BBMG Corporation - Annual Report 2020

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北京金隅集團股份有限公司

(a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2009)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

HIGHLIGHTS

Operating revenue of RMB108,004.9 million, an increase of approximately 17.6% from 2019
Gross profit margin from principal business of 19.8%, a decrease of 6.7 percentage points from 2019
Net profit of RMB5,155.9 million, a decrease of approximately 0.4% from 2019
Net profit attributable to the shareholders of the parent company of RMB2,843.8 million, a decrease of approximately 23.0% from 2019
Core net profit attributable to the shareholders of the parent company (excluding the net fair value gains after tax on investment property) of RMB2,449.5 million, a decrease of RMB696.5 million or approximately 22.1% from 2019
Basic earnings per share attributable to the shareholders of the parent company was RMB0.27, a decrease of RMB0.08 from 2019
The Board recommended a final dividend of RMB0.06 per share (before tax) for the year ended 31 December 2020
For identification purposes only
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ANNUAL RESULTS

The board of directors (the “ Board ”) of BBMG Corporation (the “ Company ” or “ BBMG ”) is pleased to present the audited annual results of the Company and its subsidiaries (collectively, the “ Group ”) for the year ended 31 December 2020 (the “ Reporting Period ”) together with the comparative figures for the year of 2019. These results have been reviewed by the audit committee of the Company (the “ Audit Committee* ”).

RESULTS OF OPERATIONS

During the Reporting Period, the Group achieved a net profit attributable to shareholders of the parent company of approximately RMB2,843.8 million, representing a decrease of approximately 23.0% over the last year; basic earnings per share was approximately RMB0.27 (for the year ended 31 December 2019: RMB0.35), representing a decrease of approximately 22.9% over the last year; total equity attributable to the shareholders of the parent company was approximately RMB63,375.9 million as at the end of the Reporting Period, representing an increase of approximately RMB2,244.7 million from the beginning of the Reporting Period.

DIVIDEND

The Board recommended a final dividend of RMB0.06 per share (before tax) for the Reporting Period (for the year ended 31 December 2019: RMB0.12 per share (before tax)), subject to approval by the shareholders at the forthcoming annual general meeting (the “ AGM ”) to be held on Wednesday, 12 May 2021. The recommended final dividend represents a dividend payment ratio of approximately 22.5% for the Reporting Period.

Subject to and upon the approval of the shareholders at the forthcoming AGM, the final dividend for the Reporting Period is expected to be distributed on or around Friday, 9 July 2021 to the holders of H shares (the “ H Shares ”) whose names appear on the register of members on Thursday, 27 May 2021 (the “ Record Date ”). According to the Law on Enterprise Income Tax of the People’s Republic of China and its implementing rules which came into effect on 1 January 2008, the Company is required to withhold enterprise income tax at the rate of 10% before distributing the final dividend to non-resident enterprise shareholders whose names appear on the Company’s H share register of members. Any H Shares registered in the name of non-individual registered shareholders, including HKSCC Nominees Limited, other nominees, trustees or other groups and organizations, shall be deemed as shares held by non-resident enterprise shareholders and therefore their dividends receivables will be subject to the withholding of the enterprise income tax. The Company will not withhold individual income tax in respect of the dividends payable to any natural person shareholders whose names appear on the Company’s H share register of members on the Record Date.

The Company will withhold payment of the enterprise income tax strictly in accordance with the relevant laws or requirements of the relevant governmental departments and strictly based on what has been registered on the Company’s H share register of members on the Record Date. The Company assumes no liability whatsoever in respect of and will not entertain any claims arising from any delay in, or inaccurate determination of, the status of the shareholders or any disputes over the mechanism of withholding of enterprise income tax.

Profit Distribution for Investors of Northbound Trading

For investors (including enterprises and individuals) investing in the A shares of the Company (the “ A Shares ”) listed on the Shanghai Stock Exchange through The Stock Exchange of Hong Kong Limited (the “ Hong Kong Stock Exchange ”) (the “ Northbound Trading ”), their dividends will be distributed in RMB by the Company through the Shanghai Branch of China Securities Depository and Clearing Corporation Limited to the account of the nominee holding such shares. The Company will withhold and pay income taxes at the rate of 10% on behalf of those investors and will report to the tax authorities for the withholding. For investors of Northbound Trading who are tax residents of other countries and whose country of tax residency is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of lower than 10%, those enterprises and individuals may, or may entrust a withholding agent to, apply to the competent tax authorities of the Company for the entitlement of the rate under such tax treaty. Upon approval by the competent tax authorities, the paid amount in excess of the tax payable based on the tax rate under such tax treaty will be refunded to those enterprises and individuals by the competent tax authorities.

The record date and the date of distribution of cash dividends and other arrangements for the investors of Northbound Trading will be the same as those for the holders of A Shares.

Profit Distribution for Investors of Southbound Trading

For investors (including enterprises and individuals) investing in the H Shares listed on Hong Kong Stock Exchange through the Shanghai Stock Exchange (the “ Southbound Trading ”), in accordance with the Agreement on Distribution of Cash Dividends of H Shares for Southbound Trading (港股通 H股股票現金紅利派發協議) to be signed between the Company and the Shanghai Branch of China Securities Depository and Clearing Corporation Limited, the Shanghai Branch of China Securities Depository and Clearing Corporation Limited, as the nominee of the holders of H Shares for Southbound Trading, will receive cash dividends distributed by the Company and distribute the cash dividends to the relevant investors of H Shares of Southbound Trading through its depositary and clearing system.

The cash dividends for the investors of H Shares of Southbound Trading will be paid in RMB.

Pursuant to the Notice on the Tax Policies Related to the Pilot Program of the Shanghai-Hong Kong Stock Connect (關於滬港股票市場交易互聯互通機制試點有關稅收政策的通知) (Caishui [2014] No. 81), for dividends received by domestic individual investors from investing in H Shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect, the companies of such H Shares shall withhold and pay individual income tax at the rate of 20% on behalf of the investors. For dividends received by domestic securities investment funds from investing in shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect, the tax payable shall be the same as that for individual investors. The companies of such H Shares will not withhold and pay the income tax of dividends for domestic enterprise investors and those domestic enterprise investors shall report and pay the relevant tax payable themselves.

The record date and the date of distribution of cash dividends and other arrangements for the investors of Southbound Trading will be the same as those for the holders of H Shares.

CONSOLIDATED INCOME STATEMENT

Unit: RMB

Notes Operating revenue 5 Less: Operating costs 6 Tax and surcharges Selling expenses 7 Administrative expenses 8 Research and development expenses 9 Finance costs 10 Including: Interest expenses Interest income Add: Other gains 11 Investment gains 12 Including: Gains from investment in associates and joint ventures Derecognition gains on financial assets measured at amortized cost (“-” indicating loss) Gains from changes in fair value 13 Credit impairment losses (“-” indicating loss) 14 Asset impairment losses (“-” indicating loss) 15 Gains / (losses) on disposal of assets Operating profit Add: Non-operating revenue 5 Less: Non-operating expenses 6 Total profit Less: Income tax expenses 16 Net profit Classified by continuity of operations Net profit from continuing operations Classified by attribution of ownership Net profit attributable to the shareholders of the parent company Minority interests	For the year ended 31 December 2020 Audited 108,004,884,351.35 86,515,836,991.45 2,026,872,574.80 3,277,184,703.29 6,340,418,782.95 269,152,809.67 3,160,507,027.66 *6,483,111,314.92* *276,069,216.98* 881,342,099.36 686,779,516.72 *400,420,619.13* – 520,392,586.68 (359,170,322.93) (717,013,166.69) (139,062.60) 7,427,103,112.07 674,857,655.26 307,557,507.87 7,794,403,259.46 2,638,497,687.92 5,155,905,571.54 5,155,905,571.54 2,843,772,517.94 2,312,133,053.60	For the year ended 31 December 2019 Audited 91,829,311,097.05 67,402,240,134.58 3,405,479,644.18 3,076,483,834.81 7,056,088,671.56 232,888,822.88 3,397,042,746.61 6,836,733,107.83 712,519,742.58 738,078,540.73 259,882,805.24 388,081,883.97 (443,184,451.58) 759,365,787.90 (467,906,969.95) (642,657,903.94) 39,433,482.23 7,945,282,984.64 522,575,890.90 534,038,828.15 7,933,820,047.39 2,755,672,377.61 5,178,147,669.78 5,178,147,669.78 3,693,582,654.45 1,484,565,015.33

CONSOLIDATED INCOME STATEMENT (CONTINUED) Unit: RMB

Note Net other comprehensive income after tax Net other comprehensive income after tax attributable to shareholders of the parent company Ot her comprehensive income not allowed to be reclassified into profit or loss Ch anges arising from re-measurement of defined benefit plans Changes in fair value of other equity instruments Ot her comprehensive income to be reclassified into profit or loss Exchange differences on foreign currency translation The difference between the fair value and the carrying value of the the investment properties on the date when it transferred from self-occupied properties and measured with the fair value model Net other comprehensive income after tax attributable to minority interests Total comprehensive income Including: Total comprehensive income attributable to the shareholders of the parent company Total comprehensive income attributable to minority interests Earnings per share 17 Basic earnings per share (RMB/share) Diluted earnings per share (RMB/share)	For the year ended 31 December 2020 Audited 206,039,569.13 214,928,020.04 18,293,106.00 (1,616,913.97) (9,162,189.82) 207,414,017.83 (8,888,450.91) 5,361,945,140.67 *3,058,700,537.98* *2,303,244,602.69* 0.27 0.27	For the year ended 31 December 2019 Audited 34,203,076.54 25,316,592.01 23,445,873.00 (2,472,685.22) 4,343,404.23 – 8,886,484.53 5,212,350,746.32 3,718,899,246.46 1,493,451,499.86 0.35 0.35

CONSOLIDATED BALANCE SHEET

Unit: RMB

Notes Assets Current Assets Cash and bank balances Financial assets held for trading Bills receivable 19 Accounts receivable 20 Receivables financing Prepayments Other receivables Inventories 21 Contract assets Other current assets Total current assets Non-current assets Debt investments Long-term receivables Long-term equity investments Investment in other equity instruments Investment properties Fixed assets Construction in progress Right-of-use assets Intangible assets Goodwill Long-term deferred expenditures Deferred income tax assets Other non-current assets Total non-current assets Total assets	As at 31 December 2020 Audited 28,643,885,532.33 1,117,646,125.53 909,259,922.98 7,658,458,756.67 5,588,223,348.91 2,645,477,546.87 7,484,804,994.29 120,593,127,695.50 14,420,557.17 8,014,327,688.54 182,669,632,168.79 782,487,853.43 1,078,930,249.19 3,968,159,006.99 580,376,487.41 30,683,800,071.02 43,714,448,132.60 2,460,432,841.95 749,141,531.87 16,194,424,420.83 2,461,468,983.05 1,443,003,731.69 4,166,680,247.77 399,397,663.31 108,682,751,221.11 291,352,383,389.90	As at 31 December 2019 Audited 21,325,042,578.37 1,015,278,286.73 5,202,609,351.30 8,001,473,532.63 501,846,392.39 1,524,225,471.45 9,067,357,777.42 121,531,025,336.50 42,952,083.21 6,284,046,698.11
		174,495,857,508.11
		206,933,697.53 1,021,971,024.22 3,988,531,537.26 382,047,682.07 29,632,244,749.53 44,512,207,458.24 2,279,231,800.75 589,176,549.64 16,625,761,408.49 2,591,468,983.05 1,276,284,193.48 3,988,640,507.00 533,398,608.96
		107,627,898,200.22
		282,123,755,708.33

CONSOLIDATED BALANCE SHEET (CONTINUED) Unit: RMB

Notes Liabilities and equity attributable to shareholders Current liabilities Short-term loans 22 Bills payable 23 Accounts payable 24 Receipts in advance Contract liabilities Wages payable Tax payable Other payables Non-current liabilities due within one year Short-term financing bonds 25 Other current liabilities Total current liabilities Non-current liabilities Long-term loans 26 Bonds payable 25 Lease liabilities Long-term payables Long-term wages payable Accrued liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	As at 31 December 2020 Audited 30,823,388,385.20 1,779,326,807.47 18,082,453,566.59 305,227,873.47 28,906,318,019.79 429,985,557.03 2,628,117,672.26 7,895,565,971.72 14,967,779,666.16 1,599,273,452.96 11,392,807,052.69 118,810,244,025.34 37,777,329,363.48 31,571,846,083.37 458,329,649.60 19,162,220.69 529,547,335.17 824,802,495.37 832,750,925.25 6,063,184,435.98 9,000,000.00 78,085,952,508.91 196,896,196,534.25	As at 31 December 2019 Audited 37,217,682,474.50 1,976,142,322.65 17,701,948,542.45 334,666,882.90 24,557,147,374.24 490,892,896.45 2,515,633,050.02 8,517,423,661.65 20,319,530,862.57 3,298,801,089.25 10,776,488,930.30
		127,706,358,086.98
		35,787,401,022.47 27,460,996,718.14 317,196,853.52 17,818,306.88 647,490,892.12 803,168,068.27 837,416,381.95 5,992,070,007.93 22,488,938.80
		71,886,047,190.08
		199,592,405,277.06

CONSOLIDATED BALANCE SHEET (CONTINUED) Unit: RMB

Equity attributable to shareholders Share capital Other equity instruments Including: Perpetual bonds Capital reserve Other comprehensive income Specific reserve Surplus reserve General risk reserve Retained earnings Total equity attributable to the shareholders of the parent company Minority interests Total equity attributable to shareholders Total liabilities and equity attributable to shareholders	As at 31 December 2020 Audited 10,677,771,134.00 16,522,000,000.00 *16,522,000,000.00* 6,169,149,696.05 447,195,933.08 51,385,977.58 2,263,251,151.05 457,650,791.76 26,787,531,577.50 63,375,936,261.02 31,080,250,594.63 94,456,186,855.65 291,352,383,389.90	As at 31 December 2019 Audited 10,677,771,134.00 14,962,000,000.00 14,962,000,000.00 6,434,307,002.11 232,267,913.04 32,250,174.13 1,926,994,968.55 359,957,564.90 26,505,650,840.60
		61,131,199,597.33 21,400,150,833.94
		82,531,350,431.27
		282,123,755,708.33

NOTES:

1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The financial statements are prepared in accordance with Accounting Standards for Business Enterprises – Basic Standards issued by the Ministry of Finance and specific accounting standards, implementation guidance, interpretations and other relevant provisions issued and amended subsequently (collectively referred to as “ Accounting Standards for Business Enterprises ”).

The financial statements are presented on a going concern basis.

Except for certain financial instruments and investment properties, the financial statements have been prepared under the historical cost convention. If the assets are impaired, corresponding provisions for impairment shall be made according to relevant provisions.

2. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES

The specific accounting policies and accounting estimation has been prepared by the Group based on actual production and operation characteristics, as mainly embodied in the provision for bad debt of accounts receivable, inventory valuation method, the depreciation of fixed assets, revenue recognition and measurement, the recognition and allocation of development costs on properties under construction.

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3. STATEMENT OF COMPLIANCE WITH ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

The financial statements are prepared in accordance with the requirements of Accounting Standards for Business Enterprises and present fairly and fully the financial position of the Company and the Group as at 31 December 2020 and their financial performance and cash flows for 2020.

4. OPERATING SEGMENT INFORMATION

For management purposes, the Group is organised into business units based on their products and services and has four reportable operating segments as follows:

(a) the cement and ready-mixed concrete segment engages in the manufacture and sale of cement and concrete;
(b) the modern building materials and commerce and logistics segment engages in the manufacture, sale, commerce and logistics of building materials and furniture;
(c) the property development segment engages in property development and sales;
(d) the property investment and management segment invests in properties for their potential rental income and/or for capital appreciation, and provides management and security services to residential and commercial properties.

The management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment results are evaluated based on the segment profits reported. It represents the indicator after adjustments have been made to total profit, and other than the exclusion of overheads attributable to the headquarters, the indicator is consistent with the Group’s total profit.

Segment assets and segment liabilities exclude unallocated assets and liabilities of the headquarters as these assets and liabilities are under the unified management of the Group.

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Pricing for transfer between operating segments is agreed upon by both parties of transactions with reference to the fair price quoted from transactions with third parties.

