CONTENTS Corporate Profile 2 Performance Highlights 3 Chairman’s Statement 6 Business Overview 10 Management’s Discussion and Analysis 29 Report of the Board of Directors 43 Report of the Supervisory Committee 73 Corporate Governance Report 77 Profile of Directors, Supervisors and Senior Management 86 Investor Relations 91 Environmental, Social and Governance Report 96 Independent Auditor’s Report 121 Consolidated Statement of Profit or Loss 125 Consolidated Statement of Comprehensive Income 126 Consolidated Statement of Financial Position 127 Consolidated Statement of Changes in Equity 129 Consolidated Statement of Cash Flows 131 Notes to Financial Statements 133 Terms & Glossaries 248 Corporate Information 251 CORPORATE PROFILE The Company was incorporated on 8 October 2006 and was initiated and founded by CCCG (a state-owned enterprise under the SASAC) through restructuring as approved by the State Council. Its H shares were listed on the Main Board of the Hong Kong Stock Exchange with stock code of 01800.HK on 15 December 2006. It is the first ultra large state-owned infrastructure enterprise entering the overseas capital market. The Company’s A shares were listed on the Shanghai Stock Exchange with stock code of 601800.SH on 9 March 2012, representing a leap-and-bound advance taken by the Company in the course of its development. As a leading transportation infrastructure enterprise in the PRC, the Group is the industry leader in each of its core businesses, namely infrastructure construction, infrastructure design and dredging. Leveraging on its extensive operating experience, expertise and know-how accumulated from projects undertaken across a wide range of areas over the years, the Company is capable of providing integrated solutions throughout each stage of infrastructure projects for its customers. The Company is the world’s largest port, road and bridge design and construction company, and the world’s largest dredging company; it is also the largest international contractor and highway investor in China; and the Company also owns the largest engineering fleet in China. The Company currently has 36 principal wholly-owned or controlled subsidiaries. The Company operates its businesses in all provinces, cities, and autonomous regions of China, including Hong Kong and Macau Special Administrative Regions, and has established its global presence in 139 countries and regions. As an important holding subsidiary of CCCG, the Company played a decisive role in the business performance of CCCG. CCCG has been rated as a Grade A enterprise in the Operating Results Assessment of State-owned Enterprises conducted by the SASAC for fourteen consecutive years, and it has been rated as a Grade A enterprise in the Party Building Accountability Assessment conducted by the SASAC in consecutive years. CCCG has ranked the first among Chinese enterprises in ENR’s Top International Contractors for thirteen consecutive years. Meanwhile, CCCG ranked the 93rd in the Fortune Global 500. Through designing and constructing in state-level engineering construction projects, the Group has set many records recognised as the “first”, the “best” and the “most” in the history of port and bridge construction not only in the PRC but also the rest of Asia and around the world. Construction projects such as the Sutong Yangtze River Bridge, Shanghai Yangshan Deepwater Port, Yangtze River Mouth Deepwater Navigation Channel Regulation Project, Hainan Project, and the Hong Kong-Zhuhai- Macau Bridge reflected the state-of-the-art standard of China, and that of the world. The Group entered the railway market since the market opened and participated in the design and construction of over 130 national key railway projects, including Harbin-Dalian PDL, Beijing-Shanghai PDL, Lanzhou-Chongqing Railway, Lunan High Speed Railway, etc. Meanwhile, the Group proactively participated in the railway projects of “Going Global”, and the Mombasa-Nairobi Railway in Kenya and the Nairobi-Maraba Railway Phase I Project was designed and constructed by the Group on the basis of the construction standards of railway in China. A number of overseas projects of the Company have won the Luban Award, the National Quality Project Award and the ENR’s awards, and have established a number of landmark projects, quality projects, and people’s livelihood projects overseas. The Company places great emphasis on scientific research and development which would improve the Company’s competency and guidance in operation. Following the direction of “making innovations and leapfrog advances in key areas, supporting development and thus creating a better future”, the Company gradually perfects the three-level scientific innovation system, namely the decision-making level of the headquarters, the