2012 Results Announcement

Transcription

1 Results Announcement

2 I. Overview

3 Wide Social Recognition with Repeated Industry Awards Ranked No. 2 in the Global 225 Largest Contractors by Engineering News Record in Made into the Fortune 500 list for seven consecutive years. Ranked No.111 in China Center for Market Value Management One of the Top 100 Capital Market Brands among China Listed Companies in One of the Top 100 China Listed Companies in terms of overall strength in One of Top 100 Companies Listed in Hong Kong in terms of overall strength and one of the Top 10 companies in terms of turnover One of the Listed Companies with Most Overseas Influence, one of the Best Listed Companies in terms of Investor Relationship Management Ranked No. 4 among Chinese enterprises and No. 1 among construction and building material players in Fortune Magazine s Top 50 Companies in terms of Corporate Social Responsibilities 3

4 Outstanding Operating Results Coupled with Continuously Improving Operating Quality New Contract Value Backlog Value 1,491, , ,337 1,198,250 Operating Revenue Net Profit 457, ,313 7,882 8,521 4

5 Further Promoting Structural Adjustment, Achieved Notable Progress in Industrial Transformation and Upgrade New Contract Value Of Non-Construction Business % of Total 93, , % 16.3% Invested in China Railway Construction Finance Co., Ltd. Revenue from Non-Construction Business 86.2% 83.7% Established China Railway Construction International Corp Limited 62,838 88, % 17.8% CRCC Harbor and Channel Engineering Bureau Group Co., Ltd. established in is in smooth operation Profit Before Tax Contributed by Non-Construction Business 4,241 5, % 86.6% 41.1% 47.6% 82.2% 52.4% Overall strength of investigation and design consulting, industrial equipment manufacturing, real estate development as well as logistics and material trading has been continuing to improve Non-Construction Construction 5

6 Dedicated Promotion of Scientific Innovation Leading to Further Strengthening of R&D Capabilities Well Recognized by the Society Significant Achievements in Scientific and Technological Innovation Signed two contracts on topics under the 863 program with the Ministry of Science and Technology Three newly added national-level technological centers (one of the most influential technology innovation platforms with the highest standard in China), which are: One of the Chinese contractors that have built the largest number of tunnels with the longest mileage Has built the tunnel with the largest sudden water gushing volume in the world s railway construction history, the longest railway tunnel in China as well as the first horizontal swivel rail bridge and the first vertical swivel rail bridge in China CRCC 11th Bureau One of the earliest construction enterprises that expanded into urban subway construction in China Pioneer in building long span subway station using the shallow buried and deep excavation method, constructed the 4 largest subway stations in Asia as well as many tunnels that are over 3,000 meters long The one and only state-accredited enterprise technological center in China for underground engineering equipment Tunnel boring machine manufacturer with the largest manufacturing capacity, the most comprehensive line of equipment offering and the most advanced process technology in China CRCC 16th Bureau CRC Heavy Industry At the historical best level in terms of number of various technological innovation awards, patents and recognitions Projects won National Scientific and Technological Progress Award Projects have been applied for the Zhan Tianyou Awards 2 8 Projects won Provincial and Ministerial-level Technological Progress Awards 136 Certified Provincial and Ministerial-level Construction Methods 249 Provincial-level Technological Centers 5 Granted Patents 703 6

7 II. Operation Highlights in

8 Construction Business Strength Further Solidified New Contract Value Operating Revenue Landmark Projects 587, , , , m wide steel trussed beam of the Grand Bridge that spans over the BeijingGuangzhou express railway and South North Water Transfer line: The most important and difficult project along Shanxi CentralSouth Railway Backlog Value Gross Profit and Gross Margin Tongluoshan tunnel along line 6, Chongqing Rail Transit: Built with the first compound type TBM in China (RMB Million, %) 1,380,637 38,440 39,701 1,127, % 9.7% Yakexia snow mountain tunnel: The road tunnel under construction at the highest elevation in China 8