Unit: RMB

For the year ended 31 December 2020

Revenue from external transactions Revenue from inter-segment transactions Gains on investment in joint ventures and associates Asset impairment losses Credit impairment losses Depreciation and amortisation Total profits Income tax expense Total assets Total liabilities Other disclosure Long-term equity investment in joint ventures and associates Increase in other non-current assets (excluding long- term equity investments)	Cement and Ready-mixed Concrete Segment 41,316,648,584.79 1,132,418,329.76 42,449,066,914.55 374,611,841.96 (262,373,463.94) (280,690,129.92) 3,763,658,244.44 5,982,342,511.92 1,613,859,481.53 77,204,464,946.35 39,070,442,756.60 2,084,235,170.58 3,904,029,211.53	Modern Building Materials and Commerce and Logistics Segment Property Development Segment 31,437,454,229.12 31,350,979,592.74 1,738,033,872.37 974,484.00 33,175,488,101.49 31,351,954,076.74 29,080,766.57 (31,488,062.83) (48,115,030.82) (253,544,273.12) (38,129,772.54) (5,547,539.47) 304,803,647.08 36,971,328.97 10,765,040.63 1,089,612,818.14 42,591,609.92 724,308,453.26 14,052,494,191.88 142,716,441,542.71 9,991,156,701.74 123,476,237,081.74 95,596,194.99 951,886,131.20 708,024,911.05 78,711,250.90	Property Investment and Management Segment 3,899,801,944.70 736,975,520.92 4,636,777,465.62 28,216,073.45 (152,980,398.81) (34,802,881.00) 393,008,568.96 2,248,848,345.32 664,245,993.67 78,802,742,216.08 21,450,961,451.32 838,549,010.22 576,845,038.47	Unallocated Corporate Assets/ Liabilities/ Expenses – – – – – – 83,356,929.41 (1,450,767,115.44) (362,691,778.86) 1,370,388,971.59 23,671,288,277.09 – –	Elimination on Consolidation Total – 108,004,884,351.35 (3,608,402,207.05) – (3,608,402,207.05) 108,004,884,351.35 – 400,420,619.15 – (717,013,166.69) – (359,170,322.93) – 4,581,798,718.86 (86,398,341.11) 7,794,403,259.46 (43,816,071.60) 2,638,497,687.92 (22,794,148,478.71) 291,352,383,389.90 (20,763,889,734.24) 196,896,196,534.25 – 3,968,159,006.99 – 5,267,610,411.95

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For the year ended 31 December 2019

Revenue from external transactions Revenue from inter-segment transactions Gains/(losses) on investment in joint ventures and associates Losses from impairment of assets Losses on credit impairment Depreciation and amortisation Total profits/(losses) Income tax expense Total assets Total liabilities Other disclosure Long-term equity investment in joint ventures and associates Increase in other non-current assets (excluding long-term equity investments) Geographical information Unit: RMB Operating revenue Asia Europe Africa Others	Cement and Ready-mixed Concrete Segment 40,596,553,417.73 1,232,748,739.60 41,829,302,157.33 376,762,482.66 483,278,805.88 222,749,107.96 3,786,616,361.92 5,483,611,811.33 1,324,061,434.39 81,070,517,884.87 44,744,914,691.92 2,190,218,086.28 3,283,118,150.87	Modern Building Property Unallocated Materials and Property Investment and Corporate Assets/ Commerce and Development Management Liabilities/ Logistics Segment Segment Segment Expenses 24,498,816,331.59 22,190,751,212.69 4,543,190,135.04 – 2,179,611,418.41 – 811,101,639.97 – 26,678,427,750.00 22,190,751,212.69 5,354,291,775.01 – 24,406,187.94 (230.82) (13,086,555.80) – 131,134,751.56 (1,754,891.35) 29,999,237.85 – 319,839,751.53 762,760.02 (75,444,649.56) – 268,954,805.31 45,365,270.13 281,300,453.30 85,476,845.19 (1,149,095,057.32) 3,396,936,049.14 2,047,020,534.49 (1,841,987,149.42) 84,223,312.22 953,604,349.84 854,946,603.72 (460,496,787.35) 14,109,126,858.19 143,937,289,841.84 91,267,880,110.43 1,783,137,260.29 10,467,396,033.06 123,914,643,139.59 50,443,413,837.62 20,009,356,799.53 (5,305,654.90) 983,374,194.03 820,244,911.85 – 1,219,077,074.00 60,021,601.56 7,099,792,542.37 – For the year ended 31 December 2020 Audited 107,668,850,610.03 135,950,487.22 23,915,414.86 176,167,839.24 108,004,884,351.35	Modern Building Property Unallocated Materials and Property Investment and Corporate Assets/ Commerce and Development Management Liabilities/ Logistics Segment Segment Segment Expenses 24,498,816,331.59 22,190,751,212.69 4,543,190,135.04 – 2,179,611,418.41 – 811,101,639.97 – 26,678,427,750.00 22,190,751,212.69 5,354,291,775.01 – 24,406,187.94 (230.82) (13,086,555.80) – 131,134,751.56 (1,754,891.35) 29,999,237.85 – 319,839,751.53 762,760.02 (75,444,649.56) – 268,954,805.31 45,365,270.13 281,300,453.30 85,476,845.19 (1,149,095,057.32) 3,396,936,049.14 2,047,020,534.49 (1,841,987,149.42) 84,223,312.22 953,604,349.84 854,946,603.72 (460,496,787.35) 14,109,126,858.19 143,937,289,841.84 91,267,880,110.43 1,783,137,260.29 10,467,396,033.06 123,914,643,139.59 50,443,413,837.62 20,009,356,799.53 (5,305,654.90) 983,374,194.03 820,244,911.85 – 1,219,077,074.00 60,021,601.56 7,099,792,542.37 – For the year ended 31 December 2020 Audited 107,668,850,610.03 135,950,487.22 23,915,414.86 176,167,839.24 108,004,884,351.35	Elimination on Consolidation Total – 91,829,311,097.05 (4,223,461,797.98) – (4,223,461,797.98) 91,829,311,097.05 – 388,081,883.98 – 642,657,903.94 – 467,906,969.95 – 4,467,713,735.85 (2,666,140.83) 7,933,820,047.39 (666,535.21) 2,755,672,377.61 (50,044,196,247.29) 282,123,755,708.33 (49,987,319,224.66) 199,592,405,277.06 – 3,988,531,537.26 – 11,662,009,368.80 For the year ended 31 December 2019 Audited 91,592,678,583.02 180,604,927.59 31,582,804.82 24,444,781.62 91,829,311,097.05

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Revenues from external transactions are attributable to the geographic locations where the customers are located.

Major non-current assets of the Group are located in the PRC.

Information about major customers

For the year ended 31 December 2020, no operating revenue from any one single customer of the Group accounted for more than 10% of the Group’s revenue (for the year ended 31 December 2019: Nil).

5. OPERATING REVENUE AND NON-OPERATING REVENUE

Unit: RMB

Operating revenue is presented as follows:

Operating revenue from principal business Operating revenue from other business Income from contracts with customers Rental income Including: Rental income from investment properties Other rental income Interest income	For the year ended 31 December 2020 Audited 107,333,851,103.15 671,033,248.20 108,004,884,351.35 For the year ended 31 December 2020 Audited 105,887,522,351.22 1,788,910,392.94 *1,626,860,912.00* *162,049,480.94* 328,451,607.19 108,004,884,351.35	For the year ended 31 December 2019 Audited 90,935,860,015.15 893,451,081.90
		91,829,311,097.05
		For the year ended 31 December 2019 Audited 89,580,358,684.47 1,976,602,651.71 1,777,881,775.95 198,720,875.76 272,349,760.87
		91,829,311,097.05

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Non-operating revenue is presented as follows:

Net income from fines Relocation compensation/government grants Unpayable amounts Others	For the year ended 31 December 2020 Audited 69,489,456.49 453,863,482.70 68,225,053.40 83,279,662.67 674,857,655.26	For the year ended 31 December 2019 Audited 139,783,448.15 111,663,451.47 118,600,989.34 152,528,001.94
		522,575,890.90

6. OPERATING COSTS AND NON-OPERATING EXPENSES

Unit: RMB

Operating costs are presented as follows:

Operating costs from principal business Operating costs from other business Non-operating expenses are presented as follows: Losses on disposal of non-current assets Including: Losses on disposal of fixed assets Loss on disposal of other non-current assets Abnormal losses Expenses on charity donation Expenses on compensation, penalties and fines Other expenses	For the year ended 31 December 2020 Audited 86,117,007,800.32 398,829,191.13 86,515,836,991.45 For the year ended 31 December 2020 Audited 97,622,565.62 97,615,780.62 6,785.00 1,619,898.86 17,613,686.74 116,357,317.78 74,344,038.87 307,557,507.87	For the year ended 31 December 2019 Audited 66,853,646,561.76 548,593,572.82
		67,402,240,134.58
		For the year ended 31 December 2019 Audited 143,523,231.54 142,147,754.65 1,375,476.89 7,937,317.21 34,373,605.55 312,617,568.37 35,587,105.48
		534,038,828.15

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7. SELLING EXPENSES

Unit: RMB

Employee remunerations Office expenses Lease fee Agency intermediary fee Advertisement fee Transportation expenses Others	For the year ended 31 December 2020 Audited 903,178,940.77 417,716,510.27 39,339,544.35 498,596,740.34 341,118,543.09 1,018,308,743.53 58,925,680.94 3,277,184,703.29	For the year ended 31 December 2019 Audited 979,339,136.12 361,559,228.47 72,042,739.79 419,911,565.97 322,474,958.37 860,511,142.06 60,645,064.03
		3,076,483,834.81

8. ADMINISTRATIVE EXPENSES

Unit: RMB

Employee remunerations Office expenses Utilities Intermediary service fees Leasing expenses Sewage and afforestation fees Loss on shut down Others	For the year ended 31 December 2020 Audited 2,402,899,798.82 1,098,244,905.88 79,012,528.78 286,211,256.47 94,963,902.67 58,416,896.06 741,943,287.04 1,578,726,207.23 6,340,418,782.95	For the year ended 31 December 2019 Audited 2,800,165,692.88 1,130,399,958.32 86,869,188.26 339,585,155.54 75,649,865.17 57,517,915.36 799,239,796.44 1,766,661,099.59
		7,056,088,671.56

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9. RESEARCH AND DEVELOPMENT EXPENSES

Unit: RMB

Employee remunerations Material and equipment cost Travel expenses Others	For the year ended 31 December 2020 Audited 123,887,455.70 60,851,225.40 3,604,804.32 80,809,324.25 269,152,809.67	For the year ended 31 December 2019 Audited 126,743,571.86 33,144,983.17 4,180,367.53 68,819,900.32
		232,888,822.88

10. FINANCE COSTS

Unit: RMB

Interest expense Including: Interests on bank loans and other loans to be fully repaid within 5 years Interests on bank loans and other loans to be repaid over 5 years Interests expense on lease liabilities Less: Interest income Less: Amount of capitalised interest_(Note)_ Exchange gains Handling charges Others	For the year ended 31 December 2020 Audited 6,483,111,314.92 *3,642,288,316.48* *25,213,052.90* *31,867,256.86* 276,069,216.98 3,327,814,079.35 (874,035.64) 178,662,066.56 103,490,978.15 3,160,507,027.66	For the year ended 31 December 2019 Audited 6,836,733,107.83 6,753,197,751.10 50,557,239.47 32,978,117.26 712,519,742.58 2,966,468,446.68 (89,812.42) 138,841,337.86 100,546,302.60
		3,397,042,746.61

Note: For the year ended 31 December 2020, the amount of capitalised borrowing costs has included construction in progress of RMB48,207,716.98 (for the year ended 31 December 2019: RMB28,516,793.52) and costs for properties under development of RMB3,279,606,362.37 (for the year ended 31 December 2019: RMB2,937,951,653.16).

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11. OTHER GAINS

Unit: RMB

Refunds of VAT Income from other subsidies Grants on sale of heat	For the year ended 31 December 2020 Audited 576,039,717.42 297,890,961.94 7,411,420.00 881,342,099.36	For the year ended 31 December 2019 Related to assets/gains Audited 577,918,676.86 Related to gains 158,559,863.87 Related to assets/gains 1,600,000.00 Related to gains 738,078,540.73

12. INVESTMENT GAINS

Unit: RMB

Gains from long-term equity investments under equity method Investment gains from disposal of subsidiaries Investment (losses)/ profits from disposal of associates and joint ventures Investment gains from financial assets held for trading during the holding Period Investment gains from financial assets measured at amortized cost during the holding period Investment losses from disposal of equity instruments investment at fair value through other comprehensive income Dividend income from investment in other equity instruments during the holding period Investment gains from disposal of financial assets held for trading Losses on derecognition of financial assets measured at amortized cost Gains on re-measurement of equity interests in the acquiree held before the date of acquisition at fair value Others	For the year ended 31 December 2020 Audited 400,420,619.13 234,945,279.56 (6,432,188.75) 1,027,112.00 17,968,815.16 (3,424,873.83) 6,173,733.41 36,932,205.90 – – (831,185.86) 686,779,516.72	For the year ended 31 December 2019 Audited 388,081,883.97 11,105,117.95 2,766,984.35 759,000.00 6,933,705.75 – 570,951.93 283,724,406.29 (443,184,451.58) 9,248,144.36 (122,937.78)
		259,882,805.24

There were no significant restrictions on the repatriation of investment gains of the Group as of 31 December 2020. In 2020, investment gain from listed share among the Group’s investment gains amounted to RMB796,950.00 (2019: net loss of RMB20,146,588.49).

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13. GAINS FROM CHANGES IN FAIR VALUE

Unit: RMB

Financial assets held for trading Investment properties measured at fair value 14. CREDIT IMPAIRMENT LOSSES Unit: RMB Bad debt losses on bills receivable Bad debt losses on accounts receivable Bad debt losses on other accounts receivable Bad debt losses on long-term accounts receivable Losses on impairment for contract assets 15. ASSET IMPAIRMENT LOSSES Unit: RMB Losses on decline in value of inventory Losses on impairment of contract assets Losses on impairment of fixed assets Losses on impairment of construction in progress Losses on impairment of intangible assets Losses on impairment of long-term equity investments Losses on impairment of goodwill Others	For the year ended 31 December 2020 Audited (5,257,665.09) 525,650,251.77 520,392,586.68 For the year ended 31 December 2020 Audited (10,442,166.66) 115,846,019.27 260,801,750.04 (7,035,279.72) – 359,170,322.93 For the year ended 31 December 2020 Audited 363,320,221.79 423,713.43 69,219,314.75 4,636,692.52 40,151,142.73 60,000,000.00 130,000,000.00 49,262,081.47 717,013,166.69	For the year ended 31 December 2019 Audited 29,316,032.41 730,049,755.49 759,365,787.90 For the year ended 31 December 2019 Audited 75,094,859.97 325,580,289.24 76,574,988.60 (10,075,432.43) 732,264.57 467,906,969.95 For the year ended 31 December 2019 Audited 155,530,616.35 – 274,124,544.97 3,682,030.38 50,059,859.26 – 150,000,000.00 9,260,852.98 642,657,903.94

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16. INCOME TAX EXPENSES

Unit: RMB

For the year ended
31 December 2020
Audited
Current income tax expense
2,689,651,245.06
Deferred income tax expense
(51,153,557.14)
2,638,497,687.92
A reconciliation of income tax expense and total profit is set out as follows:
For the year ended
31 December 2020
Audited
Total profit
7,794,403,259.46
Income tax expense at the statutory income tax rate
1,904,486,712.85
Effect of different tax rates applicable to some subsidiaries
(193,262,387.65)
Adjustments on the current income tax of previous periods
(5,699,724.21)
Share of profits and losses of joint ventures and associates
(84,386,334.80)
Income not subject to tax
(53,435,273.55)
Expenses not deductible
39,120,105.76
Effect of tax rate change on opening balance of deferred income tax
11,299,842.30
Deductible temporary difference and deductible losses not recognized
1,020,374,747.22
Income tax expense at the effective tax rate of the Group
2,638,497,687.92

For the year ended
31 December 2019
Audited
3,236,391,368.60
(480,718,990.99)
2,755,672,377.61
For the year ended
31 December 2019
Audited
7,933,820,047.39
1,983,455,011.85
(104,377,569.77)
22,443,797.43
(66,360,611.06)
(15,777,403.25)
126,499,001.90
–
809,790,150.51
2,755,672,377.61

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17. EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the net profit for the period attributable to ordinary shareholders of the Company divided by the weighted average number of outstanding ordinary shares in issue. The number of newly-issued ordinary shares is calculated and determined from the date of consideration receivable in accordance with the specified terms of issuance agreement.

The calculation of basic earnings per share is as follows:

Earnings Net profit for the year attributable to ordinary shareholders of the Company_(RMB)_ Shares Weighted average number of ordinary shares in issue of the Company Basic earnings per share – continuing operations	For the year ended 31 December 2020 Audited 2,843,772,517.94 10,677,771,134.00 0.27	For the year ended 31 December 2019 Audited 3,693,582,654.45
		10,677,771,134.00
		0.35

The Company did not have potentially dilutive ordinary shares and diluted earnings per share was consistent with basic earnings per share.

18. DIVIDEND

Proposed final dividend – RMB0.06 per share before tax (for the year ended 31 December 2019: RMB0.12 per share before tax)	For the year ended 31 December 2020 *RMB’000* 640,666	For the year ended 31 December 2019 RMB’000 1,281,333

The proposed final dividend for the Reporting Period is calculated based on the total number of shares in issue, including both A Shares and H Shares, as at the date of this announcement and is subject to the approval of the Company’s shareholders at the forthcoming AGM.

In the event of any change in the total share capital of the Company after the date of this announcement but before the record date for implementing payment of the proposed final dividend, the total distribution amount will be kept unchanged and the distribution amount per share will be adjusted in proportion accordingly. In the event of subsequent changes in the total share capital, the Company will make further announcement on specific adjustments.

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19. BILLS RECEIVABLE

Unit: RMB

At 31 December 2020 Audited Bank acceptance bills – Commercial acceptance bills 1,039,767,674.29 1,039,767,674.29 Less: Provision for bad debts of bills receivables 130,507,751.31 909,259,922.98	At 31 December 2019 Audited 4,518,509,076.66 825,050,192.61
	5,343,559,269.27 140,949,917.97
	5,202,609,351.30

As at 31 December 2020, bills receivable of RMB19,250,000.00 (31 December 2019: RMB92,052,474.50) were used for discounting of short-term borrowings.

For the year ended 31 December 2020, the movements in provision for bad debts of bills receivables are as follows:

Balance at the beginning of the Reporting Period Provision for the Reporting Period Balance at the end of the Reporting Period	As at 31 December 2020 Audited 140,949,917.97 (10,442,166.66) 130,507,751.31	As at 31 December 2019 Audited 65,855,058.00 75,094,859.97
		140,949,917.97

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20. ACCOUNTS RECEIVABLE

Unit: RMB

The credit periods of accounts receivable are generally 1 to 6 months. Accounts receivable are non-interest bearing.

