Bringing Energy to the World the Main Force of the Belt and Road
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Investment and Clean Energy, Other Businesses Environmental Protection and Water Utilities Industrial Manufacturing Construction and Contracting Survey, Design and Consulting Services BRINGING ENERGY ANNUAL REPORT 2020 ANNUAL ANNUAL REPORT 2020 Bringing Energy to the World The Main Force of the Belt and Road Head office: Building 1, No. 26A, West Dawang Road, Chaoyang District, Beijing, the PRC TO THE WORLD Tel: +86(10)59098818 Fax: +86(10)59098711 Postal code: 100022 Company’s Website: www.ceec.net.cn E-mail: [email protected] (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 3996) COMPANY PROFILE Founded on 19 December 2014, the Company is a joint stock company with limited liability established and co-sponsored by China Energy Engineering Group Co., Ltd. (a central enterprise supervised and administered by the SASAC), and its wholly-owned subsidiary, Electric Power Planning and Engineering Institute Co., Ltd. The Company issued H shares under the initial public offering on 10 December 2015 and got listed on the main board of The Stock Exchange of Hong Kong Limited (Stock Code: 3996.HK). The Company is a comprehensive and ultra-large group company offering holistic solutions and full-chain services in energy power and infrastructure sectors in China and the world at large. Its businesses cover energy power, water conservancy and waterworks, railways and highways, ports and navigation channels, municipal engineering, urban rail, eco-environment protection and housing construction, with a complete industrial chain integrating planning and consulting, evaluations and review, survey and design, construction and contracting and management, operational maintenance and investment operation, technical services, equipment manufacturing, and building materials. The Company successfully entered Global 500 for seven consecutive years and obtained front-row rankings in ENR Top 150 Global Engineering Design Firms, Top 225 International Design Firms, Top 250 Global Contractors and Top 250 International Contractors. The Company has set up over 200 overseas branch offices in more than 80 countries and regions with its businesses extending to over 140 countries and regions outside China. The Company serves the national strategies and leads industry development by virtue of its leading technological levels and superb innovation capabilities. As of the end of 2020, the Company had 3 academician expert workstations, 11 work stations of postdoctoral scientific researchers, 3 national research institutions and 49 provincial research institutions and 96 high and new technology enterprises. It obtained 48 National Science and Technology Progress Awards, more than 2,100 major scientific and technological achievements and 10,043 patents in force. It formulated and revised over 1,100 national and industry standards, In a series of major projects related to the national economy and people’s livelihood, such as the Three Gorges Project, South-to-North Water Diversion, West-East Gas Transmission, West-East Power Transmission and Third-Generation Nuclear Power, as the main force of engineering construction and the national team, the Company successively undertook a number of major projects such as the world’s first “300” thermal power project, the world’s first AP1000, CAP1400 nuclear power project, the world’s largest wind power and solar PV power generation, the world’s first multi-terminal flexible direct current transmission project, the world’s first 1,240MW high-efficiency ultra-supercritical coal-fired power project, the world’s first UHV multi-terminal hybrid direct current project and the world’s highest transmission and transformation project, creating many world firsts. Adhering to a strategic vision of being an “industry-leading and world-class” company, the Company is committed to building a first-class energy integration solution provider, a first-class general engineering contractor, a first-class infrastructure investor, a first-class comprehensive ecological environment management provider, a first-class comprehensive urban development operator, a first-class provider of building materials, industrial products and equipment. Being at the forefront of implementing national strategies, promoting the energy revolution, speeding up high-quality development and building a better life, the Company accelerates the establishment of a world-class enterprise with global competitiveness, and continues to create biggest value for the customers, shareholders, employees and the society. CONTENTS Company Information 03 Financial Summary 05 Chairman’s Statement 06 Business Overview 11 Management Discussion and Analysis 36 Profile of Directors, Supervisors