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中國能源建設股份有限公司 CHINA ENERGY ENGINEERING CORPORATION LIMITED* (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 3996)
ANNOUNCEMENT INSIDE INFORMATION
The announcement is made by China Energy Engineering Corporation Limited (the “Company”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the provisions of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Pursuant to the Listing Rules of the Shanghai Stock Exchange, China Gezhouba Group Stock Company Limited (中國葛洲壩集團股份有限公司) (“CGGC”), a subsidiary of the Company, published a summary of its 2016 interim report for the period ended 30 June 2016 (the “CGGC Summary Interim Report”) on the website of the Shanghai Stock Exchange, a reproduction of which is enclosed to this announcement. For the avoidance of doubt, the “Company” contained in the CGGC Summary Interim Report refers to CGGC.
The CGGC Summary Interim Report set out below has been prepared in accordance with the People’s Republic of China Generally Accepted Accounting Principles and has not been audited.
Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.
By Order of the Board CHINA ENERGY ENGINEERING CORPORATION LIMITED* Wang Jianping Chairman
Beijing, the PRC 30 August 2016
As at the date of this announcement, the executive directors of the Company are Mr. Wang Jianping, Mr. Ding Yanzhang and Mr. Zhang Xianchong; the non-executive director is Mr. Ma Chuanjing; and the independent non-executive directors are Mr. Ding Yuanchen, Mr. Wang Bin, Mr. Zheng Qiyu and Mr. Cheung Yuk Ming.
* For identification purpose only
- 1 - Stock Code: 600068 Abbreviation of Stock: Gezhouba
China Gezhouba Group Stock Company Limited Summary of 2016 Interim Report
- 2 - I. IMPORTANT NOTICE
1.1 This summary of interim report is extracted from the full text of the interim report. For details, investors should read carefully the full text of the interim report which is published on the website of Shanghai Stock Exchange and other websites designated by the China Securities Regulatory Commission.
1.2 Company Profile
Stock Profile of the Company Stock class Listing stock Abbreviated Stock code Abbreviated stock exchange stock name name before change A Share Shanghai Stock Gezhouba 600068 / Exchange
Contact person and information Secretary to the Board Securities representative Name Peng Liquan Ding Xianyun Telephone 027-59270353 027-59270353 Fax 027-59270357 027-59270357 E-mail address [email protected] [email protected]
- 3 - II. MAIN FINANCIAL INDICATORS AND INFORMATION OF SHAREHOLDERS
2.1 Main financial indicators of the Company
Unit: Yuan Currency: RMB End of the reporting period End of last year Change (%) Total assets 136,465,865,341.09 127,629,770,969.22 6.92 Net assets attributable to shareholders of the listed Company 23,781,483,743.83 20,240,565,026.16 17.49 Reporting period Corresponding (January-June) period of last year Change (%) Net cash flow from operating activities -6,013,165,936.80 -3,562,857,406.69 N/A Operating revenue 39,276,202,805.91 33,832,401,331.51 16.09 Net profit attributable to shareholders of the listed Company 1,441,569,163.77 1,255,134,431.70 14.85 Net profit after non-recurring profit or loss attributable to shareholders of the listed Company 1,367,614,635.36 1,106,137,453.21 23.64 Weighted average return rate on net assets (%) 6.857 6.518 +0.34 percentage point Basic earnings per share (RMB/share) 0.311 0.273 13.92 Diluted earnings per share (RMB/share) 0.311 0.273 13.92
- 4 - 2.2 Shareholdings of top 10 shareholders
Unit: share Total number of shareholders (household) as of the end of the reporting period 302,290 Total number of preferential shareholders (household) with resumed voting rights as of the end 0 of the reporting period Shareholdings of top 10 shareholders Number of shares held subject Nature of Shareholding Number of to selling Number of pledged Name of shareholder shareholder Proportion (%) shares held restrictions or frozen shares China Gezhouba Group Company Limited State-owned 42.34 1,949,448,239 456,201,118 Nil 0 legal person China Securities Finance Corporation Limited State-owned 1.70 78,135,257 0 Nil 0 legal person The National Social Security Fund 103 Composition Other 1.63 74,999,183 0 Nil 0 Central Huijin Asset Management Limited Liability State-owned 1.54 70,785,800 0 Nil 0 Company legal person Boshi Fund – Agricultural Bank of China – Boshi CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Dacheng Fund – Agricultural Bank of China – Dacheng Other 0.59 27,177,300 0 Nil 0 CSI Financial Asset Management Plan ICBC Credit Suisse Fund – Agricultural Bank of China – Other 0.59 27,177,300 0 Nil 0 ICBC Credit Suisse CSI Financial Asset Management Plan Guangfa Fund – Agricultural Bank of China – Guangfa CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Huaxia Fund – Agricultural Bank of China – Huaxia CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Harvest Fund – Agricultural Bank of China – Jiashi CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Southern Fund – Agricultural Bank of China – Southern Other 0.59 27,177,300 0 Nil 0 CSI Financial Asset Management Plan Yifangda Fund – Agricultural Bank of China – Yifangda Other 0.59 27,177,300 0 Nil 0 CSI Financial Asset Management Plan Yinhua Fund – Agricultural Bank of China – Yinhua CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Central Europe Fund – Agricultural Bank of China – Other 0.59 27,177,300 0 Nil 0 Central European CSI Financial Asset Management Plan Description on the connected relationship or acts in concert of the above Among the top 10 shareholders, there is no connected relationship shareholders between the top shareholder and the other shareholders. The Company is also not aware of any connected relationship or acting- in-concert relationship among the other shareholders. Descriptions on the preferential shareholders with resumed voting rights and number of shares held
- 5 - 2.3 Total number of preferential shareholders and top 10 preferential shareholders
□Applicable 3 Not Applicable
2.4 Change in controlling shareholder or beneficial owner
□Applicable 3 Not Applicable
III. MANAGEMENT DISCUSSION AND ANALYSIS
During the reporting period, under the impact of certain external unfavorable factors such as the sophisticated and volatile international politics and economy, weak recovery of the global economy and the continued domestic economic slowdown, the Company persistently adhered to the essence since the annual work meeting, pushed forward the reformation and innovation, structural adjustment, transformation and upgrading, and technological advance at a faster pace. Accordingly, the external investment was increasing, PPP business developed steadily, project management continued to be consolidated, while the non-construction business rapidly grew and the financing ability was substantially increased, maintaining the positive momentum of a sustainable and healthy development of the Company.
During the reporting period, the principal businesses of the Company comprised investment, construction, environmental protection, real estate, cement, civil explosive, equipment manufacturing and finance. During the reporting period, the Company achieved the revenue of RMB39,276,000,000, representing a year-on-year increase of 16.09%; the profit of the operation was RMB2,050,000,000, representing a year-on-year decrease of 0.71%; net profit attributable to the shareholders of the parent company was increased by 14.85% from last year to RMB1,442,000,000. As of the end of the reporting period, the total assets of the Company amounted to RMB136,466,000,000, representing an increase of 6.92% over the beginning of the year.
The principal operations of the Company are as follow:
1. Investment
During the reporting period, the Company actively implemented the investment strategies, to steadily push forward the investment, acquisition and merger and operation management in respect of emerging businesses such as waterworks, energy and environmental protection, and made breakthrough in overseas investment.
