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, after being privatized in 2006[3]. - The company operates as a holding company for all cement and concrete operations of China Resources Group, established in 2003[2]. - The company has a registered office in the Cayman Islands and a principal place of business in Hong Kong[12]. - The company is governed by a board of directors, including non-executive and independent non-executive directors[5]. - Ernst & Young serves as the independent auditor for the company[9]. - The company has a corporate governance committee to oversee compliance and governance practices[9]. - The company’s official website for corporate communications is www.crcement.com[12]. Financial Performance - The interim report for 2021 includes significant events and financial highlights, which are detailed in the management discussion and analysis section[4]. - The Group's turnover for the six months ended June 30, 2021, was HK$20,179.6 million, an increase from HK$16,884.3 million in 2020[31]. - EBITDA for the same period was HK$5,782.2 million, down from HK$6,721.5 million in 2020[31]. - Profit for the period was HK$3,626.3 million, compared to HK$4,214.0 million in 2020[31]. - The profit attributable to owners of the Company was HK$3,633.5 million, a decrease from HK$4,191.3 million in 2020[31]. - Basic earnings per share for the period were HK$0.520, down from HK$0.600 in 2020[31]. - The Group's unaudited consolidated turnover for the six months ended June 30, 2021, was HK$20,179.6 million, an increase of 19.5% compared to the same period last year[35][37]. - The unaudited consolidated profit attributable to owners of the Company for the period was HK$3,633.5 million, a decrease of 13.3% from the corresponding period last year[35][37]. - Basic earnings per share for the period was HK$0.520[35][37]. - The Board declared an interim dividend of HK$0.240 per share, down from HK$0.275 in 2020, amounting to approximately HK$1,675.9 million[36][38]. Production Capacity and Operations - As of June 30, 2021, 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[21]. - The Group operates 60 concrete batching plants with an annual production capacity of 36.0 million cubic meters of concrete[21]. - The Group owns a total of 77 cement grinding lines, 30 clinker production lines, and 19 concrete batching plants, with total annual production capacities of 62.8 million tons of cement, 37.0 million tons of clinker, and 8.9 million m³ of concrete[24]. - The attributable annual production capacities to the Group are 21.7 million tons of cement, 12.1 million tons of clinker, and 4.2 million m³ of concrete[24]. - The Group's products are primarily used in infrastructure projects such as railways, highways, and airports[20]. - The production facilities are strategically located across Southern China, including Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, and Shanxi[20]. Market and Economic Context - The Chinese economy showed a year-on-year GDP growth of 12.7% in the first half of 2021, reaching RMB53.2 trillion[44]. - National fixed asset investment (excluding rural households) increased by 12.6% year-on-year to RMB25.6 trillion in the first half of 2021[44]. - National infrastructure investments in China increased by 7.8% year-on-year, totaling approximately RMB1.2 trillion for highways and waterways, with a 13.3% year-on-year increase[46]. - Cement production in China increased by 14.1% year-on-year to approximately 1.15 billion tons in the first half of 2021[51]. - The Chinese government aims to enhance the quality of cement products and regulate the market order, targeting a return to reasonable capacity utilization rates by the end of 2025[53]. Corporate Social Responsibility and Sustainability - The Group emphasizes corporate social responsibility, focusing on energy saving and emission reduction, with emissions better than national standards[24]. - The Group is actively responding to China's energy-saving and emission reduction policies, focusing on carbon emissions and carbon neutrality initiatives[65]. - The Group aims to reduce emissions of nitrogen oxides, sulfur dioxide, and particulate matters by 63.1%, 56.7%, and 40.9% respectively by 2025 compared to 2015 levels[94]. - The average emission concentrations of nitrogen oxides, sulfur dioxide, and particulate matters at each cement production plant are below national pollutant emission standards[93]. Research and Development - The Group actively engages in the research and development of new products, materials, and technologies to seize new business opportunities[24]. - The Group is committed to enhancing its research and development capabilities for new products and technologies to maintain competitive advantages[76]. - The Technology Research and Development Centre provided 713 checks and tests for cement production plants in the first half of 2021, supporting the development of new high-performance products[120]. Safety and Employee Management - As of June 2021, the Group's employees completed approximately 220,600 hours of safety training, enhancing safety awareness and management standards[101]. - Approximately 15,000 employees have been vaccinated against COVID-19, achieving a vaccination rate of about 80%[98]. - The Group conducted 284 comprehensive inspections and 460 special inspections in the first half of the year to enhance safety management[99]. Governance and Compliance - The company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in the Model Code[179]. - The company has complied with the applicable code provisions of the Corporate Governance Code during the period[179]. - The company has sufficient measures to ensure compliance with the Corporate Governance Code regarding the re-election of Directors[179]. Capital Expenditure and Financial Management - The total capital expenditure for the construction of a production plant for prefabricated construction components in Zhanjiang City, Guangdong, is HK$524.3 million, with HK$290.3 million remaining as of June 30, 2021[169]. - The total expected capital expenditure payments for the second half of 2021 are approximately HK$2,965.6 million, and for the year ending December 31, 2022, are expected to be HK$4,202.9 million[177]. - The Group's treasury management is centralized, ensuring sufficient cash reserves and compliance with bank loan agreements[158].
华润水泥控股(01313) - 2021 - 中期财报