An aging analysis of the accounts receivable is as follows:

At 31 December 2020
Audited
Within 1 year (inclusive of 1 year)
5,687,116,127.70
1 to 2 years (inclusive of 2 years)
1,892,496,034.60
2 to 3 years (inclusive of 3 years)
709,076,105.99
3 to 4 years (inclusive of 4 years)
498,302,513.57
4 to 5 years (inclusive of 5 years)
342,733,285.33
Over 5 years
1,122,351,041.11
10,252,075,108.30
Less: Provision for bad debts of accounts receivable
2,593,616,351.63
7,658,458,756.67
Movements in provision for bad debts of accounts receivable are as follows:
For the year ended
31 December 2020
Audited
Balance at the beginning of the year
2,620,476,724.39
Provision for the year
146,068,311.37
Transferred in upon acquisition of subsidiaries
–
Reversal for the year
(30,222,292.10)
Write-off for the year
(63,235,420.14)
Removed from upon disposal of subsidiaries
(78,255,328.71)
Other transfer in/(transfer out)
(1,215,643.18)
Balance at the end of the year
2,593,616,351.63

At 31 December 2019
Audited
6,025,933,817.48
1,812,861,436.65
875,311,528.23
482,639,054.25
456,696,773.03
968,507,647.38
10,621,950,257.02
2,620,476,724.39
8,001,473,532.63
For the year ended
31 December 2019
Audited
2,423,525,518.45
376,975,737.13
15,437,643.47
(51,395,447.89)
(24,878,817.44)
(38,992,282.51)
(80,195,626.82)
2,620,476,724.39

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Subject to separate provision for bad debts Provision for bad debts by credit risk characteristics group Subject to separate provision for bad debts Provision for bad debts by credit risk characteristics group	Balance of carrying amount 987,858,446.42 9,264,216,661.88 10,252,075,108.30 Balance of carrying amount 1,010,803,184.21 9,611,147,072.81 10,621,950,257.02	31 December 2020 Proportion (%) Provision for bad debts amount Proportion (%) 9.64 657,921,302.76 66.60 90.36 1,935,695,048.87 20.89 100.00 2,593,616,351.63 25.30 31 December 2019 Proportion (%) Provision for bad debts amount Proportion (%) 9.52 612,293,506.18 60.57 90.48 2,008,183,218.21 20.89 100.00 2,620,476,724.39 24.67	Carrying value 329,937,143.66 7,328,521,613.01
			7,658,458,756.67
			Carrying value 398,509,678.03 7,602,963,854.60
			8,001,473,532.63

21. INVENTORIES

Unit: RMB

31 December 2020 Provision for decline in value/ Balance of provision for carrying amount impairment Carrying value Raw materials 2,049,818,820.01 80,287,293.90 1,969,531,526.11 Items in production 858,689,777.71 22,601,263.03 836,088,514.68 Finished goods 2,593,083,870.78 203,489,470.71 2,389,594,400.07 Turnover materials 9,357,884.51 – 9,357,884.51 Development costs 85,849,603,128.51 133,678,677.65 85,715,924,450.86 Products under development 29,894,598,094.66 256,310,421.19 29,638,287,673.47 Contract performance cost 51,728,759.95 17,385,514.15 34,343,245.80 121,306,880,336.13 713,752,640.63 120,593,127,695.50

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Raw materials Items in production Finished goods Turnover materials Development costs Products under development Contract performance cost	As at 31 December 2019 Balance of carrying amount Provision for decline in value/ provision for impairment 2,247,999,198.27 94,201,495.59 1,057,167,684.03 6,484,413.09 2,708,644,733.14 179,881,949.41 10,725,951.18 – 97,856,892,687.73 7,169,850.12 18,333,890,490.13 427,977,001.15 52,231,487.53 20,812,186.15 122,267,552,232.01 736,526,895.51	Carrying value 2,153,797,702.68 1,050,683,270.94 2,528,762,783.73 10,725,951.18 97,849,722,837.61 17,905,913,488.98 31,419,301.38
		121,531,025,336.50

Changes in provision for decline in value of inventories and impairment provision for contract performance cost are as follows:

2020

Raw materials Items in production Finished goods Contract performance cost Development costs Products under development	Opening balance 94,201,495.59 6,484,413.09 179,881,949.41 20,812,186.15 7,169,850.12 427,977,001.15 736,526,895.51		Changes during theyear	Changes during theyear	Write-off 32,941,761.67 4,108,648.37 42,608,189.47 5,341,243.03 7,169,850.12 292,460,773.27 384,630,465.93	Closing balance 80,287,293.90 22,601,263.03 203,489,470.71 17,385,514.15 133,678,677.65 256,310,421.19 713,752,640.63
		Provision for the year 20,622,263.58 20,225,498.31 66,702,901.80 1,914,571.03 133,678,677.65 120,794,193.31 363,938,105.68	Removed from upon disposal of subsidiaries 1,464,010.74 – – – – – 1,464,010.74	Reversal 130,692.86 – 487,191.03 – – – 617,883.89

2019

Raw materials Items in production Finished goods Turnover materials Contract performance cost Development costs Products under development	Opening balance 111,744,448.57 26,892,195.65 62,487,076.76 81,472.31 10,985,839.43 7,169,850.12 470,289,422.94 689,650,305.78		Changes duringtheyear	Changes duringtheyear	Write-off 27,588,059.96 34,838,317.53 3,359,790.07 81,472.31 – – 40,557,530.44 106,425,170.31	Closing balance 94,201,495.59 6,484,413.09 179,881,949.41 – 20,812,186.15 7,169,850.12 427,977,001.15
		Provision for the year 11,195,121.86 14,430,534.97 138,820,644.88 – 9,826,346.72 – – 174,272,648.43	Removed from upon disposal of subsidiaries 1,150,014.88 – 1,078,841.43 – – – – 2,228,856.31	Reversal – – 16,987,140.73 – – – 1,754,891.35 18,742,032.08
						736,526,895.51

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As at 31 December 2020, the balance of development costs included the capitalised borrowing costs of RMB5,618,572,116.44 (31 December 2019: RMB6,443,373,626.99). The capitalised borrowing costs amounted to RMB3,279,606,362.37 in aggregate in 2020 (2019: RMB2,937,951,653.16), and the rate of interest capitalisation was 3.94% (2019: 4.95%).

22. SHORT-TERM LOANS

Unit: RMB

Guaranteed loans_(Note)_ Credit loans Pledged loans	As at 31 December 2020 Audited 2,896,710,000.00 27,900,040,000.00 26,638,385.20 30,823,388,385.20	As at 31 December 2019 Audited 1,669,000,000.00 35,456,630,000.00 92,052,474.50
		37,217,682,474.50

Note: As at 31 December 2020, all guaranteed loans were guaranteed by entities within the Group.

As at 31 December 2020, the interest rates of the above loans were 2.54%-5.22%% per annum (as at 31 December 2019: 3.96%-7.00%).

As at 31 December 2020, the Group had no overdue borrowings.

23. BILLS PAYABLE

Unit: RMB

Commercial acceptance bills Bank acceptance bills	At 31 December 2020 Audited 10,654,618.71 1,768,672,188.76 1,779,326,807.47	At 31 December 2019 Audited 17,386,936.78 1,958,755,385.87
		1,976,142,322.65

As at 31 December 2020, the Group had no outstanding bills payable that were due (31 December 2019: Nil).

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24. ACCOUNTS PAYABLE

Unit: RMB

Accounts payable bear no interest and are generally settled within 30-360 days. An aging analysis of accounts payable based on the invoice date is as follows:

Within 1 year (including 1 year) 1 to 2 years (including 2 years) 2 to 3 years (including 3 years) Over 3 years	As at 31 December 2020 Audited 14,283,022,159.33 1,806,763,705.63 485,780,194.35 1,506,887,507.28 18,082,453,566.59	As at 31 December 2019 Audited 14,362,144,476.30 1,648,614,458.46 828,401,100.74 862,788,506.95
		17,701,948,542.45

25. SHORT-TERM FINANCING BONDS AND BONDS PAYABLE

Unit: RMB

Short-term financing bonds Corporate bonds Medium-term notes Balance as at the end of the year Less: Bonds payable due within one year Non-current portion Analysis of maturity of bonds payable: Within 1 year (inclusive of 1 year) 1 to 2 years (inclusive of 2 years) 2 to 5 years (inclusive of 5 years) Over 5 years	As at 31 December 2020 Audited 1,599,273,452.96 29,556,738,698.04 11,000,000,000.00 40,556,738,698.04 8,984,892,614.67 31,571,846,083.37 8,984,892,614.67 8,125,441,880.93 21,969,331,341.18 1,477,072,861.26 40,556,738,698.04	As at 31 December 2019 Audited 3,298,801,089.25
		23,401,835,819.73 11,000,000,000.00
		34,401,835,819.73 6,940,839,101.59
		27,460,996,718.14
		6,940,839,101.58 7,186,009,296.88 18,779,591,863.34 1,495,395,557.93
		34,401,835,819.73

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As at 31 December 2020, the short-term financing bonds above would be due within one year.

1) Pursuant to the document (Zheng Jian Xu Ke [2011] No. 1179) (《證監許可[2011]1179號》文件) issued by the China Securities Regulatory Commission, Jidong Cement issued the second tranche of corporate bonds of Tangshan Jidong Cement Co., Ltd. for 2011 on 20 March 2012, totalling RMB900,000,000 with a term of 8 years (with the issuer’s option to raise the coupon rate at the end of the fifth year and the investors’ entitlement to sell back the bonds) and a coupon rate of 5.58%. The total sale back amount as announced on 17 March 2017 was RMB481,305,000.00 (exclusive of interests) with the remaining amount of RMB418,695,000.00 (exclusive of interests) due on 20 March 2020.
2) Pursuant to the document (Fa Gai Cai Jin [2012] No. 2810) (發改財金[2012]2810號文件) issued by National Development and Reform Commission, Jidong Group issued the first tranche of corporate bonds of Jidong Development Group Co., Ltd. for 2012 on 15 October 2012, totalling RMB800,000,000 with a term of 10 years and a coupon rate of 6.3%.
3) Pursuant to the document [2016] No. 35 issued by the China Securities Regulatory Commission, the Company issued its first tranche of corporate bonds (type one) of BBMG Corporation for 2016 to qualified investors by way of public issuance on 14 March 2016, totalling RMB3,200,000,000 with a term of 5 years (with the issuer’s option to raise the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and an initial coupon rate of 3.12%. As announced on 22 January 2019, the coupon rate of the bonds was increased to 3.9% for the next two years (i.e., from 14 March 2019 to 13 March 2021). The sale back amount as announced on 12 March 2019 was RMB6,065,000 (exclusive of interests) with the remaining amount of RMB3,193,935,000 (exclusive of interests); The Company issued its first tranche of corporate bonds (type two) of BBMG Corporation for 2016 to qualified investors by way of public issuance on 14 March 2016, totalling RMB1,800,000,000 with a term of 7 years (with the issuer’s option to raise the coupon rate at the end of the fifth year and the investors’ entitlement to sell back the bonds) and a coupon rate of 3.5%.
4) Pursuant to the document [2017] No. 46 issued by the China Securities Regulatory Commission, the Company issued its first tranche of corporate bonds (type one) of BBMG Corporation for 2017 to qualified investors by way of public issuance on 19 May 2017, totalling RMB3,500,000,000 with a term of 5 years (with the issuer’s option to raise the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 5.2%. As announced on 25 March 2020, the coupon rate of the bonds was lowered to 3.2% for the next two years (i, e., from 19 May 2020 to 18 May 2022). The total sale back amount as announced on 19 May 2020 was RMB319,107,000 (exclusive of interests). As announced on 19 May 2020, part of the sale-back bonds were resold with an amount of RMB319,107,000 (exclusive of interests). The Company issued its first tranche of corporate bonds (type two) of BBMG Corporation for 2017 to qualified investors by way of public issuance on 19 May 2017, totalling RMB500,000,000 with a term of 7 years (with the issuer’s option to raise the coupon rate at the end of the fifth year and the investors’ entitlement to sell back the bonds) and a coupon rate of 5.38%.
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5) Pursuant to the No-objection Letter Regarding the Compliance with Transfer Conditions of Shenzhen Stock Exchange by the Non-Public Issuance of Corporate Bonds of Tangshan Jidong Cement Co., Ltd. for 2016 (Shen Zheng Han [2016] No. 471) (《關於唐山冀東水泥股份有限公司2016年非公開發行公司債券符合深交所轉讓條件的無異議函》(深證函[2016]471號)) issued by the Shenzhen Stock Exchange, Jidong Cement issued the first tranche of corporate bonds of Tangshan Jidong Cement Co., Ltd. for 2017 by way of non-public issuance on 3 July 2017, totalling RMB500,000,000 with a term of 3 years (with the issuer’s option to adjust the coupon rate at the end of the second year and the investors’ entitlement to sell back the bonds) and a coupon rate of 5.98%. The sale back amount as announced on 25 May 2019 was RMB185,000,000 (exclusive of interests) with the remaining amount of RMB315,000,000 (exclusive of interests) was due for payment on 30 June 2020.
6) Pursuant to the relevant requirements for bonds listing on the Shanghai Stock Exchange, the Company issued the first tranche of corporate bonds (type one) of BBMG Corporation for 2017 to qualified investors by way of non-public issuance on 13 July 2017, totalling RMB1,250,000,000 with a term of 3 years (with the issuer’s option to raise the coupon rate at the end of the second year and the investors’ entitlement to sell back the bonds) and coupon rate of 5.20%; the Company issued the first tranche of corporate bonds (type two) of BBMG Corporation for 2017 to qualified investors by way of non-public issuance on 13 July 2017, totalling RMB1,750,000,000 with a term of 5 years (with the issuer’s option to raise the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 5.30%.
7) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2017] No. MTN512) ( 《接受註冊通知書》(中市協註[2017]MTN512號)) issued by the National Association of Financial Market Institutional Investors (the “ NAFMII ”), the Company issued the first tranche of medium term notes of BBMG Corporation for 2018 on 18 January 2018, totalling RMB2,000,000,000 with a term of 5 years and a coupon rate of 5.85%.
8) Pursuant to the Notice of Acceptance of Filing (Debt Financing Plan [2017] No. 0192)（《接受備案通知書》(債權融資計劃[2017]第0192號)）issued by Beijing Financial Assets Exchange Limited, the Company issued the first tranche of debt financing plan for 2018 on 27 February 2018, totalling RMB500,000,000 with a term of 2+3 years and a coupon rate of 5.80%, which was due for payment maturity on 24 February 2020.
9) Pursuant to the Notice of Acceptance of Filing (Debt Financing Plan [2018] No. 0312)（《接受備案通知書》（債權融資計劃[2018]第0312號））issued by Beijing Financial Assets Exchange Limited, the Company issued the second tranche of debt financing plan for 2018 on 25 June 2018, totalling RMB2,500,000,000 with a term of 3 years and a coupon rate of 6.30%.
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10) Pursuant to the document [2018] No. 884 issued by the China Securities Regulatory Commission, the Company issued the first tranche of corporate bonds (type one) of BBMG Corporation for 2018 to qualified investors by way of public issuance on 12 July 2018, totalling RMB1,500,000,000 with a term of 5 years (with the issuer’s option to adjust the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 4.7%; and the Company issued the first tranche of corporate bonds (type two) of BBMG Corporation for 2018 to qualified investors by way of public issuance on 12 July 2018, totalling RMB1,500,000,000 with a term of 7 years (with the issuer’s option to adjust the coupon rate at the end of the fifth year and the investors’ entitlement to sell back the bonds) and a coupon rate of 5.00%.
11) Pursuant to the Notice of Acceptance of Registration issued by the NAFMII, the Company issued the third tranche of medium term notes of BBMG Corporation for 2018 on 9 August 2018, totalling RMB2,500,000,000 with a term of 5 years and a coupon rate of 4.70%.
12) Pursuant to the Zheng Jian Xu Ke document [2018] No. 884 (《證監許可[2018]884號》文件) issued by the China Securities Regulatory Commission, the Company issued the first tranche of corporate bonds (type one) of BBMG Corporation for 2019 to qualified investors by way of public issuance on 9 January 2019, totalling RMB500,000,000 with a term of 5 years (with the issuer’s option to adjust the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 3.73%. The Company issued the first tranche of corporate bonds (type two) of BBMG Corporation for 2019 to qualified investors by way of public issuance on 9 January 2019, totalling RMB1,500,000,000 with a term of 7 years (with the issuer’s option to adjust the coupon rate at the end of the fifth year and the investors’ entitlement to sell back the bonds) and a coupon rate of 4.07%.
13) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2017] No. MTN512) (《接受註冊通知書》中市協註[2017] MTN512號) issued by the NAFMII, the Company issued the first tranche of medium term notes of BBMG Corporation for 2019 on 7 March 2019, totalling RMB2,500,000,000 with a term of 5 years and a coupon rate of 4.35%.
14) Pursuant to the No Objection Letter Regarding the Compliance with Transfer Conditions of Shenzhen Stock Exchange in the Non-Public Issuance of Corporate Bonds for 2018 of Tangshan Jidong Cement Co., Ltd. (Shen Zheng Han [2018] No. 810) (《關於唐山冀東水泥股份有限公司2018年非公開發行公司債券符合深交所轉讓條件的無異議函》(深證函[2018]810號)) issued by the Shenzhen Stock Exchange, Jidong Cement issued the first tranche of corporate bonds of Tangshan Jidong Cement Co., Ltd. for 2019 by way of non-public issuance on 19 March 2019, totalling RMB1,200,000,000 with a term of 5 years (with the issuer’s option to adjust the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 4.97%. Jidong Cement issued the second tranche of corporate bonds of Tangshan Jidong Cement Co., Ltd. for 2019 by way of non-public issuance on 28 October 2019, totalling RMB1,500,000,000 with a term of 5 years (with the issuer’s option to adjust the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 4.20%.
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15) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2019] No. DFI6) (《接受註冊通知書》(中市協註[2019]DFI6號)) issued by the NAFMII, the Company issued the second tranche of medium term notes of BBMG Corporation for 2019 on 7 August 2019, totalling RMB2,000,000,000 with a term of 5 years and a coupon rate of 3.94%; and the Company issued the third tranche of medium term notes of BBMG Corporation for 2019 on 12 November 2019, totalling RMB2,000,000,000 with a term of 5 years and a coupon rate of 4.13%.
16) Pursuant to the Replies (Zheng Jian Xu Ke [2019] No. 2255) (中國證券監督管理委員會出具的批復（證監許可[2019]2255號）) issued by the China Securities Regulatory Commission, the Company issued the first tranche of corporate bonds (type two) of BBMG Corporation for 2020 to qualified investors by way of public issuance on 10 January 2020, totalling RMB4,500,000,000 with a term of 7 years (with the issuer’s option to adjust the coupon rate at the end of the fifth year and the investors’ entitlement to sell back the bonds) and a coupon rate of 3.99%; the Company issued the second tranche of corporate bonds of BBMG Corporation for 2020 to qualified investors by way of public issuance on 15 June 2020, totalling RMB2,000,000,000 with a term of 5 years (with the issuer’s option to adjust the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 3.24%; the Company issued the third tranche of corporate bonds of BBMG Corporation for 2020 to qualified investors by way of public issuance on 13 August 2020, totalling RMB1,500,000,000 with a term of 5 years (with the issuer’s option to adjust the coupon rate at the end of the third year and the investors’ entitlement to sell back the bonds) and a coupon rate of 3.64%.
17) Pursuant to the Replies (Zheng Jian Xu Ke [2019] No. 2416) (中國證券監督管理委員會出具的批復（證監許可[2020]2416號）) issued by the China Securities Regulatory Commission, Tangshan Jidong Cement Co., Ltd. issued its convertible corporate bonds on 5 November 2020, totally RMB2.82 billion with a term of 6 years, and the coupon rate was set as 0.20%, 0.40%, 0.80%,1.20%,1.50% and 2.00% for the first year, second year, third year, fourth year, fifth year and sixth year, respectively, with the redemption price at maturity of RMB106 (including the last payment of interests).
18) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2019] No. SCP16) (《接受註冊通知書》（中市協註[2019]SCP16號）文件) issued by the NAFMII, Jidong Cement issued the second tranche of ultrashort financing bonds of Tangshan Jidong Cement Co., Ltd. for 2019 on 26 July 2019, totalling RMB800,000,000 with a term of 270 days and a coupon rate of 3.34%; and Jidong Cement issued the third tranche of ultrashort financing bonds of Tangshan Jidong Cement Co., Ltd. for 2019 on 25 September 2019, totalling RMB500,000,000 with a term of 270 days and a coupon rate of 3.30%.
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19) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2019] No. DFI6) (《接受註冊通知書》（中市協註[2019]DFI6號）) issued by the NAFMII, the Company issued the second tranche of ultrashort financing bonds of BBMG Corporation for 2019 on 12 October 2019, totalling RMB2,000,000,000 with a term of 177 days and a coupon rate of 2.80%.
20) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2019] No. DFI6) (《接受註冊通知書》（中市協註[2019]DFI6號）) issued by the NAFMII, the Company successfully issued the first tranche of ultrashort financing bonds of BBMG Corporation for 2020 on 12 March 2020, totalling RMB2,000,000,000 with a term of 240 days and a coupon rate of 2.54%.
21) Pursuant to the Notice of Acceptance of Registration (Zhong Shi Xie Zhu [2019] No. SCP16) (《接受註冊通知書》（中市協註[2019]SCP16號）) issued by the NAFMII, Jidong Cement issued the first tranche of ultrashort financing bonds of Tangshan Jidong Cement Co., Ltd. for 2020 on 13 March 2020, totalling RMB800,000,000 with a term of 270 days and a coupon rate of 2.68% and Jidong Cement issued the second tranche of ultrashort financing bonds of Tangshan Jidong Cement Co., Ltd. for 2020 on 19 March 2020, totalling RMB800,000,000 with a term of 270 days and a coupon rate of 2.66%; and Jidong Cement successfully issued the third tranche of ultrashort financing bonds of Tangshan Jidong Cement Co., Ltd. for 2020 on 14 May 2020, totalling RMB800,000,000 with a term of 270 days and a coupon rate of 2.07%; Jidong Cement successfully issued the fourth tranche of ultrashort financing bonds of Tangshan Jidong Cement Co., Ltd. for 2020 on 5 August 2020, totalling RMB800,000,000 with a term of 270 days and a coupon rate of 3.07%.
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26. LONG-TERM LOANS

Unit: RMB

Guaranteed loans_(Note)_ Credit loans Mortgaged loans Pledged loans Pledged/mortgaged and guaranteed loans Closing amount Less: Long-term loans due within one year	As at 31 December 2020 Audited 7,855,232,916.00 19,358,248,263.18 11,946,505,010.30 4,454,600,000.00 – 43,614,586,189.48 5,837,256,826.00 37,777,329,363.48	As at 31 December 2019 Audited 14,220,056,660.00 15,247,569,349.97 14,079,691,214.48 5,444,700,000.00 25,000,000.00
		49,017,017,224.45 13,229,616,201.98
		35,787,401,022.47

Note: As at 31 December 2020, the guaranteed loans of the Group were guaranteed by entities within the Group.

