中国建筑国际(03311) - 2021 - 中期财报

Company Business Structure This chapter outlines China State Construction International Holdings Limited's business structure, noting that some operations are conducted through its listed subsidiary, China State Construction Engineering (Hong Kong) Limited (stock code: 00830) - The Group operates part of its business through its listed subsidiary, China State Construction Engineering (Hong Kong) Limited (stock code: 00830)[4] Board of Directors and Committees This chapter lists the composition of the company's Board of Directors, including the Chairman, Non-executive Directors, Executive Directors, and Independent Non-executive Directors, detailing their roles in audit, remuneration, nomination, and sustainability committees - Board members include Chairman Yan Jianguo, CEO Zhang Haipeng, other Executive Directors, Non-executive Directors, and Independent Non-executive Directors[5][6][7][8] - The company has established an Audit Committee, Remuneration Committee, Nomination Committee, and Sustainability Committee, with clearly defined chairpersons and members for each[6][8][9] Company Information This chapter provides key corporate information including the company's basic registration details, contact information, principal share registrars, auditor, legal counsel, principal bankers, listing information, and financial calendar - The company is registered in the Cayman Islands, with its head office and principal place of business located on Hennessy Road, Wan Chai, Hong Kong[10][11] - The principal share registrar is in the Cayman Islands, with the Hong Kong branch being Tricor Standard Limited[10] - The auditor is Ernst & Young, and the legal counsel is Mayer Brown[12][13] - The company's shares are listed on The Stock Exchange of Hong Kong Limited, with stock code 03311[14] - The financial calendar indicates the interim results announcement date as August 17, 2021, and the interim dividend payment date as October 5, 2021[15] Chairman's Statement The Chairman's Statement comprehensively reviews the global and Chinese economic environment in the first half of 2021, detailing the Group's progress in business transformation, market performance, financial position, corporate governance, risk management, human resources, technological innovation, and social responsibility, while outlining the "14th Five-Year Plan" development strategy to become a world-class investment, construction, and operation service provider Business Review The Group achieved significant growth in new contract value, revenue, operating profit, and profit attributable to shareholders in H1 2021, driven by business transformation, technology investment, and market opportunities, with strong performance in mainland China, Hong Kong and Macau, and the curtain wall market Key Financial Indicators for H1 2021 | Indicator | Amount (Hong Kong Dollars) | Year-on-Year Growth | | :--- | :--- | :--- | | New Contract Value | 70.53 billion | 40.4% | | Unaudited Revenue | 36.37 billion | 29.9% | | Operating Profit | 5.53 billion | 15.2% | | Profit Attributable to Shareholders | 3.50 billion | 20.8% | | Basic Earnings Per Share | 0.69 | - | | Net Asset Value Per Share | 12.99 | - | - The Board of Directors announced an interim dividend of HKD 20 cents per share for 2021, with a payout ratio of approximately 28.8%[17] Mainland China Market Benefiting from infrastructure investment recovery and stable monetary and fiscal policies, the Group consolidated its investment business transformation, vigorously expanded specialized general contracting businesses like prefabricated construction in the Greater Bay Area, leading to a 68.7% year-on-year increase in new contract value in H1 - New contract value in mainland China reached HKD 36.20 billion in H1, a 68.7% year-on-year increase[18] - The Group continued to consolidate the transformation and upgrading of its investment business, maintaining efforts to expand infrastructure investment projects with faster turnover and higher dynamic returns[18] - Vigorously developed specialized general contracting businesses such as prefabricated construction in the Greater Bay Area[18] Hong Kong and Macau Market With increased infrastructure investment from the HKSAR Government, the Group leveraged its expertise to secure large-scale projects, resulting in a 27.9% growth in new contract value in Hong Kong, while Macau's economy rebounded, achieving HKD 12.60 billion in new contract value and maintaining its market leadership - New contract value in the Hong Kong market increased by 27.9% year-on-year to HKD 17.18 billion[19] - New contract value in the Macau market reached HKD 12.60 billion, maintaining its market leadership position[19] - Hong Kong's capital works expenditure is projected to exceed HKD 100 billion annually in the coming years, with the total value of construction works increasing to approximately HKD 300 billion annually[19] Curtain Wall Market China State Construction Engineering (Hong Kong) Limited, a subsidiary of the Group, followed the strategic guidance of "contracting overseas, consolidating Hong Kong and Macau, and accelerating expansion in mainland China," maintaining its leading position in the high-end curtain wall market with rich project experience and brand advantages, achieving a 76.6% year-on-year increase in new contract value in H1 - New contract value in the curtain wall market surged by 76.6% year-on-year to HKD 4.55 billion in H1[20] - The strategic guidance is "contracting overseas, consolidating Hong Kong and Macau, and accelerating expansion in mainland China"[20] Corporate Governance The Group is committed to strengthening Board functions, refining internal controls, and enhancing corporate competitiveness and risk management capabilities, having elevated the Sustainability Committee to Board level, intensified