Waterworks: During the reporting period, in order to enhance the professional and centralized management of its waterworks business, the Company established China Gezhouba Group Waterworks Operation Co., Ltd. with a registered capital of RMB100 million, which was particularly engaged in the waterworks operation and management of the Company. During the reporting period, the Company completed the acquisition of the remaining 25% equity interest of Kardan Water and subsequently wholly-owned Kardan Water; proposed to acquire 100% equity interest of Hunan Haichuanda Investment Management Co., Ltd. (湖南海川達投資管理有限公司) , which held a total of 7 wastewater treatment plants with
- 6 - wastewater treatment capacity of 285,000 tons per day. As of the end of the reporting period, the relevant procedure was under processing. During the reporting period, the Company’s waterwork PPP projects of which construction was underway comprised: Water Diversion Project in Nandu River of Haikou (海口南渡江水務項目) of value RMB3,460,000,000 with construction period of 2 years and term of operation of 30 years; Zhejiang Wenling Wastewater Treatment Project (浙江温嶺污水處理項 目) of value RMB550,000,000 with construction period of 2 years and term of operation of 18 years; Waterwork Project in Zhupi River of Jingmen (荊門竹皮河水務項目) of value RMB1,410,000,000 with construction period of 2 years and term of operation of 28 years. The Company has a total of 38 wastewater plants or water-supply plants, with an aggregate water treatment capacity under operation or construction amounted to 2,200,000 tons per day. During the first half year, Kardan Water’s operation was generally stable, achieving revenue of RMB78,648,900. The Company will speed up the acquisition and merger within the waterwork segment and the PPP project business, enhance the training for professional talents, consolidate the cooperation with industrial leaders or globally renowned enterprises, and actively explore the Chinese and global waterwork markets.
Transportation: During the reporting period, in order to improve the operating efficiency and management of the highway business of the Company, the Company established China Gezhouba Group Highway Operation Co., Ltd. (中國葛洲壩集團公路運營有限公司) with a registered capital of RMB100 million, engaging in the professional operation and management of highway business. During the first half year, the highway business of the Company generally operated well, achieving revenue of RMB605,157,900, representing a year-on-year increase of 13.67%.
Energy: During the reporting period, revenue from the 8 hydropower stations invested and through equity interests, owned by the Company amounted to RMB147,262,200, representing 54.71% of the annual projection.
Overseas Investment: During the first half year, the Company established China Gezhouba Group Overseas Investment Co., Ltd. (中國葛洲壩集團海外投資有限公司) (hereinafter referred to as “Overseas Investment Company”) with a registered capital of RMB3 billion as the platform for overseas investment. Since its inception, the offshore investment of the Company has been accelerated, fostering the success of investment and acquisition and merger of certain projects as the major breakthrough in its overseas investment. The Company intended to acquire 100% equity interests in Global Electric Investment Co., Ltd. (環球電力投資有限公司) for USD4,688,000 so as to acquire the exploration rights in Azad Pattan Hydropower Project in Pakistan (巴基斯坦安扎德帕坦水電項目) . As of the end of the reporting period, the relevant procedure was under processing; the Company invested USD98,316,300 in the construction of Argun River Hydropower Station (額根河水電站) in Mongolia, meanwhile, an international company which was the parent company of the Company intended to establish Gezhouba Argun River (Mongolia) Co., Ltd. (葛洲壩額根河(蒙古)有限公司) with a registered capital of USD100,000; the Company also intended to invest a total of USD178,027,800 in the construction of Kazakhstan Cement Project for an annual designed cement capacity of 1 million tons and main products of cement for common use and for oil wells. The Company intended to establish Gezhouba Xili Cement Co., Ltd. (葛洲壩西里水泥 有限公司) with a registered capital of USD40,000,000, of which 50% and 20% equity interests were held by Cement Company and Overseas Investment Company respectively, and 30% equity interest was held by Kazakhstan Darnak Co., Ltd.
- 7 - 2. Construction
During the reporting period, in response to the increasingly intense competition of the construction industry, the Company timely adjusted its strategies, overcame the challenges in market development and successfully completed the half-year plan of contract conclusion. During the first half year, the new contracts signed by the Company amounted to a total of RMB108,455,000,000, representing 54.23% of the intended new contracts for the year. In particular, domestic contracted construction amounted to RMB67,571,000,000 while internationally contracted construction amounted to RMB40,884,000,000.
Firstly, the Company continued to push forward the PPP project development. Facing the sophisticated and volatile environment of domestic market development, the Company timely adjusted the rules for PPP business negotiations, designed and improved the frontline and backline business control mechanisms, formulated the coordination mechanism for certain departments such as marketing, finance, risk control and investment, further enhance the ability in information collection and processing, overcame the challenges in PPP business development, successfully bid the tender for a number of PPP projects such as the reform project for shanty town of Huichuan District, Zunyi city (遵義市匯川區 棚改項目), the municipal project of Huiyang city (恵陽市市政項目) and the water-supply project of Weinan city centre (渭南市中心區供水項目). During the reporting period, the contracted PPP projects of the Company amounted to a total of RMB36.8 billion, which accounted for 54.46% of the total domestic contracted value of the Company.
Secondly, the Company continued to push forward the priority go-global strategy. A subordinated international company actively played the role of guidance and organizing, focusing on strengthening the bidding for major projects and effectively obtaining the finance for key projects. Accordingly, there were totally 13 spot-exchange projects contracted and established during the first half year. Active progress has been made on the project finance for the projects such as those in Kaka, Angola (安哥拉卡 卡) and Tuzla, Bosnia and Herzegovina (波黑圖茲拉) . The Company has achieved substantial results in the vigorous exploration of the overseas markets, success in general contracting of construction and rolled forward together with the investment businesses. Meanwhile, the Company also actively drove and promoted the launch of the ‘go global’ strategy for Cement Company and Explosive Company (易普力公司).
Thirdly, the market development mechanism became more sophisticated. According to the updated needs of market development, the Company launched the “Administrative Measures on the Intermediary Services for the Domestic Market Development” to standardize the choices, use and management of intermediaries, and revised the relevant administrative rules on refining the market development, promoting the effective and orderly launch of its efforts in domestic market development. Also, the Company launched the “Administrative Rules on Overseas Branches” to enhance the marketing plan for core countries so as to further consolidate the ability of the overseas companies in market development.
Fourthly, the project management was more standardized and the ability in contract performance continued to be enhanced. During the reporting period, the Company well performed contracts with the construction-in-progress. The Company’s contracted Wudongde Hydropower Station (烏東德水電 站) Project has realized major strategic goals such as inspection acceptance on river closure and the
- 8 - operation of cable machineries according to schedules; Han Xiao Intercity Railway (漢孝城際鐵路) has successfully paved with rail pads and commenced inter-station construction in order to fulfil the owner’s scheduled target of commencement of operation during the year; the Company’s contracted and the largest municipal construction in Yichang, namely Zhixi Yangtze River Bridge (至喜長江 大橋) has completed construction and commenced operation as its goal. Regarding the international projects, the Sopladora Hydropower Station in Ecuador (厄瓜多爾索普拉多拉水電站) has passed the strong quake test and achieved on-grid power generation with all generator units; the construction of the N-J Hydropower Station project in Pakistan was in good progress and the contract performance of the Company was positive.
3. Environmental Protection
During the reporting period, the Company continued to expand the investment in the acquisition and merger of environmental protection businesses and its key projects were in steady progress.
