Financial Performance - Revenue for 2023 reached RMB 210.216 billion, with net profit attributable to equity holders of RMB 3.863 billion[5] - Net cash flow from operating activities was RMB 29.025 billion, while capital expenditures amounted to RMB 30.568 billion[5] - Revenue for 2023 decreased by 10.1% to RMB 210.22 billion compared to RMB 233.88 billion in 2022[10] - Net profit attributable to equity holders of the company dropped by 52.5% to RMB 3.86 billion in 2023 from RMB 8.13 billion in 2022[10] - Revenue decreased by 10.1% from RMB 233,879.8 million in 2022 to RMB 210,216.4 million in 2023, primarily due to a decline in the basic building materials division[39][40] - Net profit attributable to equity holders dropped by 52.5% from RMB 8,129.6 million in 2022 to RMB 3,863.0 million in 2023[39] - Profit attributable to equity holders decreased by 52.5% from RMB 8,129.6 million in 2022 to RMB 3,863.0 million in 2023, with net profit margin dropping from 3.5% to 1.8%[50] Segment Performance - Revenue from the Basic Materials segment decreased by 19.3% year-on-year to RMB 118.8 billion, with net profit attributable to the parent company dropping by 63.6% to RMB 1.171 billion[5] - Revenue from the New Materials segment grew by 3.6% year-on-year to RMB 47.623 billion, but net profit attributable to the parent company fell by 34.3% to RMB 3.429 billion[5] - Revenue from the Engineering and Technical Services segment increased by 6.4% year-on-year to RMB 45.105 billion, with net profit attributable to the parent company rising by 3.3% to RMB 1.451 billion[5] - Basic materials division revenue decreased by 19.3% from RMB 147,230.5 million in 2022 to RMB 118,800.5 million in 2023, mainly due to lower average selling prices and reduced sales volumes[51] - New materials division revenue increased by 3.6% from RMB 45,975.0 million in 2022 to RMB 47,623.1 million in 2023, driven by increased sales volumes of various products[55] - Engineering technical services division revenue increased by 6.4% from RMB 42,375.4 million in 2022 to RMB 45,104.6 million in 2023, due to increased service volumes[59] - Gross profit of the engineering technical services division increased by 21.9% from RMB 6,898.1 million in 2022 to RMB 8,408.0 million in 2023, with gross margin rising from 16.3% to 18.6%[61] - Operating profit of the engineering technical services division increased by 19.1% from RMB 2,943.6 million in 2022 to RMB 3,506.4 million in 2023, with operating profit margin rising from 6.9% to 7.8%[62] Sales and Pricing - Cement sales volume in 2023 was 279.08 million tons, a slight decrease from 281.52 million tons in 2022[13] - The average selling price of cement decreased by 18.0% to RMB 274.5 per ton in 2023 from RMB 334.9 per ton in 2022[13] - Glass fiber sales volume increased by 18.8% to 3.45 million tons in 2023, but the average selling price dropped by 25.3% to RMB 4,705 per ton[14] - Wind turbine blade sales volume grew by 5.0% to 21,644 MW in 2023, with the average selling price decreasing by 5.3% to RMB 437,719 per MW[14] - Lithium battery separator sales volume surged by 52.9% to 1.73 billion square meters in 2023, while the average selling price fell by 15.2% to RMB 1.40 per square meter[14] - Carbon fiber sales volume increased significantly by 92.5% to 18.04 thousand tons in 2023, but the average selling price dropped by 41.1% to RMB 124,324 per ton[14] Debt and Financial Ratios - The net debt ratio stood at 81.4%, with a dividend payout ratio of 50.0%[5] - The asset-liability ratio rose by 2.2 percentage points to 37.8% in 2023, and the net debt ratio increased by 6.3 percentage points to 81.4%[11] - The company's total borrowings as of December 31, 2023, amounted to RMB 184,905.7 million, an increase from RMB 174,236.1 million in 2022[63][64] - The company's asset-liability ratio was 37.8% as of December 31, 2023, compared to 35.6% in 2022[65] - The company's total unused bank credit and unissued registered bonds amounted to RMB 345,877.3 million as of December 31, 2023[63] - Borrowings due within one year or on demand as of December 31, 2023, were RMB 73,980.1 million, a decrease from RMB 77,688.5 million in 2022[64] Capital Expenditures and Cash Flow - Capital expenditures for 2023 totaled RMB 30,568.2 million, with the largest allocation going to basic building materials at 57.7% (RMB 17,636.2 million)[67] - The company's net cash inflow from operating activities in 2023 was RMB 29,024.9 million, an increase of RMB 2,179.1 million compared to 2022[69] - Net cash outflow from investing activities in 2023 was RMB 27,339.4 million, an increase of RMB 1,369.9 million from 2022[70] - Net cash outflow from financing activities in 2023 was RMB 1,078.1 million, a decrease of RMB 1,576.6 million compared to 2022[71] - The company's capital commitments for property, plant, and equipment as of December 31, 2023, were RMB 4,191.4 million, down from RMB 5,822.1 million in 2022[66] - The company's lithium battery separator segment saw a significant increase in capital expenditure, reaching RMB 5,370.0 million in 2023, up from RMB 2,501.0 million in 2022[67] Industry and Market Position - The company is the world's largest producer of cement, commercial concrete, glass fiber, electronic cloth, light steel keel, gypsum board, and wind turbine blades[3] - The company ranked 58th in the Fortune China 500 list and 33rd in the China ESG Pioneer 100 list[4] - The company received 7 major awards from Institutional Investor and was recognized as an industry leader in progress by S&P Global[4] - The company's cement production in 2023 decreased by 0.7% year-on-year to 2.02 billion tons, marking an 18% decline from the peak in 2014[25] - The cement industry's profit in 2023 was RMB 32 billion, a 50% decrease year-on-year, the lowest in nearly 16 years[25] - The company's internationalization strategy achieved a breakthrough with Zambia Industrial Park generating over RMB 100 million in net profit[25] - The company completed the asset restructuring of Qilian Mountain