CHINA RAILWAY(HK:00390)2021-04-21 09:24Financial Performance - Total revenue for 2020 reached RMB 974,732 million, a 14.6% increase from RMB 850,843 million in 2019[5] - Gross profit for 2020 was RMB 90,352 million, up 13.1% from RMB 79,864 million in 2019[5] - Net profit attributable to shareholders was RMB 25,188 million, a 6.4% increase from RMB 23,678 million in 2019[5] - The company reported a historical high in key economic indicators, with nearly 5,000 projects resuming work, creating over 1 million jobs[9] - The company achieved a revenue of 974.732 billion yuan in 2020, an increase of 14.6% compared to the previous year[125] - The net profit for 2020 was 27.250 billion yuan, reflecting a growth of 7.4% year-on-year[125] Assets and Liabilities - Total assets increased to RMB 1,199,977 million, reflecting a 13.6% growth from RMB 1,056,041 million in 2019[6] - Total liabilities amounted to RMB 886,931 million, a 9.4% increase from RMB 810,713 million in 2019[6] - The group’s total debt as of December 31, 2020, was RMB 250.06 billion, an increase from RMB 231.25 billion in 2019[92] - The debt-to-asset ratio improved to 73.9% as of December 31, 2020, down from 76.8% in 2019, a decrease of 2.9 percentage points[96] Business Segments - Infrastructure construction revenue was RMB 876,310 million, representing a 15.0% growth compared to RMB 762,084 million in 2019[5] - The company is focusing on infrastructure construction, design consulting services, and real estate development as its main business areas[124] - The real estate development business achieved sales of RMB 68.56 billion, a decrease of 1.6% year-on-year, primarily due to the impact of COVID-19 and local government price control policies[48] - The company is committed to expanding its diversified business operations, including real estate development, material trade, and financial services, to support its core infrastructure construction business[30] Market Position and Achievements - The company ranked 50th in the Fortune Global 500 list for the first time, highlighting its significant growth and market position[8] - The company was ranked 2nd among the world's largest contractors in the ENR list and entered the top 50 of the Fortune Global 500 for the first time[39] - The company received 14 Zhan Tianyou Awards, ranking first among state-owned construction enterprises in China[40] - The company’s MSCI ESG rating was upgraded to BB, enhancing its image in domestic and international capital markets[39] Innovation and Technology - China Railway's technology innovation led to the production of shield machines ranking first globally for four consecutive years, and it received the National Science and Technology Award, ranking first among state-owned construction enterprises for three years[10] - The company is focusing on the development of prefabricated construction and green building materials, which are expected to see increased market demand[34] - Research and development expenses rose by 32.3% to CNY 21.84 billion in 2020, indicating a commitment to technological innovation[64] Corporate Governance and Management - The company has established a governance structure comprising the shareholders' meeting, board of directors, supervisory board, and senior management[163] - The board of directors consists of 9 members, with a majority being independent non-executive directors, ensuring compliance with listing rules[168] - The company emphasizes adherence to corporate governance principles to ensure long-term sustainable development and better returns for shareholders[162] Social Responsibility and Community Engagement - The company has received multiple honors, including recognition for its poverty alleviation efforts and contributions to pandemic response, showcasing its commitment to social responsibility[9] - The company made donations totaling RMB 216.875 million during the fiscal year, compared to RMB 85.691 million in 2019[130] Risks and Challenges - The company faces various risks including investment risk, internationalization risk, cash flow risk, safety production, quality and environmental risks, and major epidemic prevention risks[98] - The company has established an internal control system to mitigate various risks and ensure overall risk management[98] Future Outlook - The company plans to achieve total operating revenue of approximately CNY 983 billion in 2021, with a projected new contract value of about CNY 2.64 trillion[59] - The company aims to ensure a strong start to the "14th Five-Year Plan" by adhering to new development concepts and enhancing service quality for stakeholders[11] - The company plans to continue its market expansion and innovation efforts to sustain growth[125]