Company Overview - The total number of issued shares of China Resources Cement Holdings Limited is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[4]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[4]. - China Resources Cement Holdings Limited was incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[3]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[4]. - The company operates as the holding company for all cement and concrete operations of the China Resources Group[3]. - The company has a registered office in the Cayman Islands and its principal place of business in Hong Kong[29]. - The company’s official website for corporate communications is www.irasia.com/listco/hk/crcement/index.htm[29]. - Ernst & Young serves as the independent auditor for China Resources Cement Holdings Limited[28]. - The company has a diverse banking relationship with major banks including Agricultural Bank of China and Bank of America[28]. - The company was initially listed on the Stock Exchange of Hong Kong Limited on July 29, 2003, by way of introduction[4]. Production Capacity and Operations - As of December 31, 2019, the Group operated 96 cement grinding lines and 45 clinker production lines, with an annual production capacity of 84.3 million tons of cement and 61.3 million tons of clinker respectively[37]. - The Group also has 61 concrete batching plants with an annual production capacity of 36.9 million cubic meters of concrete[37]. - The products are primarily used in infrastructure projects such as railways, highways, subways, bridges, airports, ports, dams, hydroelectric power stations, and nuclear power stations[36]. - The Group's operations cover the excavation of limestone, production, sale, and distribution of cement, clinker, and concrete[36]. - The main sales regions include Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi[36]. - The Group has established a well-developed logistics network including waterways, railways, and roads for product distribution[36]. - The annual production capacity for cement is 84.3 million tons, while for clinker it is 61.3 million tons[37]. - The concrete production capacity is 36.9 million cubic meters annually[37]. - The Group is recognized as a large-scale and competitive producer in Southern China[36]. - The facilities are strategically located to support the construction of high-rise buildings and rural development[36]. Financial Performance - The company's turnover for 2019 was HK$38,955.6 million, an increase from HK$38,791.5 million in 2018, representing a growth of 0.4%[56]. - Profit for the year reached HK$8,694.4 million, up from HK$8,006.7 million in 2018, indicating a year-over-year increase of 8.6%[56]. - The basic earnings per share for 2019 was HK$1.234, compared to HK$1.179 in 2018, reflecting a growth of 4.7%[56]. - The total assets attributable to owners of the company as of December 31, 2019, were HK$61,170.9 million, a slight increase from HK$60,506.4 million in 2018[57]. - The gearing ratio improved to 18.9% in 2019 from 33.2% in 2018, indicating a reduction in financial leverage[57]. Strategic Developments - The company acquired land in Guangxi for the production of prefabricated construction components with a design annual production capacity of approximately 200,000 m³[54]. - A clinker production line with an annual capacity of approximately 1.4 million tons commenced operations in Guizhou in February 2020[54]. - The company holds a 40% equity interest in Universal Marble after acquiring an additional 20% stake for RMB388,116,348 in April 2019[50]. - The company subscribed to 40,164,000 H shares of YCIH Concrete, representing approximately 9.0% of its total issued share capital, for a total consideration of HK$134,951,040[50]. - The planned annual production capacity of the granite quarry acquired in November 2019 is approximately 2.0 million tons[53]. Market and Economic Context - In 2019, China's GDP grew by 6.1% year-on-year to RMB99.1 trillion, with national fixed asset investment increasing by 5.4% to RMB55.1 trillion[62]. - The floor space of commodity housing sold in China was 1,720 million m², with sales amount increasing by 6.5% year-on-year to RMB16.0 trillion[63]. - Real estate investment in China reached RMB13.2 trillion, representing a year-on-year increase of 9.9%[63]. - The operational length of newly built and rebuilt rural roads in 2019 was approximately 290,000 km, supporting cement demand[63]. - National infrastructure investments increased by 3.8% year-on-year, with highway and waterway investments amounting to approximately RMB2.3 trillion[62]. - The stability of the real estate market is conducive to the steady development of the cement industry[63]. - In 2019, China's cement production increased by 6.1% year-on-year to approximately 2,330 million tons[64]. Environmental and Social Responsibility - The Group emphasizes corporate social responsibility, focusing on energy saving, emission reduction, and green development, with emissions better than national standards[40]. - All cement and clinker production plants are equipped with residual heat recovery generators to reduce energy consumption[40]. - The Group actively engages in co-processing projects for municipal solid waste, urban sludge, and hazardous industrial waste using cement kilns[40]. - The Group's efforts in sustainable development were recognized with multiple awards in 2019, including the EcoChallenger award and inclusion in green manufacturing lists[72]. - The Group is focusing on transformation and innovation, particularly in aggregates and prefabricated construction[68]. Technological Advancements - The Group has a strong focus on R&D for new products, materials, and technologies to promote corporate transformation and sustainable development[39]. - The Group implemented 219 technological upgrades in 2019, focusing on safety, environmental protection, energy saving, and consumption reduction[96]. - The Group's Technology Research and Development Centre provided 1,982 checks and tests for production plants in 2019, supporting lean operations[100]. - The Group is actively researching intelligent denitration technology (heSNCR) to further reduce nitrogen oxides emissions, with pilot work planned for 2020[176]. Mining and Resource Management - The Group has acquired mining rights for aggregate resources in Fujian and Guangxi, enhancing its aggregate resource reserves[70]. - The Group's mining operations include zero wastewater discharge and timely recycling of waste oil to minimize ecological impact[196]. - The Group's mining projects undergo environmental assessments to avoid ecological damage during development and construction[196]. - The Group's efforts in ecological restoration have been recognized, receiving the second prize of the Scientific and Technological Award from the Chinese Society of Rock Mechanics and Engineering[200]. Future Outlook - The Group plans to implement comprehensive water recycling systems at seven additional cement production plants in 2020, focusing on advanced technology and lower operating costs[188]. - The Group expects total payments for capital expenditure to be approximately HK$1,321.6 million in 2020 and HK$1,283.4 million in 2021, financed by proceeds from previous share placements and internally generated funds[155]. - The Group is actively developing low-carbon cement, which features a reduction of about 10% in carbon dioxide emissions during the combustion process compared to traditional Portland cement[184].
华润建材科技(01313) - 2019 - 年度财报