Renewable resources: During the report period, Lvyuan Company, a wholly-owned subsidiary of the Company, entered into a corporation agreement with Hubei Xingye Steel Raw Materials Co., Ltd. to jointly establish the Gezhouba Xingye Renewable Resources Co., Ltd. (“Gezhouba Xingye”) with a registered capital of RMB500 million, of which Lvyuan Company contributed RMB325 million in cash, holding 65% equity interests. Gezhouba Xingye is primarily engaged in, among others, acquisition, processing and sales of scrap waste materials, dismantling, processing and sales of obsolete machinery and equipment. Huanjia Company, a subsidiary of Lvyuan Company, intended to establish 6 branches to push forward the gradual expansion of the presence of renewable resources business throughout China. During the reporting period, Gezhouba Huanjia recorded a revenue of RMB4.919 billion and a profit of RMB118 million; Gezhouba Xingye was included in the consolidated financial statements and recorded a revenue of RMB12 million and a profit of RMB1 million.
Sewage and sludge treatment: Gezhouba Zhonggu Technology Corporation Limited (葛洲壩中固科 技股份有限公司) accelerated the adjustment of its business direction and put more efforts in market development. By setting up the four major market departments, namely central China, southern China, eastern China and northwest China to actively explore the regional markets where substantive achievements have been made. Currently, the on-going project is Sludge Dredging in Main River Mouth into Dianchi Lake and Major Areas (Phase III)—Bao Xiang River and the North Dianchi Lake Sluge Dredging and Dewatering Project (滇池外海主要入湖河口及重點區域底泥疏浚(三期)寶象 河和外海北部疏浚底泥脫水工程) with the project fund totaling RMB97.779 million; the composite treatment project of water contamination in Huang Shi comprised the slushy mud cleaning program in Qing Gang Lake (including Ya Er Pond) and the phase II program of slushy mud cleaning in Ci lake with the project fund totaling RMB38.414 million. As at the end of the reporting period, Zhonggu Company (中固公司) has two patent technologies —“One kind of solid stabilizer (一種土壤固化劑)” and “One kind of fluorgypsum neutral modifier and the modifying method to fluorgypsum (一種氟 石膏中性改性劑及利用其對氟石膏改性的方法)”. During the reporting period, the revenue of the Zhonggu Company amounted to RMB20.9907 million, and the total profit reached RMB2.2609 million.
- 9 - New type of road building material: Road material company was granted “Certificate for High and New Technological Enterprises”. With the further ample contract reserve, the expressway maintenance business was well developed, fostering a business structure benefited from the synergy between the product market and the project market. By capturing the opportunities arising from the sponge city construction, the Company has further developed the technology of steel slag utilization and promoted the research and development (“R&D”) of the series products of slag bricks and mixture of slag and permeable asphalt concrete.
Solid waste treatment: The Laohekou demonstration line project of cement kiln co-processing 500 T/D household garbage, which was invested and constructed by Gezhouba Zhongcai Jiexin (Wuhan) Technology Co., Ltd., a subordinated company, was expected to achieve the total annual treatment volume of Urban household garbage of 155,000 tonnes from Laohekou City and peripheral regions. Since its operation, the project has been highly recognized by the ministries and commission of the State, local governments and industrial associations. Currently, Jiexin Technology Company is orderly pushing forward the other projects of cement kilns co-processing urban solid wastes, and focusing on the development of the complete industrial chain of various industrial wastes such as household garbage, hazardous wastes, municipal sludge and contaminated soil, striving to become the leading composite supplier of urban and rural solid wastes in China as well as the terminator of garbage hazards.
4. Real Estate
During the reporting period, faced with an increasingly diverging property industry, the Company persisted in a sound and steady development of its real estate segment. The Company’s newly added land reserve was four parcels with a total site area of 192,700 sq.m., newly added investment from interest in land amounted to RMB6.085 billion, the planning gross floor area of land reserve was 477,200 sq.m. During the first half year, the real estate segment achieved a revenue of RMB2.447 billion and a total profit of RMB183 million.
During the reporting period, Gezhouba Real Estate Company further optimized its development strategies so that the real estate business has covered most of the first and second tier cities. Meanwhile, it persisted to target at high-end market, and improved product quality by measures such as product design optimization and enhanced service standard. The brand standing of the Company is greatly improved accordingly. The Company ranked up to 68th among the real estate industry of China. Its developed projects were granted “Composite Award for National Classic Habitation on Planning and Architectural Design” and “The Most Valuable Business Model on the National Coast of China”. Its high-valued corporate image was widely received. Hot sale was respectively recorded for various projects in regions such as Sanya, Hefei and Wuhan. The year-on-year total sales achieved substantial increase, fostering the benefits of high stock turnover.
During the reporting period, the Company has proposed gross floor area under construction of 235,200 sq.m., completed gross floor area of 200,800 sq.m. and rights of the construction area of 1,746,300 sq.m.; achieved sold area of 317,000 sq.m. generating sales of RMB5,730 million. As at the end of the reporting period, the available for sale area was 341,400 sq.m..
- 10 - 5. Cement business
During the reporting period, China Gezhouba Group Cement Co., Ltd. further pushed forward the structure adjustment, transformation and upgrading, intensified the market exploration, increased efficiency at a reduced cost, and overcame a wide range of negative factors such as overcapacity in the industry, weakened market demand and increasingly fierce competition. It continued to keep the momentum of positive development accordingly. In May, 2016, China Cement Association announced the ranking of the comprehensive strength of cement companies listed in China for 2016. Gezhouba cement’s business ranked 4th, highlighting the continual growth of its strength. During the first half year, Gezhouba Cement recorded a revenue of RMB2,745 million with a total profit of RMB405 million.
During the reporting period, the principal cement business was further consolidated. Among the capacity displacement projects, the construction of the three cement clinker production lines in Zhongxiang, Dangyang, Songzi in Hubei Province was completed and commenced production, while the construction of white cement production line project in Shimen, Hunan Province was underway. Currently, the Company owned 14 cement production companies, of which the annual cement capacity amounted to 24.30 million tons, annual cement clinker capacity reached 16.47 million tons. With the scale of industrial chain broadening further enhanced, we actively promoted the operation of commercial concrete projects, and expected the total commercial concrete capacity to hit a record high of 5 million m3. The project of new aggregate production progressed steadily, the annual capacity will amount to 7.70 million tons upon being put into production.
During the reporting period, Cement Company persistently adhered to its marketing approach of “stringent internal control, continued external expansion, sustained core business”. Under the marketing strategies of “reaching out for the villages and households” and “individual price negotiation per order” strictly implemented, sales of the civilian market steadily increased. With the stringent control on the supply contract reserve for key construction projects, Cement Company has successfully bid the key construction projects such as Han-Shi High Speed Rail and Water Resources Allocation in Northern Hubei Province respectively. It continued to further strengthened the budget management by modular unit. Through management innovation, revolutionized technology and refined operation, cost was reduced and effectiveness was increased accordingly.
6. Civil Explosive
During the reporting period, faced with the remaining sluggish demand of the civil explosive market and insufficient operating rate of mine explosion business, China Gezhouba Group Explosive Stock Co., Ltd. implemented multi-pronged measures for technology upgrade, prudent acquisition and merger and going global initiative. Under the pressure from the decreases of both production and prices in civil explosive industry, it actively sought the new growth points, maintaining its leading position in the industry in terms of profitability. During the reporting period, Explosive Company adopted the integrated explosive service model to increase the capacity by 21,000 tons, with the industry explosive capacity of civil explosive segment amounted to 276,000 tons, representing a year-on-year increase of 8.23%, ranking 4th in China; the production of industrial explosive and industrial detonator amounted to 81,100 tons and 14.67 million respectively; the revenue of civil explosive segment amounted to RMB1,292 million
- 11 - with a profit of total RMB150 million; the total contractual amount was approximately RMB5,396 million. All intended contracts for whole year have been signed up during the first half year.
