Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Stock Code: 1313)
UNAUDITED FINANCIAL INFORMATION
FOR THE THREE MONTHS ENDED 31 MARCH 2021
For the three months | |||
ended 31 March | |||
2021 | 2020 | Increase | |
(unaudited) | (unaudited) | ||
Turnover (HK$ million) | 8,511.2 | 5,594.1 | 52.1% |
Profit attributable to owners of the Company | |||
(HK$ million) | 1,289.8 | 1,113.7 | 15.8% |
Basic earnings per share | HK$0.185 | HK$0.159 | |
Interim dividend per share | Nil | Nil | |
As at | As at | ||
31/3/2021 | 31/12/2020 | (Decrease) | |
(unaudited) | (audited) | / Increase | |
Total assets (HK$ million) | 67,803.8 | 68,532.5 | (1.1)% |
Equity attributable to owners of the Company | |||
(HK$ million) | 50,715.8 | 49,626.8 | 2.2% |
Gearing ratio (note 1) | 13.5% | 13.8% | |
Net assets per share - book (note 2) | HK$7.26 | HK$7.11 | 2.1% |
notes:
- Gearing ratio is calculated by dividing the total bank borrowings and unsecured medium term notes by equity attributable to owners of the Company.
- Net assets per share - book is calculated by dividing equity attributable to owners of the Company by the number of issued shares at the end of the relevant reporting period.
1
The board (the "Board") of directors (the "Directors") of China Resources Cement Holdings Limited (the "Company") is pleased to announce the unaudited consolidated financial information of the Company and its subsidiaries (collectively the "Group") for the three months ended 31 March 2021 (the "Period") as follows:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the three months | |||||
ended 31 March | |||||
Notes | 2021 | 2020 | |||
HK$'000 | HK$'000 | ||||
(unaudited) | (unaudited) | ||||
Turnover | 8,511,234 | 5,594,136 | |||
Cost of sales | (6,095,740) | (3,400,953) | |||
Gross profit | 2,415,494 | 2,193,183 | |||
Other income | 182,191 | 107,055 | |||
Selling and distribution expenses | (401,310) | (249,337) | |||
General and administrative expenses | (473,711) | (396,342) | |||
Exchange (loss) gain | (3,124) | 1,190 | |||
Finance costs | (47,367) | (79,054) | |||
Share of results of associates | 20,692 | (30,270) | |||
Share of results of joint ventures | 58,715 | 36,041 | |||
Profit before taxation | 1,751,580 | 1,582,466 | |||
Taxation | 2 | (478,821) | (478,273) | ||
Profit for the period | 1,272,759 | 1,104,193 | |||
Attributable to: | |||||
Owners of the Company | 1,289,761 | 1,113,731 | |||
Non-controlling interests | (17,002) | (9,538) | |||
1,272,759 | 1,104,193 | ||||
Basic earnings per share (HK$) | 3 | 0.185 | 0.159 | ||
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at | As at | |||
31/3/2021 | 31/12/2020 | |||
HK$'000 | HK$'000 | |||
(unaudited) | (audited) | |||
Non-current assets | ||||
Fixed assets | 28,472,092 | 28,485,137 | ||
Right-of-use assets | 3,493,732 | 3,410,139 | ||
Investment property | 120,000 | 120,000 | ||
Other investment | 73,098 | 72,295 | ||
Intangible assets | 2,693,240 | 2,702,986 | ||
Interests in associates | 6,644,870 | 6,635,957 | ||
Interests in joint ventures | 1,623,901 | 1,563,639 | ||
Deposits for acquisition of assets | 5,251,517 | 4,028,926 | ||
Deferred tax assets | 393,954 | 375,578 | ||
Long term receivables | 277,041 | 288,511 | ||
Pledged bank deposits | 288,266 | 273,573 | ||
49,331,711 | 47,956,741 | |||
Current assets | ||||
Inventories | 2,434,866 | 1,853,151 | ||
Trade receivables | 4,639,648 | 2,991,597 | ||
Other receivables | 1,021,541 | 1,065,768 | ||
Loan to a fellow subsidiary | 480,687 | 477,957 | ||
Loan to an intermediate holding company | 836,307 | 832,139 | ||
Taxation recoverable | 13,034 | 9,362 | ||
Pledged bank deposits | 25,659 | 118,816 | ||
Cash and bank balances | 9,020,387 | 13,226,924 | ||
18,472,129 | 20,575,714 | |||
Current liabilities | ||||
Trade payables | 3,317,315 | 3,723,079 | ||
Other payables | 4,552,269 | 5,604,670 | ||
Taxation payable | 767,594 | 1,349,896 | ||
Unsecured medium term notes | 3,549,540 | 3,564,480 | ||
Bank loans - amount due within one year | 800,000 | - | ||
12,986,718 | 14,242,125 | |||
Net current assets | 5,485,411 | 6,333,589 | ||
Total assets less current liabilities | 54,817,122 | 54,290,330 |
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As at | As at | |||
31/3/2021 | 31/12/2020 | |||
HK$'000 | HK$'000 | |||
(unaudited) | (audited) | |||
Non-current liabilities | ||||
Bank loans - amount due after one year | 2,500,000 | 3,300,000 | ||
Other long term payables | 550,605 | 543,508 | ||
Deferred tax liabilities | 481,304 | 422,989 | ||
3,531,909 | 4,266,497 | |||
51,285,213 | 50,023,833 | |||
Capital and reserves | ||||
Share capital | 698,294 | 698,294 | ||
Reserves | 50,017,542 | 48,928,528 | ||
Equity attributable to owners of the Company | 50,715,836 | 49,626,822 | ||
Non-controlling interests | 569,377 | 397,011 | ||
Total equity | 51,285,213 | 50,023,833 | ||
4
Notes:
-
BASIS OF PREPARATION
The accounting policies and methods of computation used in the condensed consolidated financial statements for the Period are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2020 except for the adoption of certain new and revised Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants, which are effective for the financial year beginning on or after 1 January 2021. The application of these new and revised HKFRSs in the Period has had no material impact on the condensed consolidated financial statements of the Group. - TAXATION
Hong Kong Profits Tax was calculated at 16.5% of the estimated assessable profit for both periods.
Chinese Mainland Enterprise Income Tax includes the income tax calculated at 25% on the taxable income of the group entities in the Chinese Mainland for both periods, the withholding tax calculated at 5% (10% for the corresponding period in 2020) on dividends in the Chinese Mainland, and the deferred tax calculated at 5% (10% for the corresponding period in 2020) on the intended distribution profits from subsidiaries in the Chinese Mainland to a holding company in Hong Kong. - EARNINGS PER SHARE
The calculation of the basic earnings per share attributable to the owners of the Company is based on the following data:
For the three months | ||||
ended 31 March | ||||
2021 | 2020 | |||
HK$'000 | HK$'000 | |||
(unaudited) | (unaudited) | |||
Earnings | ||||
Earnings attributable to owners of the Company | ||||
for the purpose of basic earnings per share | 1,289,761 | 1,113,731 | ||
For the three months | ||||
ended 31 March | ||||
2021 | 2020 | |||
(unaudited) | (unaudited) | |||
Number of shares | ||||
Weighted average number of shares for the purpose | ||||
of basic earnings per share | 6,982,937,817 | 6,982,937,817 | ||
No diluted earnings per share is presented as the Company did not have any potential ordinary shares outstanding.
4. REVIEW OF FINANCIAL INFORMATION
The financial information for the Period has been reviewed by the Audit Committee of the Company.
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INTERIM DIVIDEND
The Board does not recommend the payment of any dividend for the Period (Three months ended 31 March 2020: Nil).
OPERATIONAL PERFORMANCE REVIEW
The functional currency of the Group is RMB while the financial figures are all denominated in HK$. Comparing with the corresponding period in 2020, RMB had appreciated against HK$ by approximately 7.4%.