As at the balance sheet date, an analysis on maturity of long-term loans is as follows:

Within 1 year 1 to 2 years 2 to 5 years Over 5 years	As at 31 December 2020 Audited 5,837,256,826.00 11,207,729,448.30 13,828,871,415.18 12,740,728,500.00 43,614,586,189.48	As at 31 December 2019 Audited 13,229,616,201.98 9,569,842,858.00 13,291,071,702.00 12,926,486,462.47
		49,017,017,224.45

As at 31 December 2020, the above loans bore an interest rate of 1.20%-7.20% (31 December 2019: 1.2%-10.34%) per annum.

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27. NET CURRENT ASSETS

Unit: RMB

Unit: RMB
Current assets Less: Current liabilities Net current assets TOTAL ASSETS LESS CURRENT LIABILITIES Unit: RMB Total assets Less: Current liabilities Total assets less current liabilities	As at 31 December 2020 Audited 182,669,632,168.79 118,810,244,025.34 63,859,388,143.45 As at 31 December 2020 Audited 291,352,383,389.90 118,810,244,025.34 172,542,139,364.56	As at 31 December 2019 Audited 174,495,857,508.11 127,706,358,086.98
		46,789,499,421.13
		As at 31 December 2019 Audited 282,123,755,708.33 127,706,358,086.98
		154,417,397,621.35

28. TOTAL ASSETS LESS CURRENT LIABILITIES

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CHAIRMAN’S STATEMENT

Dear Shareholders,

On behalf of the board of directors, I am pleased to present to you the annual results of the Company for the twelve months ended 31 December 2020 (the “ Reporting Period ”) and report on the operating results of the Company during the said period for your review.

Review

The year 2020 was the closing year for the fight against poverty, the building of a well-off society in an all-round way and the 13th Five-Year plan and it was also an extraordinary year in which the Group made concerted efforts and forged ahead in the face of risks and challenges. The Company has achieved hard-earned results by pushing forward the prevention and control of the epidemic and production and operation, overcoming difficulties and achieving better-than-expected results in major economic indicators. During the Reporting Period, the Company recorded an operating revenue of RMB108,004.9 million, representing a year-on-year increase of approximately 17.6%; net profit attributable to the shareholders of the parent company amounted to RMB2,843.8 million, representing a year-on-year decrease of approximately 23.0%; basic earnings per share attributable to the shareholders of the parent company amounted to RMB0.27, representing a year-on-year decrease of approximately 22.9%.

During the 13th Five-Year plan period, the Company had given full play to the advantages of the vertical and fully integrated industrial chain, highlighted top-level design and strategic leadership, and deeply implemented supply-side structural reformation to achieve high-quality leapfrog development through a series of major strategic initiatives. As at the end of 2020, the Company’s total assets, operating revenue and total profit exceeded the planned targets, which were 2.2 times, 2.6 times and 2.4 times over those of the end of the 12th Five-Year plan, respectively.

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Prospect

The year 2021 is the opening year of the 14th Five-Year plan and a crucial year for the Group to grasp new development opportunities and achieve higher quality development at a new historical starting point. Although there are still uncertainties in the current epidemic and the international environment, the fundamentals of China’s long-term prosperity remain unchanged. In the coming period, the domestic market will dominate the national economic cycle more obviously and the potential of domestic demand for economic growth will be continuously released. Overall, it remains a period of important strategic opportunities. Internally, after years of reformation and development, the Group has formed a full industrial chain with its own characteristics. It has formed comparative advantages in the strategic layout, coordinated development, transformation and upgrading of modern green building materials, property development and operation, property services, trade business, equipment manufacturing, science and technology research and development with the comprehensive comparative advantages of main business gradually emerging; at the same time, the “restructuring benefits” of assimilating the results of restructuring and integration and the “reformation benefits” of summarizing and applying the results of reformation and innovation are continuously released, which provide a solid foundation for adapting to future changes in the industry, leading innovation and resisting risks, and also provide conditions for breeding new models, new industries and new business models. In the new year, the Company will adhere to the general keynote of seeking progress in a stable manner, implement the new development concept, integrate into the new development pattern, and adhere to integrated development, appropriate development, innovative development and high-quality development, fully completing the objectives and tasks in 2021, and ensuring a good start of the 14th Five-Year plan.

The cement and ready-mixed concrete segment will be oriented to the “building a world-class cement industry group which is modern, professional and large in scale”, adhere to the concept of green and intelligent development, adhere to innovation, focus on lean management, strengthen the implementation of strategies, enhance core competitiveness and strengthen core industrial support; the concrete business will attach importance to risk control, optimize core markets, accelerate the exploration of transformation and upgrading paths, and achieve sound and healthy development. The modern building materials and commerce and logistics segment will deepen the reformation of institutional mechanism, integrate advantageous resources, clarify the main direction, make solid development in existing industries and individual enterprises, drive the overall industrial development, and become the main supplier of green environmental protection building materials in the capital and Beijing-TianjinHebei region. The property development segment will pursue prominence, improve profitability on the basis of insisting on fast sales, risk control, cost reduction and products improvement, strengthen strategic cooperation, continuously form distinctive features of BBMG property and lead the regional market. The property investment and management segment will rely on the urban resources of the capital, actively adapt to market changes, stabilize its business fundamentals, boldly innovate its development pattern, and strive to become a “domestic first-class urban operation service provider”.

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Summary of Financial Information

	2020	2019	Change
	*RMB’000*	RMB’000
Operating revenue	108,004,884	91,829,311	17.6%
Operating revenue from principal business	107,333,851	90,935,860	18.0%
Gross profit from principal business	21,216,843	24,082,213	-11.9%
Gross profit margin from principal business	19.8%	26.5%	a decrease of
			6.7 percentage
			points
Net profit attributable to the shareholders of the
parent company	2,843,773	3,693,583	-23.0%
Basic earnings per share attributable to the
shareholders of the parent company	RMB0.27	RMB0.35	-22.9%
Cash and bank balances	28,643,886	21,325,043	34.3%
Current assets	182,669,632	174,495,858	4.7%
Current liabilities	118,810,244	127,706,358	-7.0%
Net current assets	63,859,388	46,789,500	36.5%
Non-current assets	108,682,751	107,627,898	1.0%
Non-current liabilities	78,085,953	71,886,047	8.6%
Total assets	291,352,383	282,123,756	3.3%
Equity attributable to the shareholders
of the parent company	63,375,936	61,131,200	3.7%
Debt ratio (total liabilities to total assets) (%)	67.6	70.7	a decrease of
			3.1 percentage
			points

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DETAILS OF THE COMPANY’S PRINCIPAL BUSINESS, BUSINESS MODEL AND INDUSTRY SITUATION DURING THE REPORTING PERIOD

(I) Principal business and business model of the Company

1. Cement and ready-mixed concrete business:

The Company is the third largest cement industrial group in China with strong scale advantage and market dominance within the region, and is the leader of low-carbon, green, and environmentally-friendly development, energy saving and emission reduction, and circular economy in the cement industry in China. The cement business continued to adopt Beijing, Tianjin and Hebei as its core strategic region, and continued to expand the coverage of its network, mainly with presence in 13 provinces (municipalities and autonomous regions), including Beijing, Tianjin and Hebei Province, Shaanxi, Shanxi, Inner Mongolia, Northeastern region, Chongqing, Shandong, Henan and Hunan. The production capacity of clinker amounted to approximately 110.0 million tonnes; the production capacity of cement amounted to approximately 170.0 million tonnes. With cement as its core product, the Company extends to related products and services through an internal synergetic mechanism. Currently, the production capacity of ready-mixed concrete amounted to approximately 60.0 million cubic meters while the production capacity of aggregates and grinding aids and admixtures amounted to approximately 39.0 million tonnes and approximately 0.24 million tonnes, respectively. Its annual capacity for disposal of hazardous wastes and solid wastes was nearly 2.8 million tonnes. The Company will insist to promote market expansion and strategic resources consolidation simultaneously, has had a total of 4,400 million tonnes of limestone reserve across China and has had a total of about 1,700 million tonnes of limestone reserve in Beijing, Tianjin and Hebei.

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2. Modern building materials and commerce and logistics business:

The Company is the leader in building materials industry in China and one of the largest suppliers of green, environmentally-friendly, and energy-saving building materials in Beijing, Tianjin and Hebei. Its major products and services include furniture and woods, wall body and insulation materials, decorative and fitting materials, and whole industry chain including prefabricated building system and parts, decoration and other building materials. In respect of the modern building materials industry, under the lead of science and technology innovation, and based on BBMG’s technology system for intelligent housing, an industry chain system centering upon “the prefabricated construction, transformation of old urban communities, construction of new country and passive house” was initially established in 2020. The Company’s modern building materials products and construction and installation services were widely used in the construction of key hotspot projects in the Beijing-Tianjin- Hebei region, such as the sub-town centre and supporting facilities in Beijing, Xiong’an New District, the Winter Olympic Stadium, Universal Studios Beijing and epidemic-combating hospitals, which fully demonstrated the advantages of BBMG’s modern building materials business in brand, quality and industrial chain and enhancing systematic application and coordinated marketing of its products. The Company improved the network configuration and asset layout of the supply chain of the commerce and logistics industry, and continuously enhanced the international trading and building materials and commerce and logistics business with the risks under control.

3. Property development segment business:

The Company is listed on Top 100 Real Estate Enterprise, and one of the real estate enterprises with strongest comprehensive strength in Beijing. The Company has been committed to property development and construction for over 30 years with a comprehensive development strength covering property projects of multiple categories. It has received various honors such as Top 100 China Real Estate Enterprises for consecutive years. It has great influence and brand awareness across the industry. The Company developed more than 130 property projects with a total gross floor area of approximately 30.0 million sq.m. and a total asset amount of RMB140 billion. The overall strength with an area under construction reached over 8 million sq.m. during the year. The annual sales revenue was RMB50 billion. As of the end of 2020, the Company has made its presence in 15 cities including Beijing, Shanghai, Tianjin, Chongqing, Hangzhou, Nanjing, Chengdu, Hefei, Qingdao, Tangshan and Haikou, developing a nationwide business presence “from Beijing to three major economic rims, namely Beijing-Tianjin-Hebei region, Yangtze River Delta and Chengdu-Chongqing region”. Based on continuous consolidation of core business strengths, the Company is making efforts on nurturing new segment formats and seeking coordinated development with Beijing, Tianjin and Hebei based on the functions of non-capital cities and actively researches and explores urban renovation. The Company has successfully established its presence in various sectors such as industrial properties and technology and innovation related properties, bringing new development opportunities for the Company.

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4. Property investment and management business:

The Company is one of the largest investors and managers of investment properties in Beijing with the most diversified businesses, holding approximately 1.78 million sq.m. of investment properties such as high-end office buildings, commercial and industrial parks in Beijing and Tianjin (of which 1.01 million sq.m. are high-end investment properties in core areas in Beijing) and managing nearly 13.8 million sq.m. of properties (including residential communities and commercial units at low floors) in Beijing and Tianjin. Its professional capabilities, brand awareness, occupancy rate and revenue have led the industry in Beijing even the country for years.

(II) Description of major industries

1. Cement Industry

In the face of the huge impact brought by COVID-19 epidemic and the complex domestic and international social environment, China continued to strengthen the counter-cyclical adjustment of macro policies and launched a series of policy measures in a phased and targeted manner at regular intervals, resulting in a rapid economic rebound and an evident rebound in cement-related fixed asset investment, property investment and infrastructure investment indicators. According to the 2020 Statistical Communique on the National Economic and Social Development of the People’s Republic of China published by the National Bureau of Statistics, in 2020, fixed-asset investments in China (excluding agricultural households) reached RMB51,890.7 billion, representing a year-on-year growth of 2.9%. Among them, infrastructure investment increased by 0.9% and investment in real estate development increased by 7.0%. From both the supply and demand side of cement, China’s cement demand, production and sales volume continued to remain stable and high throughout 2020. According to the National Bureau of Statistics of China, the national cement production was 2.40 billion tonnes in 2020, representing a year-on-year increase of 2.5%. The price level remained flat as that of the year of 2019. The cement industry has maintained a steady and moderate growth trend.

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2. Property Development Industry

In 2020, the general keynote of the property market regulation remained unchanged amid the epidemic and city-specific regulation was applied to stabilize the market. Since the second half of the year, the central government held several meetings to emphasize that property should not be used as a means to stimulate the economy in the short term and it is necessary to ensure stable land prices, housing prices and manage market expectations; meanwhile, the regulation of property finance was strengthened and the “three red lines” was implemented on a pilot basis. The year saw basic recovery of the scale of transactions, accelerated release of high-end improvement demand, stabilized rise of price and significant rise in the price of Yangtze River Delta and the Pearl River Delta region. The increase in the amount of land pushed and quality land launched in first-tier cities drove up the price of floor space.

According to the data of the National Bureau of Statistics, in 2020, the investment in real estate development in China was RMB14,144.3 billion, representing a year-on-year increase of 7.0%, and a decrease in the growth rate of 2.9 percentage points over last year. Among which, the investment in residential properties was RMB10,444.6 billion, representing an increase of 7.6%. Investment in residential properties accounted for 73.8% of aggregate investment in real estate development, representing an increase of 0.4 percentage point over last year. The construction sites for corporate use of real estate developers were 9,267.59 million sq.m., representing an increase of 3.7% over last year, among which, 6,555.58 million sq.m. were area of construction sites for residential properties, representing an increase of 4.4%. The area of newly started construction of real estates was 2,244.33 million sq.m., representing a decrease of 1.2%. The area of completed real estate was 912.18 million sq.m., representing a decrease of 4.9%. Of this, area of completed residential properties was 659.10 million sq.m., representing a decrease of 3.1%. In 2020, land area acquired by real estate developers was 255.36 million sq.m., representing a decrease of 1.1% over last year. Area of sold commodity housing was 1,760.86 million sq.m., representing a decrease of 2.6% over last year. Area of sold residential properties increased by 3.2%, and office and properties for commercial operation decreased by 10.4% and 8.7%, respectively. Sales of commodity housing amounted to RMB17,361.3 billion, representing an increase of 8.7%, and an increase of 2.2 percentage points over last year. Of this, sales of residential properties increased by 10.8%, and sales of office and properties for commercial operation decreased by 5.3% and 11.2% respectively. As at the end of 2020, area of commodity housing for sales was 498.50 million sq.m., representing an increase of 0.29 million sq.m. compared with the end of last year.

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Summary of Business Information	Summary of Business Information
		2020	2019	Change
1.	*Cement and Ready-mixed Concrete Segment*
	Sales volume:
	Cement (in thousand tonnes)	107,325.0	96,398.8	11.3%
	Concrete (in thousand cubic meters)	16,152.9	17,498.6	-7.7%
2.	*Modern Building Materials and Commerce and*	*Logistics Segment*
	Sales volume:
	Stone wool boards (in thousand tonnes)	83.4	66.0	26.4%
3.	*Property Development Segment*
	Booked GFA (in thousand sq.m.)	1,518.8	1,012.6	50.0%
	Presales (sales) GFA (in thousand sq.m.)	1,945.1	1,174.7	65.6%
4.	*Property Investment and Management Segment*
	Total GFA of investment properties (in
	thousand sq.m.)	1,774.5	1,781.9	-0.4%

In 2020, the Company adhered to the general tone of striving for growth while maintaining stability. We focused on the main businesses to deepen the reform and stimulate vitality, and improved quality and efficiency driven by innovation. Our overall economic indicators hit record high, and our core competitiveness was further enhanced. The momentum of high-quality, sustainable development became even stronger.

During the Reporting Period, the Company recorded operating revenue of RMB108,004.9 million, of which operating revenue from its principal business amounted to RMB107,333.9 million, representing a year-on-year increase of 18.0%; total profit amounted to RMB7,794.4 million, representing a yearon-year decrease of approximately 1.8%; net profit amounted to RMB5,155.9 million, representing a year-on-year decrease of approximately 0.4%; and net profit attributable to the shareholders of the parent company amounted to RMB2,843.8 million, representing a year-on-year decrease of approximately 23.0%.

