金隅集团(02009) - 2018 - 年度财报

Financial Highlights The company achieved significant financial growth in 2018, with revenue up 30.5% and net profit attributable to parent company shareholders increasing by 14.9% 2018 Annual Financial Summary | Indicator | 2018 | 2017 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB thousands) | 83,116,733 | 63,678,331 | 30.5% | | Net Profit Attributable to Parent Company Shareholders (RMB thousands) | 3,260,449 | 2,836,665 | 14.9% | | Core Net Profit Attributable to Parent Company Shareholders (RMB thousands) | 2,878,749 | 2,451,252 | 17.4% | | Basic Earnings Per Share (RMB yuan) | 0.31 | 0.27 | 14.8% | | Final Dividend Per Share (RMB yuan) | 0.055 | 0.048 | 14.6% | | Total Assets (RMB thousands) | 268,276,092 | 232,207,482 | 15.5% | | Equity Attributable to Parent Company Shareholders (RMB thousands) | 57,665,471 | 51,162,848 | 12.7% | | Gross Profit Margin from Main Operations (%) | 26.7 | 24.8 | Increased by 1.9 percentage points | | Total Liabilities Ratio (%) | 70.5 | 69.9 | Increased by 0.6 percentage points | Company Profile Jinyu Group has established a unique vertically integrated industrial chain in China, spanning building materials manufacturing, real estate development, and property management - Jinyu Group's core business is building materials manufacturing, extending vertically into real estate development, property investment, and management, forming a unique integrated industrial chain among large Chinese building materials producers[14] Cement and Ready-Mixed Concrete Segment The company is China's third-largest cement group, holding significant regional scale and market control in the Beijing-Tianjin-Hebei region - The company is China's third-largest cement industrial group, with its core strategic region in Beijing-Tianjin-Hebei, boasting clinker production capacity of approximately 110 million tons and cement production capacity of approximately 170 million tons[15] New Building Materials and Commercial Logistics Segment The company is a leading green building materials supplier in the Bohai Rim region, offering diverse products and services including furniture, insulation, and logistics - The company is one of the largest green, environmentally friendly, and energy-saving building materials producers and suppliers in the Bohai Rim region, with products widely used in key projects such as Beijing Urban Sub-Center and Xiong'an Citizen Service Center[16] - In 2018, the company gained controlling interest in Tianjin Building Materials Group, solidifying its industry leading position in the Bohai Rim economic circle[16] Real Estate Development Segment The company is a top real estate developer in Beijing, with a national presence across 15 cities and active participation in affordable housing construction - The company's annual construction and commencement scale reaches 8 million square meters, having entered 15 cities including Beijing, Shanghai, and Tianjin, with a total construction scale of approximately 30 million square meters[17] - As a large state-owned enterprise under Beijing Municipality, the company leads in affordable housing construction, having cumulatively planned and built over 7 million square meters, providing over 70,000 housing units[17] Property Investment and Management Segment The company is one of Beijing's largest investment property holders and managers, with approximately 1.35 million square meters of high-end properties in Beijing and Tianjin, including 0.72 million square meters in Beijing's core areas - The company holds approximately 1.35 million square meters of investment properties in Beijing and Tianjin, with property management area close to 13 million square meters, maintaining leading occupancy rates and revenue levels in the industry[18] Chairman's Statement The Chairman's statement reviews the company's substantial economic growth in 2018, highlighting strategic acquisitions and operational optimizations, and outlines key development priorities for 2019 - 2018 Review: Facing a complex environment, the company achieved substantial growth in key economic indicators, with key initiatives including successful participation in Tianjin Building Materials Group's mixed-ownership reform to gain controlling interest, unconditional approval of the asset restructuring plan with Jidong Cement, and optimization of the organizational system to enhance management efficiency[37] 2018 Performance Highlights | Indicator | Amount (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 83,116.7 | 30.5% | | Net Profit Attributable to Parent Company Shareholders | 3,260.4 | 14.9% | | Basic Earnings Per Share (RMB yuan) | 0.31 | 14.8% | - 2019 Outlook: The company will continue to strengthen its main businesses and promote high-quality development, with specific strategies for each segment including accelerating integration in cement, enhancing