directors' ESG training, and actively responded to national carbon peak and carbon neutrality goals - Strengthened Board functions and refined internal controls to enhance corporate competitiveness and risk management capabilities[21] - In 2020, the Sustainability Committee was elevated to Board level, and all directors participated in Environmental, Social, and Governance (ESG) training during H1[21] - Actively responded to national carbon peak and carbon neutrality goals, promoting the quality improvement of the Group's carbon reduction efforts[21] Risk Management The Group has established a comprehensive risk management framework and internal control system, with a risk management team to identify, assess, and monitor strategic, financial, market, and operational risks, while the Sustainability Committee regularly reviews ESG reports to identify sustainability risks and propose control strategies - A risk management framework has been established, clearly allocating roles and responsibilities, and a risk control team identifies major risks across various operating segments[22] - The Sustainability Committee regularly reviews ESG reports, identifies sustainability risks and control strategies, and provides recommendations to the Board on risk appetite[23] Financial Management The Group maintains a robust financial structure, reducing interest-bearing debt costs through strategic refinancing and effectively hedging exchange rate risks by matching financing and business currencies; as of June 30, 2021, the Group held HKD 20.32 billion in cash, with a net gearing ratio controlled at 54.9%, and unused bank credit facilities significantly increased to HKD 82.77 billion - The cost of interest-bearing debt on hand further decreased, effectively achieving natural hedging of exchange rate risks by matching financing currencies with business currencies[24] - As of June 30, 2021, cash on hand was HKD 20.32 billion, accounting for 10.3% of total assets[24] - The net gearing ratio was controlled at 54.9%[24] - Unused bank credit facilities amounted to HKD 82.77 billion, a 46.4% increase compared to the same period last year[24] Human Resources The Group prioritizes talent attraction and development, adhering to the philosophy of "gathering strivers, motivating achievers," continuously improving human resource management policies, providing competitive compensation, benefits, and health protection, and actively responding to the COVID-19 pandemic to safeguard employee well-being - Adhering to the talent philosophy of "gathering strivers, motivating achievers," continuously improving human resource management policies and systems[25] - Provided competitive compensation and employee benefits, regularly reviewed the compensation system, implemented performance incentives, and established a talent pipeline[25] - Offered health benefits to employees, including life, accident, and medical insurance, and subsidized physical examinations[26] - Cautiously responded to the COVID-19 pandemic, implemented workplace epidemic prevention measures, and actively provided assistance to employees requiring mandatory quarantine[26] Technological Innovation The Group increased investment in R&D and achievement commercialization, refined internal policies, and led trends in areas like Modular Integrated Construction (MiC); in H1 2021, it was granted 40 national patents (including 3 invention patents) and 7 software copyrights, receiving industry recognition and multiple awards for safety, environmental protection, and technological application on various construction sites - Further improved internal policies and systems for technology R&D, achievement commercialization, and intellectual property protection, increasing investment and incentives for technological development[27] - Since the beginning of 2021, the Group has been granted 40 national patents (including 3 invention patents) and 7 software copyrights[27] - Its performance in safety, environmental protection, and technological application on multiple construction sites has been highly recognized by the industry and owners, winning numerous awards, including the Construction Industry Council BIM Award[27] Social Responsibility The Group actively promotes green building methods, applying new technologies like MiC, DfMA, and BIM, and explores carbon neutrality during construction and carbon asset development for operational projects; its comprehensive sustainability performance has received international recognition, including its fifth consecutive inclusion in the FTSE4Good Index and awards from CDP and Institutional Investor - Actively promoted the application of new technologies such as Modular Integrated Construction (MiC), Design for Manufacture and Assembly (DfMA), and Building Information Modeling (BIM) to transform construction methods towards intensive, efficient, and energy-saving approaches[28] - Explored the possibilities of carbon neutrality during the construction phase and carbon asset development for operational projects[28] - Included in the FTSE4Good Index for the fifth consecutive year, received the CDP "Excellent Performance Award for Driving Zero Deforestation Transition Action" for the first time, and was ranked first in ESG for Industrial Small & Mid-Cap by Institutional Investor for the first time[28] Business Outlook Looking ahead to the "14th Five-Year Plan" period, the Group will uphold customer-centricity, quality assurance, and value creation as its operating philosophy, aiming to become a world-class investment, construction, and operation service provider by enhancing its technological, investment, construction, and operational capabilities to deliver high-quality, high-value-added products and services, leveraging its cross-regional layout advantages - During the "14th Five-Year Plan" period, the Group