In 2020, the Group adhered to the general keynote of making progress while maintaining stability, integrated into the new development pattern based on the new development stage, continued to optimize the management system and mechanism, coordinated the epidemic prevention and control and production and operation work and won the dual victory of epidemic prevention and control and operation and development.

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1. Cement and Ready-mixed Concrete Segment

Based on its goal of “building a world-class cement industry group which is modern, professional and large in scale” for the cement business, the Group stuck to the path of connotative development, pushed forward the regional management to achieve full coverage, continuously enhanced the ability to coordinate resources and joint development in key regions, and accelerated the formation of high-quality development trend. The Group timely adjusted and improved the marketing management mechanism, highlighted the construction of sales channels, reformed the sales model of auxiliary materials, and enhanced the market share of key markets. Meanwhile, the Group accelerated the strategic deployment, promoted the upgrade of environmental protection industries, adjusted the production capacity structure, accelerated the expansion of limestone mine resource reserves and optimized strategic procurement.

In terms of concrete business, the Group focused on the main line of “strengthening marketing and improving the sites”, strengthened contract performance and revenue risk control, and improved the overall operating profit. The Group has been improving the internal control system of concrete sites, initially forming a standardized site management model and further improving the standardized management level.

The cement and ready-mixed concrete segment recorded operating revenue from its principal business of RMB42,086.7 million during the Reporting Period, representing a year-on-year increase of 1.7%. Gross profit from its principal business amounted to RMB13,302.7 million, representing a year-on-year increase of 1.1%. The aggregate sales volume of cement and clinker reached 107.3 million tonnes (excluding joint ventures and associates), representing a year-on-year increase of 11.3%, among which the sales volume of cement and clinker were 95.1 million tonnes and 12.2 million tonnes, respectively. The aggregate gross profit margin for cement and clinker was 34.1%, representing a year-on-year decrease of 3 percentage points. The sales volume of concrete totalled 16.2 million cubic meters, representing a year-on-year decrease of 7.7%, while the gross profit margin for concrete was 12.9%, representing a year-on-year increase of 5.7 percentage points.

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2. Modern Building Materials and Commerce and Logistics Segment

The Group insisted on making progress and necessary retreat depending on circumstances, focused on its main responsibilities and business and realized steady development. Based on the positioning of “management + industrialization”, the Group improved management standards, strengthened industrial cooperation, proactively responded to market changes and built up momentum for sustainable development. Moreover, it consolidated and expanded the control effect and effectively improved the structure of receivables. It integrated the advantages of multiple products and seized the opportunities to secure supply for key projects such as Xiong’an New District and sub-town center in Beijing and constructed a high-grade, precision and advanced industry system and completed the BBMG Intelligent House R&D Base. In this way, the Group enhanced the influence in the industry and raised market attention. In terms of commerce and logistics business, the Group continued to focus on building materials and metallurgical black products and achieved an upturn in operating results despite the severe downturn in international trade.

During the Reporting Period, the modern building materials and commerce and logistics segment recorded operating revenue from its principal business of RMB32,945.9 million, representing a year-on-year increase of 24.4%, while the gross profit from its principal business amounted to RMB929.3 million, representing a year-on-year decrease of 27.6%.

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3. Property Development Segment

The Group made every effort to ensure the sales performance, took the operation plan as the basis, seized market opportunities, adjusted marketing strategies flexibly, increased marketing efforts and made great efforts to destock. Moreover, it strived to revitalize its own land and continuously released the value of land. In line with the new master plan of the capital, it studied and promoted the integrated use of land.

In 2020, the Company revitalized its own land, improved its resource conversion capability and cultivated the market of the cities it had entered. It acquired the land development rights of a total of 8 parcels of land for the year, which provided strong support for the sustainable development of the property segment.

								Date of
				Land area of	Planned plot			acquisition
	Name of projects (parcel of			the project	ratio area	Land price	Method of	(year-month-	Percentage of
No.	land)	Location	Use of land	(sq.m.)	(sq.m.)	(RMB million)	acquisition	day)	interest
1	Plot C-02 at district of Qixin	Tangshan City,	Residential (R2)	42,282.4	105,706	675.46	Auction	2020-01-23	100%
	Cement Factory, Tangshan	Hebei Province
2	Plots such as 1820-618B at	Haidian District,	Residential (R2) and	47,115.4	99,865	2,788.00	Tender	2020-02-21	100%
	No.1, Anningzhuang East	Beijing	land for basic
	Road, Haidian District,		education
	Beijing
3	Plots 1006- 605 at Affiliated	Chaoyang District,	Commercial and	7,289.2	21,867.6	352.00	Listing	2020-04-03	100%
	Complex, 3rd Area, Xili,	Beijing	financial
	Huajiadi, Wangjing,
	Chaoyang District, Beijing
4	Land parcel No. R-09 in Jiangpu	Yangpu District,	Residential (R2)	34,045.1	80,686.9	6,920.00	Transfer	2020-08-01	100%
	Community of Yangpu	Shanghai
	District, Shanghai
5	Land parcels of Jin Bei Chen	Beichen District,	Residential (R2),	46,708.4	79,649.5	770.00	Listing	2020-08-08	75.25%
	Wen (Gua) No. 2020-010	Tianjin	land used for
	(津北辰文(掛)2020-010號)		commercial
			service facilities,
			and land used for
			service facilities
6	Land parcels of Jin Bei Chen	Beichen District,	Residential (R2),	81,987.7	163,975.4	1,650.00	Listing	2020-08-08	75.25%
	Wen (Gua) No. 2020-011	Tianjin	land used for
	(津北辰文(掛)2020-011號)		commercial
			service facilities

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No. Name of projects (parcel of land) Location Use of land 7 Plot A-01 at Mining & Metallurgical Machinery Plant in Lubei District, Tangshan City Tangshan City, Hebei Province Residential (R2) 8 Plot A-02 at Mining & Metallurgical Machinery Plant in Lubei District, Tangshan City Tangshan City, Hebei Province Residential (R2) Total	Land area of the project (sq.m.) 45,914.5 87,003.6 392,346.3	Planned plot ratio area (sq.m.) 114,786 217,509 884,045	Land price (RMB million) Method of acquisition Date of acquisition (year-month- day) Percentage of interest 665.76 Tender 2020-12-18 100% 1,261.55 Tender 2020-12-18 100% 15,082.77

During the Reporting Period, the property development segment recorded revenue from its principal business of RMB31,314.2 million, representing a year-on-year increase of 41.0%, and the gross profit from its principal business was RMB4,494.3 million, representing a year-on-year decrease of 40.4%. The booked GFA was 1,518,792.4 sq.m. for the year, representing a year-onyear increase of 50.0%, among which booked GFA of commodity housing amounted to 1,215,551.2 sq.m., representing a year-on-year increase of 37.2%, while booked GFA of affordable housing amounted to 303,241.2 sq.m., representing a year-on-year increase of 139.2%. The aggregated contracted sales amount of the Company was RMB52,233.0 million, representing a year-on-year increase of approximately 101%, among which contracted sales amount of commodity housing amounted to RMB42,137.0 million, representing a year-on-year increase of 84%, and the contracted sales amount of affordable housing amounted to RMB10,096.0 million, representing a year-on-year increase of 237%. The aggregated contracted sales area of the Company was 1,945,084.8 sq.m., representing a year-on-year increase of 65.6%, among which contracted sales area of commodity housing amounted to 1,705,058.4 sq.m., representing a year-on-year increase of 68.2%, and the contracted sales area of affordable housing amounted to 240,026.4 sq.m., representing a year-onyear increase of 49.0%. As at the end of the Reporting Period, the Company had a land reserve totaling approximately 7,367,000 sq.m.

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4. Property Investment and Management Segment

In the face of the severe impact of the epidemic and the downward pressure of market demand, the Company overcame difficulties, improved quality and efficiency and continued to rebound in key economic indicators. The Company innovated business strategies, expanded marketing channels and boosted the overall occupancy rate of major office buildings. The commerce sector maintained a stable operating trend, and the hotel and resort sectors rebounded steadily. Seizing the opportunity of the Winter Olympic Games, the Company renovated and upgraded the Badaling Resort Park. In line with Beijing’s urban positioning, the Company made use of the vacated land and factories to actively cultivate and develop new businesses in line with the core functions of the capital. The Company reduced the rent for small and medium-sized enterprises to help them resume work, production and marketing.

During the Reporting Period, the property investment and management segment recorded operating revenue from its principal business of RMB4,778.1 million, representing a year-on-year decrease of 4.9%, and gross profit from its principal business was RMB2,515.3 million, representing a year-on-year decrease of 8.0%. As at the end of the Reporting Period, the Company held approximately 1,774,500 sq.m. of investment properties such as high-end office buildings, commercial and industrial parks in Beijing and Tianjin, with a consolidated average rental rate of approximately 74% and a consolidated average rental unit price of approximately RMB6.0 /sq.m./day. The highend investment properties held in core areas in Beijing totaled 1,100,000 sq.m., with a consolidated average rental rate of 74% and a consolidated average rental unit price of approximately RMB7.6/sq.m./day.

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RENTAL OPERATIONS OF THE MAJOR INVESTMENT PROPERTIES OF THE GROUP AS AT 31 DECEMBER 2020

Property Name Location Phase 1 of Global Trade Center North Third Ring Road, Beijing Phase 2 of Global Trade Center North Third Ring Road, Beijing Phase 3 of Global Trade Center North Third Ring Road, Beijing Tengda Plaza West Second Ring Road, Beijing Jin Yu Building West Second Ring Road, Beijing Jianda Building/Building Materials Trading Tower East Second Ring Road, Beijing Dacheng Building East Second Ring Road, Beijing Pan Bohai Jin’an Plaza Hexi District, Tianjin Pangu Plaza Building 5 North Forth Ring Road, Beijing Phase 1 of Logistics Park Project South Sixth Ring Road, Beijing Phase 1 of Intelligent Manufacturing Plant North Fifth Ring Road, Beijing Subtotal Other properties Beijing Municipality Total	Gross area (thousand sq.m.) 108.0 141.0 57.0 68.0 41.0 43.0 41.0 302.0 137.0 120.0 75.0 1,133.0 641.5 1,774.5	Fair value (RMB million) 3,419.8 3,836.6 1,291.3 1,815.9 1,255.9 1,175.9 1,234.7 2,432.2 5,346.2 952.0 616.0 23,376.5 7,307.3 30,683.5	Rental unit price (RMB/sq.m./day) 11.8 9.5 8.5 9.8 12.3 5.9 11.8 1.9 12.9 2.1 5.8 6.0	Average occupancy rate (Note 1) 86% 93% 87% 94% 86% 80% 66% 96% 43% 95% 96% 74%	Unit fair value (RMB/sq.m.) 31,665 27,210 22,654 26,704 30,632 27,347 30,115 8,054 39,023 7,933 8,213 20,632 11,391 17,300

Note 1: The rental unit price in the table above includes the property management fee of RMB1/sq.m./day.

Note 2: The Group leased its investment properties under operating lease arrangements, with most of the leases which were negotiated for terms ranging from 1 to 19 years.

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ANALYSIS OF BUSINESS, ASSETS, LIABILITIES AND CASH FLOWS FOR THE REPORTING PERIOD

1. Principal business operations

Unit: RMB million

Cement and Ready-mixed Concrete Modern Building Materials and Commerce and Logistics Property Development Property Investment and Management Eliminations Total	Revenue from principal business 42,086.7 32,945.9 31,314.2 4,778.1 (3,791.0) 107,333.9	Cost of Gross profit sales from margin from principal principal business business (%) 28,783.9 31.6 32,016.7 2.8 26,819.9 14.4 2,262.7 52.6 (3,766.2) - 86,117.0 19.8	Increase or decrease in revenue from principal business compared with last year (%) 1.7 24.4 41.0 -4.9 - 18.0	Increase or Increase or decrease decrease in cost of in gross profit sales from margin from principal principal business business compared compared with with last year last year (%) 2.0 Decrease of0.2 percentage point 27.1 Decrease of2.0 percentage points 82.8 Decrease of19.6 percentage points -1.3 Decrease of1.8 percentage points - – 28.8 Decrease of6.7 percentage points

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2. Investment properties measured at fair value

The Group uses the fair value model for subsequent measurement of its investment properties. Fair value changes are included in “Gains from changes in fair value” in the income statement. Reasons for the adoption of the fair value model as the accounting policy for subsequent measurement by the Group are as follows:

(1) The investment properties are located in places where the property markets are active.

The Group’s current investment properties, most of which are commercial properties at developed commercial districts, are primarily located at core districts such as Beijing and Tianjin where the property markets are relatively active. The Group is able to obtain market price and other related information of properties of the same category or similar nature. It is practicable for the Group to adopt the fair value model for subsequent measurement of the investment properties.

(2) The Group is able to obtain market price and other related information of properties of the same category or similar nature from the property markets, by which the Group makes a reasonable estimation of the fair value of its investment properties.

The Group has engaged a valuer with relevant qualifications to make valuation on the fair value of the investment properties of the Group using the income method and with reference to the prices in the open market. The result of such valuation is used as the fair value of the investment properties of the Group.

Key assumptions and major uncertain factors adopted by the Group for the estimation of the fair value of the investment properties of the Group mainly include: assuming the investment properties are traded in the open market and will continue to be used for their existing purposes; there will be no significant changes in the macro-economic policies of the PRC and the social and economic environment, tax policies, credit interest rates and foreign exchange rates in the places where the investment properties are located; and there is no other force majeure and unforeseeable factor that may have a material impact on the Group’s operation.

During the Reporting Period, the gains arising from changes in fair value of investment properties of the Group decreased by approximately RMB204.4 million year-on-year to RMB525.7 million, accounting for 6.7% of the profits before tax.

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3. Expenses during the Reporting Period

(1) Selling expenses were RMB3,277.2 million, representing an increase of RMB200.7 million or 6.5% year-on-year. Such increase was mainly due to the year-on-year increase in transportation expenses of the Group during the Reporting Period.
(2) Administrative expenses were RMB6,340.4 million, representing a decrease of RMB715.7 million or 10.1% year-on-year. Such decrease was mainly due to the year-on-year decrease in the salaries and repairment expense of the Group during the Reporting Period.
(3) Finance costs were RMB3,160.5 million, representing a decrease of RMB236.5 million or 7.0% year-on-year.

4. Analysis of Assets and Liabilities

Unit: RMB’000

	31 December	31 December
	2020	2019	Changes Reasons
Bills receivable	909,259.92	5,202,609.35	-82.5% A decrease of 82.5% from the
			beginning of the Reporting
			Period, mainly due to the
			reclassification by the
			Company in accordance with
			the requirements of the new
			accounting standards for the
			financial instrument during the
			Reporting Period
Receivables	5,588,223.35	501,846.39	1,013.5% An increase of 1,013.5%
financing			from the beginning of the
			Reporting Period, mainly due
			to the reclassification by the
			Company in accordance with
			the requirements of the new
			accounting standards for the
			financial instrument during the
			Reporting Period
Prepayments	2,645,477.55	1,524,225.47	73.6% An increase of 73.6% from the
			beginning of the Reporting
			Period, mainly due to the
			increase in the prepayments
			for land transfer fees and bulk
			purchase by the Company
			during the Reporting Period

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	31 December	31 December
	2020	2019	Changes Reasons
Debt	782,487.85	206,933.70	278.1% An increase of 278.1% from the
investments			beginning of the Reporting
			Period, mainly due to the
			purchase of policy and bank
			related finance bonds by the
			Company during the Reporting
			Period
Investment in	580,376.49	382,047.68	51.9% An increase of 51.9% from the
other equity			beginning of the Reporting
instruments			Period, mainly due to the
			purchase of equity interests of
			non-public listed companies
			by the Company during the
			Reporting Period
Short-term	1,599,273.45	3,298,801.09	-51.5% A decrease of 51.5% from the
financing			beginning of the Reporting
bonds payable			Period, mainly due to the
			redemption and payment of
			short-term financing bonds
			by the Company during the
			Reporting Period
Minority	31,080,250.59	21,400,150.83	45.2% An increase of 45.2% from the
interests			beginning of the Reporting
			Period, mainly due to the
			increase in the equity financing
			of the Company during the
			Reporting Period

5. Cash flows

During the Reporting Period, a net increase of RMB6,822.3 million in cash and cash equivalents was recognized in consolidated financial statements of the Company. Such increase was the net result of (i) the net cash inflows generated from operating activities of RMB15,455.7 million, representing a year-on-year increase in cash inflows of RMB5,934.1 million; (ii) the net cash outflows generated from investment activities of RMB2,564.9 million, representing a year-on-year decrease in outflows of RMB4,216.7 million; (iii) the net cash outflows generated from financing activities of RMB6,071.8 million, representing an increase in outflows of RMB5,125.1 million; and (iv) the exchange realignment of RMB3.3 million.

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Core Competence Analysis

As the leader of green, environmental protection, energy saving and emission reduction, and circular development in the building materials industry in the Beijing-Tianjin-Hebei region and the practitioner of ecological progress, during the Reporting Period, the Company focused on serving the construction of Beijing’s “four centers” and improving the level of “four services” to achieve a more diversified path. The Company made use of the land and other resources vacated by the relocation to develop and cultivate new business in line with the functional positioning of the capital, and made new achievements in constructing a high-grade, precision and advanced industrial structure. BBMG Intelligent Manufacturing Factory was running smoothly and won the “Zhongguancun Science City – BBMG Intelligent Factory” license, which was regarded by the government as a “benchmark project for the transformation and upgrading of old industrial factories ” and became a hub of innovation for the artificial intelligence and intelligent manufacturing industries in northern Beijing. It promoted the industry to develop from “BBMG Manufacturing” to “BBMG Intelligent Manufacturing”. Huairou Chinefage Cement Plant was transformed to serve the Huairou Science City in Zhongguancun, creating a multi-functional science park at the forefront of the world. The Yanqi Lake Beijing Institute of Mathematical Science and Applications, jointly built with Tsinghua University and the Chinese Academy of Sciences, was crowned as the “Crown Jewel” of Huairou Science City. The BBMG Badaling Crowne Plaza Hotels & Resorts started trial operation to provide international high-quality services for the 2022 Winter Olympics, consolidating the guarantee capability of serving the capital and the Winter Olympics. The Company optimized its industrial structure and expanded its advanced production capacity. The construction of Jidong Cement Tongchuan 10,000-tonne line began, which represents the most advanced level in the industry, and the 10-million-tonne aggregate base in Baojianshan was completed as scheduled and a number of capacity replacement projects were publicized, which enhanced the comprehensive competitiveness of the Company. In November 2020, Jidong Cement successfully issued a total of RMB2.82 billion convertible bonds to realize industrial upgrading and environmental protection transformation with the capital market, optimize the debt structure and capital structure, and lay a solid foundation for strengthening, improving and expanding the cement business of the Company.

