华新水泥(600801)2008年年度报告

华新水泥股份有限公司 600801 2008 年年度报告 一、重要提示 (一) 本公司董事会、监事会及其董事、监事、高级管理人员保证本报告所载资料不存在任何虚假 记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 (二) 公司独立董事林宗寿先生因出席全国政协会议而未出席本次董事会，委托独立董事张天武先 生代为出席并行使表决权。 公司董事 Paul O'Callaghan 先生因个人事务而未出席本次会议，委托董事 Tom Clough 先生代为出席 并行使表决权。 (三) 普华永道中天会计师事务所有限公司为本公司出具了标准无保留意见的审计报告。 (四) 公司董事长陈木森先生、总裁李叶青先生、财务总监孔玲玲女士及会计机构负责人黄开顺先 生声明：保证年度报告中财务报告的真实、完整。 二、公司基本情况 公司法定中文名称 华新水泥股份有限公司 公司法定中文名称缩写 华新水泥 公司法定英文名称 Huaxin Cement Co., Ltd. 公司法定英文名称缩写 HUAXINCEM 公司法定代表人 陈木森先生 公司董事会秘书情况 董事会秘书姓名 王锡明先生 董事会秘书联系地址 湖北省武汉市关山二路特 1 号国际企业中心 5 号楼 董事会秘书电话 027-87773896 董事会秘书传真 027-87773897 董事会秘书电子信箱 investor@huaxincem.com 公司证券事务代表情况 证券事务代表姓名 王璐女士 证券事务代表联系地址 湖北省武汉市关山二路特 1 号国际企业中心 5 号楼 证券事务代表电话 027-87773898 证券事务代表传真 027-87773897 证券事务代表电子信箱 investor@huaxincem.com 公司注册地址 湖北省黄石市黄石大道 897 号 公司办公地址 湖北省武汉市关山二路特 1 号国际企业中心 5 号楼 公司办公地址邮政编码 430073 公司国际互联网网址 huaxincem.com 公司电子信箱 investor@huaxincem.com 公司选定的信息披露报纸名称 中国证券报、上海证券报、香港商报 登载年度报告的中国证监会指定网站的网址 www.sse.com.cn 公司年度报告备置地点 公司证券办公室 公司股票简况 股票种类 股票上市交易所 股票简称 股票代码 变更前股票简称 A股 上海证券交易所 华新水泥 600801 B股 上海证券交易所 华新 B 股 900933 其他有关资料 公司首次注册日期 1993 年 11 月 30 日 公司首次注册地点 湖北省黄石市黄石大道 897 号 企业法人营业执照注册号 420000400000283 税务登记号码 420203706806882 组织机构代码 70680688-2 公司聘请的会计师事务所情况 公司聘请的境内会计师事务所名称 普华永道中天会计师事务所有限公司 公司聘请的境内会计师事务所办公地址 上海市湖滨路 202 号普华永道中心 11 楼 1 三、会计数据和业务数据摘要 (一) 主要会计数据 单位：元 币种：人民币 项目 金额 营业利润 462,486,029 利润总额 576,944,469 归属于上市公司股东的净利润 459,975,559 归属于上市公司股东的扣除非经常性损益后的净利润 435,429,123 经营活动产生的现金流量净额 1,164,885,826 (二) 非经常性损益项目和金额： 单位：元 币种：人民币 非经常性损益项目 金额 说明 非流动资产处置损益 -5,097,522 主要为固定资产处置损益 计入当期损益的政府补助，但与公司正常经营 业务密切相关，符合国家政策规定、按照一定 42,677,889 主要为地方政府财政补助 标准定额或定量持续享受的政府补助除外 除上述各项之外的其他营业外收入和支出 2,832,028 少数股东权益影响额 -8,342,042 所得税影响额 -7,523,917 合计 24,546,436 (三) 报告期末公司前三年主要会计数据和财务指标 单位：元 币种：人民币 本年比上年 2008 年 2007 年 2006 年 增减(%) 营业收入 6,349,459,647 4,770,108,141 33.11 3,558,602,157 利润总额 576,944,469 448,819,327 28.55 231,042,695 归属于上市公司股东的净利润 459,975,559 290,245,247 58.48 152,869,885 归属于上市公司股东的扣除非 435,429,123 282,002,913 54.41 148,202,363 经常性损益的净利润 基本每股收益（元／股） 1.18 0.88 34.09 0.47 稀释每股收益（元／股） 1.18 0.88 34.09 0.47 扣除非经常性损益后的基本每 1.11 0.86 29.07 0.45 股收益（元／股） 减少 5.96 个 全面摊薄净资产收益率（%） 11.31 17.27 11.16 百分点 减少 6.35 个 加权平均净资产收益率（%） 12.98 19.33 11.76 百分点 扣除非经常性损益后全面摊薄 减少 6.08 个 10.70 16.78 10.82 净资产收益率（%） 百分点 扣除非经常性损益后的加权平 减少 6.49 个 12.29 18.78 11.42 均净资产收益率（%） 百分点 经营活动产生的现金流量净额 1,164,885,826 962,526,944 21.02 959,074,181 每股经营活动产生的现金流量 2.89 2.93 -1.37 2.92 净额（元／股） 本年末比上 2008 年末 2007 年末 2006 年末 年末增减(%) 总资产 10,716,353,587 8,513,557,401 25.87 7,142,266,685 所有者权益（或股东权益） 4,067,767,031 1,680,714,092 142.03 1,369,710,540 归属于上市公司股东的每股净 10.08 5.12 96.88 4.17 资产（元／股） 2 四、股本变动及股东情况 (一) 股本变动情况 1、股份变动情况表 单位：股 本次变动前 本次变动增减（＋，－） 本次变动后 公积 比例 送 比例 数量 发行新股 金转 其他 小计 数量 (%) 股 (%) 股 一、有限售 条件股份 1、国家持股 79,250,648 24.13 -3,962,532 -3,962,532 75,288,116 18.65 2、国有法人 9,870,232 3.01 -9,870,232 -9,870,232 0 0 持股 3、其他内资 持股 其中： 境内 非国有法人 持股 境内自然 人持股 ４、外资持 75,200,000 85,761,300 160,961,300 160,961,300 39.88 股 其中： 境外 75,200,000 85,761,300 160,961,300 160,961,300 39.88 法人持股 境外自然 人持股 有限售条件 89,120,880 27.14 75,200,000 71,928,536 147,128,536 236,249,416 58.53 股份合计 二、无限售 条件流通股 份 1、人民币普 75,279,120 22.92 13,832,764 13,832,764 89,111,884 22.08 通股 2、境内上市 - 164,000,000 49.94 -85,761,300 78,238,700 19.39 的外资股 85,761,300 3、境外上市 的外资股 4、其他 无限售条件 - 流通股份合 239,279,120 72.86 -71,928,536 167,350,584 41.47 71,928,536 计 三、股份总 328,400,000 100.00 75,200,000 75,200,000 403,600,000 100.00 数 股份变动的批准情况 2008 年 1 月 3 日, 中国证券监督管理委员会证监许可[2008]22 文《关于核准华新水泥股份有限公司 非公开发行股票的通知》，核准公司以非公开发行股票的方式，向 Holchin B.V.定向增发 7520 万股 A 股。2008 年 2 月 18 日，公司完成了是次非公开发行股票的工作。 股份变动的过户情况 公司于 2008 年 2 月 4 日，在中国证券登记结算有限责任公司上海分公司办理完毕新增发行 7520 万 股 A 股的股份登记工作。 3 2、限售股份变动情况 单位：股 年初限售 本年解除限 本年增加限 年末限售股 解除限售日 股东名称 限售原因 股数 售股数 售股数 数 期 认购公司增 2011 年 2 月 Holchin B.V. 160,961,300 160,961,300 发新股 4日 国家股(由华新 2008 年 12 月 集团有限公司 79,250,648 3,962,532 75,288,116 股改承诺 29 日 代为持有） 华新集团有限 2008 年 12 月 9,870,232 9,870,232 0 股改承诺 公司 29 日 合计 89,120,880 13,832,764 160,961,300 236,249,416 / / (二) 证券发行与上市情况 1、前三年历次证券发行情况 单位：股 币种:人民币 股票及其衍生证 发行价格 获准上市 交易终 发行日期 发行数量 上市日期 券的种类 （元） 交易数量 止日期 A股 2008 年 2 月 4 日 26.95 75,200,000 本次增发的股份，自发行完成之日起三年内不得转让（限售期至 2011 年 2 月 4 日） 2、公司股份总数及结构的变动情况 公司在 2008 年 2 月完成向 Holchin B.V.定向增发 7520 万股 A 股后，总股本由 32840 万股增加到 40360 万股。在这次增发完成后，公司 A 股股份总数由 16440 万股增至 23960 万股。此外，根据《外国 战略投资者对上市公司战略投资管理办法》的规定及 Holchin B.V.承诺，Holchin B.V.本次所认购的 7520 万股 A 股及其原所持有的 8576.13 万股 B 股，股份均予以锁定，锁定期为三年。 3、现存的内部职工股情况 本报告期末公司无内部职工股。 (三) 股东和实际控制人情况 1、股东数量和持股情况 单位：股 报告期末股东总数 30,649 户 前十名股东持股情况 持有有限售 质押或冻 持股比 报告期内增 股东名称 股东性质 持股总数 条件股份数 结的股份 例(%) 减 量 数量 Holchin B.V. 境外法人 39.88 160,961,300 75,200,000 160,961,300 国家拥有股份（由华新集团有 质押 国家 19.64 79,250,648 75,288,116 限公司代为持有） 11,750,000 华新集团有限公司 国有法人 2.45 9,870,232 MEINL BANK 其他 2.01 8,130,668 AKTIENGESELLSCHAFT JPMORGAN CHASE BANK, 其他 1.06 4,260,075 4,260,075 NATIONAL ASS0CIATION 长城品牌优选股票型证券投资 其他 1.05 4,251,337 基金 GAO-LING FUND,L.P. 其他 0.98 3,964,612 3,964,612 全国社保基金一零八组合 其他 0.97 3,899,950 499,950 JPMCB/SCHRODER INTERNATIONAL SELECTION 其他 0.84 3,374,627 537,748 FUND-GREATER CHINA FUND 黄石铁路联营公司 其他 0.62 2,520,000 4 前十名无限售条件股东持股情况 持有无限售条件股份 股东名称 股份种类 的数量 华新集团有限公司 9,870,232 人民币普通股 MEINL BANK AKTIENGESELLSCHAFT 8,130,668 境内上市外资股 JPMORGAN CHASE BANK, NATIONAL 4,260,075 人民币普通股 ASS0CIATION 长城品牌优选股票型证券投资基金 4,251,337 人民币普通股 GAO-LING FUND,L.P. 3,964,612 境内上市外资股 国家拥有股份（由华新集团有限公司代为持有） 3,962,532 人民币普通股 全国社保基金一零八组合 3,899,950 人民币普通股 JPMCB/SCHRODER INTERNATIONAL 3,374,627 境内上市外资股 SELECTION FUND-GREATER CHINA FUND 黄石铁路联营公司 2,520,000 人民币普通股 摩根士丹利中国 A 股基金 2,480,856 人民币普通股 除华新集团有限公司代国家持有国有股份外， 公司未知其他股东之间是否存在关联关系或属 上述股东关联关系或一致行动的说明 于《上市公司持股变动信息披露管理办法》中 规定的一致行动人。 前十名有限售条件股东持股数量及限售条件 单位:股 有限售条件股份可上市交易情况 序 有限售条件股东名 持有的有限售 新增可上市交易 限售条件 号 称 条件股份数量 可上市交易时间 股份数量 1 Holchin B.V. 160,961,300 2011 年 2 月 4 日 160,961,300 国家拥有股份(由华 2009 年 12 月 29 日 7,925,065 通过上海证券交 2 新集团有限公司代 75,288,116 易所挂牌出售价 2010 年 12 月 29 日 67,363,051 为持有) 格不低于 9 元/股 2、第一大股东及其控制人情况 (1) 第一大股东情况 单位:元 币种:欧元 名称 注册资本 成立日期 主营业务 设立公司和其它企业，收购、管理、监督、 Holchin B.V. 100,000 1998 年 6 月 16 日 转让在法人、公司、企业的股权和其它权益 (2) 第一大股东实际控制人情况 单位: 元 币种:瑞士法郎 名称 注册资本 成立日期 主营业务 水泥、混凝料（砂砾和沙）以及混凝土生 Holcim Ltd. 527,172,180 1930 年 7 月 26 日 产与销售 (3) 第一大股东及实际控制人变更情况 新第一大股东名称 Holchin B.V. 新第一大股东实际控制人名称 Holcim Ltd. 第一大股东发生变更的日期 2008 年 2 月 4 日 披露第一大股东发生变更相关信息的指定报纸 中国证券报、上海证券报、香港商报 披露第一大股东发生变更相关信息的日期 2008 年 2 月 18 日 5 (4) 公司与第一大股东实际控制人之间的产权及控制关系的方框图 Holcim Ltd. 瑞士 100％ Holderfin B.V. 荷兰 100％ Holchin B.V. 荷兰 39.88％ 华新水泥股份有限公司 3、其他持股在百分之十以上的法人股东 单位:元 币种:人民币 法人股东 法人股东 法人股东 法人股东主要经营业务或管理活 法人股东名称 法人代表 注册资本 成立日期 动 1996 年 11 制造、销售水泥制品、机械配 华新集团有限公司 陈木森先生 370,000,000 月 14 日 件、房地产开发、商业、服务等 五、董事、监事和高级管理人员 (一) 董事、监事、高级管理人员的情况 单位:股 报告 是否 期内 在股 从公 东单 是否 司领 位或 变 在公 取的 其他 性 年 任期起止日 年初持股 年末持股 股份增 动 司领 姓名 职务 报酬 关联 别 龄 期 数 数 减数 原 取报 总额 单位 因 酬、 （万 领取 津贴 元） 报 （税 酬、 前） 津贴 2006 年 4 月 董事 陈木森 男 59 7 日～2009 63,410 63,410 是 104.4 否 长 年4月7日 董 2006 年 4 月 李叶青 事、 男 44 7 日～2009 54,042 54,042 是 104.4 否 总裁 年4月7日 2006 年 4 月 副董 Tom Clough 男 61 7 日～2009 是 6 是 事长 年4月7日 2008 年 4 月 Paul 董事 男 53 22 日～2009 是 3 是 O'Callaghan 年4月7日 2006 年 4 月 Paul Thaler 董事 男 42 7 日～2009 是 6 是 年4月7日 2006 年 4 月 纪昌华 董事 男 54 7 日～2009 35,160 35,160 是 72.4 否 年4月7日 独立 2006 年 4 月 张天武 男 45 是 6 否 董事 7 日～2009 6 年4月7日 2006 年 4 月 独立 谢获宝 男 41 7 日～2009 是 6 否 董事 年4月7日 2006 年 4 月 独立 林宗寿 男 51 7 日～2009 是 6 否 董事 年4月7日 监事 2006 年 4 月 周家明 会主 男 54 7 日～2009 30,900 30,900 是 68.5 否 席 年4月7日 2006 年 4 月 杨春华 监事 男 57 7 日～2009 是 17 否 年4月7日 2006 年 4 月 王国杰 监事 男 47 7 日～2009 是 1.2 是 年4月7日 2006 年 4 月 江大才 监事 男 50 7 日～2009 是 23.3 否 年4月7日 2006 年 4 月 陈兵 监事 男 41 7 日～2009 是 23.3 否 年4月7日 副总 裁兼 2006 年 4 月 王锡明 董事 男 49 7 日～2009 32,500 32,500 是 71 否 会秘 年4月7日 书 2006 年 4 月 副总 售 彭清宇 男 48 7 日～2009 41,500 37,775 -3,725 是 76.5 否 裁 股 年4月7日 2006 年 4 月 副总 孔玲玲 女 44 7 日～2009 31,260 31,260 是 74.6 否 裁 年4月7日 2006 年 4 月 副总 冯东光 男 41 7 日～2009 20,800 20,800 是 70.3 否 裁 年4月7日 2006 年 4 月 副总 柯友良 男 43 7 日～2009 21,100 21,100 是 70 否 裁 年4月7日 合计 / / / / 330,672 326,947 -3,725 / / 809.9 / 董事、监事、高级管理人员最近 5 年的主要工作经历： 1、陈木森先生,59 岁，大学学历,高级经济师。陈木森先生于 1999 年 11 月加入本公司，一直担任本 公司董事长。陈木森先生亦兼任股东华新集团有限公司董事长。 2、李叶青先生,44 岁，博士,教授级高级工程师。李叶青先生于 1984 年毕业于武汉建材学院（今武 汉理工大学）硅酸盐专业，获工学学士学位；1992 年毕业于武汉工业大学工业管理专业，获工学硕士学 位；2002 年 6 月毕业于华中科技大学管理科学与工程专业，获管理学博士学位。李叶青先生于 1987 年 11 月加入华新水泥厂（本公司前身），先后任中心化验室质量控制工程师、石灰石矿副矿长、扩改办副 主任、生产技术处长，1993 年 1 月任华新水泥厂副厂长，1994 年 6 月任本公司副总经理，1999 年 12 月 任本公司总经理，2004 年 3 月任本公司总裁。1994 年起，出任本公司董事。 3、Tom Clough 先生,61 岁，英国籍，University of Leeds(利兹大学)采矿工程学士。1997 年至今, 先 后担任 Holcim 集团 PT Semen Makmur(马克姆尔水泥公司)执行董事、Alsons Cement Corporation(阿尔松 斯水泥公司)CEO、PT Semen Cibinong Tbk(西比龙水泥公司)执行董事、Holcim 集团执行委员会成员。 2004 年 10 月起，出任本公司董事。2006 年 4 月，出任本公司副董事长。 4、Paul O'Callaghan 先生，53 岁，澳大利亚籍，澳大利亚中央昆士兰大学管理学硕士。1976～ 2001，在昆士兰水泥有限公司负责多个工程项目，先后任其格拉德斯通工厂经理，集团计划执行官，南 部昆士兰水泥总经理，商业发展总经理，销售和装运总经理。2001～2002，任菲律宾阿尔松斯水泥有限 7 公司首席运营官；2002～2007，任 Holcim 菲律宾公司（HPHI）首席运营官和董事；2007～2008，任 Holcim 地区经理，负责澳大利亚和新西兰地区。2008 年 4 月起，出任本公司董事。 5、.Paul Thaler 先生,42 岁，律师，瑞士籍。苏黎士大学法律专业硕士及法学博士，北京大学研究学 者。1997-1998，北京一家律师行外方律师；2000-2006，瑞士文斐律师事务所合伙人，２００７年起， 文斐律师有限公司常务董事及其驻北京办事处首席代表。2003 年 4 月起，出任本公司董事。 6、纪昌华先生,54 岁，法学学士,高级政工师。纪昌华先生于 1972 年 2 月加入华新水泥厂（本公司 前身），先后任机修车间副书记、副主任、主任兼书记；1997 年起，任华新集团有限公司副总经理。 2000 年 2 月起，出任本公司董事、党委副书记。 7、张天武先生,45 岁，法律硕士,律师。1998- 2005 年，任湖北君尚君律师事务所副主任；2005 年至 今，任湖北得伟君尚律师事务所执行合伙人。现为武汉市律师协会理事、武汉仲裁委员会仲裁员、武汉 市江岸区政协委员。2002 年 4 月起，出任本公司独立董事。 8、谢获宝先生,41 岁，武汉大学企业管理博士，中南财经政法大学会计学博士后。1993 年至今，历 任武汉大学商学院会计系助教、讲师、副教授、教授、系副主任。2002 年 4 月起，出任本公司独立董 事。 9、林宗寿先生,51 岁，武汉工业大学无机非金属材料专业硕士、武汉理工大学博士生导师。1985 年 至今，历任武汉理工大学教师、教授、博士生导师。 第九届、第十届全国人大代表。2003 年 4 月起， 出任本公司独立董事。 10、周家明先生,54 岁，大学学历,工程师，高级经济师。周家明先生于 1971 年 11 月加入华新水泥 厂（本公司前身），先后任中心化验室副主任、主任；1997 年 4 月-2000 年 2 月，任本公司副总经理； 2000 年 2 月起，出任本公司纪委书记、工会主席、监事会主席。 11、杨春华先生,57 岁，大学学历，高级经济师。杨春华先生于 1970 年 7 月加入华新水泥厂（本公 司前身），先后任本公司组织部干部科长、组织部副部长兼人事处副处长、劳动人事部部长、黄石分公 司副总经理、纪委副书记。2000 年 4 月起，出任本公司工会副主席、监事。 12、王国杰先生,47 岁，加拿大约克大学工商管理学硕士，美国注册会计师，加拿大注册会计师。 1995 至 1997 年，任上海共享数据网络有限公司财务总监。1998 至 2001 年，任苏州金猫水泥有限公司财 务总监。2001 年至 2008 年，任 Holcim 集团服务有限公司（苏黎世）地区财务总监。2006 年 4 月起，出 任本公司监事。 13、江大才先生,50 岁，大专学历，高级经营师。江大才先生于 1975 年加入华新水泥厂（本公司前 身），先后任本公司烧成车间主任、制造一分厂厂长、制造二分厂厂长。2004 年 3 月至 2006 年 1 月任 公司黄石分公司副总经理，2006 年 2 月起任公司黄石分公司常务副总经理。2008 年 2 月起任黄石分公司 总经理。2006 年 4 月起，出任本公司监事。 14、陈兵先生,41 岁，工商管理硕士，高级工程师。陈兵先生于 1989 年加入华新水泥厂（本公司前 身），先后任销售分公司销策划开发部技术服务部经理、武汉市场部经理。2003 年 2 月，任公司销售分 公司副总经理、华新武汉分公司总经理。2002 年 7 月至 2006 年 9 月，兼任武钢华新水泥有限公司总经 理。2006 年 2 月起，任华新水泥（武汉）有限公司总经理。