Firstly, innovate business model: we explored the stock market to grow productions, continued to expand the scale of general contracting of mine construction business and consolidated the core civil explosive integrated business; with the bulk explosive integrated service model, we were granted additional industrial explosive capacity of 21,000 tons in Tibet, strongly supporting our presence in Tibetan regional market. Secondly, give full play to the advantages in our market layout and technology: we focused our efforts in the infrastructure market for projects such as water conservancy and hydro power, non-ferrous metal, infrastructures and sand aggregate, and gradually adjusted the business structure. Thirdly, accelerate the market exploration of international business: we undertook the Karot Hydropower Construction Service Project in Pakistan (巴基斯坦卡洛特水電施工服務項目) of contracted amount of approximately RMB146 million, entered into the bulk explosive integrated service contract for Kokoya gold mines of contracted amount of RMB60.98 million with MNG Gold Liberia, Inc. (MNG黃金利 比裡亞公司) in Turkey , laying the solid foundation for the phrasal development and expansion of Explosive Company into West African market.
Meanwhile, we actively promoted the technology upgrade to enhance the R&D ability through improvement of the technology management system. With the successful application and registration of the post-doctoral workstation, we consolidated R&D and key technological research ability, early fostering the application of technological research results. In particular, the Company was granted 8 patent rights with 3 technological research projects duly passed the industry identification complying with leading international standards.
7. Equipment manufacturing
During the reporting period, aiming at developing high-end equipment manufacture, China Gezhouba Group Machinery & Ship Co., Ltd. (中國葛洲壩集團機械船舶有限公司) deepened reform and innovation and took significant effort to promote transformation and upgrading. During the reporting period, the revenue of equipment manufacturing segment amounted to RMB293 million with a total profit of RMB5 million.
Further progress on development: During the first half of the year, relying on the “863” strategic distribution over global market, CGGC-UN POWER Co., Ltd. (葛洲壩能源重工有限公司) (“CGGC- UN POWER”) successfully won various general contracting projects, including the N’Djamena 100MW Crude Oil Plant in Chad (乍得恩賈梅納100MW原油電站) with a contractual amount of RMB1,983 million. During the reporting period, it achieved a total contractual amount of RMB2,681 million. CGGC-UN POWER continued to strengthen the cooperation with international well-known companies. It worked with Wärtsilä in Finland to carry out the largest medium-speed gas engine distributed energy project in China, namely Guangdong Huadian Panyu Manbo Distributed Energy Station (廣東華電 番禺萬博分佈式能源站項目). In addition, CGGC-UN POWER effortlessly expanded photovoltaic generation market and secured two photovoltaic projects from Shanxi Nengtou (山西能投) and Hebei Neiqiu (河北內丘). In August 2016, China Gezhouba Group Machinery & Ship Co., Ltd. and CGGC- UN POWER, each being a subsidiary of the Company, worked with certain shareholders including
- 12 - Institute of Engineering Thermophysics, Chinese Academy of Sciences (中國科學院工程熱物理研 究所) in relation to the restructuring of Zhongke Shuangliang Energy Storage Technology (Beijing) Co., Ltd. (中科雙良儲能技術（北京）有限公司) and changed its name to Gezhouba Zhongke Energy Storage Technology Co., Ltd. (葛洲壩中科儲能科技有限公司), in which China Gezhouba Group Machinery & Ship Co., Ltd. and CGGC-UN POWER held 51% equity interests in aggregate. Relying on the 10MW advanced compressed air energy storage technology (10MW級先進壓縮空氣儲能技術) developed by Institute of Engineering Thermophysics, Chinese Academy of Sciences, the Company has successfully got involved in energy storage projects, thereby promoting the industrialization of air energy storage technology.
Preliminary achievement in transformation and upgrading: Gezhouba Machinery Industry Co., Ltd. ( 葛洲壩機械工業有限公司) pushed forward the development of the international business where the constructions of Wind Power EPC General Contracting Project in Pakistan (巴基斯坦風電EPC總承 包項目) and Upper Cisokan Pumped Storage Power Plant Project in Indonesia (印度尼西亞上西索 堪抽水蓄能電站項目) were successively commenced, which facilitated rapid revenue growth for the equipment manufacturing segment. Meanwhile, it integrated resources for market development and enhanced the intersegment synergy of the Company. It also endeavoured to innovate new business models, and successfully won the Huiqiao Shipbuilding Project in Tianjin (天津惠橋船舶項目) with an amount of RMB264 million through the EPC+F model.
8. Finance
During the reporting period, our financial leasing company achieved innovation and development of the financial leasing business to actively carry out external debt financing and successfully provide financing of USD16 million for the project construction of the Company’s subsidiaries. It also completed the domestic direct payment in foreign currencies, which was a pioneered move in the PRC and effectively reduced corporate finance expenses. Through series of capital operation, the Company raised a considerable amount of low-cost funds, which provided important financial support for the structural adjustment and transformation and upgrading of the Company.
- 13 - (I) ANALYSIS ON THE PRINCIPAL BUSINESS
1 Analysis of changes in items of the financial statements
Unit: Yuan Currency: RMB Amount for the same Percentage of change Item Amount for the period period last year (%) Revenue 39,276,202,805.91 33,832,401,331.51 16.09 Operating costs 34,061,965,024.47 28,528,771,121.65 19.40 Selling expenses 326,478,581.24 287,228,458.42 13.67 Administrative expenses 1,703,397,736.73 1,394,801,312.79 22.12 Finance expenses 903,429,135.23 949,507,998.73 -4.85 Net cash flow generated from operating activities -6,013,165,936.80 –3,562,857,406.69 N/A Net cash flow generated from investing activities -1,377,206,079.09 –3,307,296,180.46 N/A Net cash flow generated from financing activities 4,423,389,823.27 7,597,643,046.87 -41.78 Research and development expenditure 345,302,653.97 198,368,711.51 74.07
Reason for change in revenue: The increase in revenue was due to the business growth of Gezhouba Huanjia (Dalian) Renewable Resources Co., Ltd. (葛 洲壩環嘉（大連）再生資源有限公司) under the environmental protection segment of the Company. Reason for change in operating The growth of revenue was in line with that of costs. costs: Reason for change in selling This was due to the increase in staff salaries and agency fee for expenses: commissioned sales. Reason for change in This was due to the increase in research and development administrative expenses: expenses and staff salaries. Reason for change in finance This was attributable to the decrease in finance expenses mainly expenses: as a result of the increase in interest income as well as the reduction in interest payment with the decrease in interest rates of interest-bearing debts.
- 14 - Reason for change in net cash This was mainly attributable to the increase in investment in flow generated from land auctions and project development by the real estate segment operating activities: during the period, and the decrease in deposits placed with China Energy Engineering Group Gezhouba Finance Co., Ltd. (中國 能源建設集團葛洲壩財務公司), a holding subsidiary of the Company. Reason for change in net cash This was mainly due to the decrease in investment in joint flow generated from investing ventures by the real estate segment, as well as the decrease in activities: investment in BT projects by the Company and investment in infrastructure by the cement segment. Reason for change in net cash This was mainly due to the increase in repayment of bank flow generated from borrowings by the Company during the period. financing activities: Reason for change in research This was attributable to the increase in research and development and development expenditure: input by the Company during the period.
2 Others
(1) Details on material changes in profit composition or profit source of the Company
During the reporting period, there was no material change in profit composition and profit source of the Company.