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The core competitiveness of the Company is detailed as follows:

1. COMPETITIVE EDGE IN THE INDUSTRIAL CHAIN:

The Company has the advantage of a vertical and fully integrated industrial chain: The Company has always adhered to its two main businesses and has continuously extended horizontally and vertically to expand the scale and integrated development of the full industrial chain. Each industry continues to form its own industrial chain with core competitiveness to meet new consumer needs. The new material manufacturing industry is forming an integrated industrial chain covering new material products with assembled building parts as the core, forming the characteristic BBMG intelligent house system and fully adapting to the development of new construction industrialization. Relying on the advantages accumulated in the development of modern green building materials manufacturing industry and equipment manufacturing industry, the Company extends to the field of property development, focuses on business expansion and industrial upgrading, while expanding to the field of modern service industry such as trade and service, high-end property management, operation of science and technology innovation industrial park and human resource management. The strong demand from real estate development projects has boosted the Company’s green building materials businesses and other related businesses such as architectural designing, decoration and property management services. On the other hand, our strong brand, technical advantages and expertise in modern green building materials manufacturing, property operation and property management services translated into higher quality, better brand image and stronger sales of our real estate development projects in a systematic, industrialized, and specialized manner. Leveraging on various resources and advantages accumulated in the process of “going abroad” by the modern green building materials manufacturing industry, our real estate development business increases the reserve of urban land resources, optimizes the business layout, explores and pioneers market of the target regions. Our different business segments support and promote the development of each other with significant synergistic effect and overwhelming advantages as a whole, which laid a solid foundation for the formation of BBMG industrial ecology in the future. Information sharing, complementary resources, and coordinated interaction between various business segments and upstream and downstream enterprises underline the advantages of integration and create market competitive edge.

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2. COMPETITIVE EDGE IN TECHNOLOGY INNOVATION:

The Company continued to strengthen the innovation-driven and green development strategy, focus on the high end and the front end of the industry and highlight the featured progress and innovation. In the face of the national strategic needs, oriented towards market and policy, the Company continuously expanded the innovation and development of green environmental protection, green building materials, green building, green manufacturing and new materials industries, built the “high-grade, precision and advanced” industrial structure with BBMG characteristics, continuously improved the level of scientific and technological innovation of new technologies, new products and new processes, and achieved a number of industry-leading scientific and technological achievements. The Company’s scientific and technological innovation capability and core competitiveness were on the rise.

Integrated innovation and application of new process and equipment technology of Liushui fly ash disposal (2.0): the Company developed and improved the two-stage tandem decanter centrifuge solid-liquid separation system, fly ash wet sludge drying technology, rinsing liquid pretreatment process of removing impurities, evaporation and desalination system of rinsing liquid and rinsing process automatic control software. Meanwhile, the Company also built two industrial lines of cement kiln co-disposal of fly ash with the largest processing capacity in China and high efficiency, safety and stability, realized the large-scale, harmless, reduced and resourceful disposal of fly ash, ensured the smooth operation of several domestic waste incineration power plants in Beijing, and promoted BBMG Liushui Environmental Protection Technology Co., Ltd. to become one of the important environmental protection infrastructures in Beijing. Technology development and application of large-scale thermal-desorption contaminated soil remediation using high-temperature incinerator: A set of complete process and system based on cement kiln co-disposal of desorbed contaminated soil was developed to realize the disposal of 1,000 tonnes/ day of organic contaminated soil using one-line kiln, thus greatly improving the soil treatment capacity and reducing the cost of traditional thermal-desorption tail gas treatment, and having a demonstration effect on the cement kiln in the Group to develop from traditional cement production into environmentally-friendly disposal process line. Key technology research of 80% energy-saving aerated concrete enclosure system for assembled steel structure housing, performance research of aerated concrete panels based on different capacity grades: The two new energy-efficient selfinsulating aerated concrete enclosure walls with different AAC wall structures that were designed and completed to meet 80% energy-saving requirements in Beijing, both reached a thickness of not more than 300 mm (excluding the thickness of the inner and outer plaster layers) with a heat transfer coefficient of not more than 0.35W/m[2] ·K in the main section and a fireproof performance of Class A. This is another addition of exclusive technology to BBMG’s characteristic assembly building system. BBMG has completed the construction of the intelligent house R&D base and initially built the BBMG intelligent house system, which includes five product composite systems of assembled concrete building, assembled steel structure building, assembled exterior wall, industrialized interior decoration and building with ultra-low energy consumption.

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In 2020, the Company was awarded 584 national patents, including 33 invention patents, 4 science and technology progress awards at provincial and ministerial level, 6 national industry association science and technology awards, presided over the release and implementation of 10 national standards and industry standards, had 12 subsidiaries named high-tech enterprises, 8 provincial-level enterprise technology centers and other scientific and technological innovation platforms. The Company’s Key Technology and Application of Urban Cement Low Environmental Load Design and Preparation project results won the first prize of Beijing science and technology progress award. The Key Technology and Application of High-Value Comprehensive Utilization and Recycling of Waste Slag of Laterite-Nickel Mine by Hydrometallurgy of Tianjin Building Materials Group won the first prize of Tianjin science and technology progress award. The Highefficiency Recycling and Pollution Control Technology of Typical Non-ferrous Metals of BBMG Liushui Environmental Protection Technology Co., Ltd. won the first prize of environmental technology progress of China Association of Environmental Protection Industry. Meanwhile, as to industrial transformation and upgrading and high-quality development, the Company conducted various academic exchange activities with universities and research institutes at home and abroad for 55 times, thus continuously improving its scientific and technological innovation ability and industry influence.

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3. COMPETITIVE EDGE IN SUSTAINABLE DEVELOPMENT OF GREEN OPERATIONS:

The Company practiced in depth the development concept that “Lucid waters and lush mountains are invaluable assets”, conscientiously implemented the state’s decision and plan for ecological civilization construction, highlighted green development and contributed to the construction of “four centers” in Beijing with high-level services. The Company considered the strengthening of environmental protection as an important means of the Company for transforming the development pattern, creating benefits, and fulfilling social responsibilities, strived to overcome the severe and complex economic situation and the profound impact of national industrial policy regulation, took solid steps to promote its work on environmental protection, and persistently promoted high-quality development of the Company with high-standard management. The Company was awarded the title of “Top 10 Influential Brands of Green Innovation in China”.

The Company advocated the innovation and the application of results in energy saving and emission reduction. In terms of treatment of industrial solid waste and domestic waste using cement kilns, the Company accelerated project construction and maximized the advantages of the cement industry to make greater contributions to energy conservation and emission reduction, truly helping governments cleanse the urban environment. In 2020, the environmental protection sector recorded revenue of RMB1.767 billion, representing a year-on-year increase of 11%.

As at the end of 2020, 37 subsidiaries of the Company had carried out the solid waste disposal business, 14 of which carried out hazardous waste disposal with a disposal capacity of 646,300 tonnes per year, 15 of which carried out domestic sludge disposal with a disposal capacity is 1,085,200 tonnes per year, 6 of which carried out domestic garbage disposal with a disposal capacity of 804,200 tonnes per year and 2 of which carried out polluted soil disposal business with a disposal capacity of 193,800 tonnes/year. Seven subsidiaries newly obtained the environmental impact assessment approval for the projects of disposal using cement kilns with the total disposal scale reaching 1.3005 million tonnes/year, of which the scale of hazardous waste under environmental impact assessment reached 731,000 tonnes/year. The number and disposal capacity of new environmental impact assessments hit record high. Environmental protection projects covered Beijing, Tianjin, Hebei, Shanxi, Shaanxi, and Northeast China, serving more than 9,000 clients.

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Through stable operation control, the Company’s pollutant emission level was better than the national emission control requirements. Pollutant emission concentrations in Beijing, Tianjin, Hebei, Fenwei Plain, and other key regions were significantly lower than the emission limits specified by the state. In 2020, we implemented 84 energy-saving technological transformation projects, involving an amount of RMB168.5243 million. The Company has been practicing the strategy of Beijing-Tianjin-Hebei coordinated development and committed to serving the construction of “waste-free city” in Xiong’an New District. In 2020, we focused on the codisposal of Tanghe sewage reservoir and solid waste of aluminum ash and steel slag project in Xiong’an New District and formed a service synergy by coordinating several cement co-disposal enterprises in the region, and disposed of more than 200,000 tonnes of various solid wastes during the year. The project was awarded the title of “Red Flag for Investment and Construction Progress” by Xiong’an Group Ecological Company during the project implementation, which further strengthened the foundation of BBMG Environmental Protection to serve the ecological progress of Xiong’an New District.

To help enterprises achieve scientific development, the Company has always vigorously promoted clean production as a new pollution prevention measure and environmental protection concept. Since the start of the clean production audit, the enterprises have completed multiple rounds of audits and acceptances. By implementing the clean production scheme, all subsidiaries have achieved the purpose of “energy saving, consumption reduction, pollution reduction and efficiency enhancement”, achieving the alignment of economic, social and environmental benefits of industrial production. In 2020, a total of 19 enterprises applied for the fifth batch of green factories, 14 of which passed the provincial assessment and 8 enterprises were recommended to the central government for review; ultimately, 6 enterprises were selected into the fifth batch of “National Team” of green factory directories. As at the end of 2020, a total of 16 cement enterprises of the Company were selected into the national green factory directory.

The Company has always responded to the state’s call for creating green mines. We arranged for our subsidiaries to compile green mine construction and implementation plans based on their actual conditions and adhered to “one policy for one mine”, thereby comprehensively promoting the construction of green mines based on the actual situation. Currently, 24 mines are included in national green mines, and 16 mines are provincial green mines. In 2020, we comprehensively pushed forward the construction of green mines, and actively mobilized the enterprises to the carry out the selection and inclusion of green mines in accordance with the Notice on the Selection of Green Mines for 2020 issued by the Ministry of Natural Resources. A total of 8 enterprises passed the green mine selection as of 31 December 2020.

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4. COMPETITIVE EDGE IN INDUSTRY-FINANCE INTEGRATION:

The Company proactively cohered with the policy of “six stabilities (六穩)” and “six guarantees ( 六保)”, innovated financing methods, endeavored to broaden financing channels, and strengthened cooperation with financial institutions, so as to reduce the financing cost of the Company’s interest-bearing liabilities, and support the development of Company’s main business. Throughout the year, financing from external sources increased by RMB2.8 billion, and financing costs decreased by 44 basis points. We optimized the capital structure and kept the Company’s debt ratio at approximately 67.6%. The Company’s issuer credit rating remained AAA, laying a solid foundation to control and reduce financing costs and maintain liquidity security. Jidong Cement issued a total of RMB2.82 billion convertible bond, which maximally optimized the debt structure. BBMG Finance gave full play to the treasury management function of the Company, facilitated the match of the supply and demand of funds within the Company, and strengthened the centralized management of funds. The comprehensive fund collection rate reached 75.9%, 2.9% higher than that at the end of the previous year, greatly improving the efficiency of fund use and reducing the Company’s total capital operating costs.

5. COMPETITIVE EDGE IN CORPORATE CULTURE AND BRANDING:

The core value of BBMG’s corporate culture is based on the pragmatic working culture of “work with aspiration, competence, efficiency, success and prudence”, the human spirits of “eight specials”, the development philosophy of “integration, communion, mutual benefit and prosperity”, and the corporate spirits of “three emphasis and one endeavor”. We united our minds and efforts and forged ahead. BBMG has continuously expedited the reform, driven its business through innovation, and managed its business in an innovative way, thereby achieving quality growth and striving towards the grand goal of building a world-class industrial group and becoming part of the world’s top 500.

The culture of BBMG is built based on experiences of numerous cadres and employees within the system. It aims to help employees realize their dreams, and is the driving force and cornerstone for BBMG’s substantial development. “BBMG” Brand has been consecutively honored as a well-known trademark in Beijing. The Company was awarded the “Top 10 Influential Brands of Green Innovation in China” in 2020 and ranked 65th in the list of 2020 (17th) “China’s 500 Most Valuable Brands”. The Company won the “13th Five-Year plan” Chinese Corporate Culture Building Industry Model, Top 100 Chinese Listed Companies Award, Chinese Ethical Enterprise Award, “Golden Quality” Excellent Party Building Award, etc. BBMG Tiantan Furniture and Longshuncheng won the “2019-2020 Top 10 Preferred Mahogany Furniture Brands” award; GTC Residence under Beijing BBMG Hotel Management Co., Ltd. won the “Best Serviced Apartment in China” award, and Dongsi No. 78 Boutique Apartments won the “Most Highly Anticipated New Serviced Apartment in China” award. The superior brand awareness and prestige has created a sound cultural atmosphere and intelligence support for BBMG to achieve a new round of leapforward development in full force.

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DISCUSSION AND ANALYSIS ON FUTURE DEVELOPMENT

(1) Industry Pattern and Trend

1. Although macroeconomic risks still exist, the favorable long-term prospects of the Chinese economy remain unchanged.

In 2021, despite there still exist many uncertainties in the epidemic condition and the international environment, the world economic situation was still complicated and severe and the foundation for Chinese economic recovery was still weak, but the favorable longterm fundamentals of Chinese economy remain unchanged. In the coming period, China’s new development pattern which is based on a strong domestic market as the main body and domestic and international dual- circulation and mutual promotion will provide a powerful driving force for the start of the “14th Five-Year Plan”, and continuously release the domestic demand potential of economic growth. Chinese economy will still be in an important period of strategic opportunities as a whole.

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2. The building materials industry accelerates digital transformation and the property industry maintains stable and sound development

The year of 2021 is not only the opening year of the “14th Five-Year” plan, but also the year of the intersection and transformation of the two centennial goals. The national economy will stress “stability”. In terms of infrastructure construction, China has launched a series of favorable policy measures to cope with the complex and severe external situation, launched regional strategies to speed up the development and started the “new infrastructure, new urbanization initiatives and major projects” in full swing, which will bring sound support for the building materials industry.

The “14th Five-Year” is an important period for the building materials industry to change its development momentum, change its development pattern, shift its focus to high-end, high value-added, industrial chain development, promote green and low-carbon development, and step into high-quality development in an all-round way. In this period, we need to change from factor-driven and investment-driven to innovation-driven, from extensive development to integrated and balanced development, accelerate the deep adjustment of the industrial pattern, accelerate the solution of a series of fundamental problems such as overcapacity, ecological and environmental protection and accelerate the change from scale growth to quality improvement.

Digital transformation will become the fundamental way and means for the industry to comply with the changes of the times. The Action Plan for Digital Transformation of the Building Materials Industry (2021-2023) points out the specific path and direction for the industry-wide digital transformation. The building materials industry will transform from traditional manufacturing to advanced manufacturing and service-oriented manufacturing, promote fundamental changes in production modes and enterprise forms and integrate the development of industrial chain, value chain and innovation chain. Investment growth in the building materials industry is mainly focused on new materials, energy saving and environmental protection, technological transformation, digital transformation and building materials service industry.

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In the national “14th Five-Year” plan, it is clearly proposed to “promote the stability of property market and the sound development of housing consumption” and achieve balanced development of finance, property and real economy. Due to the continuous promotion of regional development and urbanization process, urban renewal and upgrading, demographic structure changes, continuous release of demand for housing improvement and people’s aspiration and pursuit of a better life, the market scale will still be supported; at the same time, the stable policy tone has led to rational market expectations and the marginal effect of stimulating demand to enter the market has weakened. Under the environment of unabated policy control and rising production materials and labor costs, the profit margin crowdingout effect of the project is obvious and the focus of growth of the property industry will shift from the demand side to the supply side, and will enter a new cycle of high-quality, low-profit and stable development. Under the policy keynote of “houses are for living in not for speculative investment”, property will change from scale development to quality improvement. Serving urban revitalization, urban renewal and old urban areas and old factory transformation, etc. will become an important way to expand the development pattern of property.

The above two aspects will play a strong role in supporting and pulling cement demand, and some segments will increase the market demand for green building materials products and new materials. At the same time, new industries and new models will promote and give rise to changes in the industry’s traditional production methods and circulation patterns, bringing greater imagination and impact on the future development of the entire building materials industry.

The COVID-19 epidemic has an extensive and far-reaching impact and economic globalization has encountered a counter-current. However, the long-term positive fundamentals of China’s economy remain unchanged, with a wide market space and strong development resilience. The new development pattern with domestic circulation as the mainstay and mutual reinforcement of domestic and international circulations is accelerating, providing the most reliable support for sustained economic development. The impact of the epidemic has accelerated the digital transformation, giving rise to the vigorous development of new industries and new models. China will give full play to its institutional advantages, coordinate the work of epidemic prevention and control and economic and social development, unswervingly implement the new development concept, deepen the structural reform on the supply side, promote high-quality development, complete “six stabilities” and “six guarantees” in an all-rounded way and give full play to the enthusiasm, initiative and creativity of all parties to minimize the impact of the epidemic. We will strive to achieve the annual economic and social development goals and tasks, achieve economic stability, social stability and harmony, and make a good start for the comprehensive construction of a modern socialist country.

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(2) The Company’s Development Strategy

2021 marks the beginning of the “14th Five-Year” plan of the Company. Based on a new stage of development, the Company will fully and accurately implement the new development concept and strive to explore a new development pattern. Adhering to the “four development” requirements, with innovation as the core engine, we will take development as the theme, adhere to integrated development, and plant new advantages in development; adhere to appropriate development and scale new height in development; adhere to innovative development, and cultivate new momentum for development; adhere to high quality development and achieve new breakthroughs in quality and quantity. The Company insists on seeking progress in a stable manner to construct a new development pattern and takes the development of the capital as the guiding principle, grasps three major development opportunities, namely, to grasp the opportunity of accelerating the reshaping of the industrial pattern, to grasp the opportunity of constructing a new development pattern in Beijing, and to grasp the opportunity of green development. We will give full play to the characteristic advantages of state-owned enterprises in the capital and promote the high-quality and sustainable development of the Group in serving the development of the capital.

First, integrated development. We will integrate internal and external resources, promote organic coordination, create a modern industrial system and make use of technological innovation carriers to realize the transformation and upgrade of traditional industries. Focusing on core industries, based in the capital Beijing, we plan to optimize the industrial layout in Beijing-Tianjin–Hebei region, promote the development of advanced manufacturing clusters, enhance the competitive edge of the market and improve the core competitiveness of the industrial chain. Meanwhile, we will continuously increase restructuring and integration efforts, optimize industrial layout and industrial structure, create new development advantages and activate new development momentum. With “BBMG Intelligent Manufacturing” as the “new intelligent manufacturing” breakthrough to promote industrial iteration and upgrade, improve quality and efficiency, and strengthen and expand the core industry, we lead and create new demands with supply-side structural reform, highlight the “new quality” of BBMG and construct product and industrial ecology of BBMG products.

