On March 18th, China Resources Cement (SEHK stock code: 1313) announced its 2021 annual results. During the year, the Company's consolidated turnover amounted to HK$44.0 billion, representing an increase of 9.7% over last year. Profit attributable to owners of the Company amounted to HK$7.8 billion, representing a decrease of 13.3% over last year. Basic earnings per share reached HK$1.112. As at 31 December 2021, the total assets of the Company were HK$79.1 billion and the net assets per share was HK$7.86.

From a business perspective, during the year, external sales volume of cement, clinker and concrete reached approximately 81.3 million tons, 3.3 million tons, and 14.8 million m3. The utilization rates of cement, clinker and concrete production lines were 93.6%, 100.6% and 40.9%. The average selling price of cement and clinker was HK$427 per ton, representing an increase of 15.7% over last year. The average selling price of concrete was HK$528 per m3, representing an increase of 7.9% over last year. The consolidated gross margin of the Company was 32.1%. Net margin was 17.6%, which was 4.9 percentage points lower as compared to last year.<_o3a_p>

Regarding the cement business, during the year, the Company started construction of the second clinker production line and two cement grinding lines at the cement production plant in Wuxuan, Guangxi. We acquired 51% equity interests of Hunan Liangtian Cement Co., Ltd. in January 2022 to enter into the market in Chenzhou, Hunan. In March 2022, we sold 72% equity interests and loans of Shanxi China Resources Fulong Cement Limited to Tangshan Jidong Cement Co., Ltd., which had enabled the exit of the northern market in an orderly manner.<_o3a_p>

During the year, China Resources Cement actively seized the development opportunities of new businesses, accelerated the layout of aggregates, steadily promoted the construction and market expansion of prefabricated construction projects, and made new breakthroughs in the business fields of engineered stone, tile adhesive and white cement, which had further consolidated the Company's core competitiveness and laid a solid foundation for the development of new businesses.<_o3a_p>

In terms of aggregates business, since 2021, the Company has continued to actively strive for high-quality aggregates mine resources and has obtained control on a total of 11 new mine resources. Upon completion of construction of all projects, the annual production capacity of aggregates controlled by the Company through its subsidiaries is expected to reach 84.9 million tons and the annual production capacity of aggregates attributable to the Company according to our equity interests of associates and joint ventures will reach approximately 16.4 million tons.<_o3a_p>

In terms of prefabricated construction business, in August 2021, the Company acquired Ding'an Runfeng Intelligent Building Co., Ltd. In September, Phase 1 production line of precast concrete components of the Zhanjiang Runyang project in Guangdong officially commenced production and the Phase 1 production line of precast concrete components of the Nanning Wuhe project in Guangxi commenced trial production. In December, the Baise Runhe project in Guangxi commenced construction. The project plans for initial construction of a dry-mixed mortar production line with annual production capacity of 300,000 tons, and further construction of production line of precast concrete components according to market conditions. As of the end of 2021, the Company had a total of 7 projects of precast concrete components. Following the completion of construction, the design annual production capacity of precast concrete components is expected to reach approximately 1.6 million m3. In addition, the Compnay plans to build production lines for autoclaved aerated lightweight concrete blocks and panels in Fengkai, Guangdong. Phase 1 of the project is expected to commence trial production in the first half of 2023.<_o3a_p>

In terms of functional building materials business, in January 2021, the Company increased our shareholding of Universal Classical to approximately 75.3%. Universal Classical owned one production line of inorganic engineered stones in Dongguan, Guangdong, and will further expand. In addition, the Company is building two production lines of inorganic engineered stones in Laibin, Guangxi. The above projects are expected to commence operation in mid-2022. Besides, in March 2022, the Company acquired 75% equity interests of Guangdong Borrego New Material Technology Co., Ltd. The company has four production lines of engineered stones in operation in Lianzhou, Guangdong. In October 2021, we commenced operation of two fully-automated tile adhesive production lines in Fengkai, Guangdong and also invested in 70% equity interests of Deqing Yingqi Building Materials Co., Ltd. The company owns one production line for white cement in operation in Deqing, Guangdong.<_o3a_p>

During the "Fourteenth Five-Year" period, in order to achieve the goal of "Building Another China Resources Cement", China Resources Cement will grasp the new development stage, thoroughly implement the new development philosophy, and build a new development paradigm. We will continue to reinforce the three core strengths of "leading market position in the region, innovation-driven development, lowest total costs". We will strengthen, optimize and expand the basic building materials and functional building materials businesses, steadily develop the structural building materials business, and incubate and cultivate the new materials business. We will continue to optimize the industrial chain layout, expand strategic regions, benchmark against international first-class standards, accelerate digital and intelligent transformation, and increase investment in innovation, research and development to inject lasting momentum into the high-quality corporate development. We will continuously improve operational efficiency and quality, enhance management standards of environmental protection, safety and health, and actively promote carbon emissions peaking and carbon neutrality. In order to consolidate market competitiveness, we will deepen brand marketing and the construction of sales channels. In addition, the Company will proactively seize the regional development opportunities in China including the Greater Bay Area, accelerate the pace of transformation and innovation, and fulfil corporate social responsibility to advance the green and sustainable development of the cement industry in China.

Mr. Fuli LI (Chairman, Centre Left), Mr. Youhong JI (CEO, Centre Right), Ms. Ling TAN (CFO, Left) and Ms. Wanli Duan (General Manager of Finance Department, Right) attended the Company's 2021 Annual Results Presentation<_o3a_p>

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China Resources Cement Holdings Ltd. published this content on 21 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2022 11:07:05 UTC.