(2) Analysis on implementation schedule of all preliminary financing and material asset restructuring of the Company a. On 20 January, the Company completed the issue of 2016 Corporate Bonds (first tranche). The actual issue size was RMB3 billion with final coupon rate of 3.14% and having a term of 5 years. The bonds were traded on the Shanghai Stock Exchange on 23 February. b. On 5 May, the Company completed the issue of 2016 Corporate Bonds (second tranche). The actual issue size was RMB3 billion with final coupon rate of 3.27% and having a term of 5 years with an option for the issuer to raise the coupon rate and a put option for investors after the end of the third year. The bonds were traded on the Shanghai Stock Exchange on 14 June. c. On 16 May, the Company completed the issue of 2016 Corporate Bonds (third tranche). The actual issue size was RMB4 billion with final coupon rate of 3.45% and having a term of 5 years. The bonds were traded on the Shanghai Stock Exchange on 14 June. d. On 30 May, the Company completed the issue of the first tranche of 2016 medium-term notes (perpetual medium-term notes). The actual issue size was RMB3 billion with interest rate upon issuance of 4.28% and having a term of 5+N years.
- 15 - (3) Business plan progress
During the reporting period, the Company had newly signed contracts of RMB108.455 billion in aggregate, accounting for 54.23% of the yearly plan; an accumulated revenue of RMB39.276 billion, representing 42.69% of RMB92 billion in the yearly plan; and an accumulative completed investment of RMB14.128 billion, accounting for 27.92% of RMB50.6 billion in the yearly plan.
Reasons for failure to meet targeted revenue on schedule: Firstly, since the start of the flood season, the rainfall along the Yangtze basin and southern regions was far more than previous years, resulting in frequent floods. Consequently, most of the constructions in progress were plagued as affected by the flood control works and heavy rainfall. Secondly, impacted by the continued downward pressure of domestic economy, some owners of the projects in progress were experiencing fund shortage, leading to delay in construction settlement and posing more difficulties on altering claims. Thirdly, among the PPP projects secured in the first half of the year, most were still undergoing preliminary examination and approval, land acquisition and relocation, and pre-construction stage, and were yet to enter peak construction period. Fourthly, real estate sales can only achieve the condition of revenue recognition in the third or fourth quarter.
Reason for failure to complete targeted investment on schedule: most of the investment projects and finance construction projects were still in preparatory stage, hence resulting in a relatively less completed investment.
(II) ANALYSIS OF OPERATION BY INDUSTRY, PRODUCTS OR GEOGRAPHICAL LOCATIONS
1 Description of core businesses by industry and products
Unit: Yuan Currency: RMB Core businesses by industry Year-on-year Year-on-year change in Year-on-year Gross profit change in operating change in gross By industry Revenue Operating costs margin (%) revenue (%) costs (%) profit margin (%) Investment 819,589,306.04 314,884,317.17 61.58 16.55 12.68 Increased by 1.32 percentage points Construction 24,872,286,253.16 22,587,044,627.20 9.19 1.62 2.52 Decreased by 0.8 percentage points Environmental 4,933,697,173.54 4,775,319,539.74 3.21 Protection Real Estate 2,447,232,217.87 1,667,528,430.21 31.86 -14.35 –9.31 Decreased by 3.79 percentage points Cement 2,745,045,770.11 2,113,980,473.39 22.99 1.71 6.25 Decreased by 3.29 percentage points Civil Explosive 1,291,666,819.05 957,967,342.72 25.83 12.33 23.88 Decreased by 6.92 percentage points
- 16 - Core businesses by industry Year-on-year Year-on-year change in Year-on-year Gross profit change in operating change in gross By industry Revenue Operating costs margin (%) revenue (%) costs (%) profit margin (%) Equipment 292,958,831.91 259,261,334.71 11.50 155.41 155.55 Decreased by 0.05 Manufacturing percentage points Others 1,573,890,196.54 1,191,133,484.41 24.32 6.80 -2.16 Increased by 6.93 percentage points Total 38,976,366,568.22 33,867,119,549.55 13.11 16.44 19.96 Decreased by 2.55 percentage points
Description of core businesses by industry and products a. The investment segment is comprised of the Company’s transportation business, hydropower business and waterwork business. The revenue for the period increased by 16.55% as compared to the previous period, mainly due to the growth of revenue from the Company’s highway operation and waterwork; b. The environmental protection segment is comprised of the Company’s renewable resources business and sludge treatment business. The segment recorded a rapid growth in revenue, mainly due to the business growth of Gezhouba Huanjia (Dalian) Renewable Resources Co., Ltd.; c. The revenue of the real estate segment decreased by 14.35% as compared to the same period last year, mainly attributable to the year-on-year decrease in real estate projects completed for delivery in the first half of the year; d. The gross profit margin of the cement segment decreased by 3.29%, mainly due to the year-on- year decrease in average selling price of the cement segment as a result of the sluggish demand of the cement market and the intensifying market competition; e. The revenue and gross profit margin of the civil explosive segment increased by 12.33% and decreased by 6.92%, respectively, mainly due to the significant increase in the proportion of revenue from mine general contracting projects to the total revenue, as well as the lower profit margin of the mine general contracting projects during the period; f. The revenue of the equipment manufacturing segment for the year increased by 155.41% from the previous year, mainly due to the increase in equipment manufacturing and installation business of CGGC-UN POWER, a holding subsidiary of the Company.
- 17 - 2. Core businesses by regions
Unit: Yuan Currency: RMB Year-on-year change Regions Revenue in revenue (%) Domestic 32,046,672,642.11 27.34 Overseas 6,929,693,926.11 -16.59 Total 38,976,366,568.22 16.44
Description of core businesses by regions Nil
(III) ANALYSIS OF CORE COMPETITIVENESS
1. Decision-making competitiveness
The Company has established an accountability system with the Chairman acting as the first person responsible for strategic management, and adopted the top-down approach to organize, study and formulate overall strategies, significant business and functional strategies and sub-corporate strategies. This founded a collaborative strategic system as guided by the Company’s overall strategies and supplemented with business strategies, functional strategies and sub-strategies. In addition, the Company developed and improved the corporate governance system of the parent and subsidiaries, which formed a Chairman-centred mechanism for decision-making management where decisions were made according to the principle of strategic orientation, standardized operation and effective balance. The Company has implemented a dedicated director and supervisor system among the subsidiaries, under which dedicated directors and supervisors shall involve in the decision-making and supervision of subsidiaries, so as to extend the headquarters’ management function and chains. As to significant decision-making, the Company has sought external support or engaged third party institutions to ensure scientific and reliable decision-making.
2. Organizational competitiveness
The Company strengthened the building of 2-level corporate headquarters in order to intensify the capacity in the management of strategies, fundings and systems, corporate governance and risk prevention and control. Further, the Company stepped up efforts in specializing, optimizing, consolidating and expanding the business of its members, and exerted utmost effort in internal resource integration and external merger and acquisition (“M&A”) and restructuring. The construction segment built a number of professional and outstanding subsidiaries with output value of around ten billions that own strong core competitiveness and enjoy leading position in the industry. By investment, M&A and resource integration, the investment, environmental protection, cement and civil explosive segments developed the business development platform with concentrated resources, intensified management and distinct expertise. The Company set up a platform for the development of international business, which designated the role of international companies as the platform for centralized internal management
- 18 - and external single window of the international businesses; overseas investment companies as the operation platform for overseas investment; and investment companies, green garden companies, power companies and machinery ship companies as the operation platform for domestic investments in several businesses, including waterwork and transportation, environmental protection, urban public utilities and high-end equipment manufacturing.
