Stock Code: 03311 Exercise Caution in Details and Implementation Build a Strong Foundation to Seek Greater Success Annual Report 2020 Annual Report 2020 Vision The Group is dedicated to its core value of Exercising Caution in Details and Implementation; Building a Strong Foundation to Seek Greater Success. In strict compliance with the industry standard and dedicating to contribute to the industry, the Group will strive for growth and continuous innovation under China State’s principle of “Good Quality and Value Creation”. With the development of individual staff and strengths of teamwork, the Group will achieve a win-win situation with the shareholders, employees and society and become a new role model in the new era. The Group will insist on developing into a leading corporation with competitive international complex construction and infrastructure investment. Contents 2 Corporate Structure 4 Board of Directors and Committees 5 Corporate Information 7 Financial Highlights 8 Major Events of the Year 14 Chairman’s Statement 22 Management Discussion and Analysis 28 Business Review 44 Major Awards and Accolades 46 Corporate Citizenship • Staff Development and Personal Growth • Environmental Policy • The Group and Community • Investor Relations 58 Directors and Organisation 66 Corporate Governance Report 77 Directors’ Report 86 Connected Transactions 99 Audited Consolidated Financial Statements • Independent Auditor’s Report • Consolidated Income Statement • Consolidated Statement of Comprehensive Income • Consolidated Statement of Financial Position • Consolidated Statement of Changes in Equity • Consolidated Statement of Cash Flows • Notes to the Consolidated Financial Statements 202 Five Year Financial Summary 204 Particulars of Major Investment Properties Corporate Structure 2 China State Construction International Holdings Limited Corporate Structure DPOUJOVFE MAINLAND CHINA Infrastructure General Contracting Operation of Other Construction Investment BOE1SFGBCSJDBUFE Infrastructure Assets Related Business 111 BOEPUIFSNPEFMT Construction HONG KONG Mechanical and Investment- Other Civil Foundation Building Electrical driven Construction Engineering Engineering Construction Engineering Contracting Related Works Works Works Business Business MACAU Mechanical and Investment-driven Building Foundation Other Construction Electrical Contracting Construction Engineering Works Related Business Engineering Works Business OTHERS $VSUBJO8BMM4ZTUFN 0QFSBUJPO.BOBHFNFOU#VTJOFTT i111wNFBOTi1VCMJD1SJWBUF1BSUOFSTIJQw 0QFSBUFUISPVHIBMJTUFETVCTJEJBSZ $IJOB4UBUF$POTUSVDUJPO%FWFMPQNFOU)PMEJOHT-JNJUFE 4UPDL$PEF "OOVBM3FQPSU 3 Board of Directors and Committees BOARD OF DIRECTORS COMMITTEES Chairman and Non-executive Director Audit Committee Yan Jianguo Lee Shing See (Chairman) Adrian David Li Man Kiu Executive Directors Raymond Leung Hai Ming Zhang Haipeng (Chief Executive Officer) Tian Shuchen Remuneration Committee Zhou Hancheng Adrian David Li Man Kiu (Chairman) Hung Cheung Shew Raymond Leung Hai Ming Lee Shing See Independent Non-executive Directors Adrian David Li Man Kiu Nomination Committee Raymond Leung Hai Ming Lee Shing See (Chairman) Lee Shing See Adrian David Li Man Kiu Raymond Leung Hai Ming Sustainability Committee Zhou Hancheng (Chairman) Zhang Haipeng Adrian David Li Man Kiu Raymond Leung Hai Ming Lee Shing See 4 China State Construction International Holdings Limited Corporate Information Authorised Representatives Public Relations Yan Jianguo Corporate Communications Department Zhang Haipeng Telephone ;IPV)BODIFOH "MUFSOBUFUP:BO+JBOHVP Facsimile E-mail [email protected] Company Secretary Ko Hiu Fung Auditor Ernst & Young Principal Share Registrar and Transfer Certified Public Accountants Office Registered Public Interest Entity Auditor 4VOUFSB $BZNBO -JNJUFE 4VJUF 6OJU" #MPDL Legal Advisor #VJMEJOH% 10#PY Mayer Brown Gardenia Court, Camana Bay (SBOE$BZNBO ,: Principal Bankers Cayman Islands Agricultural Bank of China Limited #BOLPG$IJOB )POH,POH -JNJUFE Hong Kong Branch Share Registrar and Bank of Communications Co., Ltd. Transfer Office #/11BSJCBT)POH,POH#SBODI Tricor Standard Limited China Construction Bank Corporation -FWFM )PQFXFMM$FOUSF China Development Bank Corporation 2VFFOT3PBE&BTU Hang Seng Bank Limited Hong Kong Industrial and Commercial Bank of China Ltd. Telephone The Bank of East Asia, Limited Facsimile The Hongkong and Shanghai Banking Corporation Limited E-mail JTFORVJSJFT!ILUSJDPSHMPCBMDPN Listing Registered Office The Company’s shares are listed on The Stock Exchange of $SJDLFU4RVBSF )POH,POH-JNJUFE UIFi4UPDL&YDIBOHFw BOEDFSUBJO Hutchins Drive debt securities issued by the Company and/or its 10#PY subsidiaries are listed on the Stock Exchange and/or other (SBOE$BZNBO,: stock exchange. Cayman Islands Stock Code Head Office and Principal Place of Shares Business in Hong Kong Stock Exchange UI'MPPS $IJOB0WFSTFBT#VJMEJOH Bloomberg ), )FOOFTTZ3PBE 8BODIBJ Reuters ), Hong Kong Website Investor Relations www.csci.com.hk Corporate Communications Department Telephone Facsimile E-mail [email protected] "OOVBM3FQPSU 5 Corporate Information DPOUJOVFE Financial Calendar Interim Results Announcement "VHVTU Closure of Register of Members — Interim Dividend 4FQUFNCFS 2020 Interim Dividend Payable 0DUPCFS Final Results Announcement .BSDI Closure of Register of Members — Annual General Meeting +VOFUP+VOF CPUIEBZTJODMVTJWF Annual General Meeting +VOF Closure of Register of Members — Final Dividend +VOF Payment of Proposed Final Dividend +VMZ 6 China State Construction International Holdings Limited Financial Highlights For the year ended 31 December 2020 Results (HK$’000) Revenue 62,458,009 &#*5%" /PUFB 11,339,973 1SPGJUBUUSJCVUBCMFUPPXOFSTPGUIF$PNQBOZ 6,015,368 Financial Ratios /FUNBSHJO 9.6 $VSSFOUSBUJP UJNFT 1.10 Financial Information Per share &BSOJOHT ),DFOUT /PUFC 119.14 %JWJEFOE ),DFOUT 36.00 /FUBTTFUT ), 11.54 Other Information Value of incomplete contracts BU%FDFNCFS ),CJMMJPO 252.37 /PUFT B &#*5%"SFQSFTFOUT1SPGJUCFGPSF5BY 'JOBODFDPTUT %FQSFDJBUJPOBOE"NPSUJTBUJPODIBSHFEUPUIF*ODPNF4UBUFNFOUEVSJOHUIFZFBS C 5IFXFJHIUFEBWFSBHFOVNCFSPGPSEJOBSZTIBSFVTFEJOUIFDBMDVMBUJPOPGFBSOJOHTQFSTIBSFGPSUIFZFBSFOEFE%FDFNCFSIBTBDDPVOUFE GPSUIFCPOVTFMFNFOUPGUIFSJHIUTJTTVFXIJDIXBTDPNQMFUFEPO0DUPCFS5IFFBSOJOHTQFSTIBSFGPSUIFDPSSFTQPOEJOHZFBSPGIBWF