execution level of secondary enterprises and innovative platforms and the application level of tertiary enterprises and the project division. The Company continues to optimize the structure and layout of innovative platforms and determines to establish a “three-level and three-type” innovative platform system with key laboratories, R&D centres and enterprise technology centres at national, provincial and group levels as the core, to achieve the objectives to establish three types of scientifically innovative platform by carry out fundamental research on application at key laboratories, engineering and industrial R&D at R&D centres, and supporting production and operation at enterprise technology centres. The Company has a total of 15 innovation platforms at national level, 46 innovation platforms at provincial level and 19 innovation platforms at group level, totaling 80 innovation platforms of all types and at all levels altogether. This basically forms a group of innovation platforms that covers each session within the innovation chain and assembles the characteristics of fundamental research on applications, technology research and development, achievement transformation, and industrialization. The Company owns 13 Post-Doctoral research centres and 4 academician research centres and has systematically nurtured a pool of scientific experts and a professional innovation team by leveraging on innovation platforms and the establishment of key scientific research projects and key engineering projects to create a nurturing model of a “three-in-one” professional team of scientific calibers with its resources on talents, teams and platforms. The Company has been accumulatively awarded with 44 National Science and Technology Advancement Awards, 4 Technological Invention Awards, 91 Luban Awards, 261 National Quality Project Awards (including 27 golden awards), 95 Zhan Tianyou Awards, 2 Chinese Golden Patent Awards and 19 Chinese Outstanding Patent Awards. The Company has accumulatively participated in the compilation of 80 national standards and 311 industry standards that have been promulgated, and had a total of 10,155 authorized patents. The Group owns a diverse range of specialised equipment, including modern dredging vessels, various equipment for marine and onshore engineering, as well as various state-of-the-art machinery and equipment for investigation, design and research, which gives the Group competitive advantages to win and perform contracts for challenging large-scale complex projects. By insisting on the vision of “making the world more expedite, making the city more habitable, making life more beautiful”, adhering to the corporate mission “fostering sustainable development with firm foundation and good morality”, and persisting on the corporate spirit of “communicating with the world and constructing without boundaries”, CCCC will devote itself to transportation construction business in China and even the world. The Company would like to cooperate with friends from all walks of life for win-win, and jointly create a more splendid and brilliant tomorrow. 2 CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED ANNUAL REPORT 2019 PERFORMANCE HIGHLIGHTS For the year ended 31 December RMB million (except per share data) 2019 2018 Change (%) Revenue 552,542 488,666 13.1 Gross Profit 69,131 64,611 7.0 Operating Profit 34,071 33,321 2.3 Profit attributable to owners of the Company 20,094 19,819 1.4 Basic earnings per share (RMB) (Note) 1.16 1.16 0 As at 31 December RMB million 2019 2018 Change (%) Total assets 1,120,400 960,476 16.7 Total liabilities 824,021 720,794 14.3 Total equity 296,379 239,682 23.7 Capital and reserves attributable to owners of the Company 230,153 197,178 16.7 For the year ended 31 December Value of New Contracts 2019 2018 Change (%) RMB million Number of projects Value of Contracts Value of Contracts Infrastructure Construction Business 1,958 851,924 770,994 10.5 －Port Construction 231 28,405 27,284 4.1 －Road and Bridge Construction 704 272,622 317,534 -14.1 －Railway Construction 20 16,941 8,678 95.2 －Municipal and Other Projects 716 346,172 266,466 29.9 －Overseas Projects 287 187,784 151,032 24.3 Infrastructure Design Business 5,134 47,509 49,087 -3.2 Dredging Business 764 52,783 56,983 -7.4 Other Businesses N/A 10,467 13,809 -24.2 Total N/A 962,683 890,873 8.1 As at 31 December Backlog 2019 2018 Change (%) RMB million Number of projects Value of Contracts Value of Contracts Infrastructure Construction Business 6,604 1,810,347 1,526,365 18.6 Infrastructure Design Business 10,849 85,062 77,171 10.2 Dredging Business 1,658 95,017 79,312 19.8 Other Businesses N/A 8,660 6,890 25.7 Total N/A 1,999,086 1,689,738 18.3 Note: In calculating the amount of basic earnings per share, the interests/dividends