technological innovation in new building materials, improving policy analysis and seizing opportunities in real estate, and revitalizing existing resources and upgrading professional management in property investment[39][40] Management Discussion and Analysis This section provides an in-depth analysis of the company's 2018 financial performance and operational highlights across its four business segments, alongside an overview of industry conditions and future outlook Summary of Financial Information In 2018, the company's operating revenue grew by 30.5% to RMB 83.12 billion, with net profit attributable to parent company shareholders increasing by 14.9% to RMB 3.26 billion 2018 Key Financial Data | Indicator | 2018 | 2017 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB thousands) | 83,116,733 | 63,678,331 | 30.5% | | Gross Profit from Main Operations (RMB thousands) | 22,003,719 | 15,533,508 | 41.7% | | Gross Profit Margin from Main Operations (%) | 26.7% | 24.8% | Increased by 1.9 percentage points | | Net Profit Attributable to Parent Company Shareholders (RMB thousands) | 3,260,449 | 2,836,665 | 14.9% | | Total Assets (RMB thousands) | 268,276,092 | 232,207,482 | 15.5% | | Asset-Liability Ratio (%) | 70.5% | 69.9% | Increased by 0.6 percentage points | Business and Industry Overview In 2018, the cement industry achieved record profits due to supply contraction and self-regulation, while the real estate sector faced ongoing policy controls despite continued investment growth - Cement Industry: In 2018, national cement output was 2.21 billion tons, a 5.3% year-on-year decrease, benefiting from industry self-regulation and supply contraction, cement prices remained high, reaching an average of RMB 464 per ton nationwide in December, leading to record-high industry profits[49] - Real Estate Industry: Policy regulation continued to deepen in 2018, with strict policies like purchase and loan restrictions leading to a reduction in new home sales in key cities, yet national real estate development investment grew by 9.5% and commercial housing sales by 12.2%[50][51] Business Operations Analysis All four business segments demonstrated robust growth in 2018, driven by price increases in cement, significant revenue growth in new building materials, and expanded land reserves in real estate Overview of Main Business Revenue and Gross Profit by Segment (Amount unit: RMB millions) | Business Segment | Revenue | Revenue YoY | Gross Profit | Gross Profit Margin | Gross Profit Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cement and Ready-Mixed Concrete | 39,119.9 | 25.9% | 11,755.2 | 30.0% | Increased by 2.8 percentage points | | New Building Materials and Commercial Logistics | 19,813.0 | 52.0% | 1,216.3 | 6.1% | Decreased by 2.3 percentage points | | Real Estate Development | 22,146.4 | 37.7% | 7,038.6 | 31.8% | Increased by 6.2 percentage points | | Property Investment and Management | 4,233.4 | 27.7% | 2,414.2 | 57.0% | Decreased by 2.6 percentage points | | Total | 82,397.4 | 31.5% | 22,003.7 | 26.7% | Increased by 1.9 percentage points | Cement and Ready-Mixed Concrete Segment This segment achieved substantial growth in 2018, with revenue up 25.9% to RMB 39.12 billion, and a significant increase in comprehensive gross profit margin to 36.0% Cement and Ready-Mixed Concrete Segment Performance | Indicator | 2018 | Year-on-Year Change | | :--- | :--- | :--- | | Main Business Revenue (RMB millions) | 39,119.9 | +25.9% | | Main Business Gross Profit (RMB millions) | 11,755.2 | +38.7% | | Combined Sales Volume of Cement and Clinker (million tons) | 107.05 | +4.3% | | Combined Gross Profit Margin of Cement and Clinker | 36.0% | +5.6 percentage points | | Total Sales Volume of Concrete (million cubic meters) | 16.0 | +8.8% | | Gross Profit Margin of Concrete | 10.5% | +2.3 percentage points | New Building Materials and Commercial Logistics Segment This segment's revenue surged by 52.0% to RMB 19.81 billion, contributing green building materials to key national projects New Building Materials and Commercial Logistics Segment Performance | Indicator | 2018 | Year-on-Year Change | | :--- | :--- | :--- | | Main Business Revenue (RMB millions) | 19,813.0 | +52.0% | | Main Business Gross Profit (RMB millions) | 1,216.3 | +11.0% | Real Estate Development Segment This segment saw a 37.7% increase in revenue and a 71.2% rise in gross profit, securing 1.4 million square meters of new land reserves Real Estate Development Segment Performance | Indicator | 2018 | Year-on-Year Change | | :--- | :--- | :--- | | Main Business Revenue (RMB millions) | 22,146.4 | +37.7% | | Main Business Gross Profit (RMB millions) | 7,038.6 | +71.2% | | Area Transferred (million square meters) | 1.0093 | +6.4% | | Contracted Sales Area (million square meters) | 1.1141 | -19.1% | - In 2018, the company successfully acquired 13 land