3. Employees’ competitiveness
The Company has set up a new model for human resource management which covers the introduction of experienced and leading talents, cultivation of entrepreneurs, professional team building and general upgrade of employees’ vocational skills. This includes a personnel selection and designation mechanism, enabling free promotion/demotion of management, reasonable join-in and withdrawal of employees and unrestricted distribution adjustment, and developed a team of entrepreneurs each with strategic insights, profound knowledge, savvy business sense, innovative spirit and social responsibility. Benefited from the abovementioned factors, the Company now possesses a professional technological, R&D and business team, of which the members are loyal to the Company, aspire to success, more occupational competitive, and are adaptable to international operation at the same time. The age structure, professional structure and capability structure of the employees are more accommodating to the needs for significant development and international development of the Company.
4. System competitiveness
The Company has developed organizational systems with functional management as the framework. With coordinated and efficient operation of various systems, each of the regulations and rules has become more scientific, systematic, rigorous, concise and practical, resulting in more optimized, clear and reasonable business processes.
5. Culture competitiveness
The Company has established a set of core values featuring “integrity, responsibility, innovation, positive attitude, tolerance and harmony” and all employees share the same values and observe the same code of conduct. Having been successfully embedded and applied in the overseas operations as well as M&A companies, the values are well accepted and assimilated by the business partners, creating a strong centripetal effect and cohesion within the Company.
- 19 - 6. Brand competitiveness
The Company is long established world-class hydropower construction brand with a leading domestic position. Through investment and/or financing modes, the Company has undertaken more than 5,000 outstanding projects such as hydropower stations, roads, railways, airports, property construction, ports, bridges and railway transportation in both international and domestic market. The Company has also established a multi-brand system under the unified corporate brands of “CGGC”, which are attributable to: the increasingly renowned “Lvyuan”, an environmental friendly brand owned by the Company; the compelling image of the water utility brand of “Gezhouba”; the emerging equipment manufacturing brand of CGGC-UN POWER; the absolute brand advantages and influence possessed by the cement brand of “Three Gorges” and civil explosive brand of “Explosive” in the core market regions; and the widely recognized high-end brand image of “Gezhouba Real Estate (葛洲壩地產)”.
7. Platform competitiveness
In addition to traditional indirect financing from banks, the Company has also established a number of multi-channel, low-cost and efficient financing platforms such as direct financing in the capital market, finance leases, sector fund and internal fund transfers. The Company has established a platform for international business network covering 4 major regions, 30 core countries and 52 market centres all over the world. The Company has established a business platform with synergic development of multi-segment including investment, construction, environmental protection, real estate, cement, civil explosive, equipment manufacturing and finance. Leveraging its advantages in full, the Company has developed a strong headquarter and mega-platform, fostering enormous platform advantages of the Company in terms of high-end communication, decision support, financial planning, resource allocation, risk aversion and control as well as business synergy.
8. Innovative competitiveness
Through optimizing its innovation system, developing innovative teams, enhancing innovation capability, creating innovative culture as well as striving to remove constraints from policies, concepts, management and culture, the Company has developed its core competitiveness such as innovation consciousness and innovation capability.
- 20 - (IV) ANALYSIS OF INVESTMENTS
1. Overall analysis of external equity investments
(1) Securities investments
3Applicable □Not applicable
Percentage in Carrying total securities Initial Number of amount as at investment as at Gain or loss for Securities Stock short investment shares held the end of the the end of the the reporting No. type Stock code name amount (Yuan) (share) period (Yuan) period (%) period (Yuan) 1 Share 002500 Shanxi 58,408,423.15 3,844,726.00 63,668,662.56 73.08 6,684,974.46 Securities 2 Share 601908 Jingyuntong 10,970,185.94 1,200,000.00 9,204,000.00 10.56 -145,984.30 3 Share 600713 NanJing 8,564,807.04 700,000.00 5,894,000.00 6.77 -1,428,000.00 Pharmaceutical 4 Share 600780 Top Energy 7,006,685.18 813,539.00 4,083,965.78 4.69 -1,224,175.73 5 Share 600839 Sichuan 2,569,845.08 435,000.00 1,922,700.00 2.21 -333,938.63 Changhong 6 Share 002375 Yasha 1,279,574.60 69,000.00 779,700.00 0.89 -246,020.08 Decoration 7 Share 601611 China Nuclear 118,389.46 34,118.00 713,748.56 0.82 595,359.10 Engineering 8 Share 300516 Jiuzhiyang 33,142.50 1,473.00 258,025.41 0.30 224,882.91 9 Share 601127 Sokon 47,723.34 8,214.00 196,068.18 0.23 148,344.84 10 Share 603737 SKSHU 20,323.50 1,275.00 148,002.00 0.17 127,678.50 Other securities investments held at the end of the period 80,613.81 / 250,912.70 0.29 170,298.89 Gains or losses on securities investments sold during the reporting period / / / / 8,191,537.60 Total 89,099,713.60 / 87,119,785.19 100% 12,764,957.56
Note to securities investments: The above investments were held by the finance company of the Company.
- 21 - (2) Shareholding in other listed companies
3Applicable □Not applicable
Unit: Yuan Shareholding as at the Shareholding beginning of as at the end Changes in interest Stock short the period of the period Carrying amount as at Gain or loss for the of owners during the Accounting Sources of Stock code name Initial investment cost (%) (%) the end of the period reporting period reporting period item shares 000783 Changjiang 203,944,296.50 2.865 2.865 1,576,198,163.20 47,557,703.20 -111,420,904.64 Available-for- Original issue Securities sale financial stock assets 600900 Yangtze Power 49,447,658.06 0.275 0.275 567,108,450.00 -48,583,350.00 Available-for- Original issue sale financial stock assets 601328 Bank of 3,850,000.00 0.003 0.003 14,243,900.00 -2,049,300.00 Available-for- Original issue Communications sale financial stock assets Total 257,241,954.56 / / 2,157,550,513.20 47,557,703.20 -162,053,554.64 / /
Note to shareholding in other listed companies Nil
(3) Shareholding in financial companies
3Applicable □Not applicable
Shareholding as at the Shareholding Changes in beginning of as at the end Carrying amount as at Gain or Loss for Interests of owners Initial investment the period of the period the end of the period the reporting period during the reporting Accounting Sources of Name of investee amount (Yuan) (%) (%) (Yuan) (Yuan) period (Yuan) item shares Huarong Securities Co., Ltd. 378,844,940.40 4.5 4.5 378,844,940.40 21,015,311.94 Available-for- Debt-equity sale financial swap assets Hubei Bank Corporation Limited 20,401,000.00 0.66 0.66 20,401,000.00 Available-for- Original issue sale financial stock assets Hubei Pengcheng Insurance 200,000.00 2.51 2.51 198,000.00 44,986.52 Available-for- Original issue Brokerage Co., Ltd. sale financial stock assets Total 399,445,940.40 / / 399,443,940.40 21,060,298.46 / /
Note to shareholding in financial companies Nil - 22 - 1. Entrusted wealth management and investment in derivatives with non-financial companies
(1) Entrusted wealth management
3Applicable □Not applicable
Unit: Yuan Currency: RMB Source of capital Type of Beginning and entrusted Amount of date of Ending date Principal Through Involved funding wealth entrusted entrusted of entrusted Method amount Income a legal Amount of Connected in a from Name of management wealth wealth wealth of return Expected actually actually procedure impairment transaction litigation proceeds Connected partner product management management management determination yield recovered received or not provision or not or not or not relationship Xinyi Wealth Entrusted wealth 10,000,000.00 2015/10/26 2016/10/28 Product yield 559,000.00 0 402,739.70 Yes 0 No No No No. 3 management Xinyi Wealth Entrusted wealth 10,000,000.00 2015/10/26 2016/10/28 Product yield 559,000.00 0 402,739.70 Yes 0 No No No No. 4 management Xinze Wealth Entrusted wealth 22,000,000.00 2015/11/9 2016/8/11 Product yield 1,005,000.00 0 176,000.00 Yes 0 No No No No. 87 management Duotianfu No.4 Entrusted wealth 20,000,000.00 2016/1/26 2016/12/15 Product yield 972,000.00 0 Yes 0 No No No *324 days management Total / 62,000,000.00 / / / 3,095,000.00 981,479.40 / / / / / Accumulated amount of overdue principal and income not recovered (Yuan) Note to entrusted wealth management China Energy Engineering Group Gezhouba Finance Co., Ltd., a holding subsidiary of the Company, acquired entrusted wealth management products issued by CITIC Securities and GF Securities.