been retrospectively adjusted to reflect the bonus element of the rights issue. Breakdown of Segment Breakdown of Segment Revenue Results* GPSUIFZFBSFOEFE%FDFNCFS GPSUIFZFBSFOEFE%FDFNCFS CSC Development Group CSC Development Group 5.1% 3.8% Macau Hong Kong Macau 6.1% 11.9% 7.2% Hong Kong 35.9% Mainland China Mainland China 78.2% 51.8% &YDMVEJOHMPTTPG0WFSTFBT4FHNFOU "OOVBM3FQPSU 7 Major Events of the Year JANUARY MARCH CSCI participated in the “Walk for Millions”in CSC Macau, which is under CSCI, completed Hong Kong the construction of accommodation for foreign 0O+BOVBSZ UIFi)POH,POH,PXMPPO employees at a high speed within 21 days Walk” was successfully held. Leaders such as Yan Jianguo, The accommodation for foreign employees of China the Chairman of CSCI, and Zhang Haipeng, Chief $POTUSVDUJPO&OHJOFFSJOH .BDBV $PNQBOZ-JNJUFEXJUIB Executive Officer of CSCI, have taken part in the event TJUFBSFBPG TRNXBTFSFDUFEXJUIBUPUBMPG XJUIPWFSDPMMFBHVFTBOEUIFJSGBNJMJFT CVJMEJOHTXIJDIDBOBDDPNNPEBUFGPSFJHO FNQMPZFFT5IFQSPKFDUTUBSUFEGSPN'FCSVBSZBOE FOEFEPO.BSDI XJUIPOMZEBZTVTFEGSPNEFTJHO and construction to delivery for use! It contributed to the prevention and control of the pandemic in Macau SAR for CSC and set a new record for CSC construction speed in the construction and engineering sector in the Macau SAR. CSCI was awarded 11 ISA International Safety Awards 2020 0O.BSDI BT$4$*QSPKFDUTXFSFBXBSEFEUIF*4" *OUFSOBUJPOBM4BGFUZ"XBSETBOOPVODFEPOUIF website of the British Safety Council under the list of BXBSETGPSUIF*OUFSOBUJPOBM4BGFUZ"XBSET 8 China State Construction International Holdings Limited Major Events of the Year DPOUJOVFE APRIL MAY CSC Macau, which is under CSCI, has practising CSC Volunteer Branch carried out the volunteer qualification in Hengqin, Zhuhai BDUJWJUZPGi$4$$BSFt-PWF-VODI#PYFT)FBSU 0O"QSJM UIF4"*$JO)FOHRJO/FX"SFBPG;IVIBJ To Heart （中國建築顯關懷t愛心飯盒心連心）” officially issued the first business license for Hong Kong 0O"QSJMBOE.BZ UIF$4$WPMVOUFFSCSBODIDBSSJFE and Macau construction enterprises to enter the Mainland PVUWPMVOUFFSBDUJWJUZPGi$4$$BSFt-PWF-VODI#PYFT China. CSC Macau, which is under CSCI, has become the Heart To Heart (中國建築顯關懷t愛心飯盒心連心 ” with first construction enterprise that has obtained the NPSFUIBOWPMVOUFFSTQBSUJDJQBUJOHXJUIJO$4$*BOEUIF RVBMJGJDBUJPOGPSPQFSBUJPOJOUIF.BJOMBOEUISPVHIUIF BDDVNVMBUFETFSWJDFIPVSTFYDFFEJOHIPVST)VOH filing system and secured the unified social credit code. It Cheung Shew, the Chairman of CSC Volunteer Branch and DBODBSSZPVUSFMFWBOUCVTJOFTTBDUJWJUJFTJO)FOHRJO an executive director and a vice president of CSCI, and including opening bank account, conducting material ;IBP9JBPRJ BWJDFQSFTJEFOUPG$4$* IBWFBMTP transaction, tax payment and so forth. participated in the event. "OOVBM3FQPSU 9 Major Events of the Year DPOUJOVFE JUNE The Upper Structure Project of Light-Rail Train The volunteer activity of “China Overseas Plant in Macau has won the International Safety $FMFCSBUJPO%BZt&OWJSPONFOUBM$IBSJUZ8BML Awards 2020 (Overall Country Winner-China) (中海司慶日t環保公益行 ” was successfully held The upper structure project of light-rail train plant of CSC 0O+VOF UIF$4$WPMVOUFFSUFBNBOEUIF$4$