parcels, adding approximately 1.4 million square meters to its land reserves, bringing total land reserves to 8.75 million square meters[56][58][62] Property Investment and Management Segment This segment's revenue grew by 27.7% to RMB 4.23 billion, maintaining high occupancy rates across its 1.35 million square meters of investment properties Property Investment and Management Segment Performance | Indicator | 2018 | Year-on-Year Change | | :--- | :--- | :--- | | Main Business Revenue (RMB millions) | 4,233.4 | +27.7% | | Main Business Gross Profit (RMB millions) | 2,414.2 | +22.2% | Investment Property Portfolio Overview (As of end of 2018) | Indicator | Amount/Ratio | | :--- | :--- | | Total Investment Property Area | Approximately 1.35 million square meters | | Comprehensive Average Occupancy Rate | Approximately 88% | | Beijing Core Area Property Area | Approximately 0.72 million square meters | | Beijing Core Area Property Occupancy Rate | Approximately 93% | Financial Position Analysis The company's financial position in 2018 was marked by fair value gains on investment properties, increased operating expenses due to business expansion, and significant cash flow changes from real estate and acquisition activities - Fair value gain on investment properties was RMB 509 million, accounting for 7.9% of pre-tax profit, primarily due to rising commercial property rents in Beijing[75] - All three expense categories increased: - Selling expenses: Increased by 11.8% to RMB 2.92 billion, due to higher staff remuneration, transportation, and agency fees[76] - Administrative expenses: Increased by 16.4% to RMB 7.16 billion, due to higher repair costs, staff remuneration, and idle losses[76] - Finance costs: Increased by 13.9% to RMB 3.05 billion, due to increased financing scale[76] - Net cash outflow from operating activities was RMB 5.04 billion, a year-on-year decrease in outflow of RMB 6.81 billion, primarily due to reduced real estate land reserve expenditures; net cash outflow from investing activities was RMB 8.38 billion, a year-on-year increase in outflow of RMB 7.68 billion, mainly due to the acquisition of Tianjin Building Materials Group[77] Core Competitiveness Analysis The company's core strengths include a unique vertically integrated industrial chain, strong technological innovation, commitment to green development, effective industry-finance integration, and a robust corporate culture - Industrial Chain Advantage: The company possesses a unique vertically integrated core industrial chain, from new green and environmentally friendly building materials manufacturing to real estate development and property management, where each main business supports and promotes the others[79] - Technology Innovation Driven Advantage: In 2018, the company invested RMB 1.3 billion in technology, obtaining 247 national patents (including 33 invention patents), achieving technological breakthroughs in waste disposal and green building materials[80][81] - Green and Sustainable Development Advantage: The company actively plays the role of "urban purifier," investing RMB 1.14 billion in environmental governance; as of the reporting period, 22 enterprises operate waste disposal projects, with an annual hazardous waste disposal capacity of 0.455 million tons and general solid waste disposal capacity of 0.85 million tons[82] - Industry-Finance Integration Advantage: The company maintains an AAA corporate credit rating, achieving integration of industrial and financial capital through its finance company and financial leasing company; in 2018, external financing increased by RMB 23.1 billion net[84] Discussion and Analysis of Future Development The company anticipates a stable but challenging outlook for the building materials sector and a pressured real estate market, focusing on high-quality development, supply-side reform, and managing policy, funding, and market competition risks - Industry Trends: The building materials industry is expected to continue advancing supply-side reform, operating steadily with positive trends, but cement overcapacity remains a primary contradiction; the real estate market is generally under pressure, with normalized regulation, and market scale may decline from high levels[88][89] - Company Strategy: The company adheres to reform and innovation, strengthening its core businesses and promoting high-quality development, aiming to build a high-quality industrial system, control system, and dynamic system, leveraging national strategies such as Beijing-Tianjin-Hebei coordinated development[90] - Major Risks and Countermeasures: - Policy Risk: Macro-control, environmental policies, and China-US trade friction; countermeasures include strengthening policy analysis and leveraging scale and brand advantages[95] - Funding Operation Risk: Higher financing costs and liquidity risk for enterprises; countermeasures