Financial Performance - In 2021, the company's revenue increased to RMB 11,755,908, a rise of 8.6% from RMB 10,823,753 in 2020[14]. - Profit for the year was RMB 1,821,303, a decline of 33.8% compared to RMB 2,750,409 in 2020[14]. - The gross operating profit and net operating profit were approximately RMB 3,680,000,000 and RMB 2,917,500,000, representing year-on-year decreases of 19% and 21% respectively[22]. - The Group's revenue for 2021 was approximately RMB 11.76 billion, reflecting a year-on-year increase of 9%, while gross operating profit and net operating profit decreased by 19% and 21% respectively[44]. - The net profit for 2021 was RMB 1,821.3 million, a decrease of RMB 929.1 million from RMB 2,750.4 million in 2020[116][121]. - Total profit for the cement industry was RMB 169.4 billion, indicating a year-on-year decrease of 10.0%[76]. - The Group's cost of sales increased by approximately 28% to RMB 8,075.9 million in 2021, up from RMB 6,305.0 million in 2020, primarily due to rising coal costs[102][106]. Industry Trends - The cement industry faced suppressed demand due to real estate market regulations, despite record-high cement prices[17]. - The cement industry is expected to face tightened supply due to the normalization of off-peak season production and stricter state regulations[36]. - The overall cement demand in 2021 was lower than the previous year, indicating a less robust market during peak seasons[83]. - Major players in the cement industry are pursuing restructuring and vertical integration to expand market share and offset profit declines from traditional cement operations[45]. - The cement industry is expected to face continued pressure from excess capacity and inefficient production lines, necessitating structural reforms[158]. Strategic Initiatives - The company is focusing on low-carbon, intelligent, and high-end cement production in response to government policies[18]. - The company plans to leverage "dual control" and "dual carbon" policies over the next five years to enhance transformation and upgrade its operations[25]. - Asia Cement (China) is focusing on green transformation and the circular economy model to enhance its competitive advantages[31]. - The Group plans to focus on technological innovation and digital transformation to achieve energy savings and efficiency improvements in response to the "dual carbon" development opportunity[37]. - The Group aims to enhance operational strategies focusing on high efficiency, high quality, and low cost while promoting innovation and green development[164]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code throughout the year ended December 31, 2021[169]. - The Board consists of eleven Directors, including six executive Directors, one non-executive Director, and four independent non-executive Directors[172]. - The Company has adopted the Model Code for Securities Transactions by Directors, with all Directors confirming compliance throughout the review year[170]. - The Board is responsible for formulating business strategy, reviewing performance, and approving financial statements and budgets[171]. - The Board held four meetings in 2021, planning to meet at least four times a year[189]. Operational Metrics - The Group produced 24.48 million tonnes of clinker and 28.16 million tonnes of cement in 2021, representing a 2% year-on-year increase in both categories[43]. - The Group's clinker output was 24.48 million tonnes, an increase of 2.4% from 2020, and total sales volume of cement products was 29.50 million tonnes, up 2.3% from 2020[86]. - Cement sales accounted for 88% of total revenue in 2021, up from 86% in 2020, while concrete sales decreased to 3% from 5%[100][101]. - The Group's bulk cement sales volume was 24.772 million tonnes, representing 91% of total cement sales, while bagged cement sales were 2.565 million tonnes, or 9%[95]. Economic Context - The estimated annual GDP growth rate for China in 2022 is about 4.8%, providing strong support for the cement industry's long-term development[23]. - The strong resilience of China's economic development is anticipated to support stable long-term growth in the cement industry[23]. - China's GDP in 2021 was RMB 114.4 trillion, with a year-on-year growth of 8.1%[72]. - Fixed asset investment in China increased by 4.9% year-on-year, while national infrastructure investment rose by 0.4%[73].
亚洲水泥(中国)(00743) - 2021 - 年度财报