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[3]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[3]. - China Resources Cement Holdings Limited was incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[2]. - The company is the holding company for all cement and concrete operations of China Resources Group[2]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[3]. - The company has a registered office in the Cayman Islands and a principal place of business in Hong Kong[11]. - The company’s official website for corporate communications is www.irasia.com/listco/hk/crcement/index.htm[12]. - Ernst & Young serves as the independent auditor for the company[10]. - The company has a diverse board of directors, including both executive and non-executive members[5]. - The company has established various committees, including an audit committee and a remuneration committee, to oversee its governance[9]. Production Capacity - As of December 31, 2020, the Group operated 97 cement grinding lines with an annual production capacity of 85.3 million tons of cement[21]. - The Group has 46 clinker production lines with an annual production capacity of 62.7 million tons of clinker[21]. - The Group operates 60 concrete batching plants with an annual production capacity of 36.0 million cubic meters of concrete[21]. - The cement production lines in Guangdong total 24, with a capacity of 22.5 million tons[22]. - In Guangxi, there are 37 cement production lines with a capacity of 33.2 million tons[22]. - The Group's production facilities are strategically located across Southern China, including Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi[20]. - The concrete batching plants in Guangdong number 22, with a capacity of 13.7 million cubic meters[22]. - The Group's total annual production capacity of 60.3 million tons of cement, 34.2 million tons of clinker, and 8.9 million m³ of concrete, with attributable capacities of 20.4 million tons of cement, 11.2 million tons of clinker, and 4.1 million m³ of concrete[24]. Corporate Social Responsibility - The Group emphasizes corporate social responsibility, focusing on production safety, energy saving, and emission reduction, with emissions of nitrogen oxides, particulate matter, and sulfur dioxide better than national standards[24]. - The Group has implemented projects for co-processing municipal solid waste, urban sludge, and hazardous industrial waste using cement kilns[25]. - The Group actively strengthens research, development, and application of new products, materials, and technologies to promote innovation and sustainable development[25]. - The Group aims to actively fulfill corporate social responsibility and promote green development within the cement industry[83]. Financial Performance - The consolidated turnover for the year ended December 31, 2020, amounted to HK$40,086.9 million, representing an increase of 2.9% compared to the previous year[41]. - The consolidated profit attributable to owners of the Company for the year ended December 31, 2020, was HK$8,959.9 million, reflecting a 4.0% increase from the prior year[41]. - Basic earnings per share for the year was HK$1.283, up from HK$1.234 in 2019[41]. - The total assets as of December 31, 2020, were HK$68,532.5 million, an increase from HK$61,170.9 million in 2019[36]. - The equity attributable to owners of the Company was HK$49,626.8 million as of December 31, 2020, compared to HK$41,979.7 million in 2019[36]. - The gearing ratio improved to 13.8% in 2020 from 18.9% in 2019, indicating a reduction in financial leverage[36]. - The Company plans to distribute a final dividend of HK$0.34 per share for the year ended December 31, 2020, an increase from HK$0.335 per share in 2019[42]. - The interim dividend declared for 2020 was HK$0.275 per share, up from HK$0.26 per share in 2019[42]. Market and Economic Context - In 2020, China's GDP grew by 2.3% year-on-year to RMB101.6 trillion, while national fixed asset investment (FAI) increased by 2.9% year-on-year to RMB51.9 trillion[44]. - The total cement production in China amounted to approximately 2,380 million tons in 2020, representing a year-on-year increase of 1.6%[49]. - In 2020, the floor space of commodity housing sold in China increased by 2.6% year-on-year to 1,760 million m², with sales amounting to RMB17.4 trillion, an increase of 8.7% year-on-year[46]. - The real estate investment in China reached RMB14.1 trillion in 2020, representing a year-on-year increase of 7.0%[46]. - The cement production in Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi was approximately 170.0 million tons, 120.0 million tons, 97.0 million tons, 18.4 million tons, 130.0 million tons, 110.0 million tons, and 53.9 million tons respectively[49]. Strategic Initiatives - The Group has acquired land for prefabricated construction components production with a design annual capacity of approximately 50,000 m³ in Jiangmen and 200,000 m³ in Laibin[31]. - The Group won mining rights for a limestone quarry in Guangxi with a resource reserve of approximately 65 million tons and a planned annual production capacity of approximately 5 million tons[31]. - The Group's prefabricated construction projects in Guangdong and Guangxi have a design annual production capacity of approximately 450,000 m³ of precast concrete components[66]. - The Group established a joint venture for intelligent manufacturing solutions in July 2020, focusing on the automobile parts and building materials industries[68]. - The Group's new business office coordinates the development and planning of new projects, enhancing regional market research and project acquisition[63]. Environmental and Regulatory Compliance - The Chinese government aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060[55]. - The cement industry will implement classified management based on emission limits, with particulate matter, sulfur dioxide, and nitrogen oxides emissions capped at 10, 35, and 50 mg/m³ respectively for the strictest standard enterprises[54]. - The government emphasizes the importance of production safety and occupational health, launching a three-year action plan for special rectifications in nine industrial sectors[56]. Research and Development - The Group's Technology Research and Development Centre provided 1,495 checks and tests for cement production plants in 2020, optimizing production costs and improving product quality[137]. - The Group's R&D team consisted of 51 specialized employees, including 4 doctors and 21 masters, as of the end of 2020[136]. - The Group plans to strengthen R&D capabilities for new products, technologies, and materials, promoting digitalization and intelligentization to create competitive advantages[83]. Logistics and Supply Chain - The Group's logistics management benefited from reduced logistics costs due to highway toll exemptions and lower oil prices, with an annual transport capacity of approximately 36.3 million tons in the Xijiang River Basin[100]. - The Group controlled 35 transshipment warehouses with an annual transshipment capacity of approximately 34.3 million tons, reinforcing its dominant position in the Guangdong market[100]. - The Group initiated joint shipment by railway and optimized transportation routes to reduce logistics costs in 2020[102]. Brand and Marketing - The brand value of Runfeng Cement in 2020 was RMB 51,958 million, as evaluated by the "World Brand Lab"[106]. - The Group's first brand flagship store in Yunnan was officially opened in June 2020, serving as a center for brand image display[107]. - The Group's marketing efforts included promoting cement for nuclear power stations, which has been used in projects across Guangdong, Fujian, and Zhejiang[104].
华润水泥控股(01313) - 2020 - 年度财报