include strengthening cash management, innovating financing models, and leveraging the role of financial subsidiaries[96] - Market Competition Risk: Cement overcapacity issues not fundamentally resolved, regional development imbalance; countermeasures include accelerating integration, optimizing layout, and leveraging the role of leading enterprises to guide market order[97][98] Liquidity and Financial Resources As of year-end 2018, the company maintained robust liquidity with RMB 18.77 billion in cash and significant unused bank credit lines totaling RMB 78.6 billion Financial Position (As of December 31, 2018) | Indicator | Amount (RMB millions) | | :--- | :--- | | Total Assets | 268,276.1 | | Total Liabilities | 189,061.6 | | Total Shareholders' Equity | 79,214.5 | | Asset-Liability Ratio | 70.5% | | Cash and Cash Equivalents | 18,774.5 | | Total Bank Credit Facilities | 158,900 | | Unused Credit Facilities | 78,600 | Use of Proceeds The report details the compliant use and management of proceeds from 2014 and 2015 A-share private placements, with most funds utilized and remaining balances reallocated to working capital - The company provided a special report on the use of proceeds from its 2014 and 2015 non-public issuance of A-shares; as of the end of 2018, a cumulative total of RMB 7.393 billion of the proceeds had been used, with a remaining balance of RMB 36 million[103][104][105] - The company strictly adheres to the dedicated account storage and tripartite supervision agreements for the proceeds, with consistent use and disclosure, and no instances of non-compliant use[106][116] - In 2018, the company permanently supplemented working capital with a total of RMB 1.361 billion from the remaining funds of three completed real estate projects funded by the proceeds, with this change having undergone all necessary approval procedures[113] Discloseable Transactions Key transactions in the reporting period included the successful asset restructuring with Jidong Cement and the acquisition of a 55% stake in Tianjin Building Materials for RMB 4.018 billion - Asset Restructuring with Jidong Cement: The company and Jidong Cement conducted asset restructuring by forming a joint venture; this plan received unconditional approval from the CSRC in April 2018 and completed industrial and commercial registration of the joint venture in June, with the company holding 47.09% and Jidong Cement holding 52.91% of the joint venture's equity[120][122][123] - Acquisition of Tianjin Building Materials: In May 2018, the company completed the acquisition of a 55% equity stake in Tianjin Building Materials for a total consideration of RMB 4.018 billion, making Tianjin Building Materials a non-wholly owned subsidiary of the company[123] Other Financial Information As of year-end 2018, the company's assets were pledged for RMB 45.89 billion, with contingent liabilities primarily from mortgage and third-party loan guarantees, and total employee compensation increased by 12.6% - As of the end of 2018, the Group's total pledged assets amounted to RMB 45.89 billion, representing 17.1% of total assets, primarily for obtaining bank loans[127] Contingent Liabilities (As of December 31, 2018) | Item | Amount (RMB yuan) | | :--- | :--- | | Mortgage guarantees provided to third-party home buyers | 6,447,501,029.54 | | Loan and other guarantees provided to third parties | 2,630,000,000.00 | | Total | 9,077,501,029.54 | - As of the end of 2018, the Group had 52,498 employees, with total remuneration of approximately RMB 6.19 billion, a year-on-year increase of 12.6%[134] Report of the Directors The Board of Directors' report outlines key corporate governance practices, proposed dividend distributions, financing activities, and compliance with listing rules for the reporting period - The Board of Directors recommends a final dividend of RMB 0.055 per share for the year ended 2018, totaling approximately RMB 587 million[147] - During the reporting period, the company issued multiple tranches of medium-term notes, super short-term commercial papers, and corporate bonds to supplement working capital and fund project investments[152][153][154] - As of the reporting date, the company has complied with the Hong Kong Stock Exchange's requirements regarding public float[159] - The company's controlling shareholder is Beijing State-owned Capital Operation and Management Center, holding 44.93% of the company's issued share capital[184] Report of the Supervisory Committee The Supervisory Committee's report details its oversight activities in 2018, affirming the company's compliant operations, accurate financial reporting, and proper conduct of major transactions - In 2018, the Supervisory Committee convened seven meetings, reviewing significant matters including the annual report, profit distribution, asset restructuring, and connected