2009 年 1 月，任公司混凝土骨料事业管理部 副总经理。2006 年 4 月起，出任本公司监事。 15、王锡明先生,49 岁，工商管理硕士，高级经济师。1982 年 2 月毕业于武汉钢铁学院（今武汉科 技大学）化学专业，获工学学士学位；1993 年 1 月毕业于中国人民大学工商管理专业，获工商管理硕士 （MBA）学位。王锡明先生于 1982 年加入华新水泥厂（本公司前身），先后任华新中专教师，华新水 泥厂团委副书记，黄石市委组织部干部，华新水泥厂劳动人事处副处长、计划处副处长，本公司证券部 副经理、经理、董秘兼证券部经理。2000 年 4 月起, 任本公司副总经理，董事会秘书。2004 年 3 月起， 任本公司副总裁。 16、彭清宇先生,48 岁，硕士，高级经济师。2004 年 4 月毕业于华中科技大学西方经济学专业，获 经济学硕士学位。彭清宇先生于 1979 年 1 月加入华新水泥厂（本公司前身），先后任华新水泥厂销售 处科长、华新南通贸易公司副经理、华通贸易公司经理兼上海办事处主任，本公司销售部经理、销售公 司副经理。2000 年 4 月起，任本公司副总经理兼销售公司经理。2004 年 3 月起，任本公司副总裁。 17、孔玲玲女士,44 岁，经济学硕士，高级经济师。1985 年毕业于武汉工业大学（今武汉理工大 学），获工学学士学位；1992 年 12 月毕业于复旦大学企业管理专业，获经济学硕士学位。孔玲玲女士 于 1985 年 7 月加入华新水泥厂（本公司前身），先后任华新水泥厂科研所工程师、团委副书记，本公 司财务部副部长、计划部副部长、财务部经理。2000 年 4 月起，任本公司副总经理。2004 年 3 月起，任 本公司副总裁。 18、冯东光先生,41 岁，硕士，高级工程师。1989 年毕业于武汉工业大学（今武汉理工大学）硅酸 盐工程专业，获工学学士学位；2003 年毕业于华中科技大学工商管理专业，获工商管理硕士学位。冯东 光先生于 1989 年加入华新水泥厂（本公司前身），先后任本公司干法分厂厂长助理、厂长。2001 年 11 月，任本公司总经理助理。2003 年 4 月起，任本公司副总经理。2004 年 3 月起，任本公司副总裁。 8 19、柯友良先生,43 岁，管理学博士，高级经济师。2007 年毕业于武汉理工大学管理科学与工程专 业，获管理学博士学位。柯友良先生于 1985 年加入华新水泥厂（本公司前身），先后任本公司投资部 经理助理、工程部管理部部长、工程部综合管理部副部长、计划发展部经理。2001 年 11 月，任本公司 总经理助理兼计划发展部经理。2003 年 4 月起，任本公司副总经理。2004 年 3 月起，任本公司副总裁。 (二) 在股东单位任职情况 姓名 股东单位名称 担任的职务 任期起始日期 是否领取报酬津贴 陈木森 华新集团有限公司 董事长 1999 年 11 月 5 日 否 李叶青 华新集团有限公司 党委书记 2001 年 9 月 7 日 否 Tom Clough Holchin B.V. 董事 2004 年 11 月 1 日 否 纪昌华 华新集团有限公司 副总经理 1997 年 4 月 2 日 否 工会主席、纪委 周家明 华新集团有限公司 2000 年 2 月 22 日 否 书记 在其他单位任职情况 公司董事 Paul O'Callaghan 先生、Paul Thaler 先生，独立董事张天武先生、谢获宝先生、林宗寿先生 等人在其它单位有任职，任职情况详见上述董事工作经历。 (三) 董事、监事、高级管理人员报酬情况 1、董事、监事、高级管理人员报酬的决策程序 董事会薪酬与考核委员会提议，董事会讨论决定高级管理人员的薪酬；涉及董事、监事的年度报酬 报股东大会批准。 2、董事、监事、高级管理人员报酬确定依据 （1）公司董事、监事报酬的确定依据：2004 年 4 月 28 日公司 2003 年度股东大会通过的《关于调 整董事和监事职务津贴标准的议案》。 （2）公司高级管理人员报酬的确定依据： 2007 年 4 月 6 日公司 2006 年度股东大会通过《关于调整高管团队成员的薪资与短期激励计划的议 案》，确定了高管团队的基薪、短期激励标准及关键业绩指标，并授权董事会薪酬与考核委员会结合公 司实际完成的经营业绩指标，拟订高管团队成员每年的基薪以及合理的基薪增长比例，再报董事会审议 通过。 2008 年 6 月 27 日公司第五届董事会第二十五次会议通过了《关于高管团队成员 2008 年基薪调整的 议案》及《关于高管团队成员 2008 年短期激励 KPI 的议案》，明确了公司高管团队成员 2008 年的基薪 及短期激励的关键业绩指标。 2008 年 11 月 13 日公司第五届董事会第三十一次会议及 2008 年 12 月 9 日公司 2008 年第三次临时 股东大会分别审议通过了《关于对公司管理层和核心管理人员进行中期激励的议案》，明确了 2008 年 度至 2010 年度公司管理层和核心管理人员的中期激励标准和考核指标。 (四) 公司董事、监事、高级管理人员变动情况 报告期内公司董事 Daniel Bach 先生因工作原因辞去本公司董事职务。 (五) 公司员工情况 在职员工总数 7,975 公司需承担费用的离退休职工人数 1,072 员工的结构如下： 1、专业构成情况 专业类别 人数 管理技术人员 1,431 营销人员 503 财会人员 240 生产及辅助人员 5,801 9 2、教育程度情况 教育类别 人数 博士 4 硕士 63 大学 688 大专 1,493 中专 1,069 其他 4,658 六、公司治理结构 (一) 公司治理的情况 1、公司治理的实际情况 公司法人治理结构符合现代企业制度和《上市公司治理准则》的要求。公司严格按照《公司法》、 《证券法》、《上市公司治理准则》、《上海证券交易所股票上市规则》等法律法规的要求，结合公司 实际情况，不断完善法人治理结构，规范公司运作。 报告期内，公司制定了《独立董事年报工作制度》、《董事会审计委员会年报工作规程》，公司法 人治理进一步得到完善。 2、公司治理专项活动的开展情况 2007 年以来，公司根据中国证监会《关于开展加强上市公司治理专项活动有关事项的通知》和中国 证监会湖北监管局《关于加强上市公司治理专项活动有关事项的通知》的相关要求，认真组织，积极开 展公司治理专项活动，在自查和公众评议的基础上，针对专项活动中发现的问题，在整改期内制定了 《公司内部控制制度》和《投资者关系管理制度》，并对《董事会专门委员会工作细则》进行了修订， 落实并完成了相关整改措施。（《公司关于加强上市公司治理专项活动自查报告及整改计划的公告》、 《公司关于加强公司治理专项活动的整改报告》分别详见 2007 年 7 月 17 日及 2007 年 12 月 29 日的《中 国证券报》、《上海证券报》、《香港商报》和上海证券交易所网站）。 2008 年 7 月 29 日，公司召开第五届董事会第二十七次会议，审议通过了《华新水泥股份有限公司 公司治理整改情况专项说明》，并全文在上海证券交易所网站进行了公告。 公司通过这次专项活动，严格按照相关法律、法规新的要求，进一步完善了公司各项内部控制制 度，提升了公司规范运作的程度。同时，通过这次专项活动，公司董事、监事和高级管理人员的的勤勉 尽责意识也进一步得以强化。 (二) 独立董事履行职责情况 1、独立董事参加董事会的出席情况 独立董事 本年应参加董 缺席 缺席原因及其他 亲自出席（次） 委托出席（次） 姓名 事会次数 （次） 说明 张天武 12 11 1 工作原因 谢获宝 12 11 1 工作原因 林宗寿 12 12 2、独立董事对公司有关事项提出异议的情况 报告期内，公司独立董事未对公司本年度的董事会议案及其他非董事会议案事项提出异议。 3、独立董事履行职责的其他说明 报告期内，3 名独立董事尽职尽责，严格遵守国家法律、法规、规章和《公司章程》的要求，本着 对全体股东负责的态度，出席公司董事会及股东大会，并分别从法律、财务和技术角度对公司的战略发 展、对外投资与担保、财务审计、高级管理人员薪酬考核等事项发表了独立、客观的意见，强化了董事 会重大决策的科学性、合理性，为公司的健康、快速发展起到了应有的作用。 10 (三) 公司相对于控股股东在业务、人员、资产、机构、财务等方面的独立情况 业务方面独立情况 具有独立完整的业务及自主经营能力 人员方面独立情况 独立于控股股东 资产方面独立情况 独立于控股股东 机构方面独立情况 独立于控股股东 财务方面独立情况 独立于控股股东 (四) 公司内部控制制度的建立健全情况 根据《公司章程》和有关法律、法规的规定以及多年来的实践，公司已制订了较为全面的内部控制 制度。 公司已建立起符合现代企业管理要求的内部组织结构，形成科学的决策机制、执行机制和监督机 制，有力地保障公司经营管理目标的实现；公司已建立起行之有效的风险控制系统，确保公司各项业务 活动的有效、安全开展；公司已建立起符合会计制度规定和要求的会计核算和财务管理体系，用规章制 度规范了公司的会计行为，保证公司会计资料的真实性、完整性，提高会计信息质量；公司已建立起信 息披露事务管理办法，加强公司与投资者之间的信息沟通，增加公司信息披露的透明度,维护投资者的合 法权益。 (五) 公司披露董事会对公司内部控制的自我评估报告和审计机构的核实评价意见 本公司不披露董事会对公司内部控制的自我评估报告。 (六) 高级管理人员的考评及激励情况 遵照公司年度股东大会通过的《关于调整高管团队成员的薪资与短期激励计划的议案》和公司董事 会通过的《关于高管团队成员的基薪与目标奖励的议案》，公司董事会薪酬与考核委员会结合每年公司 实际完成的经营业绩情况，对高级管理人员的业绩进行考评，并报经董事会审议通过后兑现。 (七) 公司在年报披露时未披露公司 2008 年履行社会责任的报告，但公司将在 2009 年上半年的适当 时候披露公司 2008 年履行社会责任的报告。 七、股东大会情况简介 (一) 年度股东大会情况 决议刊登的信息披露 会议届次 召开日期 决议刊登的信息披露报纸 日期 2007 年度股东大 中国证券报、上海证券报、 2008 年 4 月 22 日 2008 年 4 月 23 日 会 香港商报 (二) 临时股东大会情况 决议刊登的信息披露 会议届次 召开日期 决议刊登的信息披露报纸 日期 2008 年第一次临 中国证券报、上海证券报、 2008 年 8 月 1 日 2008 年 8 月 2 日 时股东大会 香港商报 2008 年第二次临 中国证券报、上海证券报、 2008 年 11 月 3 日 2008 年 11 月 4 日 时股东大会 香港商报 2008 年第三次临 中国证券报、上海证券报、 2008 年 12 月 9 日 2008 年 12 月 10 日 时股东大会 香港商报 八、董事会报告 (一) 管理层讨论与分析 1、报告期内公司经营情况的回顾 （1）报告期内总体经营情况 水泥工业与固定资产投资规模、国民经济的发展规模与发展速度密切相关。2008 年，虽然我国经济 增速逐季下滑，但全年国内生产总值增幅仍达 9.0%，全社会固定资产投资比上年增长 25.5%，增速比上 年加快 0.7 个百分点。在此条件下，我国水泥工业虽然面临自然灾害频发、国际金融风暴冲击、奥运期 11 间部分基建工程停工、煤炭价格暴涨的多重压力，但在需求拉动、产业结构优化、行业集中度提高等有 利因素的作用下，行业景气度依然处于上升通道之中。2008 年，我国规模以上水泥企业水泥产量 13.88 亿吨，同比增长 5.2%（资料来源：国家统计局）；水泥投资快速上扬，全年累计完成水泥固定资产投资 1,051.46 亿元，同比增长 60.76%，高出 2007 年近 400 亿元，2008 年新建投产的大型新型干法水泥生产 线 120 条，新增水泥熟料生产能力 14334.4 万多吨（资料来源：中国水泥协会-数字水泥）；与此同时， 全国水泥价格实现理性回升，行业经济效益继续提高，大企业集团的发展进程加快，产量超过 1000 万 吨的企业已达 14 家。 2008 年，公司主导市场所在的中部区域，在国家“中部崛起”的发展战略、武汉“1+8”城市圈建 设及建设社会主义新农村等有利政策支持下，水泥需求继续增长，给公司的发展提供了一个较为有利的 市场环境。但雪灾、煤炭价格的剧烈波动，以及金融危机冲击下基础原材料产品价格下降的压力增大等 不利因素，也对公司管理层在生产运营的管控及对市场的应变能力，提出新的考验。 2008 年，公司坚持科学发展观，明确公司运行路线图，采取有效的针对性措施，积极应对市场的变 化，推行八维度平衡度量指标考核体系，提升公司的管控能力。一季度，雪灾给公司带来巨大的不利影 响，但公司准确把握住灾后水泥的井喷需求，果断提价并放量销售，使得公司的业绩维持住了 2007 年 同期的水平；二季度，煤炭价格暴涨，且资源紧张，公司推行“成本推动型”营销策略，密切关注每个 品种的边际贡献，及时调整营销组合，努力实现效益最大化。一方面扩展煤炭的供应渠道，另一方面加 强同客户的沟通，适时提升产品售价，水泥吨盈利能力不降反升；三季度，公司在煤炭价格出现下降势 头时，果断降低各生产基地的煤炭库存，将 15 天的正常库存量压低到 5 天的极限最低库存量，最大限 度地获取煤炭价格下降的好处，确保经营活动现金流的最大化；四季度，国内宏观经济受全球金融危机 恶化的影响，水泥价格下滑的压力巨大，公司充分发挥区域市场的品牌与规模优势，维持住湖北区域的 水泥价格，取得了一个季度经营活动产生的现金流量净额达到 7.57 亿元的佳绩，一举扭转了公司前三季 度经营活动现金流被动的局面。 2008 年，公司各项主要经济指标较上年同期都有较大幅度的增长，经营业绩创公司成立以来最好水 平。全年实现水泥和熟料销售总量 2788 万吨（统计口径），比 2007 年增长 20.1％。公司水泥平均每吨 售价（含税）达到 290.17 元，较 2007 年上涨 26.96 元/吨。 实现营业收入 6,349,459,647 元，比 2007 年 增长 33.11%。在全年煤炭价格上涨幅度达 45.27％的基础上，实现利润总额 576,944,469 元、归属于母公 司股东的净利润 459,975,559 元，分别比 2007 年增长 28.55%、58.48%。 2008 年，公司继续致力于企业管理模式的创新、产能规模的扩张和新业务的探索发展，企业的规模 优势、创新能力及盈利潜能均得到进一步加强。 在管理体制上，通过构建“高速动车组”运行管理模式，实行全动力系统管理，分、子公司逐渐表 现出较强的执行力和运行能力。通过打造公司统一的文化理念和价值观，使公司整体协调一致，从而持 续提高企业效益。 在管理手段上，精心组织 SAP 项目（新的 ERP 系统）的实施，2008 年完成了总部及分子公司计 21 家 SAP 系统的推广，并将在 2009 年内完成所有分子公司的运用。通过 SAP 系统的实施，可为公司的快 速和可持续发展，提供一个高效的基础管理和业务运行平台。 在融资上，公司完成了向战略投资者 Holcim 的全资间接子公司 Holchin B. V.定向增发 7520 万股 A 股、募集资金 20 亿元的工作。公司再融资的成功，降低了公司的资产负债率、改善了公司的资产结 构、缓解了公司快速发展的资金瓶颈问题。再融资成功后，公司与 Holcim 的合作水平进一步提升， Holcim 对公司的支持力度也进一步增大。 在发展上，公司的水泥业务，通过自建和并购相结合的扩张方式，得以高速稳健地发展。年内，公 司信阳 4500 吨/日熟料生产线项目、恩施鹤峰 1500 吨/日熟料生产线项目、岳阳二期、仙桃二期、麻城 等粉磨站项目相继建成投产；完成了恩施鹤峰长宏水泥厂（即恩施鹤峰项目）、云南昆明滇北建材有限 公司 20 万吨/年生产线、石首 30 万吨/年及随州 50 万吨/年粉磨站的收购工作。截至年底，形成水泥熟料 2050 万吨/年、水泥 3850 万吨/年的能力；在建水泥熟料生产线 6 条，2009 年投产后可新增水泥熟料 960 万吨/年、水泥 1345 万吨/年的能力；新开工湖南道县 4000 吨/日、云南东川 2000 吨/日水泥熟料生产线 2 条，预计 2010 年投产。 公司余热发电项目取得突破性进展。年内武穴 18MW 余热发电项目投产，阳新 18MW、金猫 11.5 MW、襄樊 15 MW、咸宁 7.5MW、信阳 9MW 等项目在建；完成武穴、襄樊、咸宁、信阳、黄石、宜昌 12 余热发电、高中压变频项目申报国家节能减排及资源综合利用财政奖励项目，已获批复的项目将会为公 司赢得国家和地方的财政支持和补贴；襄樊 17 万吨、信阳 15 万吨、赤壁 15 万吨、阳新 50 万吨、武穴 50 万吨等碳交易 CDM（清洁发展机制）项目也获得国家发改委的批文。 2008 年，公司新增 7 家混凝土生产厂，建成武穴 150 万吨/年骨料项目，完成阳新 1000 万吨/年骨料 生产线的前期工作，公司混凝土骨料业务开始走上快速发展的通道。此外，金猫和宜昌子公司城市污泥 试烧业务的开展、武穴公司试烧处理杜邦人造大理石飞灰、湖北省环保局批准公司利用水泥窑协同处置 十余类危险废物料、同农业部签订处置废弃农药合同等 AFR 项目的开展，表明公司在发展循环经济、 促进水泥工业与环境、生态和谐发展方面迈出了实质性的步伐。同时，AFR 项目技术的探索和经验的积 累，也将成为公司今后一个新的盈利亮点。 需要看到的是，由于局部地区产能严重过剩，价格上升乏力，煤炭供应成本大幅上涨，使得本公司 局部地区，主要是苏州和鄂东地区的部分生产基地的业绩不尽人意。 （2）生产经营的主要产品及市场占有率情况的说明 本集团生产经营的主要产品为水泥。2008 年，公司在湖北销售水泥 1310 万吨，市场占有率 24.7%；在江苏销售水泥 352 万吨，市场占有率 3%；在西藏销售水泥 41 万吨，市场占有率 16.1%；在 湖南销售水泥 131 万吨，市场占有率 2.4%；在云南销售水泥 113 万吨，市场占有率 2.9%；在重庆销售 水泥 76 万吨，市场占有率 2.3%；在上海销售水泥 58 万吨，市场占有率 2.1%（以上数据均源自内部统 计）。 （3）主要供应商、客户情况 公司向前 5 名供应商合计的采购金额为 1,095,325,296 元，占年度采购总额的 21%；公司向前 5 名客 户销售金额合计为 396,803,112 元，占公司销售总额的 6%。 （4）报告期内公司资产构成变动情况 单位:元 币种:人民币 报告期期末金 报告期期初 变动 项 目 变动主要原因 额 金额 幅度 货币资金 986,717,837 569,091,717 73% 增发资金到账 应收票据 125,065,982 183,391,990 -32% 票据转让及贴现增加 其他应收款 65,949,887 33,175,059 99% 保证金及备用金等增加 可供出售的金融资产 26,585,846 68,373,606 -61% 所持交行及太保股票市值下跌 长期应收款 54,866,665 37,484,906 46% 应收资产处置款增加 在建工程 1,523,894,887 432,405,440 252% 余热发电及新项目投资增加 工程物资 13,350,340 8,942,244 49% 余热发电及新项目投资增加 ERP 系统软件投资增加及新建 无形资产 1,064,457,556 730,974,821 46% 项目购置土地使用权 长期待摊费用 41,344,698 23,037,346 79% 矿山采准剥离费用增加 确认国产设备可抵免所得税金 递延所得税资产 52,894,235 32,337,443 62% 额 经营规模扩大,流动资金需求增 短期借款 1,289,600,000 976,300,000 32% 加 应付票据 225,290,000 155,067,359 45% 规模扩大，材料采购量增加 偿还 Holcim 预付货款及预收的 预收账款 133,598,728 410,996,161 -67% 拆迁补偿费转入固定资产清理 应付职工薪酬 23,339,304 35,976,994 -35% 预提工资及福利费用减少 应付利息 9,017,634 13,093,858 -31% 偿还公司短期债利息 应付股利 29,900,126 62,149,033 -52% 支付股利 可供出售金融资产公允价值变 递延所得税负债 12,769,126 25,554,698 -50% 动及递延所得税负债与资产以 抵销后净额列示影响 资本公积 2,477,102,124 575,581,414 330% 年初增发 A 股 未分配利润 1,002,930,571 600,880,127 67% 利润增长 13 （5）报告期内公司利润构成变动情况 单位:元 币种:人民币 变动幅 项 目 2008 年 2007 年 变动主要原因 度 营业收入 6,349,459,647 4,770,108,141 33% 生产规模扩大,销售价格上涨 生产规模扩大,原材料成本上 营业成本 5,031,292,858 3,637,040,577 38% 升 资产减值损失 738,137 -270,170 -373% 固定资产减值计提增加 投资净收益 557,991 2,230,133 -75% 被投资单位分红减少 营业外支出 19,000,374 12,503,645 52% 固定资产处置损失增加 所得税 42,004,359 109,452,364 -62% 所得税税率降低及税收优惠 归属于母公司所有 459,975,559 290,245,247 58% 经营规模扩大,利润增加 者的净利润 少数股东损益 74,964,551 49,121,716 53% 经营规模扩大,利润增加 （6）报告期内公司现金流量变动情况 单位:元 币种:人民币 变动 项 目 2008 年 2007 年 变动主要原因 幅度 余热发电及新生产 投资活动产生的现金流量净额 -2,198,447,134 -1,207,053,007 82% 线等项目投资大幅 增加 筹资活动产生的现金流量净额 1,442,976,462 308,255,854 368% 增发 7520 万 A 股 （7）主要控股公司经营情况及业绩 单位:元 币种:人民币 公司名称 注册资本 资产规模 净利润 华新金猫水泥（苏州）有限公司 USD 136,000,000 1,192,685,343 -43,630,677 华新水泥（宜昌）有限公司 150,000,000 655,201,273 112,757,092 华新水泥（恩施）有限公司 60,000,000 303,584,340 56,984,739 华新水泥（襄樊）有限公司 140,000,000 709,105,057 52,475,181 华新水泥（昭通）有限公司 75,000,000 390,639,117 113,370,807 华新水泥（阳新）有限公司 500,000,000 1,146,141,258 40,117,567 华新水泥（武穴）有限公司 200,000,000 1,064,664,062 28,951,676 华新水泥（西藏）有限公司 50,000,000 218,133,674 34,461,222 华新水泥（赤壁）有限公司 140,000,000 486,774,923 20,644,915 华新水泥（昆明东川）有限公司 30,000,000 55,825,796 628,866 华新南通水泥有限公司 108,000,000 146,867,736 13,265,256 华新水泥（仙桃）有限公司 23,900,000 56,916,329 2,653,230 华新水泥（武汉）有限公司 60,000,000 293,840,196 -13,891,020 武钢华新水泥有限公司 40,000,000 140,897,275 4,761,420 华新水泥（岳阳）有限公司 25,000,000 136,599,516 10,325,267 华新湘钢水泥有限公司 60,000,000 262,129,144 37,919,224 华新水泥（石首）有限公司 19,800,000 24,064,578 316,869 华新水泥随州有限公司 41,000,000 46,610,009 -108,698 华新混凝土(武汉)有限公司 80,000,000 168,748,826 2,821,916 黄石市华新水泥科研设计有限公司 1,000,000 10,852,200 -746,604 黄石华新包装有限公司 8,000,000 92,699,524 9,258,842 华新环保（武穴）废料处理有限公司 10,000,000 49,736,428 139,180 华新水泥(黄石)散装储运有限公司 20,000,000 115,646,265 1,136,194 华新水泥技术管理(武汉)有限公司 20,000,000 86,515,207 728,480 14 2、对公司未来发展的展望 （1）公司所处行业的发展趋势及面临的市场竞争格局 在全球金融危机导致外部需求明显减退、国内房地产市场持续低迷、全社会固定资产投资增速下 滑、水泥新增产能集中释放而导致的供给压力加大等因素的影响下，短期内我国水泥工业的走势存在很 大的不确定性。