CSCI Announced its 2019 Annual Results

2020.03.25


(25 March 2020) China State Construction International Holdings Limited (“CSCI” or “The Group”, Stock Code: 03311) announced its 2019 annual results today. For the twelve months ended 31 December 2019, the revenue was HK$61,669.7 million, representing an
increase of 10.9% as compared with the same period of last year. In which, profit attributable to owners was HK$5,413 million, represents a year-on-year increase of 20.3%. The Board proposed a final dividend of HK16 cents per share. Together with the interim dividend of HK16 cents per share, total dividends for the year amounted to HK32 cents per share.

In 2019, movements towards unilateralism and protectionism can be seen in large economies such as the United States. As international trade is in a weak state, there is a global slowdown in economic development, giving rise to an increased level of risks. Negative factors such as intensified trade conflicts and geopolitical tension have led to a general slowdown of major economies. Central banks have gradually adjusted their monetary policies. Fluctuations in capital markets have become more exacerbated and the recovery of global economy has become more difficult and challenging.

This year, there was an overall trend of steady improvement in China’s economy. Its resilience of growth could be seen from the annual growth of 6.1% and the fact that the GDP was approaching RMB100 trillion. On the other hand, with a contraction of 0.5% in the second quarter of 2019 and a further drop of 3.2% in the third quarter, Hong Kong’s economy has shown signs of technical recession, which is the first slump after the financial tsunami in 2008. Economy of Macau also experienced a slowdown after a ten consecutive quarter growth. Achievements have been made in economic diversification, but there is still a long way to go for the transformation of Macau’s economic structure.

Facing the complex external environment, the Group has managed to formulate a strategy to balance its scale of growth, leverage and cash flow and proactively adjust its business structure. For example, measures have been in place to lower the contribution of orders
obtained from long term projects in mainland China, while compliant infrastructure projects with fast turnover and high return have been actively obtained. Also, more efforts are allocated to expand the markets in Hong Kong and Macau so that both places can serve as a stabilizer for the entire Group. The annual operational plan of the Group has been implemented satisfactorily and the quality of development has been enhanced.

2020 marks the end of the 13th five year plan, the Group will continue its comprehensive deepening of reform and high quality development, and keep on creating value for shareholders. Although the Group's main business market is facing challenges due to the
prevalence of COVID-19 and other factors, the Group is confident in its competitive advantage, execution ability, and capacity to move forward steadily in a volatile market environment.

We will continue to strengthen the leading position in Hong Kong and Macau’s construction market, actively exploring markets and obtaining contracts in both public and private sectors. Large scale construction projects such as public housing, hospitals and airports will be our main focus. Also, we will seek opportunities in investment driven contracting and old buildings reconstruction. On the other hand, we will keep up with the policy and market trend, actively integrating into the construction of Greater Bay area. By utilizing advantages in technology, management, quality and brand in Hong Kong and Macau, we will promote the pilot application of Hong Kong and Macau engineering model in mainland China, and obtain high quality projects based on our differentiation advantages.

CSCI will continue to improve our investment management system, and refine the investment research and project management. Based on the investment map, we will establish a standardized evaluation system for each of the regional markets and different types of investment projects. Our scientific investment model will be guided by the investment map, and we will make full use of it as a reference for evaluating investments specifically and objectively. Apart from investment driven projects, we will also actively obtain projects through various channels such as technology and management driven, and brother company cooperation driven.

In respect of curtain wall business in Hong Kong and Macau, China State Construction Development (Stock Code: 00830) will continue to expand markets. In the mainland, we will take prioritized efficiency and moderate scale as our development strategy. In North America, we will centralize resources and create benefits.

While cultivating the existing market, the Group will also actively respond to the Belt and Road Initiative. By virtue of talents, experience and linguistic advantage in Hong Kong and Macau, we will evaluate overseas business in a steady and orderly manner. Besides, in depth research on policies and regulations in English and Portuguese speaking regions will be conducted, focusing on talent nurturing and localized management. Meanwhile, the Group will also strengthen coordination with other companies within China State Construction in striving to contribute more in the future.