Company code: China Communications Construction Company Limited(601800) company abbreviation: China Communications Construction Company Limited(601800) China Communications Construction Company Limited(601800)
Summary of annual report 2021
Section I important tips
1. The summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 3. All directors of the company attend the board meeting. 4. Ernst & Young Huaming Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 5. The profit distribution plan or the plan of converting accumulation fund into share capital adopted by the board of directors during the reporting period. The company’s dividend distribution plan for 2021: Based on the shares on the registration date of dividend distribution equity, cash dividends of about RMB 2.0371 (including tax) will be sent for every 10 shares.
Section II basic information of the company
1、 Company profile
Stock type stock exchange stock abbreviation stock code
A-share Shanghai Stock Exchange China Communications Construction Company Limited(601800) China Communications Construction Company Limited(601800)
H-share Hong Kong Stock Exchange China Communications Construction 01800
Contact person and contact information: Secretary of the board of directors
Name: Zhou Changjiang
Office address: 85 Deshengmenwai street, Xicheng District, Beijing, China
Tel: 861082016562
E-mail [email protected].
2、 Brief introduction of the company’s main business during the reporting period (I) the main business company is China’s leading transportation infrastructure enterprise. Focusing on “big transportation” and “big city”, the core business areas are infrastructure construction, infrastructure design and dredging. The business scope mainly includes Chinese and global ports, waterways, reclamation, watershed management, roads and bridges, railways, urban rail transit, municipal infrastructure Investment, design, construction, operation and management of construction, environmental protection and other related projects. Relying on the rich operation experience, professional knowledge and skills accumulated in various projects in many fields for decades, the company provides customers with comprehensive solutions covering all stages of infrastructure projects. （2） Business model during the operation of the company’s business, it mainly includes collecting project information, prequalification, bidding, executing projects, and delivering projects to customers after completion. The company has developed a set of comprehensive project management system, covering the whole contract procedure, including preparation of bid, bid quotation, project organization planning, budget management, contract management, contract performance, project monitoring, contract change, project completion and handover. Among them, the company’s infrastructure construction, infrastructure design and dredging business belong to the construction industry, and the operation process of main projects is basically consistent with the above description. When preparing the project quotation, the company will conduct a detailed study on the project to be bid, including the technical conditions, commercial conditions and regulations of bidding after on-site inspection. The company will also invite suppliers and subcontractors to quote for various projects or activities related to bidding, collect the above information through analysis, calculate the project cost in the bill of quantities, and then add the gross profit of the project to be obtained according to a certain percentage, Obtain the bidding quotation provided to the customer. After winning the bid and signing the contract, the company usually collects the advance payment according to 10% – 30% of the total contract amount before the start of the project, and then settles the payment according to the progress on a monthly or regular basis. Customers generally have to pay the settlement within 1-3 months. While carrying out the above businesses, the company began to develop infrastructure and other investment projects in 2007 to obtain investment profits other than reasonable design and construction profits. After years of development, according to the changes of market environment, policy situation and industry demand, the company has always strictly controlled the key points of investment links and continuously promoted the deepening and implementation of the concept of “value investment”. In 2021, the amount of new contracts signed by the group was 1267912 billion yuan, a year-on-year increase of 18.85%. The increase of newly signed contract amount mainly comes from the increase of investment and construction demand in urban comprehensive development, municipal engineering, housing construction, roads and bridges, rail transit and other project fields. As of December 31, 2021, the amount of outstanding contracts held by the group in execution was 3128254 billion yuan.
In 2021, the company calmly responded to the changes of the century and the epidemic situation of the century, overcame difficulties, took the initiative to respond and seek change, and the amount of newly signed overseas contracts rose against the trend. The newly signed contracts of the group’s businesses from overseas regions amounted to 215978 billion yuan (about US $31.299 billion), a year-on-year increase of 5.36%, accounting for about 17% of the newly signed contracts of the group. Among them, there are 24 projects with a newly signed contract value of more than US $300 million, with a total contract value of US $18.526 billion, accounting for 59% of all newly signed overseas contracts. According to statistics, as of December 31, 2021, the group has conducted business in 139 countries and regions. In addition, the total investment estimate of newly signed infrastructure and other investment projects is 400196 billion yuan, and the contract amount confirmed according to the company’s share ratio is 218104 billion yuan. It is estimated that the construction and installation contract amount that the company can undertake in the design and construction link is 187155 billion yuan. （3） Business Review and market strategy 1 In the Chinese market, in 2021, the whole country continued to consolidate and expand the achievements of epidemic prevention and control and economic development. China’s economy continued to recover stably, the main indicators were within a reasonable range, the economic development showed a steady strengthening trend, and China’s GDP increased by 8.1% year-on-year. Fixed asset investment in infrastructure increased by 0.4% year-on-year. Among them, the investment in water conservancy management industry increased by 1.3%, the investment in road transportation industry decreased by 1.2%, the investment in public facilities management industry decreased by 1.3%, the investment in railway transportation industry decreased by 1.8%, and the investment in ecological protection and environmental governance industry decreased by 2.6%.