and Senior Management 56 Report of the Board 65 Corporate Governance Report 86 Independent Auditor’s Report 108 Financial Statements 114 Consolidated Statement of Profit or Loss and 114 Other Comprehensive Income Consolidated Statement of Financial Position 116 Consolidated Statement of Changes in Equity 118 Consolidated Statement of Cash Flows 119 Notes to the Consolidated Financial Statements 121 Glossary of Vocabulary and Technical Terms 246 CHINA ENERGY ENGINEERING CORPORATION LIMITED 2020 ANNUAL REPORT 03 COMPANY INFORMATION COMPANY INFORMATION NON-EXECUTIVE DIRECTORS Chinese Name: 中國能源建設股份有限公司 Mr. LI Shulei (appointed on 5 February 2021) Mr. LIU Xueshi English Name: China Energy Engineering Mr. SI Xinbo Corporation Limited Mr. MA Chuanjing (resigned on 21 August 2020) Registered Office: Room 01-2706, 1-24/F, Building 1, No. 26A West INDEPENDENT NON-EXECUTIVE DIRECTORS Dawang Road, Chaoyang District, Mr. ZHAO Lixin (appointed on 30 June 2020) Beijing, the PRC Mr. CHENG Niangao (appointed on 30 June 2020) Head Office in the Building 1, No. 26A West Dr. NGAI Wai Fung (appointed on 5 February 2021) PRC: Dawang Road, Chaoyang District, Mr. CHEUNG Yuk Ming Beijing, the PRC (retired upon expiration of term on 5 February 2021) Mr. DING Yuanchen (resigned on 30 June 2020) Principal Place of 31/F, Tower Two, Times Square, Business in Hong 1 Matheson Street, SUPERVISORS Kong: Causeway Bay, Hong Kong Mr. WANG Zengyong Company’s Website: www.ceec.net.cn (Chairman, retired upon expiration of term Tel.: +86 (10)59098818 on 5 February 2021) Fax: +86 (10)59098711 Mr. HE Jiansheng E-mail: [email protected] (Chairman, appointed on 5 February 2021) Mr. FU Dexiang STOCK INFORMATION OF THE COMPANY (retired upon expiration of term on 5 February 2021) Mr. WEI Zhongxin Stock Category: H Shares (retired upon expiration of term on 5 February 2021) Stock Exchange: The Stock Exchange of Mr. LI Fangyi Hong Kong Limited Mr. KAN Zhen Stock Name: CH ENERGY ENG Mr. MAO Fengfu (appointed on 5 February 2021) Stock Code: 3996 Mr. LV Shisen (appointed on 5 February 2021) EXECUTIVE DIRECTORS AUTHORIZED REPRESENTATIVES Mr. SONG Hailiang Mr. SONG Hailiang (appointed on 27 October 2020) (Chairman, appointed on 27 October 2020) Mr. DUAN Qiurong Mr. SUN Hongshui Mr. WANG Jianping (resigned on 31 August 2020) (Vice Chairman, appointed on 30 June 2020) Mr. MA Mingwei (appointed on 30 June 2020) Mr. WANG Jianping (resigned on 31 August 2020) Mr. DING Yanzhang (resigned on 26 May 2020) Mr. ZHANG Xianchong (resigned on 14 January 2020) 04 Company Information STRATEGY COMMITTEE JOINT COMPANY SECRETARIES Mr. SONG Hailiang Mr. DUAN Qiurong (Chairperson, appointed on 27 October 2020) Ms. LEUNG Suet Wing Mr. SUN Hongshui (appointed on 30 June 2020) Mr. LI Shulei (appointed on 5 February 2021) H SHARE REGISTRAR Mr. SI Xinbo Computershare Hong Kong Investor Services Limited Mr. WANG Jianping (resigned on 31 August 2020) Shops 1712-1716, 17/F, Hopewell Centre, Mr. DING Yanzhang (resigned on 26 May 2020) 183 Queen’s Road East, Wanchai, Hong Kong Mr. MA Chuanjing (resigned on 21 August 2020) INTERNATIONAL AUDITOR NOMINATION COMMITTEE KPMG Mr. SONG Hailiang Registered Public Interest Entity Auditor (Chairperson, appointed on 27 October 2020) under the Financial Reporting Council Ordinance Mr. CHEUNG Yuk Ming 8/F, Prince’s Building, 10 Chater Road, Central, (retired upon expiration of term on 5 February 2021) Hong Kong Mr. ZHAO Lixin (appointed on 27 October 2020) Mr. CHENG Niangao LEGAL ADVISERS (appointed on 30 June 2020, no longer served since 27 October 2020, and As to Hong Kong and U.S. Laws: Clifford Chance re-appointed on 5 February 2021) 27/F, Jardine House, One Connaught Place, Central, Mr. WANG Jianping (resigned on 31 August 2020) Hong Kong Mr. DING Yuanchen (resigned on 30 June 2020) As to PRC Law: Jia Yuan Law Offices REMUNERATION AND ASSESSMENT Room F407, Ocean Plaza, 158 Fuxing Men Nei Avenue, COMMITTEE Beijing, the PRC Mr. CHENG Niangao (Chairperson, appointed on 30 June 2020) PRINCIPAL BANKS Mr. CHEUNG Yuk Ming China Construction Bank Beijing Jin’an Sub-branch (retired upon expiration of term on 5 February 2021) China Everbright Bank Beijing Fengtai Sub-branch Mr. LIU Xueshi Dr. NGAI Wai Fung (appointed on 5 February 2021) AUDIT COMMITTEE Mr. ZHAO Lixin (Chairperson, appointed on 30 June 2020) Mr. LI Shulei (appointed on 5 February 2021) Dr. NGAI Wai Fung (appointed on 5 February 2021) Mr. CHENG Niangao (appointed on 27 October 2020, no longer served since 5 February 2021) Mr. CHEUNG Yuk Ming (retired upon expiration of term on 5 February 2021) Mr. MA Chuanjing (resigned on 21 August 2020) Mr. DING Yuanchen (resigned on 30 June 2020) CHINA ENERGY ENGINEERING CORPORATION LIMITED 2020 ANNUAL REPORT 05 FINANCIAL SUMMARY 1 SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS