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 HK1,935.7 million, a decrease of 75.1% compared to the previous year[35][37] - Basic earnings per share for 2022 was HK1.112 in 2021[35][37] - Total assets as of 31 December 2022 were HK79,149.2 million in 2021[33] - Equity attributable to owners of the Company as of 31 December 2022 was HK54,856.0 million in 2021[33] - Gearing ratio increased to 33.4% in 2022 from 19.0% in 2021[33] - Total distribution for 2022 was HK0.52 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
华润水泥控股(01313) - 2022 - 年度财报