profits and losses post-acquisition[176] Corporate Social Responsibility - The company made charitable donations of RMB 2,060,000 to the Beijing Rainbow Public Welfare Foundation and RMB 500,000 to the China Social Welfare Foundation in 2018[71]