9 Construction Business Strength Further Solidified (Cont d) Maintaining Leading Market Share in Railway Market by Capturing Business Opportunities from Industry Recovery Stable Growth of Non-railway Projects Following Successful Market Expansion Railway New Contract Value Highway New Contract Value 172, , , ,092 Urban Transit New Contract Value 42,970 New Contract Value Taking Industry Leading Position Success rate of bidding for large-to-medium sized railway construction projects in 61,921 Municipal Projects New Contract Value CRCC 47% 56,370 78,642 Others 53% 9

10 Remained an Industry Leader in Survey, Design and Consultancy Business New Contract Value Operating Revenue 8,181 7,464 7,287 Backlog Value Gross Profit and Gross Margin Xi an-chengdu High-Speed Rail: Designed by CRCC, the first HSR in China s mountain area at high altitude is now under construction (RMB Million, %) 2,748 1,853 T-shaped steel structure of Yujiawan grand bridge towards Beijing direction along Wuhan-Huangshi / Huanggang Intercity railway : Designed by CRCC, swivel of the T-shaped beam with the longest span in China has been successfully completed 7,589 Landmark Projects 2,269 2, % 30.6% Shanghai-Nantong railway: In charge of planning and study 10

11 Industrial Equipment Manufacturing Business Continued to Improve New Contract Value Operating Revenue 11,968 9,984 8,915 10,281 Key Products Compound earth pressure shield TBM: Independently developed product with proprietary intellectual property, one of the 16 key technological equipment accredited by the State Council Hard rock TBM: No. 1 market position in China Backlog Value Large road maintenance machinery: 80% market share in China Gross Profit and Gross Margin (RMB Million, %) 1,854 Impact roller: 80% market share in China 2,986 2,690 1, % Contact wire: Developed copper alloy contact wire suitable for high speed electrified railway at 350km/h and above 17.9% 11

12 Real Estate Business Continued to Grow Steadily Focused on residential property with commercial property on the side. Projects are concentrated in provincial capitals and regions with fast economic growth Operating Revenue In, the Company had a total of 51 projects on sale in 29 cities. As of the end of, the Company had RE projects in 37 cities including Beijing, Shanghai and Tianjin. Total land area reached 8.72mm SQM and planned floor area was 27,470,000 SQM 18,137 13,538 In, the Company ranked No. 23 among the top 50 Chinese RE developers by sales and No. 5 among the 16 SASAC-accredited SOEs with RE as their main businesses, only after Poly, COLI, China Resources and CMI In, the Company ranked No.3 among the SOEs after Poly and COLI in terms of sales of commercial residential buildings in Beijing (1) Sold Area (Million SQM) Chagnchun Beijing Dalian Xi an Chengdu Tianjin Qingdao Xuzhou Nanjing Shanghai Hefei Chognqing Guiyang Guangzhou Note: (1) released by China Real Estate Assessment and Evaluation Center; Blue dots indicate project locations; grey dots indicate locations where projects are being planned. Gross Profit and Gross Margin (RMB Million, %) Hangzhou Changsha Nanning 5,055 4, % 27.9% 12

13 Logistics and Material Trading Business Grew Rapidly The largest railway engineering logistics service provider in China New Contract Value Owns 31 regional operation outlets across 25 transportation hubs, 1.33mm SQM logistics site, over 40,000 meters long designated rail lines and 32,550 refined oil storage capacity Operating Revenue 88,050 57,719 50,368 31,186 Provides integrated transportation services by improving informatization, regionalization and market-orientation of the logistics service system; further develop centralized material procurement on the back of the Company s different business segments Rising Sector Ranking Backlog Value Ranking of Top 50 Chinese Logistics Enterprises 5th Gross Profit and Gross Margin (RMB Million, %) 1,855 92,166 5th 7th 1,313 9th 54, % 15th %

14 Stable Progress Made with Overseas Business In, CRCC ranked No. 2 among Chinese companies in the Global 225 Largest Contractors by Engineering News Record 1 As of the end of, CRCC s overseas business has covered 62 countries and regions with 379 projects under construction Newly Signed Overseas Contract Value Landmark Projects 76,029 73,341 First railway stations along Benguela railyway in Angola Scarborough General Hospital in Tobago Tunnel #5 and the longest tunnel along Tbilisi railway bypass project in Georgia was successfully completed Operating Revenue 17,428 17,199 Note: (1) Operating revenue of China Railway Construction Corporation Limited includes that from China Civil Engineering Construction Corporation. 14