Turnover
The consolidated turnover for the Period amounted to HK$8,511.2 million, representing an increase of 52.1% from HK$5,594.1 million for the corresponding period in 2020. An analysis of segmental turnover by product is as follows:
For the three months ended 31 March | ||||||||||||
2021 | 2020 | |||||||||||
Average | Average | |||||||||||
Sales | selling | Sales | selling | |||||||||
volume | price | Turnover | volume | price | Turnover | |||||||
'000 | HK$ | '000 | HK$ | |||||||||
tons/m3 | per ton/m3 | HK$'000 | tons/m3 | per ton/m3 | HK$'000 | |||||||
Cement | 18,427 | 366.0 | 6,744,706 | 11,181 | 408.1 | 4,562,629 | ||||||
Clinker | (note) | 662 | 324.6 | 214,855 | ||||||||
1,115 | 299.4 | 333,910 | ||||||||||
Concrete | 2,865 | 500.0 | 1,432,618 | 1,590 | 513.5 | 816,652 | ||||||
Total | 8,511,234 | 5,594,136 | ||||||||||
note: Inclusive of sales volume of 0.9 million tons of cement from related parties (Nil for the corresponding period in 2020).
Our cement sales by geographical area were as follows:
For the three months ended 31 March | ||||||||||||
2021 | 2020 | |||||||||||
Province/ | Average | Average | ||||||||||
Autonomous | Sales | selling | Sales | selling | ||||||||
Region | volume | price | Turnover | volume | price | Turnover | ||||||
HK$ | HK$ | |||||||||||
'000 tons | per ton | HK$'000 | '000 tons | per ton | HK$'000 | |||||||
Guangdong | 7,119 | 420.0 | 2,990,260 | 4,401 | 461.7 | 2,031,926 | ||||||
Guangxi | 6,028 | 335.4 | 2,021,872 | 3,542 | 375.2 | 1,329,119 | ||||||
Fujian | 2,166 | 317.2 | 686,982 | 1,377 | 410.6 | 565,440 | ||||||
Hainan | 811 | 445.4 | 361,250 | 449 | 413.6 | 185,718 | ||||||
Yunnan | 1,228 | 337.4 | 414,275 | 722 | 378.0 | 272,951 | ||||||
Guizhou | 678 | 217.5 | 147,441 | 439 | 226.1 | 99,241 | ||||||
Shanxi | 397 | 308.9 | 122,626 | 251 | 311.7 | 78,234 | ||||||
Total | 18,427 | 366.0 | 6,744,706 | 11,181 | 408.1 | 4,562,629 | ||||||
6
Gross profit and gross margin
The consolidated gross profit for the Period was HK$2,415.5 million, representing an increase of 10.1% from HK$2,193.2 million for the corresponding period in 2020. The consolidated gross margin for the Period was 28.4%, representing a decrease of 10.8 percentage points from 39.2% for the corresponding period in 2020. The increase in consolidated gross profit for the Period was mainly attributable to the increased sales volume of our products compared to the corresponding period in 2020. The decrease in consolidated gross margin was mainly attributable to the lower selling prices and the higher cost of sales of cement products compared to the corresponding period in 2020. The gross margins of cement, clinker and concrete for the Period were 29.8%, 26.7% and 21.9%, as compared with 42.9%, 39.0% and 18.4% respectively for the corresponding period in 2020.
Profit attributable to owners of the Company
Profit attributable to owners of the Company for the Period was HK$1,289.8 million, representing an increase of 15.8% from HK$1,113.7 million for the corresponding period in 2020.
By order of the Board
China Resources Cement Holdings Limited
JI Youhong
Chief Executive Officer
Hong Kong, 23 April 2021
As at the date of this announcement, the non-executive Directors are Mr. LI Fuli (Chairman), Mr. ZHOU Longshan, Mr. CHEN Ying, Mr. WANG Yan, Madam WAN Suet Fei and Mr. JING Shiqing; the executive Director is Mr. JI Youhong (Chief Executive Officer); and the independent non-executive Directors are Mr. IP Shu Kwan Stephen, Mr. SHEK Lai Him Abraham, Madam ZENG Xuemin and Mr. LAM Chi Yuen Nelson.
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China Resources Cement Holdings Ltd. published this content on 23 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2021 08:35:09 UTC.