In 2021, in order to maintain the necessary support for economic recovery, the state will continue to implement an active fiscal policy and a prudent monetary policy, and extend the period of tax reduction and fee reduction. However, due to the continuous tightening of real estate regulation, the implicit debt problem of local governments and PPI pressure, the downward pressure on the economy has increased, and the development of infrastructure is not significant. The issuance of special government bonds was accelerated in the second and fourth quarters. With the central economic work conference proposing to carry out infrastructure investment moderately in advance and make overall arrangements for the connection of macro policies this year and next, the sources of funds such as special bonds and green credit are expected to provide incremental funds for infrastructure without significantly increasing leverage, and the stable growth of infrastructure is expected to rise. In 2021, the company cherished the “big country”, deeply integrated into major regional strategies such as Beijing Tianjin Hebei, Yangtze River Delta, Guangdong, Hong Kong and Macao, and promoted a large number of national major strategic projects such as the Winter Olympics project, Sichuan Tibet railway and Shenzhen China channel with high quality. The company played a strong role in the national team for the construction of a transportation power. Focusing on the “3060” double carbon goal, we will continue to build the first brand of offshore wind power in China, actively participate in the comprehensive development and management of the Yangtze River Basin, ecological protection and high-quality development of the Yellow River Basin, and demonstrate in major strategic fields such as maritime power and beautiful China. Fully connected with economic and social development and people’s needs, a number of representative and influential key projects such as municipal pipe network construction, transformation of old urban areas, residential environment and ecological improvement were successfully implemented, and actively played a role in rural revitalization, urban renewal and other areas of people’s livelihood and well-being. We promoted advanced technology to deeply empower traditional industries, independently developed the “canal” shield machine with the largest diameter of 16.07 meters, and successfully launched the reconstruction project of the East Sixth Ring Road in Beijing, leading China’s shield equipment manufacturing to a new high-end and making great strides on the road of becoming a powerful country in science and technology. 2. In 2021, the overseas market accelerated its evolution, the world epidemic continued to repeat, the stagflation risk of major global economies increased, China and the United States entered a new stage of all-round strategic game, trade protectionism continued to heat up, the competition in the international infrastructure market became more intense, and the pressure on overseas expansion, compliance operation and supply chain stability continued to increase. However, the “one belt, one road” initiative along the countries and regions as the longest economic corridor in the world, there is always a huge rigid demand for infrastructure construction. “High standards, sustainable, and people’s livelihood” has become a new direction and goal. The space for cooperation in industry, health, green and digital cooperation is broader, and deepening the mechanism of multi bilateral cooperation, providing new impetus for the industry’s recovery and transformation. At the same time, the global infrastructure demand will be gradually released with the economic recovery, and the economic stimulus plans focusing on infrastructure investment in many countries also provide new development opportunities. One belt, one road project, China’s old fellow railway cooperation project, was launched in 2021. The main line is fully implemented. The old railway in the Sino old mutual beneficial cooperation project has been successfully completed. The first large diameter underwater shield tunnel project in Bangladesh has been connected with the project of the river tunnel in Bangladesh. The largest infrastructure project of the three party cooperation under the “one belt and one road” framework between China and the European Union has been successfully concluded in Croatia. A large number of key projects have actively helped the host country fight the epidemic, resume work and production, improve people’s livelihood and develop the economy, demonstrated China’s speed, Chinese brand and Chinese image, and demonstrated the role of CCCC in implementing the national strategy and promoting the construction of a community with a shared future for mankind. Under the dual influence of the continuous downturn of the global economy and the continuous spread of covid-19 epidemic, the company timely adjusted its business strategy, focused on key projects and large-scale projects, gathered high-quality resources and professional advantages, accumulated business ability and risk management and control, gathered independent business projects and projects in new business areas, and realized a steady increase in the amount of newly signed overseas contracts. 1. Business scope related to the construction of railway infrastructure, construction of railway infrastructure, construction of roads and environmental protection projects in China (3). Main business scope related to railway infrastructure, construction and operation in China. According to the types of projects, including port construction, roads and bridges, railway construction, urban construction, overseas projects, etc. In 2021, the newly signed contract amount of the group’s infrastructure construction business was 1125368 billion yuan, a year-on-year increase of 18.35%. Among them, the newly signed contracts from overseas regions amounted to 209359 billion yuan (about 30.34 billion US dollars); The contract amount confirmed from infrastructure and other investment projects is 214895 billion yuan, and the construction and installation contract amount that the group can undertake is 178417 billion yuan. As of December 31, 2021, the outstanding contract amount held in execution was 2780828 billion yuan.
