PDF《ANNUAL REPORT 2018》

ANNUAL REPORT

2018 President'

s Statement

2 Financial Information Summary

3 Corporate Profile

6 Management Discussion and Analysis

8 Corporate Milestones in

2018 34 Directors'

Report

37 Supervisory Board'

s Report

68 Corporate Governance Report

71 Environmental, Social and Governance Report

89 Profiles of Directors and Senior Management

122 Human Resources

129 Independent Auditor'

s Report

131 Consolidated Statement of Comprehensive Income

138 Consolidated Balance Sheet

140 Consolidated Statement of Changes in Equity

142 Consolidated Statement of Cash Flows

144 Notes to the Consolidated Financial Statements

146 Glossary of Terms

313 Corporate Information

318 CONTENTS China Aluminum International Engineering Corporation Limited

2 PRESIDENT'

S STATEMENT China Aluminum International Engineering Corporation Limited

2 The year

2018 marked the 40th anniversary of China'

s reform and opening-up, as well as the 15th anniversary of the establishment of Chalieco.

In light of the complex factors such as changing economic environment, the shrinking non-ferrous industry and the fierce competition in the external market, all of the staff of Chalieco endeavored to overcome the difficulties and made concerted efforts with hard persevering work which enabled us to ride through the challenges amidst the intense market competition. The Company has successfully completed the listing of A Shares, and the reform and development has made new progress. Our business value, industry position and capital strength are widely recognized by all sections of the society. In 2018, the Group'

s operating revenue amounted to RMB33.6 billion;

the operating profit amounted to RMB1 billion;

and net cash inflow from operating activities was RMB0.6 billion. The year

2019 marks the 70th anniversary of the establishment of China, which will play a crucial role in the comprehensive development to a moderate and prosperous society. The year is also a reform and innovation year of Chalieco. We will adhere to make progress on a steady pace, insist on high quality development, enhance investment in R&

D, strengthen marketing efforts, refine project management, focus on risk prevention, and further enhance the market competitiveness. We will strive forward to develop into a world leading engineering technical group. Zong Xiaoping President Annual Report

2018 3 Annual Report

2018 3 FINANCIAL INFORMATION SUMMARY (RMB100 million) TOTAL ASSETS

2014 (As restated)

2015 (As restated)

2016 (As restated)

2017 2018

0 100

200 300

400 500 334.01 315.20 438.08 453.74 490.31 (RMB100 million) TOTAL EQUITY

2014 (As restated)

2015 (As restated)

2016 (As restated)

2017 2018

0 30

60 90

120 150 87.83 92.72 139.97 121.28 131.85 China Aluminum International Engineering Corporation Limited

4 China Aluminum International Engineering Corporation Limited

4 FINANCIAL INFORMATION SUMMARY (RMB100 million)

0 80

160 240

320 400

2014 (As restated)

2015 (As restated)

2016 (As restated)

2017 2018 198.98 209.62 269.66 360.65 335.72 INCOME (RMB100 million)

0 10

20 30

40 50

2014 (As restated)

2015 (As restated)

2016 (As restated)

2017 2018 10.39 8.02 13.37 10.77 6.85 PROFIT BEFORE TAX Annual Report

2018 5 Annual Report

2018 5 FINANCIAL INFORMATION SUMMARY RMB

2014 (As restated)

2015 (As restated)

2016 (As restated)

2017 (As restated)

2018 EARNINGS PER SHARE 0.0 0.2 0.4 0.6 0.8 0.26 0.19 0.35 0.20 0.08 % 10.32 6.90 9.45 7.94 4.26 0.0 2.2 4.4 6.6 8.8 11.0

2014 (As restated)

2015 (As restated)

2016 (As restated)

2017 2018 YIELD OF NET ASSETS China Aluminum International Engineering Corporation Limited

6 China Aluminum International Engineering Corporation Limited

6 CORPORATE PROFILE THE ISSUANCE AND LISTING OF THE SHARES The Company is a subsidiary of China Aluminum Group and listed on the Main Board of the Stock Exchange (Stock Code: 2068) on