transactions[194][195][196][197][198][199][201] - The Supervisory Committee issued independent opinions stating that: - The company's operations are standardized, with no violations found in the performance of duties by directors and senior management[203] - The company's financial information truly, fairly, and completely reflects its financial position and operating results[204] - The preparation and disclosure procedures for periodic reports are compliant, and the content is true and accurate[205] - Major asset transactions and connected transactions followed legal and compliant procedures, without harming the interests of the company and its shareholders[206][207] - In 2019, the Supervisory Committee will continue to perform its oversight duties in accordance with the law, focusing on major investments, asset disposals, and connected transactions, while strengthening communication with the Board of Directors, management, and employees to prevent operational risks[208][209][210] Corporate Governance Report This report confirms the company's full compliance with the Corporate Governance Code, detailing the structure and functions of its board committees, internal control effectiveness, and shareholder rights protection mechanisms - During the reporting period, the company fully complied with all code provisions of the Corporate Governance Code contained in Appendix 14 of the Listing Rules[227][251] - The Board of Directors has established an Audit Committee, a Remuneration and Nomination Committee, and a Strategy and Investment & Financing Committee; the report details the composition, main functions, and annual work of each committee[266][267][272][277] - The Board of Directors conducted a self-assessment of the effectiveness of the company's internal control design and operation as of December 31, 2018, concluding that there were no material or significant deficiencies; external auditor Ernst & Young Hua Ming LLP issued a standard unqualified internal control audit report[288][290] - The company has clearly defined procedures for shareholders to convene extraordinary general meetings, nominate director candidates, and propose resolutions at general meetings, safeguarding shareholder rights[295][296][298] Independent Auditor's Report The independent auditor issued an unqualified opinion on the company's 2018 financial statements, highlighting key audit matters related to goodwill impairment, fair value of investment properties, and impairment of receivables - Ernst & Young Hua Ming LLP (a special general partnership) issued a standard unqualified audit opinion on the company's 2018 financial statements[311] - Key audit matters include: - Goodwill Impairment: Involves significant estimates of future cash flows and discount rates for asset groups[313] - Fair Value of Investment Properties: Assessment involves significant estimates and assumptions regarding rent, occupancy rates, and discount rates[314] - Impairment Provision for Receivables: Uses an expected credit loss model, requiring significant judgment on forward-looking factors such as historical default rates and macroeconomic conditions[315][316] Audited Financial Statements This section presents the company's comprehensive audited financial statements for 2018, including the income statement, balance sheet, and cash flow statement, reflecting its financial performance and position Consolidated Financial Statements Summary (As of December 31, 2018) | Indicator | Amount (RMB yuan) | | :--- | :--- | | Income Statement: | | | Operating Revenue | 83,116,733,092.15 | | Operating Profit | 6,568,722,049.58 | | Net Profit | 4,281,425,234.82 | | Net Profit Attributable to Parent Company Shareholders | 3,260,449,276.97 | | Balance Sheet (Period-end): | | | Total Assets | 268,276,091,699.13 | | Total Liabilities | 189,061,589,151.91 | | Equity Attributable to Parent Company | 57,665,471,499.88 | | Cash Flow Statement: | | | Net Cash Flow from Operating Activities | (5,042,633,652.16) | | Net Cash Flow from Investing Activities | (8,383,929,591.33) | | Net Cash Flow from Financing Activities | 14,079,944,375.83 | Financial Summary This section provides a five-year financial overview, presenting key consolidated financial data from 2014 to 2018 for comparative analysis Five-Year Financial Summary (Amount unit: RMB thousands) | Indicator | 2018 | 2017 | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 83,116,733 | 63,678,331 | 47,738,773 | 40,925,341 | 41,241,474 | | Net Profit Attributable to Parent Company Shareholders | 3,260,449 | 2,836,665 | 2,686,654 | 2,017,454 | 2,422,722 | | Total Assets | 268,276,092 | 232,207,482 | 209,397,117 | 130,746,704 | 115,684,971 | | Total Liabilities | 189,061,589 | 162,289,672 | 145,487,606 | 88,564,830 | 79,437,583 | | Equity Attributable to Parent Company Shareholders | 57,665,471 | 51,162,848 | 44,200,489 | 38,082,973 | 31,107,268 |