但只要我国经济长期增长的内在条件没有发生改变，工业化和城镇化建设的进程仍处于 长期性加速期，国家对淘汰立窑政策和加强对“60 强”水泥企业发展的政策支持力度不变，在中、长期 内中国水泥工业仍将继续保持发展。 预计今后几年我国水泥工业将呈现如下特征： 在国家投资 4 万亿元拉动内需的基础上，短期内水泥消费总量仍将保持微弱的增长，但区域性特征 差异显著。西部以及中部地区水泥需求将持续旺盛一段时间，东部沿海地区则可能需求低迷，部分省份 还可能出现总量需求持续下降的趋势。 2009 年，中国中西部地区的新型干法项目建设仍处于投资高峰时期，但此后新型干法的投资将放 缓，行业的投资重点将体现在并购重组上。然而新增产能的集中大量释放，将使水泥价格及行业盈利受 到压力。与此同时，立窑等落后工艺产能在政策压制和市场的挤压下，淘汰进程将加速。 有资金实力的大型企业仍将快速发展，行业集中度将持续提高，但各大企业的发展空间都将受到彼 此之间的挤压，大企业之间的相互竞争将加剧，市场竞争的压力将越来越大。 水泥产业融入循环经济的步伐加快，纯低温余热发电将在水泥行业快速应用，环保和节能减排对企 业的要求也将越来越高。替代能源的使用，污染物、废弃物的再利用，将成为水泥行业工艺和装备发展 的重要选择。 原燃材料、人力资源价格可能因经济形势变化而产生波动，但长期上涨的总体趋势不会产生根本的 变化，企业对资源的争夺将更激烈。 （2）公司未来发展机遇和挑战、新年度经营计划 国家对中西部地区发展的支持和水泥产业结构的调整远未结束，公司的发展空间依然很大。公司将 继续加大水泥产业的投入，积极延伸产业链，加大节能降耗投入，探索实施水泥工业与节能减排核心技 术与区域资源循环利用的新途径，始终保持规模、技术、环保、效益在全国同行业的领先地位。 未来几年，公司在水泥业务的发展重点将集中在湖北、湖南及西部川、渝等地区，在确保已投资项 目按期投产的基础上，新投资项目不仅要进行严密的市场调研，而且还要认真研究进入时机、进入方 式，确保投资的效率。此外，加强对并购方式的研究，不失时机地把握并购机会。 在新业务的拓展上，一是要将混凝土骨料业务作为一项长期的工作抓紧抓好，力争保证连续五年的 快速增长。二是要树立环保产业新理念,大力发展循环经济。加快余热发电项目建设步伐，积极参加 CDM 项目的合作，加大协同处理和再循环利用各种工业废渣和城市垃圾的力度。 2009 年，公司计划销售水泥 3,359 万吨，较 2008 年增加约 1013 万吨，混凝土销量 106 万方，预计 实现营业收入较 2008 年增长 40％左右。 （3）重大资本支出计划 2009 年，预计公司投资总支出 429,259 万元。其中：水泥熟料生产线项目投资 332,340 万元、粉磨 站项目投资 11,044 万元、余热发电项目投资 25,635 万元、骨料投资 11,600 万元、维护性投资支出 20,009 万元，其它支出 28,631 万元。 除 2008 年在建和新开工的项目外，公司 2009 年还将新开工四川万源 2500 吨/日、西藏二期 2000 吨 /日等水泥熟料生产线项目；新开工黄石 15MW、宜昌 10.5MW、昭通 7.5MW 等余热发电项目。 资金来源由经营活动现金流、项目银行借款、年初存量现金、股权融资构成。 （4）公司面临的风险因素分析 管理层认为，公司在发展中面临的主要风险在于： 新业务尤其是 AFR 业务的开展，虽然具有明显的环境效益和社会效益，但在现阶段，人们对影响 环境的废弃物处理还存在不同的认识，以及政府有关部门尚未立法奖励处置环境废弃物有功单位的背景 下，公司可能存在有投入无产出，或投入产出不匹配的风险。 人才短缺，人力资源开发能力短期内难以满足公司快速发展的需要，这一点仍然是公司面临的风险 因素之一。 针对人才短缺的问题，公司采取的措施主要有：一是加大对在职员工的培训，把员工培训作为公司 发展的一个长期战略任务抓紧抓实。通过举办多层次、多专业、多频率的培训班，加速在职员工的成 长；二是合理规划员工职业生涯，做好人才继任管理，推行新员工指导老师计划，为人才的脱颖而出创 15 造良好的条件和氛围，增强员工对公司的凝聚力；三是创新招聘模式，加大高层次人才引进力度；四是 在生产基地进一步推进“瘦身计划”，提高存量人才的利用率。 3、公司主营业务及其经营状况 (1) 主营业务分行业、产品情况表 单位:元 币种:人民币 营业利润 营业收入 营业成本 营业利润率 分行业或 营业收入 营业成本 率 比上年增 比上年增 比上年增减 ( % ) 分产品 减（％） 减（％） （%） 分行业 减少 3.46 个 水泥 5,998,012,496 4,786,632,046 20.20 32.46 38.47 百分点 减少 6.00 个 混凝土 116,436,716 101,423,671 12.89 29.39 38.95 百分点 增加 9.69 个 其他 235,010,435 143,237,141 39.05 54.64 33.42 百分点 分产品 32.5 等级水 减少 0.84 个 2,896,843,777 2,138,872,073 26.17 14.92 16.25 泥 百分点 42.5 等级及 减少 4.95 个 2,923,098,154 2,493,969,915 14.68 47.72 56.81 以上水泥 百分点 增加 5.96 个 熟料 178,070,565 153,790,058 13.64 521.91 481.77 百分点 减少 6.00 个 混凝土 116,436,716 101,423,671 12.89 29.39 38.95 百分点 增加 9.69 个 其他 235,010,435 143,237,141 39.05 54.64 33.42 百分点 (2) 主营业务分地区情况表 单位:元 币种:人民币 地区 营业收入 营业收入比上年增减（％） 湖北省 3,479,617,582 44.51 江苏省 852,347,448 37.21 上海市 220,312,279 5.12 江西省、安徽省 292,393,319 88.83 福建省 11,745,340 -85.59 湖南省 431,877,809 85.41 河南省 142,309,236 5.74 浙江省 28,220,499 125.03 重庆 266,910,996 -19.17 西藏 152,883,467 17.21 云南 335,915,840 54.81 出口 59,812,849 -69.08 其他 75,112,981 70.73 (二) 公司投资情况 单位:元 币种:人民币 报告期内公司投资额 2,189,206,944 报告期内公司投资额比上年增减数 1,155,543,971 报告期内公司投资额增减幅度(%) 111.79 公司主要对外投资的情况请见合并财务报表项目附注七(11)在建工程 16 1、募集资金总体使用情况 单位:元 币种:人民币 尚未使用 尚未使用募集 本年度已使用 已累计使用募 募集年份 募集方式 募集资金净额 募集资金 资金用途及去 募集资金总额 集资金总额 总额 向 2008 增发 20,06,850,200 20,06,850,200 20,06,850,200 0 于 2008 年 12 月 31 日，募集资金派生的利息为人民币 1,393,387 元。 2、承诺项目使用情况 单位:元 币种:人民币 是 是 是 否 否 否 符 符 未达到计 承诺项目 变 合 产生收益情 合 拟投入金额 实际投入金额 项目进度 预计收益 划进度和 名称 更 计 况 预 收益说明 项 划 计 目 进 收 度 益 2008 年煤 襄樊 炭、电力 已于 2006 4,000t/d 熟 价格大幅 否 399,430,000 399,430,000 是 年 10 月投 87,940,000 58,737,800 否 料水泥生 上涨导致 入生产经营 产线 收益未达 预计 昭通 已于 2006 4,000t/d 熟 否 200,982,000 200,982,000 是 年 9 月投入 107,660,000 113,847,500 是 料水泥生 生产经营 产线 工厂周边 居民拆迁 工作的进 展低于计 武汉年产 已于 2007 划进度， 200 万吨水 否 182,889,000 182,889,000 是 年 11 月投 28,040,000 -17,797,000 否 致使 2008 泥粉磨站 入生产经营 年的产能 利用率仅 为 27.64% 2008 年煤 阳新二期 炭、电力 已于 2007 4,800t/d 熟 价格大幅 否 253,704,000 253,704,000 是 年 1 月投入 75,350,000 34,672,000 否 料水泥生 上涨导致 生产经营 产线 收益未达 预计 投产初 期，加之 咸宁 2008 年煤 已于 2007 4,000t/d 熟 炭、电力 否 353,820,000 353,820,000 是 年 12 月投 87,000,000 29,600,500 否 料水泥生 价格大幅 入生产经营 产线 上涨导致 收益未达 预计 已于 2008 用于降低 否 616,025,200 616,025,200 是 年 6 月前完 公司负债 成 合计 / 2,006,850,200 2,006,850,200 / / / / / 17 3、非募集资金项目情况 项目名称 项目金额 项目进度 项目收益情况 水泥主体工程于 2008 年 8 月 18 日点 2008 年累计生产水泥 28 万 信阳 4500T/D 熟料水 概算总投资约 火投产，余热发电工程预计 09 年二 吨、熟料 46 万吨，实现销 泥生产线 58471 万元 季度末投产 售收入 11614 万元 湖南岳阳二期年产 80 概算总投资为 5500 2008 年 11 月 29 日投产，实际投资 试生产阶段，未产生收益 万吨水泥粉磨站 万元 约 4756 万元 湖北麻城年产 110 万 概算总投资为 2008 年底基本建成，累计投资达 试生产阶段，未产生收益 吨水泥粉磨站 10596 万元 8588 万元 鹤峰 1300T/D 熟料水 概算总投资为 2008 年 12 月 15 日点火投产，累计 试生产阶段，未产生收益 泥生产线 15000 万元 投资达 14987 万元 武穴 18MW 余热发电 概算总投资为 2008 年 12 月 30 日投产 试生产阶段，未产生收益 工程 10675.7 万元 阳新 18MW 余热发电 概算总投资为 预计 2009 年 3 月投产 工程 10783.8 万元 襄樊一期 7.5MW 余热 概算总投资为 预计 2009 年 7 月投产 发电工程 5071.5 万元 咸宁 7.5MW 余热发电 概算总投资为 预计 2009 年 7 月投产 工程 5084.1 万元 襄樊二期 4000t/d 水泥 概算总投资 37938 累计完成投资 18580 万元，预计 熟料生产线 万元 2009 年 3 月投产 宜昌秭归 4000T/D 熟 概算总投资为 累计完成投资 21107 万元，预计 料水泥生产线 61728 万元 2009 年 6 月投产 四川渠县 4000T/D 熟 概算投资为 48034 累计完成投资 4124 万元，预计 2009 料水泥生产线 万元 年 7 月投产 湖南株洲 4500T/D 熟 概算总投资为 累计完成投资 8974 万元，预计 2009 料水泥生产线 63917 万元 年 10 月投产 湖南郴州 4500T/D 熟 概算总投资为 累计完成投资 7957 万元，预计 2009 料生产线 62318 万元 年 10 月投产 重庆涪陵 4600T/D 熟 概算总投资为 累计完成投资 3498 万元，预计 2009 料水泥生产线 49784 万元 年 10 月投产 湖北襄樊年产 200 万 概算总投资 16935 预计 2009 年 7 月投产 吨水泥粉磨站 万元 昆明东川 2000T/D 熟 概算总投资为 该项目于 2008 年 12 月 23 日动工建 料水泥生产线 35000 万元 设，预计 2010 年二季度建成投产 湖南道县 4000T/D 熟 概算总投资为 该项目于 2008 年 12 月 25 日动工建 料水泥生产线 42966 万元 设，预计 2010 年二季度建成投产。 (三) 公司会计政策、会计估计变更或重大会计差错更正的原因及影响 报告期内，公司无会计政策、会计估计变更或重大会计差错。 (四) 董事会日常工作情况 1、董事会会议情况及决议内容 决议刊登的信息披 决议刊登的信 会议届次 召开日期 决议内容 露报纸 息披露日期 审议通过关于设立华新水泥（秭归） 有限公司、华新水泥（麻城）有限公 司、华新水泥（株洲）有限公司、华 第五届董事会第二十 2008 年 1 月 新水泥（郴洲）有限公司、华新环保 次会议 29 日 （武穴）废料处理有限公司、华新骨 料有限公司、华新技术管理有限公司 等公司的议案 第五届董事会第二十 2008 年 2 月 审议通过关于修改公司章程相关条款 一次会议 4日 的议案 第五届董事会第二十 2008 年 3 月 中国证券报、上海 2008 年 3 月 7 二次会议 5日 证券报、香港商报 日 第五届董事会第二十 2008 年 3 月 中国证券报、上海 2008 年 3 月 19 三次会议 17 日 证券报、香港商报 日 18 审议通过：公司 2008 年第一季度报 告、关于投资建设重庆涪陵 4600TPD 熟料水泥生产线项目并设立项目公司 的议案、关于投资建设重庆渝北 4600TPD 熟料水泥生产线项目并设立 第五届董事会第二十 2008 年 4 月 项目公司的议案、关于投资建设四川 四次会议 22 日 渠县 4000TPD 熟料水泥生产线项目并 设立项目公司的议案、关于投资建设 湖南道县 4000TPD 熟料水泥生产线项 目并设立项目公司的议案、关于收购 宜昌弘洋水泥有限公司股权的议案 审议通过：关于高管团队成员 2008 年 短期激励 KPI 的议案、关于高管团队 成员 2008 年基薪调整的议案、关于设 立华新水泥重庆渝北有限公司的议 第五届董事会第二十 2008 年 6 月 案、关于设立华新水泥（昆明东川） 五次会议 27 日 有限公司的议案、关于设立华新水泥 （黄石）装备制造有限公司的议案、 关于设立华新水泥（黄石）散装储运 有限公司的议案 第五届董事会第二十 2008 年 7 月 中国证券报、上海 2008 年 7 月 17 六次会议 15 日 证券报、香港商报 日 第五届董事会第二十 2008 年 7 月 中国证券报、上海 2008 年 7 月 29 七次会议 25 日 证券报、香港商报 日 第五届董事会第二十 2008 年 9 月 中国证券报、上海 2008 年 9 月 2 八次会议 1日 证券报、香港商报 日 第五届董事会第二十 2008 年 10 中国证券报、上海 2008 年 10 月 九次会议 月 17 日 证券报、香港商报 18 日 审议通过公司 2008 年第三季度报告及 第五届董事会第三十 2008 年 10 关于投资建设四川万源 2500TPD 熟料 次会议 月 28 日 水泥生产线项目并设立华新水泥（万 源）有限公司的议案 审议通过公司 2009 年度财务预算报告 第五届董事会第三十 2008 年 11 及关于对公司管理层及核心管理人员 一次会议 月 13 日 进行中期激励的议案 2、董事会对股东大会决议的执行情况 本报告期内，公司董事会根据《公司法》和《公司章程》的规定，履行董事会职权，严格执行了股 东大会所通过的各项决议。 3、董事会下设的审计委员会的履职情况汇总报告 董事会审计委员会严格按照证监会、上交所及《公司董事会专门委员会工作细则》、《公司审计委 员会年报工作规程》的有关要求，全程参与了审计过程。 在公司年审会计师普华永道中天会计师事务所有限责任公司（以下称会计师事务所）进场审计前及 预审中，公司财务负责人及时通知了审计委员会会计师事务所进场工作的时间与审计工作计划安排，并 将“华新水泥年度审计收费建议书”于 2008 年 11 月 24 日向审计委员会各位委员进行了邮件通报。 2008 年 12 月 17 日，会计师事务所在沟通会上向审计委员会通报了审计工作小组的人员构成、审计 计划、风险判断、风险及舞弊的测试和评价方法、本年度审计重点，审计委员会同意公司 2008 年度财 务报告审计工作的时间安排，要求会计师事务所及时完成审计报告。 2009 年 2 月 1 日，根据审计委员会要求邮件沟通的建议，公司财务负责人向审计委员会提供了公司 2008 年度财务报表审计调整说明。 2009 年 2 月 10 日，根据证监会最新要求，同意将修订的《审计委员会年报工作规程》提交董事会 审议。 2009 年 2 月 26 日，审计委员会审阅了会计师事务所的《审计报告》（草案）和《关于 2008 年度公 司审计工作总结报告》。 2009 年 3 月 5 日，审计委员会在会计师事务所出具初步审计意见后又一次审阅了公司财务会计报 表，认为公司财务会计报表真实、准确、完整地反映了公司的整体情况，同意将此报告提交董事会审 议；同时，审计委员会向董事会提交了会计师事务所从事本年度公司审计工作的总结报告和下年度续聘 19 会计师事务所的决议，审计委员会认为公司聘请的普华永道中天会计师事务所有限责任公司在为公司提 供 2008 年度审计服务工作中，恪尽职守，遵循独立、客观、公正的执业准则，较好地完成了公司委托 的各项工作，因此，建议公司继续聘请普华永道中天会计师事务所有限责任公司作为公司 2009 年度审 计机构。 4、董事会下设的薪酬委员会的履职情况汇总报告 董事会薪酬与考核委员会严格按照《公司董事会专门委员会工作细则》的有关规定，全面履行职 责，逐步完善经营管理层激励机制。 （1）根据股东大会通过的《关于调整高管团队成员的薪资与短期激励计划的议案》，结合公司 2008 年度经营情况，经薪酬与考核委员会审议并形成决议，提议 2009 年 3 月 9 日公司第五届董事会第 三十三次会议审议通过了《关于高管团队成员 2008 年短期激励的议案》。 （2）薪酬与考核委员会在认真审核了 2008 年公司实际完成的生产经营业绩后，对公司 2008 年年 度报告中披露的董事、监事、高级管理人员的薪酬进行了审核，出具书面审核意见认为：公司董事、监 事、高级管理人员基本薪酬的确定符合公司股东大会、董事会的相关决议内容和相关薪酬管理办法，公 司 2008 年年度报告中所披露的董事、监事和高级管理人员的实际薪酬是在基本薪酬的基础上严格按照 2008 年董事会预算目标的实际完成情况和年度绩效考核方案计算确定的，真实、合理、完整。 （3）公司一直在积极探索和推进股权激励计划。由于证监会上半年连续发布了 2 个备忘录，对上 市公司推行股权激励计划提出新的限制条件，导致以股票或股票期权为设计基础的公司长期激励计划搁 浅。但公司的两大股东与董事会一直非常关注此事。 11 月 13 日，根据两大股东关于对公司管理层及核心管理人员进行中期激励的提议，薪酬与考核委 员会进行了多次讨论,也与公司的管理层、两大股东作了多次沟通，结合公司的实际情况，将《关于对公 司管理层及核心管理人员进行中期激励的议案》提交公司第五届董事会第三十一次会议审议并通过。 今后，公司将在合适的时机，加快步骤建立和完善个人业绩和公司绩效、股东利益一致的良好的长 期激励计划，推动公司进一步快速发展。 (五) 利润分配或资本公积金转增股本预案 2008 年，母公司实现净利润为 82,817,855 元、合并后净利润为 459,975,559 元。根据新公司法及新 会计准则相关规定，提取 10%法定盈余公积金 8,281,786 元。截止 2008 年 12 月 31 日母公司可分配利润 为 418,695,543 元。 董事会拟定，以年末总股本 40,360 万股为基数，向全体股东按 0.15 元/股（含税）分配现金红利， 合计分配 60,540,000 元，余额全部转入未分配利润。 (六) 公司前三年分红情况： 单位：元 币种：人民币 分红年度 现金分红的数额（含税） 分红年度的净利润 比率(%) 2005 19,704,000 62,073,250 31.74 2006 19,704,000 126,727,033 15.55 2007 48,432,000 290,245,247 16.69 九、监事会报告 (一) 监事会的工作情况 2008 年,监事会总计召开了四次会议。第一次会议的主要议题是：1.审议通过了公司 2007 年度报 告、公司 2007 年度财务决算报告、公司 2007 年度利润分配预案；2.审议通过了公司 2007 年度监事会报 告；第二次会议的主要议题是：审议通过了公司 2008 年第一季度报告。第三次会议的主要议题是：审 议通过了公司 2008 年半年度报告。第四次会议的主要议题是：审议通过了公司 2008 年第三季度报告。 (二) 监事会对公司依法运作情况的独立意见 报告期内，公司董事会及管理层能够依据法律、法规和公司章程规范运作，决策程序合法，无违反 纪律、法规、公司章程和损害公司利益的行为。公司高级管理人员本着对全体股东和全体员工负责的精 神，抓住机遇、科学决策、战略计划稳步实施，生产规模不断扩大，公司取得较好的经济效益。 (三) 监事会对检查公司财务情况的独立意见 20 报告期内，公司能够严格执行相关法律、法规和公司财务制度，财务运作情况正常。监事会还对普 华永道中天会计事务所有限公司出具的审计报告及涉及事项进行了审查，认为其出具的财务报告公允地 反映了公司的财务状况和经营成果，参与年度报告编制和审议的人员的行为都严格遵循了保密原则。 (四) 监事会对公司最近一次募集资金实际投入情况的独立意见 报告期内，公司根据发展需要，向外国战略投资者定向发行 A 股，募集资金 202664 万元，用于湖 北襄樊、云南昭通等 5 个水泥熟料生产线项目的建设，项目按计划相继投产。本次募集资金是经过国家 商务部、证监会的批准，整个运作过程符合国家法律、法规和公司章程的规定。募集的资金全部投入 5 个项目建设，专款专用，严格执行国家募集资金管理使用办法，无违纪违规行为。 (五) 监事会对公司收购、出售资产情况的独立意见 报告期内，公司收购了以下 3 个项目： 1、公司以人民币 2430 万元收购湖北长宏水泥有限公司 1000t/d 熟料窑外分解生产线，公司在新成 立的华新水泥（鹤峰）有限公司中占 51％的股份； 2、公司以人民币 1089 万元收购湖北建源水泥股份有限公司年产 30 万吨粉磨站，公司在新成立的 华新水泥（石首）有限公司中占 55 %的股份； 3、公司以人民币 2460 万元收购湖北随州长城建材有限公司年产 50 万吨粉磨站，公司在新成立的 华新水泥（随州）有限公司中占比 60%的股份。 公司在以上资产收购过程中均聘请了中介机构进行法律尽职调查、财务审计与资产评估，符合上市 公司的有关要求。收购后各项目都已按计划开始运行，为公司进一步拓展湖北区域市场份额将起到积极 作用。 (六) 监事会对公司关联交易情况的独立意见 报告期内，公司的关联交易均依据公正、公平、公开的原则进行，无损害公司利益的情况。 十、重要事项 (一) 重大诉讼仲裁事项 本年度公司无重大诉讼、仲裁事项。 (二) 破产重整相关事项 本年度公司无破产重整相关事项。 (三) 其他重大事项及其影响和解决方案的分析说明 1、持有其他上市公司股权情况 单位：元 证券代 初始投资 报告期 报告期所有者 证券简称 期末账面值 会计核算科目 码 金额 损益 权益变动 601328 交通银行 2,000,000 8,185,980 431,750 -14,092,320 可供出售金融资产 601601 中国太保 696,000 6,672,000 180,000 -17,248,500 可供出售金融资产 合计 2,696,000 14,857,980 611,750 -31,340,820 / (四) 资产交易事项 1、收购资产情况 21 单位:元 币种:人民币 所涉 所涉 该资产 自收购 及的 及的 为上市 日起至 是否 资产 债权 公司贡 资产收 资产收购 本年末 为关 产权 债务 献的净 交易对方 被收购资产 购买日 购定价 价格 为公司 联交 是否 是否 利润占 原则 贡献的 易 已全 已全 利润总 净利润 部过 部转 额的比 户 移 例(%) 净资产 恩施鹤峰长 恩施鹤峰长宏水泥 2008 年 3 24,300,483 否 值所占 是 是 宏水泥厂 有限公司 51％股权 月 17 日 比例 房屋建筑物、设 昆明滇北建 2008 年 7 资产评 备、土地使用权、 33,000,000 628,866 否 是 是 0.14 材有限公司 月 15 日 估价值 采矿权等资产 随州市长城 2008 年 华新水泥随州有限 资产评 建材有限责 11 月 12 24,600,000 -65,219 否 是 是 -0.01 公司 60％股权 估价值 任公司 日 湖北建源水 华新水泥(石首)有 2008 年 资产评 泥股份有限 10,890,000 174,278 否 是 是 0.04 限公司 55％股权 12 月 3 日 估价值 公司 (五) 报告期内公司重大关联交易事项 1、与日常经营相关的关联交易 单位:元 币种:人民币 关联 占同类交 关联关 关联交 关联交易 关联交易金 关联交易 关联交易方 交易 易金额的 系 易内容 定价原则 额 结算方式 类型 比例(%) Holcim Trading 其他关 销售 销售水 市场价格 29,992,343 100 现金结算 SA 联人 商品 泥 接受劳 华新集团有限公 接受 其他 务及服 市场价格 4,800,000 70.07 现金结算 司 劳务 务 HOLCIM GROUP 其他关 接受 接受服 市场价格 2,050,380 29.93 现金结算 SUPPORT LTD 联人 劳务 务 合计 / 36,842,723 / 2、关联债权债务往来 单位：元 币种：人民币 向关联方提供资金 关联方向上市公司提供资金 关联方 关联关系 发生额 余额 发生额 余额 Holcim 其他关联人 -7,900,813 192,807 -145,955,064 136,719 Trading SA 合计 -7,900,813 192,807 -145,955,064 136,719 关联债权债务形成原因 因销售公司水泥产品而产生 (六) 重大合同及其履行情况 1、托管、承包、租赁事项 (1) 托管情况 本年度公司无托管事项。 (2) 承包情况 本年度公司无承包事项。 (3) 租赁情况 本年度公司无租赁事项。 22 2、担保情况 单位:元 币种:人民币 公司对子公司的担保情况 报告期内对子公司担保发生额合计 825,430,000 报告期末对子公司担保余额合计 1,479,410,000 公司担保总额情况（包括对子公司的担保） 担保总额 1,479,410,000 担保总额占公司净资产的比例(%) 30 其中： 直接或间接为资产负债率超过 70％的被担保 700,000,000 对象提供的债务担保金额 上述三项担保金额合计 700,000,000 3、委托理财情况 本年度公司无委托理财事项。 4、其他重大合同 本年度公司无其他重大合同。 (七) 承诺事项履行情况 公司或持股 5%以上股东在报告期内或持续到报告期内的承诺事项 1、公司第一大股东 Holchin B.V.在公司 2008 年 2 月 18 日刊登的《华新水泥股份有限公司向外国战 略投资者非公开发行人民币普通股（A 股）发行情况报告书暨股权变动公告书》中承诺： （1）Holchin B.V.确认并同意华新水泥现行的发展战略，并将支持华新水泥管理层实施此等战略； 如果客观环境要求改变发展战略，此等战略改变应当取得 Holchin B.V.与华新水泥管理层的一致同意。 （2）Holchin B.V.承诺在中国大陆将不会直接或间接地投资、拥有、控制和/或运营除华新水泥及其 附属公司之外的任何因其位置所在而与华新水泥及其附属公司的业务存在竞争的其他建材企业。Holchin B.V.的股东、最终控制人以及 Holchin B.V.最终控制人的其他子公司均知悉并同意遵循此等承诺。 （3）Holchin B.V 承诺在可以预见的将来，对华新水泥的高级管理层（现对 CEO 直接报告工作的成 员）不进行重大的人事变动或替换，以维持华新水泥管理层的稳定。 （4）Holchin B.V.承诺对于本次发行完成后与华新水泥之间发生的任何关联交易，将遵循公平、公 正、合理的原则进行，该等关联交易的定价方式应当是公平的和有利于公司业务的。Holchin B.V.的股 东、最终控制人以及 Holchin B.V.最终控制人的其他子公司均知悉并同意遵循此等承诺。 （5）Holchin B.V.承诺将不改变华新水泥的公司名称或其产品商标，除非华新水泥的管理层和董事 会以及黄石市政府就某一明显有利于公司业务的此类变化做出了同意。 （6）Holchin B.V.同意，如果本次发行的股份在三年锁定期后被转让，只要该转让发生时上述承诺 仍然具有意义和合理性，本次发行的股份的新持有人将同意承担上述承诺。 以上承诺部分已经履行完毕，部分正在履行之中。 2、公司股东华新集团有限公司在《华新水泥股份有限公司股权分置改革方案》中承诺： （1）自股权分置改革方案实施之日起，十二个月内不上市交易或者转让。 （2）其代国家持有的华新水泥国家股及其持有的华新水泥境内法人股自股权分置改革方案实施之 日起第十三至第三十六个月内不通过上海证券交易所挂牌交易出售。 （3）其代国家持有的华新水泥国家股自股权分置改革方案实施之日起第三十七至第四十八个月内 通过上海证券交易所挂牌交易出售的数量不超过股权分置改革后华新集团代国家持有的国家股数量的 5%(相当于公司目前总股本的 1.21%)，出售价格不低于 9 元/股（如果自股权分置改革方案实施之日起至 华新集团出售股份期间有派息、送股、资本公积金转增股本等事项，将对该价格进行除权除息处理）。 （4）其代国家持有的华新水泥国家股自股权分置改革方案实施之日起第四十九至第六十个月内通 过上海证券交易所挂牌交易出售的数量不超过股权分置改革后华新集团代国家持有的国家股数量的 10%(相当于公司目前总股本的 2.41%)，出售价格不低于 9 元/股（如果自股权分置改革方案实施之日起 至华新集团出售股份期间有派息、送股、资本公积金转增股本等事项，将对该价格进行除权除息处 理）。 （5）其代国家持有的华新水泥国家股通过上海证券交易所挂牌交易出售的数量每达到华新水泥的 股份总数 1%时，自该事实发生之日起两个工作日内做出公告，但公告期间无需停止出售股份。 23 以上承诺正在履行之中。 (八) 聘任、解聘会计师事务所情况 单位:元 币种:人民币 是否改聘会计师事务所： 否 原聘任 现聘任 普华永道中天会计师事务所有 普华永道中天会计师事务所 境内会计师事务所名称 限公司 有限公司 境内会计师事务所报酬 2,160,000 2,360,000 境内会计师事务所审计年限 公司在 2007 年以前聘任普华永道中天会计师事务所有限公司为公司境外会计师事务所，其为公司提 供境外审计服务 14 年。 (九) 上市公司及其董事、监事、高级管理人员、公司股东、实际控制人处罚及整改情况 本年度公司及其董事、监事、高级管理人员、公司股东、实际控制人均未受中国证监会的稽查、行 政处罚、通报批评及证券交易所的公开谴责。 (十) 其他重大事项的说明 本年度公司无其他重大事项。 (十一) 信息披露索引 刊载的互联网网 事项 刊载的报刊名称及版面 刊载日期 站及检索路径 关于非公开发行股票的申请获得中国 中国证券报、上海证券报、 2008 年 1 月 9 日 www.sse.com.cn 证监会核准 香港商报 公司向外国战略投资者非公开发行人 中国证券报、上海证券报、 民币普通股（A 股）发行情况报告书 2008 年 2 月 18 日 www.sse.com.cn 香港商报 暨股权变动公告书 公司第五届董事会第二十二次会议决 中国证券报、上海证券报、 2008 年 3 月 7 日 www.sse.com.cn 议公告 香港商报 公司第五届董事会第二十三次会议决 中国证券报、上海证券报、 2008 年 3 月 19 日 www.sse.com.cn 议 香港商报 公司第五届监事会第六次会议决议公 中国证券报、上海证券报、 2008 年 3 月 19 日 www.sse.com.cn 告 香港商报 中国证券报、上海证券报、 公司 2007 年度股东大会决议公告 2008 年 4 月 23 日 www.sse.com.cn 香港商报 中国证券报、上海证券报、 公司股票交易异常波动公告 2008 年 5 月 15 日 www.sse.com.cn 香港商报 中国证券报、上海证券报、 公司 2007 年度分红派息实施公告 2008 年 6 月 3 日 www.sse.com.cn 香港商报 中国证券报、上海证券报、 公司 2008 年半年度业绩预增公告 2008 年 7 月 10 日 www.sse.com.cn 香港商报 公司第五届董事会第二十六次会议决 中国证券报、上海证券报、 议暨召开 2008 年第一次临时股东大 2008 年 7 月 17 日 www.sse.com.cn 香港商报 会的公告 公司第五届董事会第二十七次会议决 中国证券报、上海证券报、 2008 年 7 月 29 日 www.sse.com.cn 议公告 香港商报 公司 2008 年第一次临时股东大会决 中国证券报、上海证券报、 2008 年 8 月 2 日 www.sse.com.cn 议公告 香港商报 公司第五届董事会第二十八次会议决 中国证券报、上海证券报、 2008 年 9 月 2 日 www.sse.com.cn 议公告 香港商报 中国证券报、上海证券报、 公司对外担保公告 2008 年 9 月 2 日 www.sse.com.cn 香港商报 公司第五届董事会第二十九次会议决 中国证券报、上海证券报、 议暨召开 2008 年第二次临时股东大 2008 年 10 月 18 日 www.sse.com.cn 香港商报 会的公告 公司对外担保公告 中国证券报、上海证券报、 2008 年 10 月 18 日 www.sse.com.cn 24 香港商报 中国证券报、上海证券报、 公司第三季度报告 2008 年 10 月 30 日 www.sse.com.cn 香港商报 公司 2008 年第二次临时股东大会决 中国证券报、上海证券报、 2008 年 11 月 4 日 www.sse.com.cn 议公告 香港商报 公司第五届董事会第三十一次会议决 中国证券报、上海证券报、 议暨召开 2008 年第三次临时股东大 2008 年 11 月 18 日 www.sse.com.cn 香港商报 会的公告 公司 2008 年第三次临时股东大会决 中国证券报、上海证券报、 2008 年 12 月 10 日 www.sse.com.cn 议公告 香港商报 中国证券报、上海证券报、 公司有限售条件的流通股上市公告 2008 年 12 月 23 日 www.sse.com.cn 香港商报 十一、财务会计报告 公司年度财务报告已经普华永道中天会计师事务所有限公司注册会计师曾华光、陈耘涛审计，并出 具了标准无保留意见的审计报告。 (一) 审计报告 审计报告 普华永道中天审字(2009)第 10013 号 华新水泥股份有限公司全体股东： 我们审计了后附的华新水泥股份有限公司(以下简称“贵公司”)的财务报表，包括 2008 年 12 月 31 日的合并及公司资产负债表以及 2008 年度的合并及公司利润表、合并及公司现金流量表、合并及公司 股东权益变动表和财务报表附注。 一、管理层对财务报表的责任 按照企业会计准则的规定编制财务报表是贵公司管理层的责任。这种责任包括 (1) 设计、实施和维护与财务报表编制相关的内部控制，以使财务报表不存在由于舞弊或错误而导 致的重大错报； (2) 选择和运用恰当的会计政策； (3) 作出合理的会计估计。 二、注册会计师的责任 我们的责任是在实施审计工作的基础上对财务报表发表审计意见。我们按照中国注册会计师审计准 则的规定执行了审计工作。中国注册会计师审计准则要求我们遵守职业道德规范，计划和实施审计工作 以对财务报表是否不存在重大错报获取合理保证。 审计工作涉及实施审计程序，以获取有关财务报表金额和披露的审计证据。选择的审计程序取决于 注册会计师的判断，包括对由于舞弊或错误导致的财务报表重大错报风险的评估。在进行风险评估时， 我们考虑与财务报表编制相关的内部控制，以设计恰当的审计程序，但目的并非对内部控制的有效性发 表意见。审计工作还包括评价管理层选用会计政策的恰当性和作出会计估计的合理性，以及评价财务报 表的总体列报。 我们相信，我们获取的审计证据是充分、适当的，为发表审计意见提供了基础。 三、审计意见 我们认为，上述贵公司的财务报表已经按照企业会计准则的规定编制，在所有重大方面公允反映了 贵公司 2008 年 12 月 31 日的合并及公司财务状况以及 2008 年度的合并及公司经营成果和现金流量。 普华永道中天会计师事务所有限公司 中国注册会计师：曾华光、陈耘涛 中国上海市 2009 年 3 月 9 日 25 (二) 财务报表 华新水泥股份有限公司 2008 年 12 月 31 日合并及公司资产负债表 (除特别注明外，金额单位为人民币元) 2008 年 12 月 31 日 2007 年 12 月 31 日 2008 年 12 月 31 日 2007 年 12 月 31 日 资产 附注 合并 合并 公司 公司 流动资产 货币资金 七(1) 986,717,837 569,091,717 428,262,156 68,953,331 应收票据 七(2) 125,065,982 183,391,990 25,546,600 37,625,749 应收账款 七(3),十五(1) 144,321,573 134,050,106 84,805,006 74,711,725 预付款项 七(4) 70,925,755 57,083,984 11,230,206 52,767,593 应收股利 - - - 233,091,328 其他应收款 七(3),十五(1) 65,949,887 33,175,059 888,836,598 517,095,202 存货 七(5) 596,607,092 541,745,016 156,198,437 117,976,867 流动资产合计 1,989,588,126 1,518,537,872 1,594,879,003 1,102,221,795 非流动资产 可供出售金融资产 七(6) 26,585,846 68,373,606 26,585,846 68,373,606 长期应收款 七(7) 54,866,665 37,484,906 88,331 - 长期股权投资 七(8),十五(2) 138,335 192,094 2,909,673,674 1,593,434,791 固定资产 七(9) 5,829,269,206 5,651,802,483 703,939,045 1,004,263,926 固定资产清理 七(10) 110,494,547 - 109,702,467 - 在建工程 七(11) 1,523,894,887 432,405,440 128,105,329 270,820,403 工程物资 七(12) 13,350,340 8,942,244 - - 无形资产 七(13) 1,064,457,556 730,974,821 173,591,369 117,870,566 商誉 七(14) 9,469,146 9,469,146 - - 长期待摊费用 七(15) 41,344,698 23,037,346 8,390,538 9,311,761 递延所得税资产 七(29) 52,894,235 32,337,443 19,021,828 18,003,596 非流动资产合计 8,726,765,461 6,995,019,529 4,079,098,427 3,082,078,649 资产总计 10,716,353,587 8,513,557,401 5,673,977,430 4,184,300,444 - 26 - 华新水泥股份有限公司 2008 年 12 月 31 日合并及公司资产负债表 (除特别注明外，金额单位为人民币元) 2008 年 12 月 31 日 2007 年 12 月 31 日 2008 年 12 月 31 日 2007 年 12 月 31 日 负债及股东权益 附注 合并 合并 公司 公司 流动负债 短期借款 七(16) 1,289,600,000 976,300,000 700,000,000 340,700,000 应付票据 七(17) 225,290,000 155,067,359 142,910,000 101,567,359 应付账款 七(18) 998,856,973 809,964,422 390,453,818 188,162,745 预收款项 七(19) 133,598,728 410,996,161 75,539,793 330,248,751 应付职工薪酬 七(20) 23,339,304 35,976,994 11,255,083 11,965,401 应交税费 七(21) 149,004,656 196,466,312 60,099,416 79,351,318 应付利息 9,017,634 13,093,858 2,904,162 12,448,203 应付股利 七(22) 29,900,126 62,149,033 576,326 576,326 其他应付款 七(23) 117,345,198 94,431,613 638,181,899 314,906,637 一年内到期的非流动负债 七(24) 692,044,977 704,610,458 229,034,937 395,479,478 其他流动负债 七(25) - 498,875,000 - 498,875,000 流动负债合计 3,667,997,596 3,957,931,210 2,250,955,434 2,274,281,218 非流动负债 长期借款 七(26) 1,924,580,982 1,940,838,309 104,950,982 581,698,309 长期应付款 七(27) 46,693,070 38,793,884 - - 专项应付款 8,260,000 - - - 预计负债 七(28) 126,106,639 128,617,250 54,850,280 60,156,061 递延所得税负债 七(29) 12,769,126 25,554,698 3,040,495 13,487,435 其他非流动负债 17,503,167 19,566,118 9,188,036 13,580,453 非流动负债合计 2,135,912,984 2,153,370,259 172,029,793 668,922,258 负债合计 5,803,910,580 6,111,301,469 2,422,985,227 2,943,203,476 股东权益 股本 七(30) 403,600,000 328,400,000 403,600,000 328,400,000 资本公积 七(31) 2,477,102,124 575,581,414 2,244,562,324 343,390,611 盈余公积 七(32) 184,134,336 175,852,551 184,134,336 175,852,550 未分配利润 七(33) 1,002,930,571 600,880,127 418,695,543 393,453,807 归属于母公司股东权益合计 4,067,767,031 1,680,714,092 3,250,992,203 1,241,096,968 少数股东权益 七(34) 844,675,976 721,541,840 - - 股东权益合计 4,912,443,007 2,402,255,932 3,250,992,203 1,241,096,968 负债及股东权益总计 10,716,353,587 8,513,557,401 5,673,977,430 4,184,300,444 后附财务报表附注为财务报表的组成部分。 企业负责人:陈木森先生 主管会计工作的负责人:孔玲玲女士 会计机构负责人:黄开顺先生 - 27 - 华新水泥股份有限公司 2008 年度合并及公司利润表 (除特别注明外，金额单位为人民币元) 2008 年度 2007 年度 2008 年度 2007 年度 附注 合并 合并 公司 公司 一、营业收入 七(35),十五(3) 6,349,459,647 4,770,108,141 2,861,709,662 2,239,973,530 减：营业成本 七(35) (5,031,292,858) (3,637,040,577) (2,606,419,814) (1,935,332,502) 营业税金及附加 七(36) (78,699,970) (64,967,248) (15,196,470) (19,198,740) 销售费用 (340,341,170) (324,025,885) (44,279,974) (54,526,188) 管理费用 (251,682,088) (209,319,109) (81,778,153) (86,548,303) 财务费用-净额 七(37) (184,777,386) (182,638,548) (23,149,935) (68,144,736) 资产减值(损失)/转回 七(38) (738,137) 270,170 4,316,022 825,182 加：投资收益 七(39),十五(4) 557,991 2,230,133 4,751,309 353,237,120 其中：对联营企业 的投资损失 (53,759) (103,094) (53,759) (103,094) 二、营业利润 462,486,029 354,617,077 99,952,647 430,285,363 加：营业外收入 七(40) 133,458,814 106,705,895 16,116,035 15,211,469 减：营业外支出 七(40) (19,000,374) (12,503,645) (7,884,785) (7,383,447) 其中：非流动资产 处置损失 (12,696,729) (7,650,642) (5,217,251) (6,250,366) 三、利润总额 576,944,469 448,819,327 108,183,897 438,113,385 减：所得税费用 七(41) (42,004,359) (109,452,364) (25,366,042) (35,348,952) 四、净利润 534,940,110 339,366,963 82,817,855 402,764,433 归属于母公司股东 的净利润 459,975,559 290,245,247 82,817,855 402,764,433 少数股东损益 74,964,551 49,121,716 - - 五、每股收益 基本每股收益 七(42) 1.18 0.88 0.21 1.23 稀释每股收益 七(42) 1.18 0.88 0.21 1.23 后附财务报表附注为财务报表的组成部分。 