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]. - The company 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]. Financial Performance - The interim report for 2020 highlights significant events and financial performance[5]. - The Group's turnover for the six months ended June 30, 2020, was HK$16,884.3 million, a decrease from HK$17,409.5 million in the same period of 2019, representing a decline of approximately 3.0%[27]. - EBITDA for the same period was HK$6,721.5 million, an increase from HK$6,433.8 million in 2019, reflecting a growth of approximately 4.5%[27]. - Profit for the period attributable to owners of the Company was HK$4,191.3 million, compared to HK$3,766.0 million in 2019, indicating an increase of approximately 11.3%[27]. - The Group's unaudited consolidated turnover for the six months ended June 30, 2020, amounted to HK$16,884.3 million, representing a decrease of 3.0% compared to the same period last year[31]. - The unaudited consolidated profit attributable to owners of the Company for the period was HK$4,191.3 million, reflecting an increase of 11.3% year-on-year[31]. - Basic earnings per share for the period was HK$0.600[31]. - The total assets of the Company as of June 30, 2020, were HK$62,515.1 million, up from HK$61,170.9 million as of December 31, 2019[28]. - Equity attributable to owners of the Company increased to HK$42,945.5 million from HK$41,979.7 million year-on-year[28]. - The gearing ratio decreased to 16.4% as of June 30, 2020, compared to 18.9% at the end of 2019[28]. Production Capacity - As of June 30, 2020, the Group operated 97 cement grinding lines with an annual production capacity of 85.3 million tons of cement[14]. - The Group also had 46 clinker production lines with an annual production capacity of 62.7 million tons of clinker[14]. - Additionally, there were 59 concrete batching plants with an annual production capacity of 35.7 million cubic meters of concrete[14]. - The Group owns a total of 75 cement grinding lines, 27 clinker production lines, and 19 concrete batching plants, with total annual production capacities of 60.3 million tons of cement, 32.7 million tons of clinker, and 8.9 million m³ of concrete[17]. - The attributable annual production capacities to the Group are 20.4 million tons of cement, 11.0 million tons of clinker, and 4.1 million m³ of concrete[17]. Market and Industry Trends - In the first half of 2020, China's total cement production decreased by 4.8% year-on-year to approximately 1.0 billion tons, with the decline narrowing by 19.1 percentage points compared to the first quarter[40]. - The Chinese government tightened capacity replacement policies and enhanced standards to promote high-quality and sustainable development in the cement industry[41]. - Infrastructure investment in China decreased by 2.7% year-on-year, with a significant recovery in highway and waterway investments, which grew by 7.8% year-on-year to approximately RMB1.1 trillion[39]. - The government is promoting new-type urbanization and rural revitalization, which is expected to support the cement industry's stable development[39]. - The gradual development of the Greater Bay Area is expected to drive medium to long-term demand for building materials such as cement and concrete[58]. Corporate Governance and Social Responsibility - The company has a corporate governance structure that includes various committees such as the Audit Committee and Remuneration Committee[8]. - The Group emphasizes corporate social responsibility, focusing on production safety, energy saving, and emission reduction, with emissions better than national standards[17]. - The Group is committed to fulfilling corporate social responsibility and promoting green development within the industry[59]. Research and Development - The Group is actively enhancing research and development of new products, materials, and technologies to promote sustainable development and innovation[17]. - The Group's R&D Centre actively developed new products, including countertop products and early-strength nucleating agents for precast concrete components[106]. - The Group's achievements in co-processing projects have been recognized by the government, participating in forums and discussions on solid waste management and standard revisions[52]. Environmental Management - The Group's emission concentrations of nitrogen oxides, particulate matters, and sulphur dioxide are better than national pollutant emission standards[17]. - As of June 2020, 100% of the Group's cement production plants obtained pollutant emission permits and are equipped with low-temperature residual heat recovery systems, denitration systems, and bag filters[82]. - The average emission concentrations of nitrogen oxides, sulfur dioxide, and particulate matters are all below national pollutant emission standards[82]. Logistics and Distribution - The company has a well-established logistics network for product distribution across Southern China[13]. - The annual shipping capacity of the Group along the Xijiang River was approximately 34.9 million tons, ensuring stable logistics capabilities for business operations[71]. - As of June 2020, the Group controlled 36 silo terminals with an annual capacity of approximately 26.6 million tons, primarily located in the Pearl River Delta Region[72]. Capital Expenditure and Financing - The Group's capital management policies are robust and centralized, ensuring sufficient cash reserves for both short-term and long-term liquidity needs[144]. - The total capital expenditure for all projects listed amounts to HK$3,418.8 million, with HK$2,649.2 million outstanding as of June 30, 2020[153]. - The Group's capital expenditure will be financed by proceeds from previous share placements and internally generated funds[154]. Employee and Management - As of June 30, 2020, the Group employed a total of 19,690 full-time employees, a decrease from 19,816 employees as of December 31, 2019[113]. - The average age of senior and middle-level managerial staff is approximately 46 years, with 76% holding university degrees or above[115]. Shareholding Structure - The company holds a significant shareholding of approximately 68.72% by China Resources Company Limited[178]. - As of June 30, 2020, CRH (Cement) Limited directly held 4,792,189,749 shares, representing approximately 68.63% of the issued share capital of the Company[177].
华润水泥控股(01313) - 2020 - 中期财报