According to the project type and geographical division, the newly signed contracts for port construction, roads and bridges, railway construction, urban construction and overseas projects are 48.143 billion yuan, 310877 billion yuan, 25.006 billion yuan, 531983 billion yuan and 209359 billion yuan respectively, accounting for 4%, 28%, 2%, 47% and 19% of the newly signed contracts for infrastructure construction business respectively. ① Port construction the group is the largest port construction enterprise in China. It has undertaken the construction of most large and medium-sized coastal ports and wharves since the founding of the people’s Republic of China. It has obvious competitive advantages and has relatively limited competitors with the group. In 2021, the newly signed contract amount of the group for port construction in China was 48.143 billion yuan, a year-on-year increase of 26.89%, accounting for 4% of the infrastructure construction business. Among them, the contract amount confirmed from infrastructure and other investment projects was 2.233 billion yuan. From January to November 2021, according to the data released by the Ministry of transport, the investment in fixed assets of coastal and inland river construction transportation was about 134192 billion yuan, a year-on-year increase of 13.9%. Investment hotspots focus on coastal container trunk ports, important energy and raw material loading and unloading bases, the upgrading of automatic terminals and the construction of high-grade inland waterway network. Focusing on the strategy of “giving priority to rivers, lakes and seas”, the company made efforts to upgrade ports and high-grade inland waterways, connect with the construction of national comprehensive transportation channels, hubs and logistics networks, follow up the national promotion of the expansion and upgrading of high-grade inland waterways, and successfully signed the container berth project in the South operation area of dalanping District of Qinzhou Port in Guangxi Province, the oil and chemical berth project of Dongying Port North Breakwater in Shandong Province Hainan Haikou Xinhai ro Ro Terminal passenger transport comprehensive hub project and other projects have further strengthened the company’s professional advantages in the traditional hydraulic field. ② Road and bridge construction the group is one of the largest road and bridge construction enterprises in China. It has obvious technical and scale advantages in the construction of expressways, high-grade highways and river and sea crossing bridges. Some large central enterprises and local state-owned infrastructure construction enterprises compete with the group. In 2021, the group’s newly signed contracts for road and bridge construction in China amounted to 310877 billion yuan, a year-on-year increase of 12.27%, accounting for 28% of the infrastructure construction business. Among them, the contract amount confirmed from infrastructure and other investment projects was 87.389 billion yuan.
From January to November 2021, according to the data released by the Ministry of communications, the investment in fixed assets of highway construction and transportation was about 2392569 billion yuan, a year-on-year increase of 6.0%. During the “14th five year plan” period, the national expressway construction aims at accelerating the construction of a transportation power, guided by the construction of a modern high-quality comprehensive three-dimensional transportation network, continuously improve the structure and function of the road network, reasonably guide the orderly development of local expressways, improve the quality of the National Expressway network, and build a modern comprehensive transportation system. In 2021, the company insisted on expanding cash exchange, strengthening investment, seizing the construction opportunities of making up for weaknesses in the western region, improving the quality and transformation in the northeast region and the construction of large channels and hubs in the central region, strengthening intelligent operation and continuous operation, deeply cultivating the main position of transportation power, and continuously improving the leading advantage of large transportation. On the one hand, it mainly focuses on cash exchange projects and emphasizes return
