2019
Development quality and business performance double improvement

On March 23, China Building Materials Co., Ltd. (HK3323, hereinafter referred to as "China Building Materials") released its 2019 annual results announcement. On March 24, Cao Jianglin, general manager of China Building Materials Group and chairman of China Building Materials, led the company's management team to hold a performance conference call.

In 2019, China Building Materials achieved revenue of $253.4 billion billion, up 15.7 percent year-on-year, total profit of $27.45 billion billion, up 35.9 percent year-on-year, net operating cash flow of $63.35 billion billion, up 31.0 percent year-on-year, and net profit attributable to the parent company of $10.97 billion billion, up 38.4 percent year-on-year.

Completed cement clinker sales of 0.391 billion tons, up 6.0 year-on-year, commercial mixed sales of 0.112 billion square meters, up 16.5 year-on-year, aggregate sales of 52.38 million tons, up 48.5 year-on-year, gypsum board sales of 1.966 billion square meters, up 5.2 year-on-year, glass fiber yarn sales of 2.48 million tons, up 12.1 year-on-year, fan blade sales of 10,829 MW, up 34.7 year-on-year, revenue from engineering services was 40.4 billion yuan, up 18.1 year on year.

The management said that in 2019, China's economic operation was generally stable, the quality of development was steadily improved, infrastructure projects to make up for shortcomings were strengthened, and real estate investment maintained a high level, providing strong support for demand. Environmental protection policies such as peak-to-peak production, environmental protection production restrictions, and transportation overload management have been implemented in depth, supply-side structural reforms have been deepened, the supply ecology has been promoted, market competition has become moderate, and economic benefits have continued to maintain a moderate growth trend.

Peng Shou, academician of the Chinese Academy of Engineering and president of China Building Materials, introduced the operation and development of the company's three major sectors in 2019.

　　Cement plate,In 2019, the national clinker output reached a record high, and the growth rate of cement output was the highest since 2014. The company implemented off-peak production, eliminated backward production, restricted addition and canceled PC32.5R cement, promoted the improvement of capacity replacement policy, vigorously promoted "cement", optimized the layout of cement and commercial mixture, accelerated the development of aggregate business, insisted on promoting integration and optimization, and continuously promoted "three fine management".

　　New material plate,Gypsum board to further expand the "gypsum board" business, the global layout plan to steadily advance, expand the waterproof material business, reorganization of three regional leading waterproof enterprises; Glass fiber business vigorously optimize structural adjustment, continue to promote intelligent manufacturing, and steadily promote overseas layout; Wind power blade business seizes the opportunity of market recovery, adjusts product structure, develops well in offshore business, accelerates international pace and increases overseas shipments. In terms of other new materials, lithium battery diaphragms have adopted a self-built merger and acquisition mode, with domestic sales volume greatly increasing and batch supply to major international high-end strategic customers. Carbon fiber T1000 has achieved a major breakthrough from experiment to 100-ton large-scale production, with an annual output of 20000 tons of high-performance carbon fiber production base started. The first phase of 50 tons of silicon nitride has been put into production, and high-precision G3 silicon nitride bearing balls have been stably produced in batch, filling the domestic gap.

　　Engineering Services Business,Continue to consolidate the advantages of the main business, the steady growth of new contracts, accelerate the expansion of overseas markets, and achieve remarkable results in "engineering" and localized operations.

Cao Jianglin pointed out that in 2019, the company made new progress and achieved new breakthroughs in the journey of high-quality development, and three key indicators performed well:

Starting in early 2020, the new coronary pneumonia epidemic has had a significant impact on the economy. The Chinese government has adopted further accommodative fiscal, monetary and industrial policies, focusing on counter-cyclical adjustment and doing its utmost to reduce the impact of the epidemic. Management believes that with the implementation of national policies after the end of the epidemic, demand in the building materials industry, especially in the cement industry, will show recovery growth. On the supply side, supply-side structural reform has become a consensus, the hard work of the past few years has laid a good foundation, de-production and de-production capacity continue to go parallel, the industry ecology is stable, the industry is expected to remain stable.

Since the outbreak of the new coronary pneumonia epidemic, CNBM has resolutely implemented the important instructions and work arrangements of the CPC Central Committee, SASAC and CNBM on the prevention and control of the epidemic and the resumption of production, actively strengthened the prevention and control, scientifically arranged the resumption of production and operation, assisted a large number of high-quality building materials for the construction of hospitals in the epidemic area, and made full use of the national financial policy during the epidemic to issue epidemic prevention and control bonds at lower interest rates, effectively support the demand for production and operation funds during the anti-epidemic period.At present, China's building materials resumption rate of more than 99%, the resumption rate of more than 91%, the work in an orderly and steady progress.

One isIn terms of operation, the concept of "price and profit" is to maintain the health of the industry.

Two isIn terms of management, it is based on the principle of fine streamlining and lean, saving expenditure and reducing cost.

Three isIn terms of development, "" is the strategy to enhance competitiveness, "cement" optimizes cement and commercial mix layout, and develops aggregates; "Gypsum board" increases domestic market share, expands internationalization, promotes integration of waterproof materials and capacity expansion, "glass fiber" promotes international layout, and "lithium membrane" expands capacity; "Engineering Services" implements limited and diversified engineering, light manufacturing and localization.

Four isInnovation, first-class as the goal, the development of intelligent manufacturing.

Five isIn terms of integration, the integration is promoted in an orderly manner based on the principle of collaborative nuclear.

Six isOn the financial front, we will continue to reduce our debt and reduce our balance sheet on a prudent basis.

About 140 people from internationally renowned investment banks, institutional investors, and analysts such as Morgan, CICC, Goldman Sachs, Citigroup, Bank of America, Guotai Junan, Huatai Securities, etc. attended the press conference and discussed industry development, company operations and future development strategies with management. In-depth exchanges were conducted. They congratulated China Building Materials on its outstanding performance, fully affirmed the company's remarkable achievements in maintaining the health of the industry, improving internal quality and efficiency, and expressed confidence in the industry prospects and the company's future development.