On April 19, China State Construction officially released its 2023 corporate annual report.
The main operating indicators reached a new high
In 2023, China State Construction will firmly grasp the primary task of high-quality development, devote itself to the strategic goal of "One Creation and Five Strong", thoroughly implement the "166" strategic path, and fully implement the five major tasks of "stabilizing growth, seeking innovation, promoting governance, preventing risks, and strengthening party building", and achieve new results in the reform and development of the enterprise and maintain a steady development trend.
The new contract value was 4.3 trillion yuan: the cumulative new contract value was 4,324.1 billion yuan, with a year-on-year growth rate of 10.8%. The annual target of 4.2 trillion yuan issued at the beginning of the year was successfully completed, with a completion rate of about 103%. Among them, the newly signed contract value of the housing construction business successfully exceeded 2.5 trillion yuan and approached 2.7 trillion yuan, still playing the role of "ballast stone". The sales of the real estate business also exceeded 450 billion yuan, an increase of about 8.8% compared with last year. Overall, the total amount of housing construction business + real estate business has exceeded 3.8 trillion yuan, which has built nearly ninety percent of the performance of China State Construction Group, and its basic position is unshakable.
Operating income of nearly 2.27 trillion yuan: revenue of 2,265.5 billion yuan, a year-on-year increase of 10.2%, a record high. Among them, the housing construction business, infrastructure and investment business, real estate development and investment business, survey and design business and other businesses achieved revenue of 1,383.7 billion, 556.6 billion, 308.8 billion and 11.7 billion yuan respectively, with year-on-year growth rates of 9.4%, 12.8%, 9.5% and 9.1% respectively. The market competitiveness of the infrastructure business continued to increase, and the growth rate of the real estate development and investment business turned positive and achieved substantial growth.
Other indicators made steady progress: net profit attributable to shareholders of listed companies was 54.26 billion yuan, up 6.5% year-on-year, weighted average return on equity reached 13.36%, continuing to maintain the leading position in the industry, and net cash flow from operating activities was 11.03 billion yuan, up by 7.201 billion yuan year-on-year. The cash dividend ratio has remained stable at more than 20%, increasing for four consecutive years, and the annual dividend amount has once again exceeded 10 billion yuan, ranking first among listed companies in the same industry in terms of cumulative dividend scale.
The main business has been steadily improved
1. Continue to consolidate the competitive advantage in the field of housing construction
In 2023, China's construction and housing construction business structure continued to be optimized, and high-end housing construction projects achieved a lot of success: the annual new contract value was 2,689.4 billion yuan, a year-on-year increase of 8.8%, the operating income was 1,383.7 billion yuan, a year-on-year increase of 9.4%, and the gross profit was 100.5 billion yuan, a year-on-year decrease of 0.2%.
On the whole, the proportion of newly signed contracts in the field of public buildings such as industrial plants, science, education, culture, health and sports facilities, and commercial complexes continued to increase. By segment, the annual value of new contracts signed in each sector is as follows:
2. Continuously enhance the competitiveness of infrastructure business
As an important engine and starting point for enterprise transformation and upgrading, China State Construction will focus on key areas of infrastructure business in 2023, and achieve rapid growth in scale and efficiency. The newly signed contract value was 1,168.5 billion yuan, a year-on-year increase of 15.1 percent, the operating income was 556.6 billion yuan, a year-on-year increase of 12.8 percent, and the gross profit was 54.7 billion yuan, a year-on-year increase of 6.0 percent. At the same time, it adheres to the strategy of "top-level design, high-level interaction, and hierarchical docking", seizes the development opportunities in the field of infrastructure segments, focuses on strengthening the advantages of infrastructure pillars, and has achieved a number of landmark achievements in various segments:
- In the municipal sector, the newly signed contract value was 282.9 billion yuan, a year-on-year increase of 17.0%, of which the new contract value of municipal road business was 187.4 billion yuan, a year-on-year increase of 0.1%;
- In the field of transportation engineering, the value of new contracts signed was RMB259.8 billion, down 21.7% year-on-year, of which the value of new contracts signed in railway business was RMB39.8 billion, up 19.7% year-on-year.
- In the field of energy engineering: the newly signed contract value was 269.7 billion yuan, a year-on-year increase of 151.4%;
- In the field of water affairs and environmental protection, the newly signed contract value was 115.7 billion yuan, a year-on-year increase of 2.1%;
- In the field of water conservancy and water transportation, the newly signed contract value was 50.1 billion yuan, a year-on-year increase of 229.6%.
3. The real estate business continues to develop healthily
In 2023, China's construction and real estate business accelerated its adaptation to the new development model, and achieved growth in sales scale and profit against the trend: contracted sales of RMB451.4 billion, up 12.4% year-on-year, contracted sales area of 18.58 million square meters, up 7.9% year-on-year, operating income of RMB308.8 billion, up 9.5% year-on-year, and gross profit of RMB56.2 billion, up 5.1% year-on-year.
In addition, China State Construction has also deeply studied and judged the situation and policy changes in the real estate industry, flexibly adjusted the sales strategy, improved the speed of inventory removal, and focused on strengthening the excellent advantages of the real estate business. Among them, China Overseas Real Estate ranked second in the industry in terms of equity sales, maintained an industry-leading profit margin, and achieved stable and rising main indicators, achieving contracted sales of 267 billion yuan for the whole year, a year-on-year increase of 4.9%.
The annual contracted sales reached 184.4 billion yuan, a year-on-year increase of 25.3%.
