On 22 July, China Resources Group held the management conference for the first half of 2020 through video conference covering regions including Hong Kong, Shenzhen and Beijing. The Group’s Strategy Management Department and Finance Department reported the operating performance and overall financial performance respectively for the first half of the year. During the period under review, the Group posted a revenue of HK$316.7 billion of which HK$180.6 billion was realized during the second quarter, representing a growth of 1% year-on-year. The decline in revenue has narrowed significantly for 1H20 although it has not resumed to the level of the same period over the last year. CR Capital, Strategic Business Units and Business Units including CR Microelectronics, CR Ng Fung, CR Cement, CR Jiangzhong Pharmaceutical and CR Healthcare achieved growth both in revenue and profit, whereas CR Beer, CR Power, CR Land, CR Cement and CR Chemical Innovative Materials are picking up rapidly. The Group as a whole has resumed positively and outperformed the market.
It was reported in the conference that the first half of the year was extraordinarily unusual and challenging for the Group, and the results were hard-won. In the face of the unexpected outbreak of COVID-19, followed by the complex and grim macro environment, the Group resolutely implemented the policy of the Central Government according to the “three stabilizing, four safeguarding and one strengthening” requirements of the State-owned Assets Supervision and Administration Commission of the State Council. The concerted effort in overcoming the difficulties has resulted in successful prevention and control of the pandemic as well as advancement in business operations and progress. The success was attributable to the resilience of the Group supported by its diversified business portfolio; the improved organizational capacity and efficiency driven by the Group’s quality and efficiency improvement and delicacy management initiatives in recent years; and the Group’s courage to take on responsibilities, commitment to best practices and determination to fulfilling its mission.
Despite the expectedly ongoing economic downturn, spread of the pandemic, Sino-US tension and political instability in Hong Kong, the conference revealed that Mainland China remained the key factors impacting the performance of the Group. With continuous improvement in epidemic prevention and control in the Mainland where the resumption of work, productions, business operations and investment markets are in orderly and progressive manner. Economic growth has seen positive growth from a plunge whereas the emerging service sector is accelerating to outperform others. Economic recovery is well underway with consumption resuming steadily. The Group is well positioned to achieved its business targets on its planned budget as the business environment is expected to improve further in the second half of the year.
It was emphasized in the conference that the second half of the year is a critical stage for China’s effort in the alleviation of poverty and fulfilment of its target of building a well-off society. It is marks the successful closing of the 13th Five-Year Planning and the beginning of the 14th Five-Year Planning. The Group has to pay attention to the changes in the macro environment at home and abroad as well as to ride on the new development pattern with the domestic cycle as the key driver and the interactions of the domestic and international cycles as the driving force. The Group also actively embraces the new business operations and models of the post-epidemic digital economy. While prudently planning its“14th Five-Year Plan” and international strategies, the Group is carefully considering and accessing new opportunities and capacity of its five core businesses. The Group strives to nurture and embrace new opportunities amidst the crisis and changes in a view to support the Communist Party and the nation’s steady reform and development.
Adhering to the national policy of “deepening reform and innovation, and accelerating quality and development”, the Group will develop progressively in concerted effort to deliver its tasks with a focus on the following areas in the second half of the year: manage the budget, stabilize the hard-won development, maintain the business momentum, enhance the effort and achieve the full year targets. To promote innovation, we have to break through the challenges of the traditional system and practices, strengthen collaboration and enhance technological competitiveness. To enhance development, we have to strengthen regional development, mitigate risks of international business, accelerate digitalization and cultivate new business growth areas. To spearhead reform, we have to carefully outline the “14th Five-Year Plan” strategy, implement the state-owned capital investment company pilot scheme and strictly execute the policy of “mixed-ownership reform” and “double-hundred action”. To strengthen internal control, we have to enhance our research and assessment of the macro environment, optimize corporate governance system, improve risk mitigation related to capital, the US and Hong Kong matters. To fulfil responsibilities, we have to adhere to the practice of feedback, ensure the completion of tasks upon inspection and rectification, accelerate the formation of the “Great Pattern of Supervision”, fulfil our political commitment and complete the poverty alleviation mission on time. To prevent epidemic, we have to overcome rigidity, fluke and tiredness in an effort to constantly enhance epidemic control and prevention, and safeguard the wellbeing of people.