China Construction's "14th Five-Year Plan" focuses on intelligent manufacturing and green buildings, this year's revenue target is 1.76 trillion yuan

On August 30, in order to further strengthen communication and exchanges with the capital market, China State Construction held a 2021 interim performance promotion conference in Beijing. Company Director and President Zheng Xuexuan, Vice President and Chief Financial Officer Wang Yunlin, and Board Secretary Xue Keqing attended the event.

The semi-annual report shows that the company's performance indicators have reached a record high. In the first half of the year, the total operating income was 936.716 billion yuan, a year-on-year increase of 28.6%. The net profit attributable to the parent was 25.643 billion yuan, a year-on-year increase of 29.2%, and the growth rate was higher than the growth rate of operating income; it entered the top 15 of the Fortune Global 500 for the first time, ranking 13th.

In the first half of the year, China State Construction completed new contracts worth 1.83 trillion yuan, a year-on-year increase of 21.0%. Among them, the contract value of infrastructure business was 392.7 billion yuan, a year-on-year increase of 50.5%, a record high. Operating income increased significantly, and all business incomes were balanced, of which housing construction business accounted for 63.63%, infrastructure business accounted for 20.67%, and real estate business accounted for 15.64%.

The reporter learned from the performance promotion meeting that the two directions laid down in the "14th Five-Year Plan" plan of China's construction are intelligent construction, namely the construction of new energy robots, and the other is the construction of green buildings under the dual-carbon background. The relevant person in charge of China Construction said that construction robots are an important work that China Construction has been committed to research and development for several years. The company has done corresponding research and development on spraying robots, sorting robots, welding robots, including cutting robots, and the overall application scale is at the forefront of the industry.

During the reporting period, the company continued to work hard on the "six special actions", and the quality of its operations was significantly improved. Net profit after deducting non-recurring gains and losses was 24.538 billion yuan, an increase of 32% over the same period of the previous year. The company strengthened its cash flow management and took multiple measures to speed up the recovery of project funds and other funds. The operating cash flow situation continued to improve, with an increase of more than 20 billion yuan in inflow over the same period of the previous year. The company's weighted return on net assets rebounded significantly, reaching 8.15% in the first half of the year, an increase of 1.15 percentage points from the same period last year, and continued to maintain a high position in the industry; the total asset turnover rate was 0.82 times per year (annualized), an increase of 0.13 times year-on-year.

When it comes to the topic of accounts receivable, the relevant person in charge of China Construction said that the company will speed up the process stage on the settlement side next. The key governance processes are slow to confirm rights, low ratios, and long settlement cycles. In particular, continue to firmly promote the special governance of long-delayed projects to increase the confirmation rate of accounts receivable. On the collection side, the company will also strengthen its efforts to collect debts and urge its subsidiaries to establish a sound and effective receivable collection mechanism.

2021 is the beginning year of the "14th Five-Year Plan". China State Construction will adhere to the general keynote of seeking progress while maintaining stability, based on the new development stage, implement the new development concept, serve the construction of a new development pattern, and promote high-quality development. Focusing on the needs of building a better life for the people, they will take advantage of the trend and strive to achieve top-notch, strive to achieve total operating income of 1.76 trillion yuan, and newly signed contracts of 3.50 trillion yuan, strive to achieve the strategic goal of "One Creation Five" and better return the company's shareholders and investors.