Annual Report 2009 China Communications Construction Company Limited Annual Report 2009
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Annual Report 2009 China Communications Construction Company Limited Annual Report 2009 2 ................................................................................................ Corporate Profile 4 ............................................................................................ Financial Highlights 5 ......................................................................................... Chairman’s Statement 10 ............................................................................................Business Overview 24 ............................................................... Management’s Discussion and Analysis 42 ..................................... Profile of Directors, Supervisors and Senior Management 47 ........................................................................ Report of the Board of Directors 59 ................................................................. Report of the Supervisory Committee 62 ..........................................................Report on Corporate Governance Practices 68 ............................................................................................ Investor Relations 71 ............................................................................ Independent Auditor’s Report 73 ................................................................................................ Balance Sheets 75 .........................................................................Consolidated Income Statement 76 .............................................. Consolidated Statement of Comprehensive Income 77 ......................................................Consolidated Statement of Changes in Equity 79 .....................................................................Consolidated Cash Flow Statement 80 ...................................................Notes to the Consolidated Financial Statements 210 .........................................................................................Terms & Glossaries 212 .................................................................................... Corporate Information China Communications Construction Company Limited 1 Annual Report 2009 China Communications Construction Company Limited Corporate Profile China Communications Construction Company Limited Through its participation in state level engineering (“CCCC” or the “Company”), initiated and founded by construction projects, the Company has set many China Communications Construction Group (Limited) records recognised as the “first”, the “best” and the (“CCCG”) (under the State-owned Assets Supervision “most” in the history of port and bridge construction and Administration Commission of the State Council not only in the PRC but also the rest of Asia and of the PRC), was incorporated on 8 October 2006 around the world. Sutong Yangtze River Bridge, with state approval. Its H shares were listed on the Hangzhou Bay Bridge, Yangshan Deepwater Port, not Main Board of the Hong Kong Stock Exchange with only reflect the state-of-the-art standard in the PRC, stock code of 1800.HK on 15 December 2006. It is the but also globally. CCCC designed and constructed 10 first large state-owned transportation infrastructure of the 26 bridges worldwide that have a span of more group listing on an overseas capital market. In 2009, than 1000 metres. The Company entered the railway CCCC was ranked No. 341 of “Global 500” by Fortune market since the market opened and participated in Magazine, 85 places higher than its ranking in 2008. the design and construction of several national key railway projects successively, including Wuhan-Hefei The Company and its subsidiaries (collectively, the Railway, Taiyuan-Zhongwei-Yinchuan Railway, Harbin- “Group”) are principally engaged in the construction Dalian PDL, Beijing-Shanghai PDL, Shijiazhuang- and design of transportation infrastructure, dredging Wuhan PDL, Guiyang-Guangzhou Railway, Lanzhou- and heavy machinery manufacturing business. It is Chongqing Railway, Hunan-Guangxi Railway, etc. the largest port design and construction company in the PRC, a leading company in road and bridge The Company has actively participated in and construction and design in the PRC, a leading railway competed for projects under external assistance and construction company in the PRC, the largest dredging the international contracting projects. It has been company in the PRC and the second largest dredging included in the Engineering News Records’ (“ENR”) company (in terms of dredging capacity) in the world. list of the world’s top 225 international contractors The Company is also the world’s largest container since 1992 consecutively and remains ranked the first crane manufacturer. In addition, the Company is the among the Chinese enterprises in ENR for three years largest international designer and contractor in the in terms of revenue from overseas projects. Together PRC. The Company currently has 34 wholly-owned with CHEC, CBRC and ZPMC, CCCC now enjoys a high or controlled subsidiaries. Recently, the Company reputation around the world. operates its businesses throughout the PRC, including Hong Kong and Macau Special Administrative Regions, and has established its global presence in 76 countries and regions. 2 China Communications Construction Company Limited China Communications Construction Company Limited Annual Report 2009 Corporate Profile (Continued) The Company has been committed to its brand The Company owns a diverse range of specialised development strategy and technology innovation, equipment, including modern dredging vessels, which has enabled it to successfully attract talent. dedicated transportation fleet for port machinery, The Company retains three members of the Chinese various equipment for marine and onshore Academy of Engineering, 13 National Reconnaissance engineering, as well as various state-of-the-art Master and many other national senior engineers and machinery and equipment for investigation, design experts. The Company also holds two Post-Doctoral and research, which enables the Company to win and research centres. In addition, the Company possesses perform contracts for challenging large-scale complex advanced technologies, research and development projects. capabilities and equipment as well as 10 national level design institutes, two national level science The Company is committed to developing the and research centres, 12 provincial level science transportation infrastructure business in the PRC and and research centres, and six key laboratories (five abroad as well as providing its customers with high of which have been recognised as Industrial Key quality services and products by consistently pursuing Laboratory of Ministry of Transport, PRC), holding its corporate mission of “Trustworthy service to clients, various self-developed intellectual property rights and High quality returns to shareholders and Consistent scientific achievements with international standards. out-performance”. China Communications Construction Company Limited 3 Annual Report 2009 China Communications Construction Company Limited Financial Highlights 2008–2009 2009 2008 Change (%) For the year ended 31 December (RMB million) Revenue 226,920 178,889 26.8 Gross profit 21,705 17,858 21.5 Profit for the year 8,004 7,876 1.6 Profit attributable to equity holders of the Company 7,200 6,075 18.5 As at 31 December (RMB million) Total assets 264,058 218,098 21.1 Total liabilities 197,829 165,929 19.2 Capital and reserves attributable to equity holders of the Company 54,614 41,171 32.7 Minority interests 11,615 10,998 5.6 Per share (RMB) Earnings per share 0.49 0.41 18.5 Equity attributable to equity holders of the Company per share 3.68 2.78 32.7 4 China Communications Construction Company Limited China Communications Construction Company Limited Annual Report 2009 Chairman’s Statement Zhou Jichang Chairman Dear Shareholders, I am pleased to present to you the annual report of the Company for the year 2009 on behalf of the Board. In retrospect of 2009, as a result of the global financial crisis and economic downturn 1. Operating Results worldwide, the Company faced tremendous challenges and in particular, our heavy 2. Business Development machinery manufacturing segment was severely affected. Amid such severe and complicated 3. Enterprise Management economic landscape nationwide and worldwide, and the fluctuating financial market and fierce 4. Technology Innovation market competition, the Board of Directors, Supervisory Committee and the management 5. Integrated Capabilities of the Company achieved satisfactory results with their determination and conscientiousness in formulating policies through actively seeking growth opportunities in crisis for the benefit of our shareholders as a whole, working in concerted efforts in leading all our staff to combat against the challenges, striving upwards for aggressive expansion and pushing ahead for the sustainable and healthy development of the Company, thus maximising the value for our shareholders. The major achievements are as follows: China Communications Construction Company Limited 5 Annual Report 2009 China Communications Construction Company Limited Chairman’s Statement (Continued) 1. Operating Results 2. Business Development In 2009, various economic performance In 2009, benefiting from the stimulus package indicators of the Company continued to grow plan implemented by the PRC government, steadily. Revenue for the year was RMB226,920 the Company was proactive in capturing the million,