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Second, appropriate development. We will actively integrate into the national development strategy. We are determined to implement the supply-side structural reform, deeply implement the joint development of Beijing-Tianjin–Hebei region, and actively participate in the construction of Xiong’an New District. We will strengthen the ability to independently control the industrial chain and supply chain, promote the development of the manufacturing industry to the intelligent manufacturing industry and develop the digital economy; deeply participate in urban renewal actions, and actively participate in the transformation of old urban communities; deeply serve the capital city construction, and implement the new round of tasks of relocation, rectification and promotion. Meanwhile, we will proactively integrate into the capital’s “Green Beijing” development and strengthen strategic cooperation with central enterprises. We will promote the integrated logistics hub industrial park project in Pinggu, accelerate the construction of new building materials industrial chain base; continue to promote green transformation and upgrade, promote the coordinated disposal of cement kilns, serve the urban ecological environment and continue to promote the construction of green factories and green mines, becoming a “city purifier, good helper of the government”.

Third, innovative development. We will actively implement the innovation-driven strategy, boldly carry out technological innovation, innovation in business mode, innovation in cooperation mode and innovation in institutional mechanism, fully integrate into the overall situation of Beijing International Science and Technology Innovation Center and serve the construction of the “two regions”. We will strengthen the role of innovation in supporting the core industries, accelerate the cultivation of industrial cutting-edge parts, promote the upgrading of industries to highend, intelligent and green, and advance to the high-end of the value chain, so as to build a new ecosphere of science and technology innovation with BBMG characteristics and BBMG science and innovation complex. We will also work hard in the areas of industrial strengths, promote the close integration of “government, industry, university, research institute, user and capital”, and cultivate a number of “professional, refined, specialized and innovative” products and invisible champion enterprises.

Fourth, high-quality development. We will insist on high-quality development and build a modern industrial group that is stable and sustainable. We target the domestic and foreign first-class enterprises to create first-class competitiveness, influence and driving force and always maintain a competitive advantage, and win, develop and create value in the fierce competition. We aim to be the key integrator of the industry and the leader of the industry development and changes.

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The development strategy of each segment of the Company in 2021:

In terms of cement, we plan to promote the coordinated and orderly development of cement, environmental protection, mining, aggregates, additives and other industries, enhance the collaborative advantages among industries and improve the competitive edges of each industry in the market, following the strategic position of “building a world-class cement industry group which is modern, professional and large in scale”. We plan to pursue appropriate development, and promote the orderly development of each strategic area in the fields of market integration, industrial layout, resource storage and warrant handling. We will insist on innovative development, pursue industry-leading core competitiveness, speed up the implementation of capacity replacement plan, promote the construction of second-generation demonstration lines, and expand the scale of advanced production capacity. Meanwhile, we will lay out regional green building materials industrial parks and build a new industrialization base for BBMG’s intelligent manufacturing, cultivate and expand green environmental industries and strengthen the construction of urban environmental infrastructure and explore new modes of providing overall regional urban environmental services. We aim to be a leader in low-carbon green environmental protection, energy saving and emission reduction, clean production and circular economy, increase carbon reduction and carbon neutral investment, actively carry out digital transformation, give full play to the leading role of the industry’s “leading enterprises”, and promote the overall high-quality development of the industry. For concrete segment, we insist on regional market leadership and cost leadership, and strengthen the “zero-receivable” strategy, implement light asset operation, promote the key project on-site demountable and mobile mixing station and realize the service export of management and operation mode so as to create a modernized green model station in the industry.

In terms of new building materials, we plan to focus on industrialized development, actively explore the development pattern of “new materials + industrialization”, achieve breakthroughs and expand industrial boundaries. Focusing on the core of BBMG’s intelligent house system, we will give priority to high-quality products and integrated services, and enhance the ability of refined management, system integration and coordinated development. Focusing on sub-markets, we will make use of our own technical and channel advantages and resources to explore ways to cultivate and incubate “professional, refined, specialized and innovative” small giant enterprises. In terms of equipment manufacturing industry, we will give full play to the advantages of regional resources, focus on serving the cement industry, expand the metallurgical and environmental protection fields and fully release the production capacity of the equipment manufacturing base. Meanwhile, we will vigorously develop external markets, strengthen industrial clustering and coordinated development, and truly improve the quality of operation, create operating profit and improve profitability.

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On the premise of sound risk prevention and control mechanism and effective market risk avoidance, we will make overall arrangement in the commerce industrial chain, develop experiential scenic business forms and promote the transformation of traditional home furnishing stores into comprehensive experience centers of technology and culture. Meanwhile, we will innovate modern trade and exhibition business forms, expand and extend value-added services in the trade supply chain, control key nodes and resources, construct a supply chain service platform and manage modern trade and commerce services.

In terms of property development, priority should be given to scientific study and judgement on the industry situation and policy environment to accurately grasp the operation rules and market pace of enterprises in a fully competitive market environment. We insist on “fast development with good quality”, promote sales and the return of money. Focusing on central cities, city clusters and city circles, we will further strengthen our presence and develop on a large scale. Focusing on urban renewal, transformation of old urban areas, industrial space utilization, leisure tourism and vacation, we will expand the new property business mode, further revitalize urban mineral resources and promote the conversion and utilization of our own land. Meanwhile, we have been continuously strengthening the control, improving the operation level and enhancing the core competitiveness of BBMG’s property.

We target the leading enterprises in the industry and aim to be a first-class urban asset operation service provider and build a model project of relocation and promotion around the construction of the “four centers” of the capital. We will continue to cultivate medium-end and high-end property management capabilities, expand internal and external service markets, establish service brands and realize standardized operations. Meanwhile, we will continue to promote the layout of industrial parks, focus on innovative enterprises in the parks and carry out investment in science and innovation, accumulate experience in the operation of parks and improve the operation level. We will continue to accelerate the sale of scattered assets to enhance the property management capacity and service level of the community.

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(3) Business Plan

2021 is the first year for implementing the“14th Five-year Plan”. It is also a crucial year for the Company to grasp new development opportunities and achieve higher quality development at a new historical starting point. In the context of the China’s efforts to integrate domestic and international development and build a new development pattern, the Board of Directors of the Company will adhere to take development as top priority, focus on the “four centers” of Beijing, and completing “four services” in a satisfactory way. Meanwhile, it will coordinate epidemic prevention and control and economic development, adhere to integrated development, appropriate development, innovative development and high-quality development, ensure the completion of the annual objectives and tasks and achieve a high-level start of the “14th Five-Year” plan.

(4) Possible risks

1. Epidemic prevention and control risks

The epidemic is still far from over and the world economy is in deep recession. With the large-scale vaccination, the situation of epidemic prevention and control in China has improved continuously, but the epidemic situation overseas is still serious. Under the globalization pattern, the risk of epidemic continues to increase with the importation of people and materials and the risk of overseas importation, local sporadic outbreaks and local outbreaks remains relatively high. The hit on China’s economy is highly variable and there is greater pressure to promote economic development under normalized epidemic prevention and control.

Countermeasures: The impact of the epidemic in China is preventable and controllable and the trend of China’s stable economic progress remains unchanged. We will sum up the experience of both epidemic prevention and control and production development, make full use of our own industrial coordination advantage and take advantage of the series of favorable policies issued by the state to lay equal emphasis to both epidemic prevention and control and production and operation. During the epidemic, the international and domestic industry chains will accelerate their adjustment, and a number of new industries, new business forms and new demands will be created. We will seriously study and judge the opportunities and changes, establish a bottom-line mindset, cultivate opportunities in crises, open new situations in changes, and actively cultivate new growth points and new driving forces. Meanwhile, we will actively serve the development of the capital and promote the growth of modern green building materials business. At the same time, we will expand our mind, increase marketing efforts and speed up sales of inventory property projects and improve the capital turnover, to ensure the fulfillment of economic goals for the full year.

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2. Policy risk

Guided by the central government’s principle of “houses are for living in not for speculative investment, emphasis on both rent and purchase and city-specific policies”, the property regulation will remain stable; at the same time, the “three red lines” policy of the Ministry of Housing and Urban-Rural Development has been issued one after another, which poses a huge challenge to the financing and management operations of property enterprises. The cement industry’s overcapacity problem is still not fundamentally solved, the policy trend of production capacity replacement and staggered production will be further implemented and tightened. With the publication of the action plan of digital transformation of the building materials industry and the proposal of carbon peak and carbon neutral target, the process of industrial integration and elimination of outdated production capacity will be accelerated.

Countermeasures: We will strengthen the interpretation, analysis and judgment of national macroeconomic policies and respond to the call of national policies. The property business will scientifically study and judge the market and improve the ability to adapt to market pace; improve project operation capabilities, and actively expand online marketing and emerging property business models. Cement enterprises will focus on supply-side structural reform, promote the “three reductions, one lowering and one promotion” campaign, improve quality and efficiency, and enhance regional market control. Moreover, they will continue to strengthen intra-industry cooperation and promote the construction of integrated cement industry chain, supply chain and innovation chain, accelerate the process of digital transformation and upgrading and formulate carbon peak, carbon neutral and carbon emission reduction plans in advance. Meanwhile, the cement enterprises will seize the opportunities brought by the demands for infrastructure construction of “new infrastructure, new urbanization initiatives and major projects” to further increase market shares.

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3. Risk of capital operation

In 2020, the overall monetary policy remained stable, and the comprehensive financing costs recorded a steady decrease. However, China’s macro leverage ratio is still on the high side and the risk of local debts and corporate debts is rising. Affected by the epidemic, domestic economic circulation and external trade talks, the manufacturing industry and the property industry will face greater pressure, especially the cash flow pressure of the property industry will increase and the liquidity risk will increase, which brings great challenges to the Company’s financing and liquidity management.

Countermeasures: The Company will innovate financing methods and extensively expand financing channels to raise funds at low cost and ensure the safety and stability of the capital chain of the Company. We will strengthen process control to improve the efficiency of capital turnover of property project and prudently operate property business. We will leverage the advantages of the financial arm and finance lease arm of the Company to optimize the debt structure of the Company, so as to secure the cash flow of the Company as a whole.

4. Market competition risk

The acquisition of Jidong Group and the holding of Tianjin Building Materials boosted the market competitiveness of the Company’s cement business in the major distribution regions to a certain extent, but the production lines in some regions are operating inefficiently or facing the bottleneck of relocation. The staggered production only solves the problem of output in the region and does not solve the problem of overcapacity fundamentally. The production capacity structure is in urgent need of optimization. Some small and mediumsized enterprises do not strictly comply with the staggered production policy, resulting in an imbalance between supply and demand, which further aggravates market competition. In the meantime, due to the unbalanced regional development, the gap between the strong in the south and the weak in the north persists in terms of demand and benefit level. The concentration of the property industry is accelerating, and the trend of “the big gets bigger, the strong gets stronger” is more notable.

Countermeasures: The cement business actively adapts to the market environment of the industry. The Company will seize the strategic opportunities arising during the period of the industry digital transformation, integrate the advantages of resources, scale and location, optimize the industrial layout, expand advanced production capacity; comprehensively improve the level of operation, increase technological innovation, innovation, reduce production costs and enhance market competitiveness; give full play to the leading role of the industry’s “leading enterprises”, proactively strengthen industrial synergy with upstream and downstream enterprises and promote the overall high-quality development of the industry. The property business insists on “fast development with good quality” to improve the capital turnover rate and focuses on core competitiveness to improve the project return rate.

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LIQUIDITY AND FINANCIAL RESOURCES

As at 31 December 2020, the Group’s total assets amounted to RMB291,352.4 million, representing an increase of 3.3% from the beginning of the Reporting Period, of which liabilities amounted to RMB196,896.2 million, minority interests amounted to RMB31,080.3 million and total equity attributable to the shareholders of the parent company amounted to RMB63,375.9 million. Total equity attributable to shareholders amounted to RMB94,456.2 million, representing an increase of 14.4% from the beginning of the Reporting Period. As at 31 December 2020, the Group’s net current assets were RMB63,859.4 million, representing an increase of RMB17,069.9 million year-on-year. Debt ratio (total liabilities to total assets) as at 31 December 2020 was 67.6%, representing a decrease of 3.1 percentage points from the beginning of the Reporting Period.

As at 31 December 2020, the Group’s cash and bank balances amounted to RMB28,643.9 million, representing an increase of RMB7,318.8 million from the beginning of the Reporting Period. During the Reporting Period, the Group generally financed its operations with internally generated resources, shortterm financing bonds, perpetual bonds, corporate bonds, medium-term notes, private bonds and banking facilities provided by its principal bankers in the PRC. As at 31 December 2020, the Group’s interestbearing bank borrowings amounted to RMB74,438.0 million (as at 31 December 2019: RMB86,234.7 million) and bore fixed interest rates. Of these borrowings, approximately RMB36,660.6 million interest-bearing bank borrowings were due for repayment within one year, representing a decrease of approximately RMB13,786.7 million from the beginning of the Reporting Period. Approximately RMB37,777.3 million interest-bearing bank borrowings were due for repayment after one year, an increase of approximately RMB1,989.9 million from the beginning of the Reporting Period. The Group’s interest-bearing bank borrowings were all denominated in RMB.

During the Reporting Period, the Company entered into cooperation agreements with various banks to obtain credit facilities. As at the end of the Reporting Period, the Company was granted total bank credit facilities of RMB76,110.0 million and drew down borrowings of RMB40,220.0 million.The remaining unutilized credit facilities was RMB35,890.0 million. During the Reporting Period, the Company has paid the principals and interests of borrowings in a timely manner. The Company has sufficient capital for its operations.

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According to relevant Board resolutions and resolutions of the general meeting, if it is predicted that the interest and principal of the bonds cannot be repaid on time when due or if the interest and principal of the bonds cannot be repaid at the end of the period, the Company shall at least adopt the following measures:

No profits shall be distributed to the shareholders;
Significant external investment, mergers and acquisitions, and other capital expenditure projects shall be postponed;
Salary and bonus of Directors and senior management shall be reduced or suspended;
The main responsible person in relation to the Company’s bonds shall not be transferred.

As at the end of the Reporting Period, the Company has strictly complied with and fulfilled the above undertakings.

DISCLOSEABLE TRANSACTIONS DURING THE REPORTING PERIOD

During the Reporting Period, there are no transactions that are required to be disclosed by the Group under the Rules Governing The Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”).

MATERIAL ACQUISITION OR DISPOSAL OF SUBSIDIARIES

The Group had not conducted any substantial acquisition or disposal of subsidiaries, associates or joint ventures that were required to be disclosed during the Reporting Period.

CONNECTED TRANSACTION

During the Reporting Period, the Group had not conducted any connected transaction that was required to be disclosed.

PLEDGE OF ASSETS

As at 31 December 2020, certain of the Group’s inventories, fixed assets, investment properties, land use rights and equity interest amounting to RMB49,487.2 million in aggregate (as at 31 December 2019: RMB50,603.4 million) were pledged to secure short-term and long-term loans of the Group, which accounted for approximately 17.0% of the total assets of the Group (as at 31 December 2019: 17.9%).

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CONTINGENCIES

Unit: RMB

Provision of guarantee on housing mortgage to third parties Note 1 Provision of guarantee on loans and others to third parties Note 2	As at 31 December 2020 9,895,528,540.97 935,000,000.00 10,830,528,540.97	As at 31 December 2019 8,583,893,305.90 1,000,000,000.00 9,583,893,305.90

Note 1: Certain customers of the Group have purchased the commodity housing developed by the Group by way of bank mortgage (secured loans). According to the bank requirement in respect of the secured loans of the individual purchase of housing, the Group has provided guarantees to secure the periodical and joint obligation of such secured loans granted by banks for home buyers. The guarantee will be released upon obtaining building ownership certificates and completion of formalities of mortgage by the home buyers. The management is of the opinion that in the event of default in payments, the net realizable value of the relevant properties is sufficient to cover the outstanding mortgage principals together with the accrued interests and penalties, and therefore no provision for the guarantees has been made in the financial statements.
Note 2: Jidong Group, a subsidiary of the Group, provided guarantees with joint obligations on the borrowings of RMB935,000,000.00 for Tangshan Culture & Tourism Investment Group Co., Ltd. (唐山市文化旅遊投資集團有限公司). The guarantee will expire on 21 May 2029.

COMMITMENTS

Unit: RMB

Contracted but not provided for: Capital commitments Property development contracts	As at 31 December 2020 1,086,398,279.13 7,261,767,509.25 8,348,165,788.38	As at 31 December 2019 149,181,143.13 2,638,777,513.45 2,787,958,656.58

The significant commitments made by the Group as at 31 December 2019 had been duly performed as previously undertaken.

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RISK MANAGEMENT

The Group has established and maintained sufficient risk management procedures to identify and control various types of risk within the organisation and the external environment with active management participation and effective internal control procedures, which is in the best interest of the Group and its shareholders.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

No significant events after the balance sheet date were required to be disclosed.

EMPLOYEES AND REMUNERATION POLICY

As at 31 December 2020, the Group had 47,405 employees in total (as at 31 December 2019: 49,189 employees). During the Reporting Period, the aggregate remuneration of the Group’s employees (including Directors’ remuneration) amounted to approximately RMB5,916.8 million (for the year ended 31 December 2019: RMB6,567.2 million), representing a decrease of approximately 9.9%.

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Amid the epidemic in 2020, in order to give full play to the protective incentive effect of remuneration and to meet the needs of strategic development, the Company established a compensation system that employees’ salaries shall be based on the industry norm in which the enterprise operates, as well as the region, position, contribution, and the corresponding system and mechanism of the enterprise. The adaptability and effectiveness of remuneration policy towards the Company’s business development has played an active role in maintaining the sustained robust development of the Company. With a view to executing the remuneration and benefit programme in a more flexible and efficient manner, the Company’s remuneration policy was mainly implemented in the main forms set out as follows: operations and management staff (including senior management of parent company and the subsidiaries) receive salaries mainly on an annual basis. The Company raised the proportion of performance-based pay in the total annual remuneration, as well as implemented deferred payment for certain performancebased rewards within their tenure of service, facilitating the performance of due diligence and diligent responsibility of senior management through its policies and systems. The Company adopted a positionbased salary system for its general management, technicians and production personnel, featuring salaries according to role. The “equal work and equal pay” performance – based pay system was applied. The Company raised the proportion of fixed income to enhance the security function of salary and guarantee the stability of staff team through a well-established position evaluation system. Meanwhile, the Company has put greater efforts in performance assessment to develop a more fairly, equitably and scientific income distribution system so that all staff could be benefited from the development of the Company. Focusing on the different characteristics of our subsidiaries, the Company also proactively explored a remuneration distribution system with various allocation factors for management, sales and technical personnel in a bid to boost the enthusiasm and creativity of key talents and enhance the production efficiency by adopting piece rate for production staff. The Company proactively facilitated the trial operation of a broad band salary system and two-channel development system for enterprises with solid foundation in management and stable business development. The Company will establish assessment and engagement systems for professional and technical personnel and core staff and open up related and consistent channels for career development and remuneration adjustment, in order to give full play to boosting the enthusiasm and creativity of its staff and create a harmonious and stable working environment.