4. The survey and design business maintained steady development
China State Construction is the largest architectural design conglomerate in China, and the survey and design sector is mainly composed of 7 large-scale survey and design enterprises with Grade A design qualifications. In 2023, its survey and design business grew steadily, and its original design capabilities continued to improve. The newly signed contract value was 14.8 billion yuan, a year-on-year increase of 8.8%, the operating income was 11.7 billion yuan, a year-on-year increase of 9.1%, and the gross profit was 2.5 billion yuan, a year-on-year increase of 11.4%.
Although the survey and design business has the smallest gross profit in China Construction, it contributes 21.3% of the gross profit margin of the segment, which is the most profitable business among all the main businesses of the company. This also fully reflects its core competitiveness and design leadership in the field of design.
The operation of the regional market has borne fruit
In 2023, China State Construction will achieve a new contract value of RMB3,697.3 billion, a year-on-year increase of 10.4%, an operating income of RMB2,149.7 billion, a year-on-year increase of 10.4%, and a gross profit margin of 10.1%.
CSCEC adheres to the principle of deeply cultivating major national strategic regions, giving full play to the advantages of the whole industry chain layout, actively serving and integrating into major national strategies, docking with the development plans of strategic regions such as Beijing-Tianjin-Hebei, Yangtze River Economic Belt, Guangdong-Hong Kong-Macao Greater Bay Area, and Yellow River Basin, and actively serving the development of modern industries, with a new contract value of 3.7 trillion yuan, accounting for 86.2%, and an investment of 369.3 billion yuan, accounting for nearly 92.3% of the total investment.
In addition, according to the statistics of CNSUIDO01, in 2023, China State Construction, including its subsidiaries, will have a total bid of more than 100 billion yuan in 8 provinces including Shandong, Guangdong, Hubei, Sichuan, Henan, Anhui, Shaanxi, and Jiangsu ((1) including consortium winning bids; (2) excluding projects without specific winning bids or investment amounts).
At the same time, China State Construction has deeply implemented the overseas high-quality development strategy, and the revenue of overseas business has grown steadily, and the ENR international contractor ranking has risen to 6th. The overseas business adheres to the deep cultivation of operations and continues to enhance the ability of global resource allocation. The newly signed contract value was 186 billion yuan, an increase of 12.3% year-on-year, of which the new contract value of the construction business was 175.5 billion yuan, a year-on-year increase of 15.4%, the overseas operating income was 115.8 billion yuan, a year-on-year increase of 7.2%, the gross profit was 6 billion yuan, a year-on-year increase of 8.5%, and the gross profit margin was 5.2%, an increase of 0.1 percentage points year-on-year. (Note: Overseas refers to regions other than Chinese mainland)
In 2023, CSCEC's overseas operations will win a number of key projects in various subdivisions such as medical facilities, industrial plants, rail transit, highways and bridges - undertaking the design and construction of the new acute hospital (Site A) in Kai Tak, Hong Kong, the design and construction of the southern section of the Macao LRT East Line, the P103 bid section of the Punggol Extension Line of the Singapore MRT Cross-Island Line, the high-rise residential buildings in Kavalikasa in the United Arab Emirates, Dongshan Precision Longyan Industrial Park in Thailand, Kazakhstan Astana City Railway Phase I and other projects, successfully signed a cooperation agreement on the operation project of the new capital CBD of Egypt. The main overseas business contracts signed are as follows:
Compete again for the strongest engineering bureau: China Construction Third Bureau PK China Construction Eighth Bureau
At the beginning of the year, a number of secondary engineering bureaus of China State Construction Group respectively disclosed their operating performance for the whole year of 2023, according to public data: China Construction Third Engineering Bureau has achieved remarkable results in the performance indicators of newly signed contracts, successfully surpassing China Construction Eighth Bureau and regaining the first place. As a result of unremitting struggle and efforts, China Construction Third Engineering Bureau has achieved a new contract value of more than 900 billion yuan, and has taken a solid step towards achieving the goal of "high-quality trillion three bureaus". The China Construction Eighth Bureau has performed well in the economic indicator of operating income, ranking first among the second-level subsidiaries of the China Construction Department. With innovation and the mission of the times, China Construction Eighth Bureau has achieved a performance of more than 480 billion yuan, and has handed over a perfect answer sheet of innovation and struggle to live up to the times.
Of course, it may not be enough to only look at new signings and revenue, so let's take a look at the main indicator that measures the operating efficiency of a business - net profit.
In the annual report, China State Construction disclosed the net profit of 20 subsidiaries in 2023:
Through sorting, we can find that among the 20 subsidiaries, there are a total of 4 subsidiaries with a net profit of more than 10 billion yuan - among them, China Overseas Group and China Overseas Land & Investment, their main business directions are investment and real estate development and operation, and they have also been in the top two in the net profit list of China State Construction Group's subsidiaries for many years. The Eighth and Third Engineering Bureaus of China Construction continued to maintain their operating advantages in 2022, achieving a net profit of more than 10 billion yuan for the second time, and handing over a beautiful report card in terms of business efficiency.
So far, the two super engineering bureaus will achieve in 2023:
China Construction Third Engineering Bureau: the newly signed contract amount exceeded 900 billion yuan, the revenue exceeded 410 billion yuan, and the net profit exceeded 12.7 billion yuan;
China Construction Eighth Bureau: The newly signed contract value exceeded 800 billion yuan, the revenue exceeded 480 billion yuan, and the net profit exceeded 13.2 billion yuan.
Who do you think is the strongest engineering bureau in 2023?
China Construction Third Bureau
China Construction Eighth Bureau
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All the past is prologue. The glory of the past is a medal and a driving force for the future. In the first quarter of 2024, China State Construction has once again made efforts and achieved excellent results: "1,188.5 billion: China Construction Group's order release in the first quarter, China Construction Eighth Bureau won the largest bid!" 》The Eighth and Third Bureaus of China Construction are still working hard.
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