(2) Entrusted loans
3Applicable □Not applicable
Unit: Yuan Currency: RMB Source of Involved capital and Collateral Connected in a funding from Investment Amount of Interest rate or Overdue transaction Renewed litigation proceeds Connected Expected gain or Borrower entrusted loan Loan period of loan Use of loan guarantor or not or not or not or not or not relationship yield loss Chongqing Gexing 200,000,000.00 36 months 5.25% Liquidity Nil No 5337500 Construction Co., Ltd. (重慶市葛興建設有 限公司) Chongqing Gexing 200,000,000.00 36 months 6.15% Liquidity Nil No 5337500 Construction Co., Ltd. (重慶市葛興建設有 限公司)
- 23 - Note to entrusted loans
China Energy Engineering Group Gezhouba Finance Co., Ltd., a holding subsidiary of the Company, granted a loan of RMB400 million to Chongqing Gexing Construction Co., Ltd. (重慶市葛興建設有 限公司) for a term of 36 months. Chongqing Gexing Construction Co., Ltd. (重慶市葛興建設有限公 司) is an associate of which 46.36% equity interest was contributed by China Gezhouba Group Three Gorges Construction Engineering Co., Ltd. upon its inception.
(3) Investments in other wealth management products and derivatives
□Applicable 3Not applicable
3. Use of proceeds
(1) Overall use of proceeds
3Applicable □Not applicable
Unit: Yuan Currency: RMB Total amount of proceeds Total accumulated Intended use Year of fund- Method of fund- Total proceeds used during the amount of proceeds Total unutilized of unutilized raising raising raised reporting period used proceeds proceeds 2014 private placement 3,970,704,458.18 3,970,704,458.18 Total / 3,970,704,458.18 3,970,704,458.18 / Note to overall use of proceeds As of 30 June 2016, the accumulated amount of proceeds used of RMB3,970,704,458.18 has been applied in investment projects by the Company. The balance of the designated account for the proceeds raised amounted to RMB911,321.41, which was the interest income from the proceeds raised
- 24 - (2) Use of proceeds on committed projects
3Applicable □Not applicable
Unit: 0’000 Yuan Currency: RMB Amount of Explanations proceeds Actual on failure Reasons for Amount of invested accumulated In line with to achieve changes and proceeds during the amount of Achieved expected planned explanations Name of committed Change in intended to reporting proceeds the schedule Project Expected Generation revenue or schedule and on change in projects the project invest period invested or not progress revenue of revenue not revenue proceeds BT Project of Wuzhong No 280,000 280,000 Yes 100% N/A N/A Yes N/A N/A section of Suzhou Central Express Way Replenishment of No 117,070.45 117,070.45 Yes 100% N/A N/A Yes N/A N/A liquidity Total / 397,070.45 397,070.45 / / / / / / Note to use of proceeds on committed projects
(3) Change in use of proceeds
□Applicable 3Not applicable
- 25 - 4. Analysis of principal subsidiaries and investees
Unit: Yuan Currency: RMB Net profit attributable to Principal products or Amount of owners’ owner of parent Company Name service Registered capital Asset amount equity company China Gezhouba Group No.1 Engineering Co., Construction for water 980,611,400.00 10,531,273,790.77 1,234,037,385.66 182,015,165.20 Ltd. (中國葛洲壩集團第一工程有限公司) conservancy and hydropower China Gezhouba Group No.2 Engineering Co., Construction for water 1,000,000,000.00 6,500,070,605.99 1,057,796,946.36 116,609,437.65 Ltd. (中國葛洲壩集團第二工程有限公司) conservancy and hydropower China Gezhouba Group No.3 Engineering Co., Construction for water 312,560,000.00 5,531,676,220.83 1,292,565,520.52 70,097,271.70 Ltd. (中國葛洲壩集團第三工程有限公司) conservancy and hydropower China Gezhouba Group No.5 Engineering Co., Construction for water 1,100,000,000.00 5,971,010,936.94 1,740,381,522.34 112,250,081.91 Ltd. (中國葛洲壩集團第五工程有限公司) conservancy and hydropower China Gezhouba Group No.6 Engineering Co., Construction for water 700,000,000.00 5,484,183,170.47 530,974,532.57 -31,659,206.01 Ltd. (中國葛洲壩集團第六工程有限公司) conservancy and hydropower China Gezhouba Group Mechanical and Construction for water 450,000,000.00 2,467,038,219.33 741,829,946.45 72,808,757.47 Power Construction Co., Ltd. (中國葛洲壩 conservancy and 集團機電建設有限公司) hydropower China Gezhouba Group Foundation Construction for water 400,000,000.00 2,934,417,527.84 612,470,672.36 34,859,975.47 Engineering Co., Ltd. (中國葛洲壩集團基 conservancy and 礎工程有限公司) hydropower China Gezhouba Group Electric Power Co., Construction for water 500,000,000.00 5,217,450,346.72 769,111,785.16 121,178,146.71 Ltd. (中國葛洲壩集團電力有限責任公司) conservancy and hydropower China Gezhouba Group Three Gorges Construction for water 600,000,000.00 3,158,167,863.28 503,306,390.92 97,585,142.38 Construction Engineering Co., Ltd. (中國 conservancy and 葛洲壩集團三峽建設工程有限公司) hydropower China Gezhouba Group International Construction for water 1,000,000,000.00 6,604,397,625.26 2,069,401,279.74 135,801,164.47 Engineering Co., Ltd. (中國葛洲壩集團國 conservancy and 際工程有限公司) hydropower China Gezhouba Group Machinery & Ship Manufacture of 565,000,000.00 2,403,198,807.13 350,944,977.30 21,317,059.71 Co., Ltd. (中國葛洲壩集團機械船舶有 machinery equipment 限 公司) such as vessels China Gezhouba Group Real Estate Co., Ltd. Real estate development, 800,000,000.00 14,536,299,145.03 1,187,767,460.22 24,391,929.92 (中國葛洲壩集團置業有限公司) sale of commodity properties Hubei Wuhan Gezhouba Industrial Co., Ltd.( decoration and design 235,797,600.00 805,602,016.11 258,637,000.03 -540,358.92 湖北武漢葛洲壩實業有限公司) construction, property management, etc.
