China State Construction Engineering Corporation ("CSCEC", 601668.SH) published the CSCEC 2020 Annual Report (English Version) on its Chinese and English official website to showcase its operation and development results in 2020 to international investors, global partners and friends who care about the development of the company.

As the largest engineering contractor in the world, CSCEC has presence in more than 100 countries and regions. With a responsible attitude towards international investors and a global vision, CSCEC publishes the English version of its periodical reports and performance presentation materials through a matrix of media including its English official website and social media platforms, and communicates actively with international investors. Moreover, weorganize special performance roadshow for international investors and partners to have a better understanding of CSCEC. Meanwhile, the first Investor Protection Report we released highlights the results of the company's investor communication endeavor. As a company listed only on the Chinese A-share market, CSCEC voluntarily published the English annual report, which demonstrated its corporate image in pursuit of global development and keeping up with the development of capital market.

The 2020 annual report covers the achievements of CSCEC in fighting the COVID-19 pandemic, resuming production and operation, deepening reform and encouraging technological innovation, as well as its financial conditions, honors and awards, development strategies, and fulfillment of social responsibilities in 2020. In 2020, CSCEC's operating results hit record highs with a total revenue of RMB1.62 trillion, representing a YoY growth of 13.7%, and net profit attributable to the parent company of RMB44.9 billion, a YoY growth of 7.3%. In 2020, CSCEC was among the top 20 of the Fortune Global 500 for the first time.

Newly signed contracts and revenue exceeding RMB1 trillion for four consecutive years

In 2020, the value of new contracts signed by CSCEC amounted to RMB3,200.8 billion, exceeding RMB3 trillion for the first time, a YoY growth of 11.6%. In particular, the value of newly signed housing construction contracts set a new record high of RMB2,077.9 billion, rising above RMB2 trillion for the first time.

During the Reporting Period, CSCEC recorded a revenue of RMB1,615.0 billion, registering a significant YoY growth of 13.7%. CSCEC maintained a balanced composition of revenue from different business segments. In particular, housing construction business contributed the largest share of revenue, accounting for 61.36% of the total, and exceeding RMB1 trillion for the first time; and 21.36% was generated from infrastructure construction and investment, and 16.63% from real estate development and investment.

Outstanding contribution to pandemic prevention and control

In early 2020 when the COVID-19 was raging, CSCEC was entrusted with a mission at a critical stage to build 119 emergency hospitalsfor pandemic prevention and control, including the Huoshenshan Hospital and the Leishenshan Hospital. In Hong Kong, CSCEC constructed the North Lantau Hospital Hong Kong Infection Control Center within a short period of time.With strong supply chains, core technology for rapid construction and capabilities of prefabricated building integration, CSCEC successfully accomplished these tasks in an impressive speed. In addition, CSCEC, adhering to the principle of putting the safety and health of employees in the first place, established a regular pandemic prevention and control mechanism, set up a pandemic prevention and control office, and implemented various prevention and control measures.

In the face of the fast-spreading pandemic, CSCEC stuck to the principle of "one country, one policy", carried out pandemic prevention and control for overseas institutions and projects according to the local situation, having guaranteed the safety and health of more than 100,000 employees in over 80 countries and regions.

Steadily enhanced of brand value and globally leading creditability

In 2020, CSCEC ascended to the 18th place in the Fortune Global 500 and the 3rd in the Fortune China 500, and topped the list of Top 250 Global Contractors published by Engineering News-Record (ENR)following its top 10 ranking in the list in the previous two consecutive years. CSCEC also achieved the highest ranking in the industry in the Top 500 Global Brands 2020 of Brand Finance. ranked the 100th among the top Forbes Global 2000, ranking first in the construction industry.In 2020, CSCEC was rated A, A2 and A respectively by S&P, Moody's and Fitch, the three major international rating agencies, with "Stable" outlook. CSCEC has maintained the world's highest credit rating in the industry for six consecutive years.

Significant improvement of asset quality and continuous dividend returns to investors

During the reporting period, CSCEC continued to strengthen the debt risk control, with a 73.7% gearing ratio at the year end, down 1.7 percentage points from the beginning of the year. CSCECalso improved cash flow management and took multiple measures to speed up the recovery of project payments and other funds. The net cash inflow from operating activities increased by more than RMB50.0 billion to RMB20.272 billion over the same period of last year, the highest in the past four years.

CSCEC adheres to a stable cash dividend policy and strives to increase the amount of dividends per share each year. In 2020, CSCEC proposed to pay out RMB 2.147 (tax inclusive) per 10 shares in cash dividend, totaling another record high of RMB9,006 million, with the growth rate of cash dividend amount higher than that of revenue and net profit attributable to the parent company.

Future prospects remaining positive

In 2021, CSCEC targets to achieve a steady growth of the total revenue over RMB1.76 trillion and newly signed contracts over RMB3.50 trillion. In the new development stage in 2021, CSCEC will focus on the strategic goals of "one creation and five aspects of strength", accelerate the implementation of the "166" strategic measures, and continue to benchmark world-class leaders in the industry. Based on the demand of investors, CSCEC will enhance the relevance and effectiveness of information disclosure, strengthen the communication with investors, and continuously improve business quality.