and China Communications Construction Group Design Institute, setting a precedent for market-oriented restructuring and listing among central enterprises[25] - The company's "cement+" business saw steady growth in revenue and profit contribution, with differentiated marketing strategies for ready-mix concrete and stable operations in aggregate business[25] ESG and Sustainability - The company formulated the ESG 2023-2025 strategy and integrated it into its development plans, while also accelerating the implementation of the "dual carbon" strategy[16] - The company's green mines and factories totaled 137 and 239, respectively, with a carbon capture project in Qingzhou achieving an annual capacity of 200,000 tons[38] - The company adheres to environmental policies, focusing on green and low-carbon development, and has completed self-inspection and rectification of central environmental inspection issues[134] - The company established an Environmental, Social, and Governance (ESG) Committee on March 24, 2023[102] - The ESG Committee is responsible for setting the company's overall ESG management goals, strategies, and policies[103] - The ESG Committee held its first meeting to review the company's ESG work and future recommendations[103] Corporate Governance and Board Activities - The company's board of directors consists of 5 independent non-executive directors, meeting the minimum requirement under the Listing Rules[79] - The company established an Environmental, Social, and Governance (ESG) Committee on March 24, 2023, which held one meeting by the end of 2023[77] - All directors and supervisors complied with the company's securities trading code during the reporting period[74] - The company's board of directors is responsible for major decisions including annual financial budgets, profit distribution, debt and financial policies, and major acquisitions or disposals[78] - The company's management is responsible for the daily operations and implementation of board resolutions, with regular reviews and feedback to ensure operational and management arrangements meet company needs[79] - The company's board of directors ensures timely communication and consideration of opinions among all directors to make scientific decisions and promote positive, active, and steady development[79] - The company's independent non-executive directors provide independent professional opinions on strategic, policy, investment, and major appointment matters, contributing to the board's balanced structure and high-quality decision-making[79] - The company's board of directors closely monitors major company matters, regularly listens to project progress reports, and participates in continuous training to ensure efficient operations[78] - The company's board of directors is elected by the shareholders' meeting and is the highest decision-making body during the intersession of the shareholders' meeting[78] - The company organized four research trips for independent non-executive directors, independent supervisors, and shareholder representative supervisors to 10 subsidiaries, focusing on new materials development, internationalization, dual-carbon strategies, and business integration[83] - The Strategic Decision-Making Committee reviewed and approved the company's 2022 operating performance and 2023 work arrangements, 2023 investment plan, and mid-term evaluation and adjustment of the "14th Five-Year Plan"[88] - The company provided continuous professional development training for directors, including monthly reports on company operations, weekly industry updates, and bi-weekly reports on macroeconomic and capital market conditions[80] - Directors participated in various training sessions, including those on ESG topics, independent director reforms, and high-quality development of state-owned enterprises[82] - The company's Strategic Decision-Making Committee consists of 4 directors, including Chairman Zhou Yuxian and President Wei Rushan[87] - The company's Chairman Zhou Yuxian is responsible for presiding over shareholder meetings and board meetings, while President Wei Rushan oversees daily operations and implements board resolutions[84] - The company has established five specialized board committees, including the Strategic Decision-Making Committee, Nomination Committee, and ESG Committee[86] - Non-executive directors serve a three-year term and are eligible for re-election upon expiration[85] - The company's directors received training on Xi Jinping's rule of law thought, anti-monopoly regulations, and high-quality development of listed companies[81] - The Strategic Decision-Making Committee reviewed and approved the company's carbon peak and carbon neutrality implementation plan[88] - The Nomination Committee consists of three members, including Chairman Zhou Yuxian, and members Sun Yanjun and Liu Jianwen, with Zhou Yuxian being an executive director and the other two being independent non-executive directors[89] - The Nomination Committee is responsible for formulating procedures and standards for the selection of directors, senior management, and members of various committees, and conducting preliminary reviews of their qualifications[90] - The company has established a Board Diversity Policy to enhance corporate governance, considering factors such as skills, professional experience, cultural and educational background, ethnicity, tenure, gender, and age[91] - As of 2023, the board includes two female directors, and the company aims to maintain or increase this ratio, actively considering increasing female representation in future nominations[92] - The Nomination Committee has reviewed the Board Diversity Policy and confirmed that the current board members meet the diversity requirements, contributing to improved governance and operational standards[93] - The company's Director Nomination Policy ensures that board members possess the necessary skills, experience, and diversity, with a comprehensive selection process that includes internal and external searches and