will adhere to the operating philosophy of customer-centricity, quality assurance, and value creation[29] - Provide high-quality, high-value-added products and services by enhancing technological, investment, construction, and operational capabilities[29] - The goal is to become a "world-class investment, construction, and operation service provider"[29] Acknowledgements Chairman Yan Jianguo, on behalf of the Board of Directors, extends sincere gratitude to fellow Board members, shareholders, all sectors of society, and all employees - Chairman Yan Jianguo expressed gratitude to all parties on behalf of the Board of Directors[30] Management Discussion and Analysis Management Discussion and Analysis details the Group's overall financial performance for H1 2021, including revenue, profit, EPS, and dividends, with a performance analysis by geographical and business segments, also reviewing the Group's financial position, cash flow, and financial risk management strategies, emphasizing a robust financial structure and risk control Overall Performance In H1 2021, the Group achieved double-digit growth in profit attributable to company shareholders, turnover, and basic earnings per share, announced an interim dividend, and saw steady growth in equity attributable to shareholders Overall Financial Performance for H1 2021 | Indicator | H1 2021 (Hong Kong Dollars) | H1 2020 (Hong Kong Dollars) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Company Shareholders | 3.50 billion | 2.898 billion | 20.8% | | Turnover | 36.371 billion | 28.002 billion | 29.9% | | Basic Earnings Per Share | 69.42 cents | 57.39 cents | 21.0% | - The Board of Directors announced an interim dividend of HKD 20 cents per share, with a payout ratio of approximately 28.8%[31] - As of June 30, 2021, equity attributable to company shareholders reached HKD 52.105 billion, an increase of 6.1% compared to December 31, 2020[31] Segment Results The Group's segment results varied, with strong growth in Macau and mainland China businesses, stable revenue in Hong Kong but a decline in segment performance due to early project stages, and steady increases in revenue and performance for China State Construction Engineering (Hong Kong) Limited Construction and Related Businesses — Hong Kong and Macau Hong Kong's turnover grew steadily by 1.7%, but segment performance fell by 37.0% due to multiple large projects being in preliminary stages, while Macau's business benefited from the launch of major hospital and gaming projects, with turnover and segment performance increasing significantly by 50.3% and 83.1%, respectively Hong Kong and Macau Segment Performance | Region | Turnover (Hong Kong Dollars) | Year-on-Year Growth (%) | Segment Performance (Hong Kong Dollars) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 10.468 billion | 1.7% | 0.440 billion | -37.0% | | Macau | 2.925 billion | 50.3% | 0.477 billion | 83.1% | - Hong Kong segment performance declined primarily because several large-scale projects were still in their preliminary stages, not yet accumulating profit[32] - Macau segment performance was driven by the commencement of large hospital and licensed gaming projects[32] Infrastructure Investment Projects and Construction Related Businesses — Mainland China Mainland China's business benefited from infrastructure investment recovery and successful business transformation, achieving a record-high turnover of HKD 20.803 billion, a 48.3% year-on-year increase, with segment performance also showing a significant 19.0% growth Mainland China Segment Performance | Indicator | H1 2021 (Hong Kong Dollars) | H1 2020 (Hong Kong Dollars) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Turnover | 20.803 billion | 14.029 billion | 48.3% | | Segment Performance | 4.317 billion | 3.627 billion | 19.0% | Infrastructure Investment Projects As a core business and major contributor in mainland China, infrastructure investment projects achieved substantial growth in both repurchase payments and turnover, with steady performance improvement, through optimized order structure and accelerated turnover speed - During the review period, the Group received HKD 11.676 billion in repurchase payments from infrastructure investment projects, an increase of approximately 42.2%[34] Infrastructure Investment Project Performance | Indicator | H1 2021 (Hong Kong Dollars) | H1 2020 (Hong Kong Dollars) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Turnover | 20.299 billion | 13.813 billion | 47.0% | | Performance | 4.113 billion | 3.578 billion | 14.9% | Operating Infrastructure Projects Operating infrastructure projects, primarily toll road operations, recovered post-pandemic, achieving a significant 86.1% growth in turnover after deducting contributions from joint ventures - Turnover from operating infrastructure projects, after deducting contributions from joint ventures, was HKD 0.092 billion, an 86.1% increase from HKD 0.049 billion in the same period last year[35] China State Construction Engineering (Hong Kong) Limited China State Construction Engineering (Hong Kong) Limited focuses on building curtain wall contracting, general contracting, and project operation and management services, consolidating its leading position in the Hong Kong and Macau markets while actively expanding into mainland China, with both revenue and performance steadily increasing during the review period - Focused on developing building curtain wall contracting, general contracting, and project operation and management services[36] - Further consolidated its leading position in the Hong Kong and Macau markets and continued to expand its market presence in mainland China[36] - Both revenue and performance showed steady growth during the review period[36] [Investment Income, Other Income and Other Net Gains](index=15&type=section&id=%E6%8A%95%E8