In addition, the Company has also established a sound benefit system for employees by paying comprehensive social insurance and housing fund, adopting annuity system (to supplement the pension insurance) and supplemental medical insurance. The front-line employees with exceptional performance will be awarded the honorary title of “Chief Employee” and corresponding subsidies. The Company released the high temperature subsidy and heating subsidy in a timely manner, giving comprehensive protection for its staff in respect of their legal rights and interests.

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TRAINING SCHEME

To meet the coordinated development of personnel at all levels, BBMG Group has formed an internal training system with various forms and distinct training levels based on independent training of grassroots units and comprehensive training of the Group as the main line. Based on the current personnel situation of the Group, the Group has adopted various methods such as self-training and training by commissioned training institutions to steadily carry out the training of talents, ensure the quality and effectiveness of training programs, and promote the improvement of the overall quality of personnel.

In 2020, we overcame the impact of the epidemic, increased the training of high-level professional and technical personnel, and guided our units to actively compete for senior training programs in Beijing. The Group organized 10,167 online and offline training programs and trained a total of 201,600 people, with a view to implement the national three-year action plan for vocational skills upgrading. The training courses including theoretical reading classes for outstanding leaders and cadres, rotational training classes for grass-roots party branch secretaries, training classes for grass-roots party cadres, advanced training classes for scientific and technological cadres, advanced training classes for cement kiln co-disposal of urban solid waste technology, advanced training classes for assembled construction, training classes for legal management personnel to perform their duties, advanced training classes for safety directors, training classes for chief workers, “Golden Talent” induction training classes, and human resources information system construction, and training which are closely related to the various aspects of production and operation activities, improved the quality and promoted the efficiency of daily production and operation activities and were of great significance to the high-quality development of the Group.

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EMPLOYEES OF THE PARENT COMPANY AND MAJOR SUBSIDIARIES (AS AT 31 DECEMBER 2020)

Number of incumbent employees of the parent company Number of incumbent employees of major subsidiaries Total number of incumbent employees Professional Structure Category Production staff Sales staff Technical staff Financial staff Administrative staff Others Total	140 46,265 47,405 Number of employees 25,676 4,901 9,170 1,840 4,540 1,278 47,405

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Education Level

Category Master’s degree and above Bachelor’s degree Junior college Technical secondary school and below Total	Number of employees 1,003 11,392 10,806 24,204 47,405

FOREIGN EXCHANGE RISK MANAGEMENT

The Group mainly operates its business in the PRC. During the Reporting Period, sales proceeds and procurement expenses of the Group were mainly denominated in RMB. Most of the Group’s financial instruments such as accounts and bills receivable, cash and bank balances are denominated in the same currency or a currency that is pegged to the functional currency of the operations to which the transactions are related. Accordingly, it is believed that the Group has minimal foreign currency risks. The Group has not used any forward contract or currency borrowing to hedge its interest rate risks. Fluctuations of the exchange rates of foreign currencies did not constitute any major challenges for the Group nor had any significant effects on its operations or working capital during the Reporting Period. However, the management will continue to monitor foreign currency risks and adopt prudent measures as appropriate.

TREASURY POLICIES

The Group adopts conservative treasury policies and controls tightly its cash and risk management. The Group’s cash and bank balances are held mainly in RMB. Surplus cash is generally placed in short term deposits denominated in RMB.

SUBSTANTIAL SHAREHOLDERS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES

So far as was known to the Directors, as at 31 December 2020, shareholders of the Company who had interests or short positions in the shares and underlying shares of the Company which fall to be disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “ SFO ”), or which were recorded in the register of interests required to be kept by the Company pursuant to Section 336 of the SFO were as follows:

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Long positions:

				Percentage
				of such
				shareholding	Percentage
				in the same	of total
Type of		Capacity and	Number of	type of issued	issued share
shareholding	Name of shareholder	nature of interest	shares held	share capital	capital
				(%)	(%)
A Shares	Beijing SCOM Center	Direct beneficial owner	4,797,357,572	57.53	44.93
	（北京國有資本經營管理中心）
	(Note 1)
	State-owned Assets Supervision and	Held by controlled	4,797,357,572	57.53	44.93
	Administration Commission of	corporation
	People’s Government of Beijing
	Municipality_(Note 1)_
H Shares	Ouyang Jieliang	Beneficial owner	214,500,000	9.17	2.01
H Shares	FMR LLC	Interest of corporation	189,271,901	8.09	1.77
		controlled by the
		substantial shareholder
H Shares	Fidelity Investment Trust	Beneficial owner	142,387,500	6.09	1.33

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Note 1: The Beijing SCOM Center is a collectively-owned enterprise established under the laws of the PRC with registered capital fully paid up by the State-owned Assets Supervision and Administration Commission of People’s Government of Beijing Municipality.

Save as disclosed above, as at 31 December 2020, so far as was known to the Directors, there were no other parties who had interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register of interests required to be kept by the Company pursuant to Section 336 of the SFO.

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INTERESTS AND SHORT POSITIONS OF DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVE OFFICER IN SHARES AND UNDERLYING SHARES

As at 31 December 2020, the interests or short positions of the Directors, supervisors or chief executive officer of the Company in the shares and underlying shares of the Company or any of its associated corporations (within the meaning of Part XV of the SFO), which will have to be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they are taken or deemed to have taken under such provisions of the SFO), or which were recorded in the register of interests required to be kept under section 352 of the SFO, or which will be required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) as set out in Appendix 10 to the Listing Rules, were as follows:

				Percentage of
				the issued
		Number of	Number of	share capital
		A Shares	H Shares	of the
Name of director	Capacity	held	held	Company
Wu Dong	Beneficial owner	60,000	–	0.00%
Wang Zhaojia	Beneficial owner	37,500	–	0.00%

All the shareholding interests listed in the above table are “long” position.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS AND SUPERVISORS

The Company has adopted the model code for securities transactions by the Directors, supervisors and relevant employees on terms no less exacting than the required standards set out in the Model Code. Relevant employees who are likely to be in possession of unpublished inside information of the Company in relation to the purchase and sale of the securities of the Company are also required to comply with the Model Code.

As at 31 December 2020, the Directors were not aware of any issues of the Directors, supervisors and relevant employees not in compliance with the Model Code during the Reporting Period. Specific enquiry has been made to all Directors and supervisors, who have confirmed that they had complied with the Model Code during the Reporting Period.

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CORPORATE GOVERNANCE CODE

The Company is firmly committed to achieving and maintaining high overall standards of corporate governance and has always recognized the importance of accountability and communication with Shareholders through continuous effort in improving its corporate governance practices and processes. Through the establishment of a quality and effective Board, a comprehensive internal control system and a stable corporate structure, the Company strives to achieve completeness and transparency in its information disclosure, enhance stable operation and consolidate and increase Shareholders’ value and profit.

During the Reporting Period, the Company had applied the laws and regulations of the places where it operates its business as well as the regulations and guidelines stipulated by regulatory authorities such as the China Securities Regulatory Commission, the Hong Kong Securities and Futures Commission, the Shanghai Stock Exchange and the Hong Kong Stock Exchange. The Company had applied the principles and complied with all the code provisions of the corporate governance code (the “ CG Code ”), as amended from time to time, set out in Appendix 14 to the Listing Rules during the Reporting Period as its own code on corporate governance practices. During the Reporting Period, the Company had reviewed its corporate governance documents and is of the view that the Company had fully complied with the code provisions of the CG Code.

Looking forward, the Company will continue to review its corporate governance practices and enhance its internal controls and risk management procedures to ensure their consistent application and will continue to improve the practices having regard to the latest developments.

A full description of the Company’s corporate governance will be set out in the Corporate Governance section in the annual report for the Reporting Period.

AMENDMENTS TO THE ARTICLES OF ASSOCIATION

During the Reporting Period, in order to further optimize the governance structure of the listed company, the Company intends to amend the articles of association (the “ Articles of Association ”) of the Company and the appendices thereto according to the newly amended Company Law, the Guidelines for the Articles of Association of Listed Companies and the Reply on Adjustment of the Notice Period for General Meeting and Other Matters Applicable to Overseas Listed Company (Guo Han [2019] No. 97) newly issued by the State Council, and the relevant laws, administrative regulations and listing rules of the Company’s place of listing, taking into consideration the actual situation of the Company, with the main amendments being adjustments to articles relating to the Company’s notice period and procedures of the convening the general meeting and the repurchase of shares (collectively, the “ Amendments to the Articles of Association ”).

For the particulars of the Amendments to the Articles of Association, please refer to the announcements of the Company dated 31 March 2020 and 19 May 2020.

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BOARD COMPOSITION

The balance of power and authorities is ensured by the operation of the Board and the senior management, which comprise experienced and high caliber individuals. As of the date of this announcement, the Board currently comprises four executive Directors, two non-executive Directors and four independent non-executive Directors. It has a strong independence element in its composition.

During the Reporting Period, the change in the composition of the Board was as follows:

The Board has received a resignation letter from Mr. Jiang Deyi on 21 August 2020 in respect of his duty as an executive director, Chairman of the Board of the Company and chairman of the Strategic Committee of the Company with effect from 21 August 2020. Mr. Jiang Deyi’s resignation is a result of his work re-designation.

At the 2020 First Extraordinary General Meeting, the resolution in relation to the election of Mr. Zeng Jin as a new director of the Company has been approved. According to the meeting of the Board held on 21 August 2020, the Board has resolved and approved that Mr. Zeng Jin would be appointed as an executive director and the chairman of the fifth session of the Board with immediate effect.

The Board has received a resignation letter from Mr. Guo Yanming on 20 August 2020 in respect of his resignation as a non-executive director of the Company with effect from 20 August 2020. Mr. Guo Yanming also resigned as a member of the Audit Committee at the same time. Mr. Guo Yanming’s resignation is a result of his work re-designation.

Following the resignation of Mr. Guo Yanming, on 20 August 2020, as Mr. Wang Zhaojia has fulfilled the relevant requirements and was elected democratically by the staff and workers of the Company as a director of the Company, Mr. Wang Zhaojia is therefore not subject to election at the 2020 First Extraordinary General Meeting. According to the meeting of the Board held on 21 August 2020, it was resolved and approved that Mr. Wang Zhaojia would be appointed as a member of the Audit Committee of the fifth session of the Board with immediate effect.

For details of the above changes in the composition of the Board, please refer to the announcements of the Company dated 4 August 2020 and 21 August 2020, respectively.

Subsequent to the Reporting Period, the changes in the composition of the Board are as follows:

The resolution in relation to the election of Mr. Jiang Yingwu as a new director of the Company has been considered and approved at the 2021 First Extraordinary General Meeting held on 19 January 2021. Meanwhile, according to the meeting of the Board held on 19 January 2021, the election of Mr. Jing Yingwu as an executive director of the fifth session of the Board has been resolved and approved at the meeting with immediate effect.

For details of the changes in the composition of the Board subsequent to the Reporting Period, please refer to the announcements of the Company dated 30 December 2020 and 19 January 2021.

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AUDIT COMMITTEE

The Company has established the Audit Committee pursuant to the provisions of the CG Code with written terms of reference, aiming at (among other things) reviewing and supervising the Group’s financial reporting procedures. The Audit Committee consists of two non-executive Directors and four independent non-executive Directors. At a meeting convened on 24 March 2021, the Audit Committee reviewed and considered the consolidated financial statements of the Group for the Reporting Period. The Audit Committee has also recommended the Board to adopt the Group’s consolidated financial statements for the Reporting Period.

As at the date of this announcement, members of the Audit Committee are Wang Zhaojia (non-executive Director), Xue Chunlei (non-executive Director), Wang Guangjin (independent non-executive Director), Tian Lihui (independent non-executive Director), Tang Jun (independent non-executive Director) and Ngai Wai Fung (independent non-executive Director). Tian Lihui (independent non-executive Director) is the chairman of the Audit Committee.

REMUNERATION AND NOMINATION COMMITTEE

The Company has established the Remuneration and Nomination Committee with written terms of reference. The primary duties of the Remuneration and Nomination Committee are to make recommendations to the Board on the overall remuneration policy and structure relating to all Directors and senior management of the Company, review the performance-based remuneration, ensure that no Director is involved in determining his own remuneration, nominate candidates to fill up any vacancy of the Board, ensure the diversity of the composition of the Board and review the qualification of the candidates. As at the date of this announcement, the Remuneration and Nomination Committee consists of five members, namely Wu Dong (executive Director), Wang Guangjin (independent non-executive Director), Tian Lihui (independent non-executive Director), Tang Jun (independent non-executive Director) and Ngai Wai Fung (independent non-executive Director). Wang Guangjin (independent non-executive Director) is the chairman of the Remuneration and Nomination Committee.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

During the Reporting Period, the Company and its subsidiaries did not purchase, sell or redeem any of the listed securities of the Company.

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PUBLICATION OF ANNUAL RESULTS AND ANNUAL REPORT

This electronic version of this annual results announcement is published on the websites of the Hong Kong Stock Exchange (http://www.hkexnews.hk) and the Company (http://www.bbmg.com.cn/listco). The annual report for the Reporting Period containing all the information required by Appendix 16 to the Listing Rules will be despatched to the shareholders and will be available for review on the same websites in due course. The PRC domestic annual results report for the Reporting Period and its abstract will be released on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) and the website of the Company (http://www.bbmg.com.cn/listco) around the same time as this annual results announcement.

CLOSURE OF REGISTER OF MEMBERS

The transfer books and register of members for H Shares of the Company will be closed from Friday, 7 May 2021 to Wednesday, 12 May 2021, both days inclusive, for the purpose of determining entitlements of the Shareholders the right to attend and vote at the AGM. In order to qualify for the right to attend and vote at the forthcoming AGM of the Company to be held on Wednesday, 12 May 2021, all transfers, accompanied by the relevant share certificates, must be lodged with the Company’s H share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Thursday, 6 May 2021.

Subject to the approval of the final dividend at the forthcoming AGM, the transfer books and register of members for H Shares of the Company will be closed from Saturday, 22 May 2021 to Thursday, 27 May 2021, both days inclusive, for the purpose of determining entitlements of the Shareholders the right to receive the final dividends for the Reporting Period. In order to qualify for the right to receive the final dividends for the Reporting Period, all transfers, accompanied by the relevant share certificates, must be lodged with the Company’s H share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Friday, 21 May 2021.

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APPRECIATION

Finally, on behalf of the Board, I would like to express my sincere gratitude to our shareholders for their long-standing support for the Company’s development, and thank the Board and the Supervisory Board for their diligence and all employees of the Company for their hard work. In the coming year, the Company will efficiently and comprehensively achieve the goals and tasks with more aggressive ambition, more pragmatic working style and higher quality development, and build a bright future with shareholders!

By order of the Board BBMG Corporation* Zeng Jin Chairman

Beijing, the PRC 25 March 2021

As at the date of this announcement, the executive directors of the Company are Zeng Jin, Jiang Yingwu, Wu Dong and Zheng Baojin; the non-executive directors of the Company are Wang Zhaojia and Xue Chunlei; and the independent non-executive directors of the Company are Wang Guangjin, Tian Lihui, Tang Jun and Ngai Wai Fung.

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AI assistant

BBMG Corporation — Annual Report 2020

50338_rns_2021-03-25_7d445be7-d990-4234-958e-566730453de1.pdf

北京金隅集團股份有限公司

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

HIGHLIGHTS

ANNUAL RESULTS

RESULTS OF OPERATIONS

DIVIDEND

Profit Distribution for Investors of Northbound Trading

Profit Distribution for Investors of Southbound Trading

CONSOLIDATED INCOME STATEMENT

NOTES:

1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

2. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES

3. STATEMENT OF COMPLIANCE WITH ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

4. OPERATING SEGMENT INFORMATION

Unit: RMB

For the year ended 31 December 2020

For the year ended 31 December 2019

Information about major customers

5. OPERATING REVENUE AND NON-OPERATING REVENUE

Unit: RMB

Non-operating revenue is presented as follows:

6. OPERATING COSTS AND NON-OPERATING EXPENSES

Unit: RMB

7. SELLING EXPENSES

Unit: RMB

8. ADMINISTRATIVE EXPENSES

9. RESEARCH AND DEVELOPMENT EXPENSES

Unit: RMB

10. FINANCE COSTS

11. OTHER GAINS

Unit: RMB

12. INVESTMENT GAINS

13. GAINS FROM CHANGES IN FAIR VALUE

Unit: RMB

16. INCOME TAX EXPENSES

Unit: RMB

17. EARNINGS PER SHARE

18. DIVIDEND

19. BILLS RECEIVABLE

Unit: RMB

20. ACCOUNTS RECEIVABLE

Unit: RMB

21. INVENTORIES

2020

22. SHORT-TERM LOANS

Unit: RMB

23. BILLS PAYABLE

Unit: RMB

24. ACCOUNTS PAYABLE

Unit: RMB

25. SHORT-TERM FINANCING BONDS AND BONDS PAYABLE

26. LONG-TERM LOANS

Unit: RMB

27. NET CURRENT ASSETS

28. TOTAL ASSETS LESS CURRENT LIABILITIES

CHAIRMAN’S STATEMENT

Review

Prospect

Summary of Financial Information

(I) Principal business and business model of the Company

1. Cement and ready-mixed concrete business:

2. Modern building materials and commerce and logistics business:

3. Property development segment business:

4. Property investment and management business:

(II) Description of major industries

1. Cement Industry

2. Property Development Industry

1. Cement and Ready-mixed Concrete Segment

2. Modern Building Materials and Commerce and Logistics Segment

3. Property Development Segment

4. Property Investment and Management Segment

ANALYSIS OF BUSINESS, ASSETS, LIABILITIES AND CASH FLOWS FOR THE REPORTING PERIOD

1. Principal business operations

Unit: RMB million

2. Investment properties measured at fair value

3. Expenses during the Reporting Period

4. Analysis of Assets and Liabilities

BBMG Corporation Annual Report 2020