detailed background checks[94] - In 2023, the Nomination Committee held meetings to discuss board structure, the independence of non-executive directors, and the appointment of a Chief Compliance Officer[95] - The Remuneration and Assessment Committee, chaired by independent non-executive director Zhou Fangsheng, is responsible for reviewing and recommending the remuneration and performance of directors and senior management[96] - Senior management compensation includes base salary, performance-based salary, special awards, and stock appreciation rights, with the committee responsible for proposing these to the board for approval[97] - The company's Audit Committee reviewed the financial reports and performance for the year ended December 31, 2023[99][100] - The Audit Committee provided review opinions on the 2022 annual financial report and the 2023 interim financial report[100] - The Board of Directors is responsible for preparing financial statements that truly and fairly reflect the company's financial position[101] Shareholder and Dividend Information - The company plans to distribute a final dividend of RMB 1,931,562,481.60 for the period from January 1, 2023, to December 31, 2023, based on 8,434,770,662 issued shares, amounting to RMB 0.229 per share[124] - The final dividend for 2023 is subject to approval at the Annual General Meeting on April 29, 2024[125] - Non-resident enterprise shareholders will have a 10% corporate income tax withheld on the final dividend for 2023[126] - Mainland enterprise investors holding H-shares for over 12 months are exempt from corporate income tax on dividends[126] - Individual H-share shareholders will have a 20% personal income tax withheld on the final dividend for 2023[127] - Hong Kong and Macau resident individual H-share shareholders will have a 10% personal income tax withheld on dividends[128] - Individual H-share shareholders from countries with tax treaties with China may enjoy reduced tax rates if they submit required documents by May 14, 2024[129] - The company will determine the tax rate for individual H-share shareholders based on their registered address and applicable tax treaties[128] - The final dividend is expected to be distributed to shareholders registered on May 13, 2024, and will be paid by June 28, 2024[132] - Shareholders must complete share transfer registration by April 23, 2024, to be eligible to attend and vote at the annual general meeting[131] - Shareholders must provide proof of residence and tax-related documents by May 14, 2024, to apply for a refund of over-withheld taxes[130] Risk Management and Internal Control - The company established an internal control system and compliance management committee to strengthen risk management and internal control[113] - The company has established a comprehensive risk management and internal control system, with each department serving as the first line of defense, responsible for identifying, confirming, managing, and reporting risks[114] - The company's legal compliance department conducts quarterly risk monitoring and annual internal control evaluations, with reports summarizing the previous year's situation and planning for the next year's improvements[114] - The company has optimized its risk monitoring system in 2023, exploring the establishment of a quantitative risk assessment model to enhance the precision of risk monitoring[114] - The board of directors is responsible for the effectiveness of the company's risk management, internal control systems, and compliance construction, conducting annual reviews to ensure adequate resources and employee qualifications[115] - The company has a procedure for handling and releasing insider information, involving internal department reviews, legal consultation, and board approval before disclosure[116] - The company revised its articles of association in 2023, with the changes approved by the board of directors and the annual general meeting of shareholders[118] - The company places high importance on investor relations, establishing a board secretariat to manage investor relations and improve corporate governance and transparency[119] - The company received multiple awards in 2023, including the "Best ESG/SRI Metrics" from Institutional Investor and the "Best Board of Directors" from the same publication[120] - The company was ranked 58th in the 2023 Fortune China 500 list and received dual certification for its compliance management system under ISO 37301-2021 and GB/T 35770-2022 standards[121] Related Party Transactions and Guarantees - The company entered into a mineral procurement agreement with the parent company, with an annual cap of 216.44 million RMB for 2023, and actual expenditures of 73.68 million RMB for the year[169] - The company signed a product and service mutual supply agreement with its parent company, with a 2023 procurement cap of RMB 14,753.79 million and a supply cap of RMB 3,091.81 million[171] - In 2023, the company's actual procurement expenses from the parent company under the product and service agreement were RMB 11,422.08 million, while revenue from supplying products and services to the parent company was RMB 1,689.38 million[171] - The company entered into an equipment procurement agreement with its parent company, with a 2023 procurement cap of RMB 1,533.42 million and actual procurement expenses of RMB 179.21 million[173] - The company established an engineering service mutual supply agreement with its parent company, with a 2023 procurement cap of RMB 10,236.63 million and a supply cap of RMB 1,167.34 million[175] - In 2023, the company's actual procurement expenses for engineering services from the parent company were RMB 7,070.35 million, while revenue from supplying engineering services to the parent company was RMB 168.43 million[175] - The company's rental income from leasing properties to the parent group in 2023 was RMB 102.48 million, close to the annual cap of RMB 103.69 million[177] - The company paid RMB 34.91 million in
中国建材(03323) - 2023 - 年度财报