- 26 - Net profit attributable to Principal products or Amount of owners’ owner of parent Company Name service Registered capital Asset amount equity company China Gezhouba Group Explosive Stock Co., Manufacture and sale of 490,000,000.00 3,313,264,253.58 1,308,859,872.60 118,466,007.20 Ltd. (中國葛洲壩集團易普力股份有限 civil explosives 公司) China Energy Engineering Group Gezhouba Deposits and loans for 1,371,370,000.00 25,306,932,186.14 1,593,364,435.99 43,462,613.08 Finance Co., Ltd. (中國能源建設集團葛洲 business units 壩財務有限公司) Hubei Daguangbei Expressway Co.,Ltd. (湖北 Expressway investment, 1,881,000,000.00 5,663,213,814.57 1,094,154,193.40 26,917,695.72 大廣北高速公路有限責任公司) construction and operation Gezhouba Group Sichuan Tunnel Expressway Expressway investment, 300,000,000.00 5,835,122,929.52 1,236,914,288.41 -88,886,308.70 Co., Ltd. (葛洲壩集團四川內遂高速公路 construction and 有限公司) operation China Gezhouba Group Real Estate Real estate development, 2,000,000,000.00 31,176,728,982.16 3,610,405,776.63 44,858,091.57 Development Co., Ltd. (中國葛洲壩集團房 sale of commodity 地產開發有限公司) properties China Gezhouba Group Cement Co., Ltd. (中 Cement production and 3,128,840,200.00 12,142,366,224.87 6,414,052,080.13 224,134,168.00 國葛洲壩集團水泥有限公司) sales Gezhouba Weiye (Hubei) Insurance Brokerage Insurance brokerage and 10,000,000.00 14,391,956.01 13,332,562.37 386,976.04 Co., Ltd. (葛洲壩偉業(湖北)保險經紀有 agency services 限公司) China Gezhouba Group Investment Holdings Project investment 500,000,000.00 8,315,016,186.71 2,587,070,416.81 26,501,184.95 Co., Ltd. (中國葛洲壩集團投資控股有限 公司) China Gezhouba Group Survey and Design Construction for water 222,323,408.64 431,154,814.26 253,314,896.68 10,899,046.96 Co., Ltd. (中國葛洲壩集團勘測設計有限 conservancy and 公司) hydropower China Gezhouba Group Financial Leasing Financial leasing business 1,000,000,000.00 2,026,636,579.85 217,149,912.43 14,809,831.08 Co., Ltd. (中國葛洲壩集團融資租賃有限 公司) China Gezhouba Group Lvyuan Technology Environmental Business 1,000,000,000.00 2,421,089,613.66 1,629,407,967.67 47,156,138.32 Co., Ltd. (中國葛洲壩集團綠園科技有限 公司) Fuzhou Jiangyin Industrial Zone Gezhouba Infrastructure 540,000,000.00 911,492,412.71 540,000,000.00 Reclamation Investment Co., Ltd. (福州市 development 江陰工業區葛洲壩填海投資有限公司) Gezhouba (Haikou) Water Diversion Investment in 350,000,000.00 352,524,660.00 350,000,000.00 Investment Co., Ltd. (葛洲壩(海口)引水工 construction and 程投資有限公司) operating management China Gezhouba Group Overseas Investment Overseas investment 3,000,000,000.00 198,997,688.71 197,283,744.50 -2,716,255.50 Co., Ltd. (中國葛洲壩集團海外投資有限 公司)
- 27 - Particulars of Subsidiaries contributing more than 10% to the Company’s net profit
Unit: Yuan Currency: RMB Net profit attributable to owners of the parent Unit Revenue Operating profit company China Gezhouba Group No.1 Engineering Co., Ltd. (中國葛洲壩集 團第一工程有限公司) 3,061,234,224.44 191,851,941.16 182,015,165.20 China Gezhouba Group Cement Co., Ltd. (中國葛洲壩集團水泥有限公司) 2,782,904,053.73 252,466,862.16 224,134,168.00
5. Non-fund raising projects
√ Applicable □ Not Applicable
Unit: RMB0’000 Currency: RMB Amount invested Actual during the accumulated Amount of reporting amount Revenue of Name of project project Progress of project period invested project Beijing Zi Jun Mansion (北京 229,948 The project has been 459 230,417 80,530 紫郡府) completed and delivered Beijing Grand Canal Center (北 458,515 The residential and office 0 375,462 2,808 京京杭廣場) areas of the project have been completed and delivered Beijing Jin Mao Noble Manor 639,807 The main construction 31,901 377,079 Under (北京金茂逸墅) works of the main area construction are in progress Beijing Jade Mansion (北京西 714,475 All structures have 41,977 501,717 Under 宸原著) completed topping-out, construction interior and exterior decorations are underway Beijing Fanjia Village Project ( 783,003 The pre-construction work 0 495,000 Pre- 北京樊家村項目) is in progress construction preparation Shanghai Zhen Garden (上海 340,091 The project has been 11,195 350,490 107,243 臻園) completed and delivered Shanghai Qingpu Phase I (上海 406,751 The masonry work and 30,927 320,230 Under 青浦一期) exterior decoration of the construction main area are in progress Shanghai Qingpu Phase II (上海 452,337 The construction work of 16,611 175,182 Under 青浦二期) the main area is underway construction
- 28 - Amount invested Actual during the accumulated Amount of reporting amount Revenue of Name of project project Progress of project period invested project Shanghai Xujing Project (上海 176,262 The construction work 7,009 117,403 Under 徐涇項目) of the main area is in construction progress Guangzhou Guanggang Project 743,216 The foundation and main 21,571 398,068 Under Phase II (廣州廣鋼二期項目) structure constructions construction of the main area are in progress Guangzhou Guanggang Project 486,538 The pre-construction work 9,500 276,500 Pre- Phase III (廣州廣鋼三期項目) is in progress construction preparation Hainan Blessed Bay Project (海 912,751 The installation and exterior 51,099 510,563 Under 南海棠福灣項目) landscaping work are in construction progress Wuhan Gezhouba International 453,384 The pre-construction work 0 174,967 Pre- Plaza South Area (武漢葛洲 is in progress construction 壩國際廣場南區) preparation Wuhan Gezhouba City Garden 265,091 The construction of main 21,103 210,154 Under Phase II (武漢葛洲壩城市花 structure is in progress construction 園二期) Wuhan Gezhouba Huazhuang 118,951 The construction of main 6,352 98,229 Under (武漢葛洲壩華莊) structure is in progress construction Nanjing Wire Factory Project 952,805 The pre-construction work 69,435 329,006 Pre- (南京線材廠項目) is in progress construction preparation Nanjing Hexi G14 Plot Project 483,157 The pre-construction work 328,000 328,000 Pre- (南京河西G14地塊項目) is in progress construction preparation Chongqing European Garden 1,447,537 Phase I has been completed 46,515 260,419 Under Project (重慶歐麓花園項目) and the construction construction of main structure is in progress Chongqing Expo City Project 1,252,707 The construction of main 39,983 295,454 Under (重慶國博城項目) structure for Phase I is in construction progress Project Weike Mansion 36,347 The construction of main 5,346 27,584 Under (重慶微客公館) structure is in progress construction Chengdu Shuangliu West 175,662 The pre-construction work 36,984 36,984 Pre- Airport Project Parcel is in progress construction (成都雙流西航港項目地塊) preparation Total 11,529,335 / 775,967 5,888,908 /
- 29 - IV. ITEMS ASSOCIATED WITH FINANCIAL REPORT
4.1 If the accounting policy and accounting estimate changes as compared to the previous year, the Company shall explain the situation, the reasons and the influence.
N/A.
4.2 If retroactive adjustment or restatement for the reporting period is made due to correction of accounting error, the Company shall describe the accounting error and the correction of accounting error, the reason for accounting error and the impact so caused.
N/A.
4.3 If the scope of consolidated financial statements changes as compared to the previous year, the Company shall make specific explanation.
N/A.
4.4 Where a non-standard audit report is issued on the interim financial report, the board of directors and supervisions shall make an explanation about the item involved in the audit opinions.
N/A.
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