15 III. Financial Highlights in

16 Revenue and Profits Continued to Grow Steadily Operating Revenue Gross Profit and Gross Margin Revenue Segment Breakdown 1 (RMB Million, %) 3.7% 0.5% 2.0% 484, , % 51,424 48, % 10.6% 10.5% 82.2% Total Profit Profit Segment Breakdown 1 Net Profit (RMB Million, %) 6.0% 10,896 10, % 8,521 7, % 26.1% 6.6% 8.7% Construction Industrial Equipment Manufacturing Investigation and Design Consulting Logistics Material Trading Others Real Estate Busines Note: inter-divisional trades are not excluded. 16

17 Financial Position Further Strengthened Total Assets Net Assets Cash and Bank Balance* 73, ,661 92,274 65,719 83, , * Pledged deposits are excluded. 17

18 Cash Flow Improved Significantly Net Cash Flow from Operating Activities Net Cash Flow from Investing Activities 5,545-8,309-10,603 Net Cash Flow from Financing Activities 41,649 10,923-12,576 18

19 Capital Expenditure Declined Capital Expenditure Capital Expenditure Breakdown by Segment() (RMB Million, %) 14, % ,302 1% 1, % 1, % 13,583 9,384 76% Construction Survey, Design and Consultancy Industrial Equipment Manufacturing Real Estate Others Note: others mainly refer to construction costs of BOT project. 19

20 IV. Growth Engines and Development Strategies

21 Growth Engines 1 Railway Construction According to China s 12th Five-Year Plan for railway, China is targeting to increase its railway mileage to 120,000km by 2015, increased by 20% from the end of Railway Mileage 120 (000 Km) Highway Construction 93 China s road construction in the future will mainly be driven by highway construction with highway mileage increasing to 108,000km by the end of 2015, covering 90% cities with a population over 200,000 Highway Investment 3,000 (RMB billion) 2, E 10th Five-year plan Source: Ministry of Railway 3 Urban Rapid Transit Construction Urban Rapid Transit Total Mileage 7, According to China s 12th Five-Year Plan for water conservancy China is targeting to increase total hydropower installed capacity to 290 million kw by 2015 and to 420 million kw by 2020 by substantially increasing inputs into hydropower project construction 4.2 Hydropower installed capacity (Km) 1,011 12th Five-year plan Water Conservancy Total investment in urban rapid transit will exceed RMB 1 trillion during Total operating length is targeted to reach 3,000km by 2015 and 7,000km by th Five-year plan Source: Ministry of Transport 1,471 1,699 2, E 3, E Source: Ministry of Transport, China s urban rail transit development report 2020E (00 million kw) E 2020E Source: China s 12th Five-Year Plan for water conservancy 21

22 Corporate Vision and Development Strategies Construction-oriented, related diversification, integrated operation, transformation and upgrading To develop into a multinational construction industrial group which is internationally leading in economic strength, technological strength and competitive strength and have the ability to generate high value Keep construction as its pillar industry and foothold, and EPC as its core Fully leverage on key business strength and brand credibility of CRCC Expand business scale, improve synergic effects and further build brand image and develop the traditional construction industry into modern construction industry Enhance operation revenue and profit diversification of the Company To build a diversified system with construction industry as its link, which is also characterized by collaboration, differentiated development and lowcarbon environmental protection Transform from the operation primarily relying on railway construction to the development towards construction in multi-fields Transform from operation relying on construction business to the development driven by diversified industrial synergies Transform from operation stressing on scale growth to a model stressing on industry structure, quality and effects Transform from operation focusing on domestic market to a balanced development with both domestic and overseas markets Expanding horizontally and vertically along the industry chain Integration of design and construction, integration of capital operation and relevant industries and the integration of international and domestic businesses Enhancing business synergies, management and control as well as expanding brand influence of CRCC, so as to form mutual beneficial relationship and to improve overall operational efficiency 22

23 Q&A 23