On March 26, China Building Materials Co., Ltd. (HK3323, referred to as "China Building Materials") released its 2020 annual results announcement.

2020 is an extraordinary year, in the face of the severe and complex domestic and international environment, especially the severe impact of the new crown epidemic, the Chinese government to strengthen counter-cyclical adjustment efforts to effectively overcome the adverse effects, the market to restore order. China Building Materials to maintain strength, active planning, active deployment, in 2020 to achieve revenue of 254.762 billion yuan, up 0.5 percent year-on-year; net profit of 21.645 billion yuan, up 17.5 percent year-on-year; net profit of 12.553 billion yuan, up 14.4 percent year-on-year; operating net cash flow of 64.23 billion yuan, up 1.4 percent year-on-year. The sales volume of cement clinker was 0.389 billion tons, commercial mixed sales volume was 0.112 billion square meters, aggregate sales volume was 78.91 million tons, gypsum board sales volume was 2.015 billion square meters, glass fiber yarn sales volume was 2.88 million tons, wind turbine blade sales volume was 17.32GW, and engineering service revenue was 39.915 billion yuan.

Peng Shou, academician of the Chinese Academy of Engineering and president of China Building Materials, introduced the development of the company's three major sectors in 2020. The cement sector, adhere to the overall epidemic prevention and control and management, in-depth implementation of "cement", promote the transformation and upgrading of cement business, commercial mixed business optimization layout, aggregate business coordinated development. New materials sector, gypsum board business adhere to epidemic prevention and control and resume production, steadily promote the "one wing global layout" strategy, waterproof business set up a unified management platform, the implementation of "integrated management and regional operation, single-machine megawatt largest offshore full-glass fiber blade smooth lifting, mass production of offshore low-cost large blades made a major breakthrough. Engineering services sector, epidemic prevention and production go hand in hand, continue to consolidate the advantages of the main business, stable and orderly operation; expand diversified engineering business, localized operation effect is remarkable; business integration has made positive progress, synergies effectively play.

Cao Jianglin, general manager of China Building Materials Group and chairman of China Building Materials, pointed out that in 2020, the company will overcome the impact of the epidemic and demand fluctuations, focusing on "six stability", "six guarantees", "three stability, four guarantees, one strengthening" and "two efforts", focusing on six tasks: one is to emphasize management, promote epidemic prevention and control and production and operation as a whole, build ecology, stabilize prices and stabilize shares; The second is strong management, further promote the "three fine" management, improve quality and efficiency; third, promote development, continue to promote the "+" strategy, enhance value and competitiveness; fourth, focus on innovation, increase investment in innovation, to ensure technological leadership; fifth, focus on integration, in accordance with the principle of nuclear integration to promote business integration, enhance synergies; sixth, to maintain stability, reduce debt and shrink the table. High-quality development continues to achieve new breakthroughs and new results, which are manifested in three aspects: first, operating performance is better than expected, outperforming the market and the industry, with a net profit of 21.645 billion billion yuan, an increase of 17.5 percent over the same period last year; second, excellent cash flow, achieving a net operating cash flow of 64.23 billion billion yuan; third, the balance sheet was further optimized, with an asset-liability ratio of 63.8 percent, down 2.4 percentage points from the same period last year.
In 2021, the world economic situation is still complex and severe, the recovery is unbalanced and unstable, the various derivative risks caused by the impact of the epidemic cannot be ignored, the foundation of China's economic recovery is not yet solid, and the task of industry transformation and upgrading is arduous. Regarding the industry situation in 2021, Cao Jianglin believes that the "double platform period" will continue:
First, the demand platform period, macro policy to maintain the necessary support for economic recovery, economic fundamentals have not changed, infrastructure has strong support, real estate to maintain resilience, rural construction steady growth, building materials industry, especially the cement industry demand still has a foundation;
Second, the supply platform period, supply-side structural reform and carbon emission reduction to promote supply improvement, through the wrong peak production, environmental protection production restrictions, self-discipline production restrictions, such as the implementation of production, through strict reduction of replacement, ultra-low emissions, the elimination of 32.5 cement to promote production capacity.

Cao Jianglin introduced that in 2021, China National Building Materials will take promoting high-quality development as the theme, supply-side structural reform as the main line, innovation-driven development, reform-enabled development, internationalization to promote development, and party building to lead development. Do the following work:
First, the operation, to promote the healthy ecology of the industry, stable price protection share;
Second, in terms of management, we will further promote the "three fine management", set standards for first-class, optimize management, improve quality and efficiency, make the system simpler, operate more efficiently, and have more prominent benefits;
Third, integration, in accordance with the principle of nuclear to steadily promote business integration;
Fourth, in terms of development, we should take green and intelligent as the standard, continue to develop the "" strategy, and consolidate the three-legged industrial pattern;
Fifth, in terms of innovation, increase investment to consolidate and improve the leading edge of the main product technology;
Sixth, reform, further deepen the reform of state-owned enterprises, release vitality.

About 200 people from Goldman Sachs, Morgan, Citigroup, Bank of America, CICC, CITIC, Guotai Junan and other internationally renowned investment banks, institutional investors and analysts attended the press conference and had in-depth exchanges with the management on industry development, company operation, business integration, carbon peak and carbon neutrality, and the "14th Five-Year Plan" development plan. They congratulated China National Building Materials on its outstanding performance, fully affirmed the company's remarkable results in maintaining the industry ecology, improving internal quality and efficiency, and expressed confidence in the industry prospects and the company's future development.