6 July

2012 with an offering price of HK$3.93 per H Share. On

31 August 2018, the total number of 295,906,667 A Shares were issued at an issue price of RMB3.45 per A Share in the SSE (Stock Code: 601068). As of

31 December 2018, the total number of Shares in issuance of the Group is 2,959,066,667 Shares, which is comprised of 399,476,000 H Shares, representing 13.5% of the issued share capital, and 2,559,590,667 A Shares, representing 86.5% of the issued share capital. BUSINESS OVERVIEW The Group is a leading technology, engineering service and equipment provider in the nonferrous metals industry in China, capable of providing full business-chain integrated engineering solutions for various stages in nonferrous metals industry chain. The Group'

s businesses mainly include engineering design and consultancy, engineering and construction contracting, equipment manufacturing and equipment trading. CORPORATE STRUCTURE Upon the listing of A Shares, the shareholding ratio of Shareholders of the Company is changed as follows: 100% 100% 100% 73.5% 100% 100% 100% 62.5% 100% 100% 100% 100% 60% 100% 90% 100% 100% 100% 100% 100% The Company Luoyang Institute SAMI GAMI Changsha Institute CNPT Changkan Institute Kunming Survey and Design Institute Sixth Metallurgical Company Ninth Metallurgical Company Twelfth Metallurgical Company Tianjin Construction Shandong Engineering China Aluminum Technology China Aluminum Equipment Beijing Zichen Qingdao Xinfu A Subsidiary in India A Subsidiary in Hong Kong Other Companies China Aluminum Aluminum Chalco Investment (8) (5) (6) (7) (11) (1) (3) (2) (4) (10) (9) 100% 73.56% 2.94% 13.50% 10% China Aluminum Group H Share Public Shareholders A Share Public Shareholders Luoyang Institute Annual Report

2018 7 Annual Report

2018 7 CORPORATE PROFILE Notes (1) represents China Nonferrous Metals Processing Technology Co., Ltd., the remaining 26.5% of the equity interest is held by Suzhou Changguang Enterprises Development Co., Ltd. (苏州长光企业发展有限公司) as to 17.5%, China Nonferrous Engineering Co., Ltd. (中国有色工程有限公司) as to 6%, Beijing General Research Institute for Nonferrous Metals (北京有色金属研究总院) as to 2%, and Powder Metallurgy Engineering Research Center of Central South University Co., Ltd. (中南大学粉末冶金工程研究中心有限公司) as to 1%, all of which are independent third parties. (2) represents Kunming Survey and Design Institute Co., Ltd. of China Nonferrous Metals Industry (3) represents Ninth Metallurgical Construction Co., Ltd., the remaining 37.5% of the equity interest is held by natural person shareholders as to 30.27%, and State-owned Assets Supervision and Administration Commission of Xianyang City as to 7.23%, both of whom are independent third parties. (4) represents Chalco Shandong Engineering Technology Co., Ltd., the remaining 40% of the equity interest is held by Aluminum Corporation of China Limited. (5) represents Beijing Zichen Investment Development Corporation Limited (北京紫宸投资发展有限公司) (6) represents Qingdao Xinfu Gongchuang Asset Management Company Limited (青岛新富共创资产管理有限公司), the remaining 10% of the equity interest is held by independent natural person shareholders. (7) represents China Aluminum International Engineering (India) Private Limited (中铝国际工程(印度)私人有限公司) (8) represents Chalieco Hong Kong Corporation Limited (中铝国际香港有限公司) (9) represents China Aluminum International Aluminum Technological Development Co., Ltd. (中铝国际铝材科技产业有限公司) (10) represents Chalco Southwest Construction Investment Co. Ltd. (中铝西南建设投资有限公司) (11) represents Duyun Tongda, Wenzhou Tonggang, Wenzhou Tongrun, etc. MANAGEMENT DISCUSSION AND ANALYSIS China Aluminum International Engineering Corporation Limited

8 China ........