企业负责人:陈木森先生 主管会计工作的负责人:孔玲玲女士 会计机构负责人:黄开顺先生 28 华新水泥股份有限公司 2008 年度合并及公司现金流量表 (除特别注明外，金额单位为人民币元) 2008 年度 2007 年度 2008 年度 2007 年度 项目 附注 合并 合并 公司 公司 一、经营活动产生的现金流量 销售商品、提供劳务收到的现金 7,473,230,824 5,686,587,918 2,618,671,448 2,353,158,534 收到的税费返还 106,515,034 124,739,668 9,164,896 30,444,440 收到其他与经营活动有关的现金 72,281,952 57,208,908 1,375,940,563 399,298,822 经营活动现金流入小计 7,652,027,810 5,868,536,494 4,003,776,907 2,782,901,796 购买商品、接受劳务支付的现金 (5,291,205,671) (3,961,154,210) (2,450,780,168) (2,084,618,952) 支付给职工以及为职工支付的现金 (342,920,861) (276,560,705) (94,895,910) (104,106,187) 支付的各项税费 (654,152,748) (473,965,725) (136,397,048) (101,785,357) 支付其他与经营活动有关的现金 七(43)(d) (198,862,704) (194,328,910) (261,782,709) (47,720,459) 经营活动现金流出小计 (6,487,141,984) (4,906,009,550) (2,943,855,835) (2,338,230,955) 经营活动产生的现金流量净额 七(43)(a) 1,164,885,826 962,526,944 1,059,921,072 444,670,841 二、投资活动产生的现金流量 收回投资收到的现金 - 36,800 12,993,318 36,800 取得投资收益所收到的现金 - 2,338,215 123,215,835 8,338,215 处置固定资产收回的现金净额 22,976,283 46,445,162 3,955,902 22,576,605 收到其他与投资活动有关的现金 9,131,141 - 50,000,000 - 投资活动现金流入小计 32,107,424 48,820,177 190,165,055 30,951,620 购建固定资产、无形资产和其他长期资产支 付的现金 (2,158,642,871) (1,255,873,184) (660,358,113) (589,896,555) 取得子公司及其他营业单位支付的现金净额 (50,911,687) - (1,222,164,642) (42,000,000) 支付其他与投资有关的现金 (21,000,000) - (121,000,000) - 投资活动现金流出小计 (2,230,554,558) (1,255,873,184) (2,003,522,755) (631,896,555) 投资活动产生的现金流量净额 (2,198,447,134) (1,207,053,007) (1,813,357,700) (600,944,935) 三、筹资活动产生的现金流量 吸收投资收到的现金 2,008,870,262 - 2,006,850,200 - 其中：子公司吸收少数股东投资收到的现金 2,020,062 - - - 取得借款收到的现金 2,851,730,000 2,021,200,000 920,000,000 659,200,000 发行债券收到的现金 - 497,750,000 - 497,750,000 收到其他与筹资活动有关的现金 4,164,708 - 2,164,708 - 筹资活动现金流入小计 4,864,764,970 2,518,950,000 2,929,014,908 1,156,950,000 偿还债务支付的现金 (3,068,702,574) (1,931,191,454) (1,691,302,574) (1,040,191,454) 分配股利、利润或偿付利息支付的现金 (350,034,954) (276,002,692) (118,319,744) (106,321,143) 其中：子公司支付给少数股东的股利、利润 (34,756,907) (33,595,164) - - 支付其他与筹资活动有关的现金 (3,050,980) (3,500,000) - - 筹资活动现金流出小计 (3,421,788,508) (2,210,694,146) (1,809,622,318) (1,146,512,597) 筹资活动产生的现金流量净额 1,442,976,462 308,255,854 1,119,392,590 10,437,403 四、汇率变动对现金的影响 (279,398) (1,050,485) 475,504 695,481 五、现金净增加/(减少)额 七(43)(b) 409,135,756 62,679,306 366,431,466 (145,141,210) 加：年初现金余额 515,985,750 453,306,444 42,620,161 187,761,371 六、年末现金余额 925,121,506 515,985,750 409,051,627 42,620,161 后附财务报表附注为财务报表的组成部分。 企业负责人:陈木森先生 主管会计工作的负责人:孔玲玲女士 会计机构负责人:黄开顺先生 29 华新水泥股份有限公司 2007 年度合并股东权益变动表 (除特别注明外，金额单位为人民币元) 2007 年金额 归属于母公司所有者权益 项目 少数股东 所有者权益 减:库存 一般风险 股本 资本公积 盈余公积 未分配利润 其他 权益 合计 股 准备 一、上年末余额 328,400,000 533,758,209 - 135,576,108 - 371,976,223 - 767,587,995 2,137,298,535 1、会计政策变更 - - - - - - - - - 2、前期差错更正 - - - - - - - - - 二、本年年初余额 328,400,000 533,758,209 - 135,576,108 - 371,976,223 - 767,587,995 2,137,298,535 三、本年增减变动金额(减 - - - - - - - - - 少以“-”号填列) (一)本年净利润 - - - - - 290,245,247 - 49,121,716 339,366,963 (二)直接计入所有者权益的 - 40,462,305 - - - - - - 40,462,305 利得和损失 1、可供出售金融资产公允 - 53,949,740 - - - - - - 53,949,740 价值变动净额 2．权益法下被投资单位其 他所有者权益变动的 - - - - - - - - - 影响 3．与计入股东权益项目相 - (13,487,435) - - - - - - (13,487,435) 关的所得税影响 4．其他 - - - - - - - - - 上述(一)和(二)小计 - 40,462,305 - - - 290,245,247 - 49,121,716 379,829,268 (三)所有者投入资本 1、所有者本期投入资本 - - - - - - - - - 2．股份支付计入所有者权 - - - - - - - - - 益的金额 3．其他 - - - - - - - - - (四)本年利润分配 1、提取盈余公积 - - - 40,276,443 - (40,276,443) - - - 2、提取一般风险准备 - - - - - - - - - 3、对所有者(或股东)的分 - - - - - (19,704,000) - (95,167,871) (114,871,871) 配 4、其他 - - - - - - (五)所有者权益内部结转 1、资本公积转增股本 - - - - - - - - - 2、盈余公积转增股本 - - - - - - - - - 3、盈余公积弥补亏损 - - - - - - - - - 4、其他 - 1,360,900 - - - (1,360,900) - - - 四、本年年末余额 328,400,000 575,581,414 - 175,852,551 - 600,880,127 - 721,541,840 2,402,255,932 30 华新水泥股份有限公司 2008 年度合并股东权益变动表 (除特别注明外，金额单位为人民币元) 2008 年金额 归属于母公司所有者权益 项目 一般 少数股东 所有者权益 减:库 股本 资本公积 盈余公积 风险准 未分配利润 其他 权益 合计 存股 备 一、上年末余额 328,400,000 575,581,414 - 175,852,551 - 600,880,127 - 721,541,840 2,402,255,932 1、会计政策变更 - - - - - - - - - 2、前期差错更正 - - - - - - - - - 二、本年年初余额 328,400,000 575,581,414 - 175,852,551 - 600,880,127 - 721,541,840 2,402,255,932 三、本年增减变动金额(减 - - - - - - - - - 少以“-”号填列) (一)本年净利润 - - - - - 459,975,559 74,964,551 534,940,110 (二)直接计入所有者权益的 - - - - - - - 利得和损失 (31,340,820) (31,340,820) 1、可供出售金融资产公允 - - - - - - - 价值变动净额 (41,787,760) (41,787,760) 2．权益法下被投资单位其 他所有者权益变动的 - - - - - - - - - 影响 3．与计入股东权益项目相 - - - - - - - 关的所得税影响 10,446,940 10,446,940 4．其他 - - - - - - - - - 上述(一)和(二)小计 - (31,340,820) - - - 459,975,559 - 74,964,551 503,599,290 (三)所有者投入资本 1、所有者本期投入资本 75,200,000 1,931,650,200 - - - - - 50,677,585 2,057,527,785 2．股份支付计入所有者权 - - - - - - - - - 益的金额 3．其他 - - - - - - - - - (四)本年利润分配 1、提取盈余公积 - - - - - - 8,281,785 - (8,281,785) 2、提取一般风险准备 - - - - - - - - - 3、对所有者(或股东)的分 - - - - - 配 (48,432,000) - (2,508,000) (50,940,000) 4、其他 - - - - - - - - - (五)所有者权益内部结转 1、资本公积转增股本 - - - - - - - - - 2、盈余公积转增股本 - - - - - - - - - 3、盈余公积弥补亏损 - - - - - - - - - 4、其他 - - 1,211,330 - - - (1,211,330) - - 四、本年年末余额 1,002,930,57 403,600,000 2,477,102,124 - 184,134,336 - 1 - 844,675,976 4,912,443,007 后附会计报表附注为会计报表的组成部分。 企业负责人:陈木森先生 主管会计工作的负责人:孔玲玲女士 会计机构负责人:黄开顺先生 31 华新水泥股份有限公司 2007 年度公司股东权益变动表 (除特别注明外，金额单位为人民币元) 2007 年金额 项目 所有者权益 股本 资本公积 减:库存股 盈余公积 未分配利润 其他 合计 一、上年末余额 328,400,000 302,065,973 - 135,576,107 51,532,150 - 817,574,230 1、会计政策变更 - - - - - - - 2、前期差错更正 - - - - - - - 二、本年年初余额 328,400,000 302,065,973 - 135,576,107 51,532,150 - 817,574,230 三、本年增减变动金额(减少以“- - - - - - - - ”号填列) (一)本年净利润 - - - - 402,764,433 - 402,764,433 (二)直接计入所有者权益的利得 - 40,462,305 - - - - 40,462,305 和损失 1、可供出售金融资产公允价值 - 53,949,740 - - - - 53,949,740 变动净额 2．权益法下被投资单位其他所 - - - - - - - 有者权益变动的影响 3、与计入所有者权益项目相关 - (13,487,435) - - - - (13,487,435) 的所得税影响 4、其他 - - - - - - - 上述(一)和(二)小计 - 40,462,305 - - 402,764,433 - 443,226,738 (三)所有者投入资本 1、所有者本期投入资本 - - - - - - - 2．股份支付计入所有者权益的 - - - - - - - 金额 3．其他 - - - - - - - (四)本年利润分配 1．提取盈余公积 - - - 40,276,443 (40,276,443) - - 2．对所有者（或股东）的分配 - - - - (19,704,000) - (19,704,000) 3．其他 - - - - - - - (五)所有者权益内部结转 1、资本公积转增资本 - - - - - - - 2、盈余公积转增资本 - - - - - - - 3、盈余公积弥补亏损 - - - - - - - 4、其他 - 862,333 - - (862,333) - - 四、本年年末余额 328,400,000 343,390,611 - 175,852,550 393,453,807 - 1,241,096,968 32 华新水泥股份有限公司 2008 年度公司股东权益变动表 (除特别注明外，金额单位为人民币元) 2008 年金额 项目 股本 资本公积 减:库存股 盈余公积 未分配利润 其他 所有者权益合计 一、上年末余额 328,400,000 343,390,611 - 175,852,550 393,453,807 - 1,241,096,968 1、会计政策变更 - - - - - - - 2、前期差错更正 - - - - - - - 二、本年年初余额 328,400,000 343,390,611 - 175,852,550 393,453,807 - 1,241,096,968 三、本年增减变动金额(减少以 - - - - - - - “-”号填列) (一)本年净利润 - - - - 82,817,855 - 82,817,855 (二)直接计入所有者权益的利得 和损失 - (31,340,820) - - - - (31,340,820) 1、可供出售金融资产公允价值 变动净额 - (41,787,760) - - - - (41,787,760) 2．权益法下被投资单位其他所 有者权益变动的影响 - - - - - - - 3、与计入所有者权益项目相关 的所得税影响 - 10,446,940 - - - - 10,446,940 4、其他 - - - - - - - 上述(一)和(二)小计 - (31,340,820) - - 82,817,855 - 51,477,035 (三)所有者投入资本 1、所有者本期投入资本 75,200,000 1,931,650,200 - - - - 2,006,850,200 2．股份支付计入所有者权益的 金额 - - - - - - - 3．其他 - - - - - - - (四)本年利润分配 1．提取盈余公积 - - - 8,281,786 (8,281,786) - - 2．对所有者（或股东）的分配 - - - (48,432,000) - (48,432,000) 3．其他 - - - - - - - (五)所有者权益内部结转 1、资本公积转增资本 - - - - - - - 2、盈余公积转增资本 - - - - - - - 3、盈余公积弥补亏损 - - - - - - - 4、其他 - 862,333 - - (862,333) - - 四、本年年末余额 403,600,000 2,244,562,324 - 184,134,336 418,695,543 - 3,250,992,203 后附财务报表附注为财务报表的组成部分。 企业负责人:陈木森先生 主管会计工作的负责人:孔玲玲女士 会计机构负责人:黄开顺先生 33 华新水泥股份有限公司 财务报表附注 2008 年度 (除特别注明外，金额单位为人民币元) 一 公司基本情况 华新水泥股份有限公司(以下简称“本公司”)为一间于中华人民共和国(“中国”)成立的股份有限公司。 于 2006 年度，经商务部批准，本公司变更为外商投资股份有限公司。本公司于上海交易所挂牌上 市。于 2008 年 2 月 4 日，本公司完成向外国战略投资者 Holchin B.V.非公开发行人民币普通股 7,520 万 股 ， 公 司 总 股 本 变 更 为 403,600,000 元 ， 其 中 境 内 发 行 人 民 币 普 通 股 (“A 股 ”) 为 239,600,000 股；境内发行人民币外资股(“B 股”)164,000,000 股。本公司的注册地为湖北省黄石市 黄石大道 897 号。本公司及其子公司(以下合称”本集团”)主要从事水泥的生产及销售，主要营业额 来源于中国境内。 本财务报表由本公司董事会于 2009 年 3 月 9 日批准报出。 二 财务报表的编制基础 本财务报表按照财政部于 2006 年 2 月 15 日颁布的《企业会计准则——基本准则》和 38 项具体 会计准则、其后颁布的企业会计准则应用指南、企业会计准则解释以及其他相关规定(以下合称 “企业会计准则”)编制。 于 2008 年 12 月 31 日，本集团的流动负债超过流动资产达人民币 1,678,409,470 元，其中一年 内到期的银行借款为 1,964,774,937 元；于 2008 年 12 月 31 日，本公司的负债与所有者权益的 比例为 1.2:1。本公司管理层已作出评估，由于本集团在经营活动能产生净流入现金；与主要借款 银行维持良好的关系，在过往进行银行额度重批时并未遇到任何困难；且于 2008 年 12 月 31 日 尚未使用之银行授信额度超过净流动负债及可满足本集团目前计划资本性支出之资金需要，因 此，本公司管理层确信本集团于未来一年内有足够的资金偿付到期的债务，故并不存在持续经营 问题。因此，本公司管理层以持续经营为基础编制本财务报表。 三 遵循企业会计准则的声明 本公司 2008 年度财务报表符合企业会计准则的要求，真实、完整地反映了本公司 2008 年 12 月 31 日的合并及公司财务状况以及 2008 年度的合并及公司经营成果和现金流量等有关信息。 四 重要会计政策和会计估计 (1) 会计年度 会计年度为公历 1 月 1 日起至 12 月 31 日止。 (2) 记账本位币 记账本位币为人民币。 (3) 计量属性 除特别说明采用公允价值、可变现净值、现值等计量属性之外，一般采用历史成本计量。 (4) 外币交易 外币交易按交易发生日的即期汇率将外币金额折算为人民币入账。 34 于资产负债表日，外币货币性项目采用资产负债表日的即期汇率折算为人民币，所产生的折算差 额除了为购建或生产符合资本化条件的资产而借入的外币专门借款产生的汇兑差额按资本化的原 则处理外，直接计入当期损益。以历史成本计量的外币非货币性项目，于资产负债表日采用交易 发生日的即期汇率折算。汇率变动对现金的影响额在现金流量表中单独列示。 (5) 现金 列示于现金流量表中的现金是指库存现金及可随时用于支付的存款。 (6) 金融资产 金融资产于初始确认时分类为：应收款项以及可供出售金融资产。金融资产的分类取决于本集团 对金融资产的持有意图和持有能力。 (a) 应收款项 应收款项是指在活跃市场中没有报价、回收金额固定或可确定的非衍生金融资产，包括应收账款 和其他应收款等(附注四(7))。 (b) 可供出售金融资产 可供出售金融资产包括初始确认时即被指定为可供出售的非衍生金融资产及未被划分为其他类别 的金融资产。自资产负债表日起 12 个月内将出售的可供出售金融资产在资产负债表中列示为其他 流动资产。 (c) 确认和计量 金融资产于本集团成为金融工具合同的一方时，按公允价值在资产负债表内确认。金融资产的相 关交易费用计入初始确认金额。当收取某项金融资产现金流量的合同权利已终止或该金融资产所 有权上几乎所有的风险和报酬已转移时，终止确认该金融资产。 可供出售金融资产按照公允价值进行后续计量，但在活跃市场中没有报价且其公允价值不能可靠 计量的权益工具投资，按照成本计量；应收款项采用实际利率法，以摊余成本计量。 除减值损失及外币货币性金融资产形成的汇兑损益外，可供出售金融资产公允价值变动直接计入 股东权益，待该金融资产终止确认时，原直接计入权益的公允价值变动累计额转入当期损益。被 投资单位已宣告发放的与可供出售权益工具投资相关的现金股利，作为投资收益计入当期损益。 (d) 金融资产减值 本集团于资产负债表日对金融资产的账面价值进行检查，如果有客观证据表明某项金融资产发生 减值的，计提减值准备。 以摊余成本计量的金融资产发生减值时，按预计未来现金流量(不包括尚未发生的未来信用损失)现 值低于账面价值的差额，计提减值准备。如果有客观证据表明该金融资产价值已恢复，且客观上 与确认该损失后发生的事项有关，原确认的减值损失予以转回，计入当期损益。 当可供出售金融资产的公允价值发生较大幅度或非暂时性下降，原直接计入股东权益的因公允价 值下降形成的累计损失予以转出并计入减值损失。对已确认减值损失的可供出售权益工具投资， 在期后公允价值上升且客观上与确认原减值损失后发生的事项有关的，原确认的减值损失予以转 回并直接计入股东权益。 在活跃市场中没有报价且其公允价值不能可靠计量的权益工具投资发生减值时，按其账面价值超 35 过按类似金融资产当时市场收益率对未来现金流量折现确定的现值之间的差额，确认减值损失。 减值损失一经确认，以后期间不予转回价值得以恢复的部分。 (7) 应收款项 应收款项包括应收票据、应收账款、其他应收款等。本集团对外销售商品或提供劳务形成的应收 账款，按从购货方应收的合同或协议价款的公允价值作为初始确认金额。应收款项采用实际利率 法，以摊余成本减去坏账准备后的净额列示。 根据对财务报表的影响，对于单项重大的应收款项，当存在客观证据表明本集团将无法按应收款 项的原有条款收回所有款项时，根据其预计未来现金流量现值低于其账面价值的差额，单独进行 减值测试，计提坏账准备。 对于单项金额非重大的应收款项，按信用风险特征划分为若干组合，根据以前年度与之相同或相 类似的、具有类似信用风险特征的应收账款组合的实际损失率为基础，结合现时情况确定本年度 各项组合计提坏账准备的比例，据此计算本年度应计提的坏账准备。 本集团向金融机构转让不附追索权的应收账款，按交易款项扣除已转销应收账款的账面价值和相 关税费后的差额计入当期损益。 (8) 存货 存货包括原材料、在产品、产成品、备品备件和周转材料等，按成本与可变现净值孰低列示。 存货发出时的成本按加权平均法核算，产成品和在产品成本包括原材料、直接人工以及在正常生 产能力下按系统的方法分配的制造费用。周转材料包括低值易耗品和包装物等。备品备件、低值 易耗品和包装物采用一次转销法进行摊销。 存货跌价准备按存货成本高于其可变现净值的差额计提。可变现净值按日常活动中，以存货的估 计售价减去至完工时估计将要发生的成本、估计的销售费用以及相关税费后的金额确定。 本集团的存货盘存制度采用永续盘存制。 (9) 长期股权投资 长期股权投资包括本公司对子公司的长期股权投资和本集团对联营企业的长期股权投资。 (a) 子公司 子公司是指本公司能够对其实施控制，即有权决定其财务和经营政策，并能据以从其经营活动中 获取利益的被投资单位。在确定能否对被投资单位实施控制时，被投资单位当期可转换公司债 券、当期可执行认股权证等潜在表决权因素也同时予以考虑。对子公司的投资，在公司财务报表 中按照成本法确定的金额列示，在编制合并财务报表时按权益法调整后进行合并。 采用成本法核算的长期股权投资按照初始投资成本计量。被投资单位宣告分派的现金股利或利 润，确认为投资收益计入当期损益。确认的投资收益，仅限于被投资单位接受投资后产生的累积 净利润的分配额，所获得的分配利润或现金股利超过上述数额的部分作为初始投资成本的收回。 (b) 联营企业 联营企业是指本集团对其财务和经营决策具有重大影响的被投资单位。 对联营企业投资采用权益法核算。初始投资成本大于投资时应享受有被投资单位可辨认净资产公 允价值份额的，以初始投资成本作为长期股权投资成本；初始投资成本小于投资时应享有被投资 单位可辨认净资产公允价值份额的，其差额计入当期损益，并相应调增长期股权投资成本。 36 采用权益法核算时，本集团按应享有或应分担的被投资单位的净损益份额确认当期投资损益。确 认被投资单位发生的净亏损，以长期股权投资的账面价值以及其他实质上构成对被投资单位净投 资的长期权益减记至零为限，但本集团负有承担额外损失义务且符合或有事项准则所规定的预计 负债确认条件的，继续确认投资损失并作为预计负债核算。被投资单位除净损益以外股东权益的 其他变动，在本集团持股比例不变的情况下，按照持股比例计算应享有或承担的部分直接计入资 本公积。被投资单位分派的利润或现金股利于宣告分派时按照本集团应分得的部分，相应减少长 期股权投资的账面价值。 (10) 固定资产 固定资产包括房屋及建筑物、机器设备、办公设备及固定装置以及汽车及运输设备等。购置或新 建的固定资产按取得时的成本进行初始计量。 与固定资产有关的后续支出，在相关的经济利益很可能流入本集团且其成本能够可靠的计量时， 计入固定资产成本；对于被替换的部分，终止确认其账面价值；所有其他后续支出于发生时计入 当期损益。 固定资产折旧采用年限平均法并按其入账价值减去预计净残值后在预计使用寿命内计提。对计提 了减值准备的固定资产，则在未来期间按扣除减值准备后的账面价值及依据尚可使用年限确定折 旧额。 固定资产的预计使用寿命、净残值率及年折旧率列示如下： 预计使用寿命 预计净残值率 年折旧率 房屋及建筑物 25-40 年 4% 2.4%至 3.8% 机器设备 8-16 年 4% 6%至 12% 办公设备及固定装置 8-18 年 4% 5.3%至 12% 汽车及运输设备 8-12 年 4% 8%至 12% 于每年年度终了，对固定资产的预计使用寿命、预计净残值和折旧方法进行复核并作适当调整。 符合持有待售条件的固定资产，以账面价值与公允价值减去处置费用孰低的金额列示。公允价值 减去处置费用低于原账面价值的金额，确认为资产减值损失。 当固定资产被处置、或者预期通过使用或处置不能产生经济利益时，终止确认该固定资产。固定 资产出售、转让、报废或毁损的处置收入扣除其账面价值和相关税费后的金额计入当期损益。 (11) 在建工程 在建工程按实际发生的成本计量。实际成本包括建筑费用、其他为使在建工程达到预定可使用状 态所发生的必要支出以及在资产达到预定可使用状态之前所发生的符合资本化条件的借款费用。 在建工程在达到预定可使用状态时，转入固定资产并自次月起开始计提折旧。 (12) 无形资产 无形资产包括土地使用权、商标使用权、矿山开采权、电脑软件及技术专利等，以成本计量，采 用直线法按预计可使用年限摊销。 对使用寿命有限的无形资产的预计使用寿命及摊销方法于每年年度终了进行复核并作适当调整。 符合持有待售条件的无形资产，以账面价值与公允价值减去处置费用孰低的金额列示。公允价值 减去处置费用低于原账面价值的金额，确认为资产减值损失。 37 (13) 商誉 非同一控制下的企业合并，其合并成本超过合并中取得的被购买方可辨认净资产于购买日的公允 价值份额的差额确认为商誉。 (14) 长期待摊费用 长期待摊费用包括矿山开发费用、铁路专用线扩建改造费及其他已经发生但应由本期和以后各期 负担的、分摊期限在一年以上的各项费用，按预计受益期间分期平均摊销，并以实际支出减去累 计摊销后的净额列示。 (15) 长期资产减值 固定资产、在建工程、使用寿命有限的无形资产及对子公司、联营企业的长期股权投资等，于资产 负债表日存在减值迹象的，进行减值测试。减值测试结果表明资产的可收回金额低于其账面价值 的，按其差额计提减值准备并计入减值损失。可收回金额为资产的公允价值减去处置费用后的净额 与资产预计未来现金流量的现值两者之间的较高者。资产减值准备按单项资产为基础计算并确认， 如果难以对单项资产的可收回金额进行估计的，以该资产所属的资产组确定资产组的可收回金额。 资产组是能够独立产生现金流入的最小资产组合。 在财务报表中单独列示的商誉，无论是否存在减值迹象，至少每年进行减值测试。减值测试时，商 誉的账面价值分摊至预期从企业合并的协同效应中受益的资产组或资产组组合。测试结果表明包含 分摊的商誉的资产组或资产组组合的可收回金额低于其账面价值的，确认相应的减值损失。减值损 失金额先抵减分摊至该资产组或资产组组合的商誉的账面价值，再根据资产组或资产组组合中除商 誉以外的其他各项资产的账面价值所占比重，按比例抵减其他各项资产的账面价值。 上述资产减值损失一经确认，以后期间不予转回价值得以恢复的部分。 (16) 借款费用 发生的可直接归属于需要经过相当长时间的购建活动才能达到预定可使用状态之固定资产的购建的 借款费用，在资产支出及借款费用已经发生、为使资产达到预定可使用状态所必要的购建活动已经 开始时，开始资本化并计入该资产的成本。当购建的资产达到预定可使用状态时停止资本化，其后 发生的借款费用计入当期损益。如果资产的购建活动发生非正常中断，并且中断时间连续超过3个 月，暂停借款费用的资本化，直至资产的购建活动重新开始。 (17) 借款 借款按其公允价值扣除交易成本后的金额进行初始计量，并采用实际利率法按摊余成本进行后续计 量。借款期限在一年以下(含一年)的借款为短期借款，其余借款为长期借款。 (18) 职工薪酬 职工薪酬主要包括工资、奖金、津贴和补贴、职工福利费、社会保险费及住房公积金、工会经费和 职工教育经费等其他与获得职工提供的服务的相关支出。 于职工提供服务的期间确认应付的职工薪酬，并根据职工提供服务的受益对象计入相关资产成本和 费用。 (19) 预计负债 因员工福利计划、矿山复垦责任等形成的现时义务，其履行很可能导致经济利益的流出，在该义务 的金额能够可靠计量时，确认为预计负债。 38 预计负债按照履行相关现时义务所需支出的最佳估计数进行初始计量，并综合考虑与或有事项有关 的风险、不确定性和货币时间价值等因素。货币时间价值影响重大的，通过对相关未来现金流出进 行折现后确定最佳估计数；因随着时间推移所进行的折现还原而导致的预计负债账面价值的增加金 额，确认为利息费用。 于资产负债表日，对预计负债的账面价值进行复核并作适当调整，以反映当前的最佳估计数。 (a) 员工福利准备 退休金计划：根据本公司政策，本公司及部分子公司的提前离职员工及部分退休人员可享受一定金 额的生活费补贴或补充养老金补贴，直至该员工身故。 离职医疗福利计划：根据本集团部分公司当地基本医疗保险的有关规定，在未来一定时期内，本公 司及部分子公司应根据该等公司在职职工平均工资的一定比例为该等公司已退休人员支付基本医疗 保险金。 本集团综合考虑退休人数、退休年龄、人均寿命、年平均工资增长率和货币折现价值等因素预计相 应的员工福利准备。 (b) 矿山复垦费 根据有关行业惯例及参照政府有关法规，本集团结合自身实际情况，综合考虑采矿许可证有效期、 货币折现价值等因素后，对本集团属下的矿山预计了在该等矿山开采完成后需承担的复垦义务。 (20) 政府补助 政府补助是本集团从政府无偿取得的货币性资产，不包括政府作为本集团所有者投入的资本。政府 补助包括与资产相关的政府补助和与收益相关的政府补助。政府补助在本集团能够满足政府补助所 付条件，且能够收到予以确认。 政府补助为按照收到或应收的金额计量。 与收益相关的政府补助，用于补偿本集团以后期间的相关费用或损失，确认为递延收益，并在确认 相关费用的期间，计入当期损益；用于补偿本集团已发生的相关费用或损失，直接计入当期损益。 与资产相关的政府补助，确认为递延收益，并在相关资产使用寿命内平均分配，计入当期损益。 递延收益在资产负债表中以其他非流动负债列示。 (21) 递延所得税资产和递延所得税负债 递延所得税资产和递延所得税负债根据资产和负债的计税基础与其账面价值的差额(暂时性差异)计 算确认。对于按照税法规定能够于以后年度抵减应纳税所得额的可抵扣亏损，确认相应的递延所得 税资产。对于商誉的初始确认产生的暂时性差异，不确认相应的递延所得税负债。对于既不影响会 计利润也不影响应纳税所得额(或可抵扣亏损)的非企业合并的交易中产生的资产或负债的初始确认 形成的暂时性差异，不确认相应的递延所得税资产和递延所得税负债。于资产负债表日，递延所得 税资产和递延所得税负债，按照预期收回该资产或清偿该负债期间的适用税率计量。 递延所得税资产的确认以很可能取得用来抵扣可抵扣暂时性差异、可抵扣亏损和税款抵减的应纳税 所得额为限。 39 对子公司和联营企业投资相关的暂时性差异产生的递延所得税负债，除非本集团能够控制暂时性差 异转回的时间且该暂时性差异在可预见的未来很可能不会转回的情况外，确认为负债。对子公司和 联营企业投资相关的暂时性差异产生的递延所得税资产，当暂时性差异在可预见的未来很可能转回 且未来很可能获得用来抵扣可抵扣暂时性差异的应纳税所得额时，确认为资产。 同时满足下列条件的递延所得税资产和递延所得税负债以抵销后的净额列示： 递延所得税资产和递延所得税负债与同一税收征管部门对本集团内同一纳税主体征收的所得税相 关；本集团内该纳税主体拥有以净额结算当期所得税资产及当期所得税负债的法定权利。 (22) 收入确认 收入的金额按照本集团在日常经营活动中销售商品和提供劳务时，已收或应收合同或协议价款的公 允价值确定。收入按扣除增值税、商业折扣、销售折让及销售退回的净额列示。 与交易相关的经济利益能够流入本集团，相关的收入能够可靠计量且满足下列各项经营活动的特定 收入确认标准时，确认相关的收入： (a) 销售商品 本集团生产并销售水泥予各地客户。本集团在产品已经发出，产品所有权上的主要风险和报酬转移 给购货方，并且不再对该产品实施继续管理和控制，相关收入已取得或取得索取价款的凭据，并且 相关成本能够可靠计量时确认销售收入的实现。 (b) 利息收入 利息收入以时间比例为基础，采用实际利率计算确定。 (c) 服务收入 服务收入在向客户提供相关服务后，按照权责发生制原则确认。 (23) 经营租赁 以资产所有权有关的全部风险和报酬实质上并未转移至承租方的租赁为经营租赁。经营租赁的租金 支出在租赁期内按照直线法计入相关资产成本或当期损益。 (24) 股利分配 现金股利于股东大会批准的当期，确认为负债。 (25) 非同一控制下的企业合并 购买方发生的合并成本及在合并中取得的可辨认净资产按购买日的公允价值计量。合并成本大于合 并中取得的被购买方于购买日可辨认净资产公允价值份额的差额，确认为商誉；合并成本小于合并 中取得的被购买方可辨认净资产公允价值份额的差额，计入当期损益。 为进行企业合并发生的直接相关费用计入企业合并成本。 (26) 合并财务报表的编制方法 编制合并财务报表时，合并范围包括本公司及全部子公司。 从取得子公司的实际控制权之日起，本集团开始将其纳入合并范围；从丧失实际控制权之日起停止 纳入合并范围。 40 在编制合并财务报表时，子公司与本公司采用的会计政策或会计期间不一致的，按照本公司的会计 政策或会计期间对子公司财务报表进行必要的调整。对于非同一控制下企业合并取得的子公司，以 购买日可辨认净资产公允价值为基础对其财务报表进行调整。 集团内所有重大往来余额、交易及未实现利润在合并财务报表编制时予以抵销。子公司的股东权益 及当期净损益中不属于本公司所拥有的部分分别作为少数股东权益及少数股东损益在合并财务报表 中股东权益及净利润项下单独列示。 (27) 分部报告 业务分部是指本集团内可区分的、能够提供单项或一组相关产品或劳务的组成部分，该组成部分承 担了不同于其他组成部分的风险和报酬。地区分部是指本集团内可区分的、能够在一个特定的经济 环境内提供产品或劳务的组成部分，该组成部分承担了不同于在其他经济环境内提供产品或劳务的 组成部分的风险和报酬。 (28) 金融工具的公允价值确定 存在活跃市场的金融工具，以活跃市场中的报价确定其公允价值。不存在活跃市场的金融工具，采 用估值技术确定其公允价值。估值技术包括参考熟悉情况并自愿交易的各方最近进行的市场交易中 使用的价格、参照实质上相同的其他金融资产的当前公允价值、现金流量折现法等。采用估值技术 时，尽可能最大程度使用市场参数，减少使用与本集团特定相关的参数。 (29) 重要会计估计和判断 本集团根据历史经验和其他因素，包括对未来事项的合理预期，对所采用的重要会计估计和关键判 断进行持续的评价。 下列重要会计估计及关键假设存在会导致下一会计年度资产和负债的账面价值出现重大调整的重要 风险： (a) 固定资产的预期减值 每当有事项和情况转变显示固定资产的账面价值可能不能回收时，本集团将对该等资产进行减值测 试。该等资产或资产组的可回收金额按照使用价值确定，使用价值的计算需要作出适当的会计估 计。 (b) 员工福利准备的会计估计 计算员工福利准备的现值需要采用多项会计估计(附注四(19)(a))。其中，如果 2009 年 12 月 31 日管 理层对未来现金流量计算中所采用的折现率进行重新修订，修订后的折现率比目前所采用的折现率 低 1.02%，即修订为 1.17%，则本集团需增加计提员工福利准备约 604,399 元。 管理层认为关于员工福利准备计算中所应用的其他估计修改的可能性不大或修改带来的影响不重 大。 (c) 所得税 本集团在多个地区缴纳企业所得税。在正常的经营活动中，很多交易和事项的最终税务处理都存在 不确定性。在计提各个地区的所得税费用时，本集团需要作出重大判断。如果这些税务事项的最终 认定结果与最初入账的金额存在差异，该差异将对作出上述最终认定期间的所得税费用和递延所得 税的金额产生影响。 41 (d) 递延税项 有关可抵扣累计亏损、税款抵减及其他可抵扣暂时差异而形成的递延税资产已分别各个财务报表截 止日确认。递延所得税资产可否变现，主要取决于日后是否有足够盈利或应纳税额可供利用。若发 生的实际未来盈利少于预期，递延税资产可能需要作出重大拨备，拨备数额于发生的期间在利润表 中反映。 五 税项 本集团本年度适用的主要税种及其税率列示如下： 税种 税率 税基 企业所得税 15%及 25% 应纳税所得额 增值税 17% 应纳税增值额(应纳税额按应纳税销售额乘以适用税率扣除 当期允计抵扣的进项税后的余额计算) 营业税 3%及 5% 应纳税营业额 全国人民代表大会于 2007 年 3 月 16 日通过了《中华人民共和国企业所得税法》(“新所得税法”)， 新所得税法自 2008 年 1 月 1 日起施行。除下述子公司外，本集团适用的企业所得税率自 2008 年 1 月 1 日从 33%调整为 25%。 本公司的子公司华新水泥(西藏)有限公司为设立于西部开发地区的生产性企业，属于国家西部大开 发鼓励类产业。根据西藏山南地区行政公署文件山行发[2003]41 号《山南地区行政公署关于落实对 西藏华新水泥有限公司优惠政策的通知》，直至 2010 年 12 月 31 日华新水泥(西藏)有限公司适用的 企业所得税率为 15%。 本公司的子公司华新水泥(昭通)有限公司为设立于云南少数民族自治区的生产性企业。根据云财税 [2003]19 号《云南省财政厅、云南省国家税务局关于贯彻落实的实施意见》，华新水泥(昭通)有限公司自生产经营之日起， 前三年免征企业所得税，后两年减半征收企业所得税。华新水泥(昭通)有限公司自 2006 年开始生产 经营，故 2008 年度免征企业所得税。 本公司的子公司湖南华新湘钢水泥有限公司为设立于湖南湘潭市岳塘区的生产性企业。根据财税 [2005]186 号《关于下岗失业人员再就业有关税收政策问题的通知》以及财税[2008]1 号《财政部国 家税务总局关于企业所得税若干优惠政策的通知》，并经岳国税减免字(2008)第 3 号文批准，湖南 华新湘钢水泥有限公司从 2007 年至 2009 年三年免征企业所得税。 六 子公司 本公司的子公司及其合并范围： 除特别注明外，金额单位为人民币千元： 注册资 业务性质 本公司持有权益* 注册地 本 及经营范围 直接 间接 华新水泥(仙桃)有限公司 仙桃 23,900 生产及销售水泥 80% - 华新南通水泥有限公司(附注 a) 南通 108,000 生产及销售水泥 85% - 黄石华新包装有限公司 黄石 8,000 生产销售水泥包装袋及其 98.38% - 他包装制品 武汉武钢华新水泥有限责任公司(附注 b) 武汉 40,000 生产及销售矿渣水泥 50% - 华新水泥(宜昌)有限公司 宜昌 150,000 生产及销售水泥 70% - 华新水泥(恩施)有限公司 恩施 60,000 生产及销售水泥 67% 23.1% 黄石华新水泥科研设计有限公司 黄石 1,000 建材工程设计、建筑工程 99% - 设计、水泥生产技术服务 42 华新宜都包装有限公司(附注 c) 宜都 1,740 生产销售水泥包装袋及其 - 50.2% 他包装制品 华新水泥(西藏)有限公司 西藏 50,000 生产及销售水泥 60% - 华新水泥(昭通)有限公司 昭通 75,000 生产及销售水泥 60% 28% 华新水泥(岳阳)有限公司 岳阳 25,000 生产及销售水泥 90% 7% 华新水泥(阳新)有限公司 阳新 500,000 生产及销售水泥 80% - 华新水泥(武汉)有限公司 武汉 60,000 生产及销售水泥 70% 24% 华新混凝土(武汉)有限公司(附注 d) 武汉 80,000 生产及销售混凝土 100% - 华新水泥(襄樊)有限公司 襄樊 140,000 生产及销售水泥 100% - 湖南华新湘钢水泥有限公司 湘潭 60,000 生产及销售水泥 60% - 华新水泥(武穴)有限公司 武穴 200,000 生产及销售水泥 100% - 华新混凝土(黄石)有限公司(附注 e) 黄石 10,000 生产及销售混凝土 - 100% 华新金猫水泥(苏州)有限公司 苏州 美元 136,000 生产及销售水泥 51% - 千元 华新水泥(赤壁)有限公司 赤壁 140,000 生产及销售水泥 100% - 华新水泥(河南信阳)有限公司(附注 f) 信阳 140,000 生产及销售水泥 100% - 华新环保(武穴)废料处理有限公司(附注 g) 武穴 10,000 生产及销售水泥添加剂和 100% - 调凝剂 华新水泥技术管理(武汉)有限公司(附注 h) 武汉 20,000 技术研发及咨询服务 100% - 华新水泥(鹤峰)有限公司(附注 i) 鹤峰 47,640 生产及销售水泥 51% - 华新水泥(秭归)有限公司(附注 j) 秭归 160,000 生产及销售水泥 100% - 华新水泥(郴州)有限公司(附注 k) 郴州 160,000 生产及销售水泥 100% - 华新水泥(株州)有限公司(附注 l) 株州 200,000 生产及销售水泥 100% - 华新水泥(麻城)有限公司(附注 m) 麻城 40,000 生产及销售水泥 100% - 华新赤壁包装有限公司(附注 n) 赤壁 3,200 生产销售水泥包装袋及其 - 50.4% 他包装制品 华新鄂州包装有限公司(附注 o) 鄂州 8,000 生产销售水泥包装袋及其 - 98.38% 他包装制品 华新水泥(黄石)散装储运有限公司(附注 p) 黄石 20,000 散、袋装水泥散状物料的 100% - 装、卸、储存及货物运输 华新水泥(昆明东川)有限公司(附注 q) 昆明 30,000 生产及销售水泥 100% - 华新水泥襄樊襄城有限公司(附注 r) 襄樊 40,000 生产及销售水泥 100% - 华新水泥(渠县)有限公司(附注 s) 渠县 160,000 生产及销售水泥 100% - 华新水泥(黄石)装备制造有限公司(附注 t) 黄石 60,000 机电设备制造、维修、 100% - 安装服务 华新水泥重庆涪陵有限公司(附注 u) 涪陵 160,000 生产及销售水泥 100% - 华新水泥随州有限公司(附注 v) 随州 41,000 生产及销售水泥 60% - 华新水泥(石首)有限公司(附注 w) 石首 19,800 生产及销售水泥 55% - * 本公司所持有表决权比例与本公司持有的权益比例无重大差异。 (a) 根据 2002 年 3 月 21 日本公司与新加坡 RDC 国际私人有限公司(“RDC 公司”)签订的《股权委托管 理及预约转让协议书》，RDC 公司委托本公司管理其持有的华新南通水泥有限公司 26%的股权， 由此本公司合共持有华新南通水泥有限公司 85%股权。根据 2005 年 6 月 8 日本公司与 RDC 公司 签订的股权转让协议，本公司正式收购 RDC 公司持有华新南通水泥有限公司之股权。截至本报告 日，该项收购活动尚待华新南通水泥有限公司其他股东的批准。 (b) 由于本公司对武汉武钢华新水泥有限责任公司拥有经营决策权，所以将该公司作为子公司纳入合并 范围。 (c) 华新宜都包装有限公司的少数股东于 2008 年追加投资，但本集团未作出同比例追加投资，从而本 公司的持有权益被稀释至 50.2％。 (d) 本公司于 2008 年 4 月 24 日收购华新水泥(阳新)有限公司(本公司之子公司)所持华新混凝土(武汉)有 限公司 30%股权，股权转让后，华新混凝土(武汉)有限公司成为本公司全资子公司。此外，本公司 于 2008 年 5 月 20 日向该公司增资 60,000,000 元，注册资本变更为 80,000,000 元。 43 (e) 本公司于 2008 年 4 月 22 日将华新混凝土(黄石)有限公司 100%股权转让给华新混凝土(武汉)有限公 司(本公司之子公司)。 (f) 本公司于 2008 年 2 月 21 日独资成立华新水泥(河南信阳)有限公司，注册资本为 140,000,000 元。 经营期限为 50 年。 (g) 本公司于 2008 年 1 月 21 日独资成立华新环保(武穴)废料处理有限公司，注册资本为 10,000,000 元。经营期限为 50 年。 (h) 本公司于 2008 年 4 月 10 日独资成立华新技术管理(武汉)有限公司，注册资本为 20,000,000 元。经 营期限为 50 年。 (i) 本公司于 2008 年 5 月 6 日收购湖北长友现代农业股份有限公司所持鹤峰县长宏水泥有限公司(现更 名为华新水泥(鹤峰)有限公司)51%的股权 (附注九(a))。 (j) 本公司于 2008 年 3 月 25 日独资成立华新水泥(秭归)有限公司，注册资本为 160,000,000 元。经营 期限为 50 年。 (k) 本公司于 2008 年 4 月 11 日独资成立华新水泥(郴州)有限公司，注册资本为 160,000,000 元。经营 期限为 50 年。 (l) 本公司于 2008 年 5 月 20 日独资成立华新水泥(株洲)有限公司，注册资本为 200,000,000 元。经营 期限为 50 年。 (m) 本公司于 2008 年 5 月 29 日独资成立华新水泥(麻城)有限公司，注册资本为 40,000,000 元。经营期 限为 50 年。 (n) 黄石华新包装有限公司于 2008 年 3 月 26 日成立华新赤壁包装有限公司，注册资本为 3,200,000 元。黄石华新包装有限公司出资 1,640,000 元，占注册资本的 51.25%，本公司间接持股比例为 50.4%，经营期限为 50 年。 (o) 黄石华新包装有限公司于 2008 年 4 月 11 日独资成立华新鄂州包装有限公司，注册资本为 8,000,000 元。本公司间接持股比例为 98.38%，经营期限为 50 年。 (p) 本公司于 2008 年 7 月 10 日独资成立华新水泥(黄石)散装储运有限公司，注册资本为 20,000,000 元。经营期限为 50 年。 (q) 本公司于 2008 年 9 月 11 日独资成立华新水泥(昆明东川)有限公司，注册资本为 30,000,000 元。经 营期限为 50 年。 (r) 本公司于 2008 年 10 月 7 日独资成立华新水泥襄樊襄城有限公司，注册资本为 40,000,000 元。经 营期限为 50 年。 (s) 本公司于 2008 年 10 月 17 日独资成立华新水泥(渠县)有限公司，注册资本为 160,000,000 元。经 营期限为 50 年。 (t) 本公司于 2008 年 10 月 28 日独资成立华新水泥(黄石)装备制造有限公司，注册资本为 60,000,000 元。经营期限为 50 年。 (u) 本公司于 2008 年 11 月 18 日独资成立华新水泥重庆涪陵有限公司，注册资本为 160,000,000 元。 经营期限为 50 年。 (v) 本公司于 2008 年 12 月 9 日收购随州市长城建材有限责任公司所持华新水泥随州有限公司 60%的 股权 (附注九(b))。 44 (w) 本公司于 2008 年 12 月 15 日收购湖北建源水泥股份有限公司所持华新水泥(石首)有限公司 55%的 股权 (附注九(c))。 其他子公司的注册资本及本集团所占投资比例在本年度并未变化。 七 合并财务报表项目附注 (1) 货币资金 2008 年 12 月 31 日 2007 年 12 月 31 日 库存现金 253,088 238,369 银行存款 924,868,418 515,747,381 其他货币资金 61,596,331 53,105,967 986,717,837 569,091,717 货币资金中包括以下外币余额： 2008 年 12 月 31 日 2007 年 12 月 31 日 外币金额 汇率 折合人民币 外币金额 汇率 折合人民币 美元 53,205 6.8346 363,635 40,779 7.3046 297,874 港元 9,915 0.8819 8,744 9,814 0.9364 9,190 新加坡元 1,543 4.7530 7,334 807 5.0518 4,077 瑞士法郎 5 6.4624 32 4 6.4900 26 欧元 2,064 9.6590 19,936 2,062 10.6669 21,995 399,681 333,162 于 2008 年 12 月 31 日，本集团之银行存款共 61,596,331 元(2007 年 12 月 31 日：53,105,967 元) 已抵押予银行作为开具银行承兑汇票之保证金。 (2) 应收票据 2008 年 12 月 31 日 2007 年 12 月 31 日 商业承兑汇票 17,887,411 5,267,174 银行承兑汇票 107,178,571 178,124,816 125,065,982 183,391,990 于 2008 年 12 月 31 日，本集团共有 484,998,655 元(2007 年 12 月 31 日：430,645,042 元)未到期 银行承兑汇票已经背书转让，共有 51,823,941 元(2007 年 12 月 31 日：无)未到期银行承兑汇票已 向银行办理贴现。 (3) 应收账款及其他应收款 (a) 应收账款 2007 年 12 月 31 日 本年增加 本年减少 2008 年 12 月 31 日 应收账款 142,490,863 150,725,632 减：坏账准备 (8,440,757) (485,554) 2,522,252 (6,404,059) 134,050,106 144,321,573 45 应收账款账龄及相应的坏账准备分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额比例 坏账准备 金额 占总额比例 坏账准备 一年以内 126,340,569 83.8% - 129,721,624 91.0% - 一到二年 18,191,001 12.1% (370,987) 4,495,821 3.2% (714,590) 二到三年 417,048 0.3% (256,058) 139,599 0.1% (29,179) 三年以上 5,777,014 3.8% (5,777,014) 8,133,819 5.7% (7,696,988) 150,725,632 100% (6,404,059) 142,490,863 100% (8,440,757) 应收账款按类别分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额 坏账准备 计提比例 金额 占总额 坏账准备 计提 比例 比例 比例 单项金额重大 52,235,129 34.7% - - 36,749,826 25.8% (15,775) 0.1% 单项金额不重大 但组合风险较大 5,971,866 4.0% (5,971,866) 100.0% 8,181,803 5.7% (8,181,803) 100% 其他不重大 92,518,637 61.3% (432,193) 0.5% 97,559,234 68.5% (243,179) 0.2% 150,725,632 100% (6,404,059) 4.2% 142,490,863 100% (8,440,757) 5.9% 于 2008 年 12 月 31 日，账龄为一到两年的应收账款主要为应收湖北沪蓉西项目和中铁建工集团武 昌站项目的混凝土货款 15,891,261 元。经评估，管理层认为该等货款不存在重大回收性问题，因 此并无计提坏账准备。 于 2008 年 12 月 31 日，应收账款中无应收持有本公司 5%(含 5%)以上之表决权股份的股东之欠 款(2007 年 12 月 31 日：无)；应收账款中包括本公司主要股东之关联方的欠款 192,807 元（2007 年 12 月 31 日 8,093,620 元）(附注十(4)(a))，该股东持有本公司 5%(含 5%)以上表决权股份。 年末应收账款前五名债务人欠款金额合计为 35,417,915 元(2007 年 12 月 31 日：30,204,263 元)，占应收账款总额的 23%(2007 年 12 月 31 日：21%)，账龄均为一年以内。 应收账款中包括以下外币余额： 2008 年 12 月 31 日 2007 年 12 月 31 日 外币金额 汇率 折合人民 外币金额 汇率 折合人民币 币 美元 12,800 6.8346 87,483 1,108,017 7.3046 8,093,621 (b) 其他应收款 2007 年 本年增加 本年减少 2008 年 12 月 31 日 12 月 31 日 备用金 4,664,300 8,525,762 项目保证金及押金 5,248,457 24,620,896 其它 26,120,888 36,019,452 36,033,645 69,166,110 减：坏账准备 (2,858,586) (397,604) 39,967 (3,216,223) 33,175,059 65,949,887 其他应收款及相应的坏账准备分析如下： 46 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额 坏账准备 金额 占总额 坏账准备 比例 比例 一年以内 54,752,153 79.1% - 21,082,690 58.4% - 一到二年 3,268,055 4.7% (334,980) 5,172,521 14.4% - 二到三年 3,049,082 4.4% - 4,997,021 13.9% - 三年以上 8,106,820 11.8% (2,881,243) 4,781,413 13.3% (2,858,586) 69,166,110 100% (3,216,223) 36,033,645 100% (2,858,586) 其他应收款按类别分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额 坏账准备 计提 金额 占总额 坏账准备 计提 比例 比例 比例 比例 单项金额重大 36,568,520 52.8% - - 4,737,752 13.4% - - 单项金额不重大 但组合风险较 大 3,216,223 4.7% (3,216,223) 100% 2,484,709 6.9% (2,484,709) 100% 其他不重大 29,381,367 42.5% - - 28,811,184 79.7% (373,877) 1% 69,166,110 100% (3,216,223) 4.6% 36,033,645 100% (2,858,586) 8% 于 2008 年 12 月 31 日，其他应收款中无持有本公司 5%(含 5%)以上表决权股份的股东的欠款 (2007 年 12 月 31 日：6,245 元)。 年末其他应收款前五名债务人欠款金额合计为 32,865,278 元(2007 年 12 月 31 日：9,942,780 元)，占其他应收款总额的 48%(2007 年 12 月 31 日：28%)。 (4) 预付款项 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额 金额 占总额 比例 比例 账龄 一年以内 53,743,757 75.8% 55,949,751 98.0% 一到二年 16,308,690 23.0% 279,983 0.5% 二到三年 81,160 0.1% 323,767 0.6% 三年以上 792,148 1.1% 530,483 0.9% 70,925,755 100% 57,083,984 100% 预付款项中无预付予持有本公司 5%(含 5%)以上表决权股份的股东单位的款项(2007 年 12 月 31 日：无)。 于 2008 年 12 月 31 日，账龄超过一年的预付款项为 17,181,998 元(2007 年 12 月 31 日： 1,134,233 元)，主要为预付矿山使用权购买款，有关权证手续正在办理中。 47 (5) 存货 2007 年 本年增加 本年减少 2008 年 12 月 31 日 12 月 31 日 成本－ 原材料 189,853,986 209,746,002 在产品 64,607,079 86,158,797 产成品 165,422,096 137,059,431 备品备件 141,902,839 177,425,057 周转材料 7,778,520 9,529,202 569,564,520 619,918,489 减：存货跌价准备－ 原材料 (2,103,401) - - (2,103,401) 备品备件 (25,406,645) - 4,508,107 (20,898,538) 周转材料 (309,458) - - (309,458) (27,819,504) - 4,508,107 (23,311,397) 541,745,016 596,607,092 (6) 可供出售金融资产 2007 年 2008 年 12 月 31 日 本年减少 12 月 31 日 以公允价值计量 —可供出售权益工具(附注 a) 56,645,740 (41,787,760) 14,857,980 以成本法计量 —可供出售权益工具(附注 b) 14,500,266 - 14,500,266 —可供出售债券 3,200 - 3,200 14,503,466 - 14,503,466 减：减值准备 (2,775,600) - (2,775,600) 11,727,866 - 11,727,866 68,373,606 (41,787,760) 26,585,846 于 2008 年 12 月 31 日，本集团的可供出售金融资产均以人民币计值，其中包括： (a) 以公允价值计量之可供出售权益工具为本公司持有的两家中国 A 股上市公司之流通股。根据该等 上市公司股票市场价格，本集团于 2008 年 12 月 31 日累计确认公允价值利得合共 12,161,980 元 (2007 年 12 月 31 日：公允价值利得 53,949,740 元)，计入资本公积。 (b) 年末余额包括持有一家由湖北省电力局控制的地方供电企业的 3.9%股权(2007 年 12 月 31 日： 3.9%)。按投资成本 11,724,466 元列示。 于 2008 年 12 月 31 日，部分被投资公司经营情况不理想，本集团已对其计提全额减值准备 2,775,600 元，并以成本减减值准备列示。 48 (7) 长期应收款 2008 年 2007 年 12 月 31 日 12 月 31 日 应收少数股东款项(附注 a) 38,534,484 37,484,906 员工借款 7,653,463 - 应收第三方款项 8,678,718 - 54,866,665 37,484,906 (a) 该款项为无抵押、免利息及没有固定还款期，并以摊余价值列示。管理层认为该项款项不存在减值 问题，估计在未来的 12 个月不会收回。 长期应收账款账龄及相应的坏账准备分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额比例 坏账准备 金额 占总额比例 坏账准备 一年以内 16,332,181 29.8% - - - - 二到三年 - - - 37,484,906 100.0% - 三到四年 38,534,484 70.2% - - - - 54,866,665 100% - 37,484,906 100% - (8) 长期股权投资 2008 年 12 月 31 日 2007 年 12 月 31 日 联营企业 138,335 192,094 于 2008 年 12 月 31 日，对联营公司的长期股权投资为对黄石华新宾馆有限公司 49％权益的投资， 初始投资成本为 294,000 元。 (9) 固定资产 房屋及 办公设备及 汽车及 建筑物 机器设备 固定装置 运输设备 合计 原价 2007 年 12 月 31 日 2,946,159,479 4,611,732,675 47,205,563 330,071,986 7,935,169,703 在建工程转入 520,101,883 153,941,659 43,297,741 35,295,952 752,637,235 本年其他增加 20,855,095 19,003,731 23,178,472 12,758,297 75,795,595 收购子公司(附注九) 18,989,178 20,864,601 118,988 316,384 40,289,151 本年减少 (254,610,338) (372,063,908) (10,376,286) (53,021,077) (690,071,609) 2008 年 12 月 31 日 3,251,495,297 4,433,478,758 103,424,478 325,421,542 8,113,820,075 累计折旧 2007 年 12 月 31 日 (566,810,700) (1,509,205,149) (17,970,043) (129,509,872) (2,223,495,764) 本年计提 (102,944,117) (282,994,613) (6,533,255) (29,217,035) (421,689,020) 收购子公司(附注九) (367,732) (115,911) (19,874) (60,503) (564,020) 本年减少 112,525,967 260,581,845 2,352,309 33,180,840 408,640,961 2008 年 12 月 31 日 (557,596,582) (1,531,733,828) (22,170,863) (125,606,570) (2,237,107,843) 49 减值准备 2007 年 12 月 31 日 (32,573,239) (26,923,549) (5,245) (369,423) (59,871,456) 本年增加 - (4,617,998) - - (4,617,998) 本年减少 4,289,660 12,746,503 5,245 5,020 17,046,428 2008 年 12 月 31 日 (28,283,579) (18,795,044) - (364,403) (47,443,026) 净值 2008 年 12 月 31 日 2,665,615,136 2,882,949,886 81,253,615 199,450,569 5,829,269,206 2007 年 12 月 31 日 2,346,775,540 3,075,603,977 29,230,275 200,192,691 5,651,802,483 (a) 于 2008 年 12 月 31 日，净值约为 2,093,947,848 元(原价 3,460,667,277 元)(2007 年 12 月 31 日 ： 净 值 2,340,589,145 元 、 原 价 3,555,038,685 元 ) 的 房 屋 、 建 筑 物 及 设 备 分 别 作 为 238,000,000 元 (2007 年 12 月 31 日 ： 210,000,000 元 ) 的 短 期 借 款 ( 附 注 七 (16)(a)) 和 1,132,657,047 元(2007 年 12 月 31 日：1,468,710,663 元)的长期借款(附注七(26)(a))的抵押物。 (b) 于 2008 年 12 月 31 日，净值约为 66,193,870 元(原价 66,909,661 元)的房屋及建筑物的所有权证 (2007 年 12 月 31 日：净值 37,810,812 元、原价 37,810,812 元)尚在办理过程中。 (c) 截至 2008 年 12 月 31 日及 2007 年 12 月 31 日止年度，计入营业成本、营业费用及管理费用的折 旧费用列示如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 营业成本 384,462,793 343,183,719 营业费用 20,701,731 18,208,237 管理费用 16,524,496 13,872,000 421,689,020 375,263,956 (d) 于2008年12月31日，由于当地政府将收回本集团于黄石市的一土地使用权，对应建造于该土地上 之 净 值 约 为 67,597,565 元 ( 原 价 254,647,071 元 ) 的 机 器 设 备 和 净 值 约 为 127,785,386 元 ( 原 价 233,576,667元)的房屋、建筑物需要处置且已经处于拆迁过程中，转入固定资产清理(附注(10))。经 管 理 层 评 估 ， 政 府 承 诺 的 转 让 价 款 261,288,200 元 扣 除 预 计 处 置 费 用 3,808,030 元 后 之 净 值 257,480,170元不低于该等待处置固定资产与土地使用权的账面净值之和。 (10) 固定资产清理 本账户主要包括待处置固定资产 195,382,951 元(原价 488,223,738 元)(附注(9)(d))抵消对应已收到 的资产转让款项 86,952,468 元后的净额 108,430,483 元。 50 (11) 在建工程 2007 年 收购子公司 工程名称 预算总数 12 月 31 日 (附注九(a)) 本年增加 华新水泥(阳新)有限公司余热发电工程 107,838,000 - - 82,129,744 华新水泥(襄樊)有限公司二期 4000t/d 水泥熟料生产线项目 379,380,000 350,201 - 194,029,353 湖南华新湘钢水泥有限公司 200 万吨水泥粉磨生产线 160,000,000 54,283,298 - 75,100,492 (1 华新水泥(河南信阳)有限公司 4500t/d 水泥熟料生产线 450,000,000 122,317,984 - 295,455,676 (4 本公司机修公司新厂房项目 97,000,000 20,298,483 - 65,905,050 华新水泥(秭归)有限公司 4000T/D 熟料水泥生产线 617,280,000 31,481,198 - 193,426,633 华新水泥(郴州)有限公司 4500T/D 熟料生产线 623,179,100 3,548,529 - 72,883,010 慧眼工程项目 60,000,000 24,912,428 - 41,950,450 ( 加总结转下页 257,192,121 - 1,020,880,408 (6 51 (11) 在建工程(续) 2007 年 收购子公司 固 工程名称 预算总数 12 月 31 日 (附注九(a)) 本年增加 上页结转 257,192,121 - 1,020,880,408 (603 华新环保(武穴)废料处理有限公司武穴磷石膏项目 34,000,000 21,258,451 - 21,720,524 (41 华新水泥(武穴)有限公司余热发电工程 106,757,000 10,311,416 - 78,825,441 华新水泥(渠县)有限公司 4000T/D 熟料水泥生产线项目 480,340,000 - - 73,795,463 华新水泥(鹤峰)有限公司工程项目(附注九(a)) 150,000,000 - 64,526,922 67,684,202 华新水泥重庆涪陵有限公司 4600T/D 熟料水泥 生产线项目 497,840,000 - - 50,308,324 华新水泥(株洲)有限公司 4500T/D 熟料水泥生产线项目 639,174,500 4,436,018 - 110,611,023 其他工程 146,146,830 - 393,660,152 (144 439,344,836 64,526,922 1,817,485,537 (789 其中：借款费用资本化金额 5,958,313 - 53,424,091 (25 减：在建工程减值准备 (6,939,396) - (1,365,777) 432,405,440 2008 年度用于确定借款费用资本化金额的资本化率为年利率 6.61%(2007 年：6.23%)。 (12) 工程物资 2008 年 12 月 31 日 2007 年 12 月 31 日 专用设备 13,350,340 8,942,244 52 (13) 无形资产 2007 年 在建工程 收购子公司 原价 12 月 31 日 转入 (附注九) 本年增加 本年 土地使用权 1,002,916,933 611,235,364 - 25,094,606 264,576,459 (13,401 商标使用权 50,006,820 17,916,718 - 4,092 - (2,500 电脑软件 39,441,660 824,171 36,520,000 - 1,671,660 (369 技术专利 6,000,000 - - - 6,000,000 (50 矿山开采权 133,688,164 100,956,301 - 61,782 25,043,470 (9,125 —采矿权证 55,981,439 23,449,445 - 61,782 24,843,601 (2,621 —矿山复垦费 77,706,725 77,506,856 - - 199,869 (6,504 其他 - 42,267 - - - (42 1,232,053,577 730,974,821 36,520,000 25,160,480 297,291,589 (25,489 (a) 于2008年12月31日，摊余价值为279,461,068元(原值为345,667,335元)(2007年12月31日：净值340,633,317元 权 ， 作 为 短 期 借 款 238,000,000 元 (2007 年 12 月 31 日 ： 210,000,000 元 )( 附 注 七 (16)(a)) 和 长 期 借 款 1,13 1,468,710,663元) (附注七(26)(a))的抵押物。 (b) 于2008年12月31日，当地政府将收回本集团某土地使用权，对应之净值约16,050,016元(原价：22,979,113元)。 53 (14) 商誉 2008 年 2007 年 12 月 31 日 12 月 31 日 商誉 9,469,146 9,469,146 商誉主要为本公司收购华新南通水泥有限公司时的投资成本超过其应享有的华新南通水泥有限公司 于投资取得日的公允价值的差额。 (15) 长期待摊费用 2007 年 2008 年 12 月 31 日 本年增加 本年摊销 12 月 31 日 矿山勘探费 19,973,204 20,640,415 (4,168,519) 36,445,100 铁路扩建费 1,949,964 - (649,988) 1,299,976 其他 1,114,178 2,822,810 (337,366) 3,599,622 23,037,346 23,463,225 (5,155,873) 41,344,698 (16) 短期借款 币种 2008 年 12 月 31 日 2007 年 12 月 31 日 担保借款(附注 a) －抵押 人民币 238,000,000 210,000,000 －保证 人民币 18,000,000 - 信用借款(附注 b) 人民币 1,033,600,000 766,300,000 1,289,600,000 976,300,000 (a) 于 2008 年 12 月 31 日，短期担保借款包括： 银行抵押借款 238,000,000 元(2007 年 12 月 31 日：210,000,000 元)系由净值 287,323,574 元 (原价为 458,551,446 元)的房屋、建筑物和设备(附注七(9)(a))以及净值为 182,227,439 元(原价 为 239,199,205 元)的土地使用权(附注七(13)(a))作为抵押物； 银行保证借款 18,000,000 元(2007 年 12 月 31 日：无)，分别由本集团的某一子公司之少数股东 湘潭钢铁集团有限公司及本公司对借款的 40%及 60%提供担保。 (b) 于 2008 年 12 月 31 日，信用借款中包括本公司为本集团内子公司提供保证的银行借款 155,000,000 元(2007 年 12 月 31 日：165,000,000 元)。 2008 年度短期借款的加权平均年利率为 6.6%(2007 年：5.6%)。 (17) 应付票据 2008 年 12 月 31 日 2007 年 12 月 31 日 银行承兑汇票 225,290,000 155,067,359 (18) 应付账款 54 于 2008 年 12 月 31 日，应付账款中无应付持有本公司 5%(含 5%)以上表决权股份的股东之款项 (2007 年 12 月 31 日：无)。 于 2008 年 12 月 31 日，账龄超过一年的应付账款为 71,044,317 元(2007 年 12 月 31 日： 98,922,585 元)，主要为应付工程及设备款，鉴于工程尚未验收结算，该款项尚未进行最后清算。 (19) 预收款项 于 2008 年 12 月 31 日，预收款项中包括本公司主要股东之关联方的购货款项 136,719 元(2007 年 12 月 31 日：146,091,781 元) (附注十(4)(c))，该股东持有本公司 5%(含 5%)以上表决权股份。 于 2008 年 12 月 31 日，账龄超过一年的预收款项 23,887,580 元，主要为本集团预收当地政府的 搬迁补偿款。鉴于有关搬迁工作尚在进行中，该款项尚未结清。 预收款项中包括以下外币余额： 2008 年 12 月 31 日 2007 年 12 月 31 日 外币金额 汇率 折合人民币 外币金额 汇率 折合人民币 美元 20,004 6.8346 136,719 20,183,046 7.3046 147,429,078 (20) 应付职工薪酬 2007 年 2008 年 12 月 31 日 本年增加 本年减少 12 月 31 日 工资、奖金、津贴和补贴 26,244,459 246,922,754 (261,211,320) 11,955,893 职工福利费 2,432,065 25,752,998 (28,185,063) - 社会保险费 398,289 61,593,107 (59,423,410) 2,567,986 住房公积金 1,432,968 19,620,097 (18,330,181) 2,722,884 工会经费和职工教育经费 5,469,213 1,582,058 (5,561,655) 1,489,616 辞退福利 - 7,663,659 (3,060,734) 4,602,925 35,976,994 363,134,673 (375,772,363) 23,339,304 (21) 应交税费 2008 年 12 月 31 日 2007 年 12 月 31 日 应交企业所得税 53,381,658 84,051,581 应交增值税 39,801,905 63,849,411 应交营业税 816,252 1,100,417 应交资源税 12,422,853 10,212,204 应交城市维护建设税 3,566,953 5,086,243 应交教育费附加 3,792,774 3,316,893 应交堤防费 16,988,476 14,446,126 其他 18,233,785 14,403,437 149,004,656 196,466,312 55 (22) 应付股利 2008 年 12 月 31 日 2007 年 12 月 31 日 少数股东 29,323,800 61,572,707 本公司股东 576,326 576,326 29,900,126 62,149,033 (23) 其他应付款 2008 年 12 月 31 日 2007 年 12 月 31 日 代收代付运输费 31,751,692 31,089,629 保证金及押金 20,043,387 11,967,881 代扣代缴税金 2,781,705 5,488,177 其他 62,768,414 45,885,926 117,345,198 94,431,613 于 2008 年 12 月 31 日，其他应付款中含应付持有本公司 5%(含 5%)以上表决权股份的股东款项 为 2,050,380 元(2007 年 12 月 31 日：400,000 元)(附注十(4)(b))。 于 2008 年 12 月 31 日，其他应付款 117,345,198 元余额中，账龄超过一年的其他应付款为 19,979,777 元(2007 年 12 月 31 日：20,786,416 元)，主要为大型工程项目向本集团支付的水泥 供应保证金及押金款项，因为部分大型工程项目仍在建设当中，该款项尚未结清。 (24) 一年内到期的非流动负债 2008 年 12 月 31 日 2007 年 12 月 31 日 一年内到期的长期借款(附注七(26)) 675,174,937 699,979,478 一年内到期的长期应付款(附注七(27)) 16,870,040 4,630,980 692,044,977 704,610,458 (25) 本公司于 2007 年 7 月发行面值为 500,000,000 元的短期融资券，年利率为 4.59%，于 2007 年 12 月 31 日账面金额为 498,875,000 元。该短期融资券已按约定于 2008 年 7 月到期一次还本付息。 (26) 长期借款 2008 年 12 月 31 日 2007 年 12 月 31 日 担保借款 －抵押(附注 a) 1,132,657,047 1,468,710,663 －保证(附注 b) 92,988,872 108,127,124 信用借款(附注 c) 1,374,110,000 1,063,980,000 2,599,755,919 2,640,817,787 减：一年内到期的长期借款 (675,174,937) (699,979,478) －抵押(附注 a) (394,625,097) (388,074,942) －保证(附注 b) (41,509,840) (1,904,536) －信用(附注 c) (239,040,000) (310,000,000) 1,924,580,982 1,940,838,309 于 2008 年 12 月 31 日，长期借款包括： 56 (a) 人民币抵押借款 1,017,160,000 元(2007 年 12 月 31 日：1,299,160,000 元)及等额为 114,497,550 元之美元抵押借款(2007 年 12 月 31 日：166,179,650 元)及等额为 1,017,497 元之欧元抵押借款 (2007 年 12 月 31 日 ： 3,371,013 元 ) 系 由 本 集 团 净 值 约 为 1,806,624,274 元 ( 原 价 为 ： 3,002,115,831 元)的固定资产(附注七(9)(a))以及净值为 97,233,629 元的土地使用权(原价为 106,468,130 元)(附注七(13)(a))作为抵押物。 (b) 人民币保证借款 10,000,000 元(2007 年 12 月 31 日：无)系由本公司之第二大股东华新集团有限公 司提供保证，利息每月支付一次，本金应于 2010 年偿还(附注十(3)(e))； 等额为 12,988,872 元(2007 年 12 月 31 日：18,127,124 元)之丹麦克朗借款由湖北省建设银行及 湖北省计划委员会提供保证，利息每 6 个月支付一次，本金应于 2009 年至 2021 年期间偿还； 人民币借款 70,000,000 元（2007 年 12 月 31 日：90,000,000 元）分别由湘潭钢铁集团有限公司 及本公司对借款的 40%及 60%提供担保，利息每 3 月支付一次，本金应于 2009 年至 2010 年期 间偿还。 (c) 信用借款中包括本公司为本集团内子公司提供保证的人民币银行借款 1,271,610,000 元(2007 年 12 月 31 日：434,980,000 元)。 长期借款按贷款银行列示如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 中国银行 959,971,950 795,392,050 中国建设银行 450,000,000 641,123,671 中国农业银行 357,130,000 398,100,000 中国进出口银行 127,479,032 16,222,588 中国民生银行 30,000,000 90,000,000 1,924,580,982 1,940,838,309 长期借款到期日分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 一到二年 518,964,714 584,668,207 二到五年 1,357,996,091 1,347,565,658 五年以上 47,620,177 8,604,444 1,924,580,982 1,940,838,309 2008 年度长期借款的加权平均年利率为 7.1%(2007 年：6.5%)。 (27) 长期应付款 2008 年 12 月 31 日 2007 年 12 月 31 日 应付土地转让金 41,548,560 43,414,371 地方政府借款 22,014,550 - 其他 - 10,493 减：一年内到期的长期应付款 (16,870,040) (4,630,980) － 一年内到期的应付土地转让金 (4,855,490) (4,630,980) － 一年内到期的地方政府借款 (12,014,550) - 46,693,070 38,793,884 57 长期应付款到期日分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 一到二年 13,972,521 3,972,572 二到五年 11,297,345 11,297,345 五年以上 21,423,204 23,523,967 46,693,070 38,793,884 (28) 预计负债 2007 年 2008 年 12 月 31 日 本年增加 本年减少 12 月 31 日 员工福利准备 (附注(a)) 51,110,394 810,627 (6,794,738) 45,126,283 矿山复垦费 77,506,856 3,473,500 - 80,980,356 128,617,250 4,284,127 (6,794,738) 126,106,639 (a) 员工福利准备 2008 年 12 月 31 日 2007 年 12 月 31 日 退休金计划 15,820,320 20,992,275 离职医疗福利计划 29,305,963 30,118,119 45,126,283 51,110,394 管理层对员工福利准备的计提是采用现金流量预测方法计算。有关退休金计划和离职医疗福利计 划的详细情况请参阅附注四(19)(a)。 采用未来现金流量折现方法的主要假设： 平均工资增长率 10% 折现率(国债利率) 2.19% 男性员工于 60 岁退休后的平均寿命 10 女性员工于 50 岁退休后的平均寿命 20 (29) 递延所得税资产和负债 未经抵消的递延所得税资产和递延所得税负债列示如下： (a) 递延所得税资产 2008 年 12 月 31 日 2007 年 12 月 31 日 递延所得税资产 可抵扣暂时性差异 递延所得税 可抵扣暂时性 资产 差异 资产减值准备 5,382,420 21,529,680 6,084,708 24,338,834 预提费用 6,189,652 24,758,607 5,785,691 23,126,900 未实现内部销售利润 17,342,133 69,368,530 5,252,508 21,010,030 预计可弥补亏损 6,651,688 26,606,752 1,078,672 4,314,690 员工福利准备 9,794,674 39,178,698 10,815,266 43,276,925 开办费摊销 1,984,807 7,939,227 3,320,598 13,282,390 国产设备税款抵减 11,626,091 - - - 58,971,465 189,381,494 32,337,443 129,349,769 58 于2008年12月31日，本集团未对可抵扣亏损161,688,666元(2007年12月31日：140,044,789元) 确认相关的递延所得税资产40,422,166元(2007年12月31日：35,011,197元)。上述可抵扣亏损将 于2010年至2013年分别到期。 (b) 递延所得税负债 2008 年 12 月 31 日 2007 年 12 月 31 日 递延所得税负债 应纳税暂时性差异 递延所得税负债 应纳税暂时性差 异 试生产损失资本化 2,612,673 10,450,693 3,009,534 12,038,140 一般借款利息资本化 11,562,405 46,249,618 7,115,652 28,462,611 按摊余成本计量的长 期应付款 1,630,783 6,523,133 1,942,077 7,768,308 可供出售金融资产公 允价值变动 3,040,495 12,161,980 13,487,435 53,949,740 18,846,356 75,385,424 25,554,698 102,218,799 抵消后的递延所得税资产和递延所得税负债净额列示如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 递延所得税资产净额 52,894,235 32,337,443 递延所得税负债净额 12,769,126 25,554,698 (30) 股本 2007 年 12 月 31 日 本年增加 本年减少 2008 年 12 月 31 日 有限售条件股份－ 发起人—国家持有股(附 注 a) 79,250,648 - (3,962,532) 75,288,116 募集法人股(附注 a) 9,870,232 - (9,870,232) - 外资法人持股(附注 b) - 160,961,300 - 160,961,300 89,120,880 160,961,300 (13,832,764) 236,249,416 无限售条件股份－ 境内上市的人民币普通股 75,279,120 13,832,764 - 89,111,884 境内上市的外资股(附注 b) 164,000,000 - (85,761,300) 78,238,700 239,279,120 13,832,764 (85,761,300) 167,350,584 股份总额 328,400,000 174,794,064 (99,594,064) 403,600,000 2006 年 12 月 31 日 本年增加 本年减少 2007 年 12 月 31 日 有限售条件股份－ 发起人—国家持有股 79,250,648 - - 79,250,648 募集法人股 13,710,232 - (3,840,000) 9,870,232 92,960,880 - (3,840,000) 89,120,880 无限售条件股份－ 境内上市的人民币普通股 71,439,120 3,840,000 - 75,279,120 境内上市的外资股 164,000,000 - - 164,000,000 235,439,120 3,840,000 - 239,279,120 股份总额 328,400,000 3,840,000 (3,840,000) 328,400,000 59 (a) 根据本公司股东大会于 2005 年 12 月 16 日通过的股权分置改革方案，部分有限售条件的流通股于 2008 年 12 月 29 日解除限售。该次上市流通的数量为 13,832,764 股。 (b) 根据中国证券监督管理委员会于 2008 年 1 月 3 日签发的证监许可[2008]22 号文《关于核准华新水 泥股份有限公司非公开发行股票的通知》，本公司于 2008 年 2 月 4 日完成向原股东 Holchin B.V. 定向发行 75,200,000 股 A 股。Holchin B.V.认缴人民币 2,026,640,000 元，出资方式为货币资金 2,026,640,000 元 ， 其 中 ： 股 本 75,200,000 元 ， 扣 除 发 行 费 用 19,789,800 元 后 余 额 1,931,650,200 元作为资本公积处理。是次发行完成后，Holchin B.V.持有本公司 39.88%的股份。 自是次发行完成之日起三年内，Holchin B.V.不得转让其持有的本公司所有股份合共 160,961,300 股(包括此前所持有的 85,761,300 股无限售条件的境内上市外资股及 2008 年定向发行增持的 75,200,000 股)，限售期至 2011 年 2 月 4 日结束。 (31) 资本公积 2007 年 2008 年 12 月 31 日 本年增加 本年减少 12 月 31 日 股本溢价(附注七(30)(b)) 265,238,482 1,931,650,200 - 2,196,888,682 其他资本公积－ 可供出售金融资产公允 价值变动 40,462,305 - (31,340,820) 9,121,485 原制度资本公积转入(附 注 a) 269,880,627 1,211,330 - 271,091,957 575,581,414 1,932,861,530 (31,340,820) 2,477,102,124 2006 年 2007 年 12 月 31 日 本年增加 本年减少 12 月 31 日 股本溢价 265,238,482 - - 265,238,482 其他资本公积－ 可供出售金融资产公允 价值变动 - 40,462,305 - 40,462,305 原制度资本公积转入 (附注 a) 268,519,727 1,360,900 - 269,880,627 533,758,209 41,823,205 - 575,581,414 (a) 本年由未分配利润转入资本公积金主要为已在利润表中确认的政府补助收入 1,211,330 元(2007 年：1,360,900 元)。根据有关规定，该部分收入不得作为可分配利润。 (32) 盈余公积 2007 年 2008 年 12 月 31 日 本年提取 12 月 31 日 法定盈余公积金 112,272,222 8,281,785 120,554,007 任意盈余公积金 63,580,329 - 63,580,329 175,852,551 8,281,785 184,134,336 2006 年 2007 年 12 月 31 日 本年提取 12 月 31 日 法定盈余公积金 71,995,779 40,276,443 112,272,222 任意盈余公积金 63,580,329 - 63,580,329 135,576,108 40,276,443 175,852,551 60 根据《中华人民共和国公司法》及本公司章程，本公司按年度净利润的 10%提取法定盈余公积 金，当法定盈余公积金累计额达到股本的 50%以上时，可不再提取。法定盈余公积金经批准后可 用于弥补亏损，或者增加股本。经董事会决议，本公司 2008 年按净利润的 10%提取法定盈余公 积金 8,281,785 元(2007 年：按净利润的 10%提取，共 40,276,443 元)。 本公司任意盈余公积金的提取额由董事会提议，经股东大会批准。任意盈余公积金经批准后可用 于弥补以前年度亏损或增加股本。本公司 2008 年无提取任意盈余公积金(2007 年：无)。 (33) 未分配利润 于2008年12月31日，未分配利润中包含归属于本集团子公司已计提之盈余公积135,744,989元 (2007 年 12 月 31 日 ： 89,888,316 元 ) ， 其 中 子 公 司 本 年 度 计 提 的 归 属 于 本 公 司 的 盈 余 公 积 45,856,673元(2007年：29,476,673元)。 根据2008年4月22日召开之2007年度股东大会之决议，本公司向全体股东按每股0.12元 (含税)派 发现金股利，按已发行股份403,600,000股计算，共派现金股利48,432,000元。 根据 2009 年 3 月 9 日董事会决议，董事会提议本公司向全体股东派发现金股利，每股人民币 0.15 元，按已发行股份 403,600,000 计算，拟派发现金股利共计 60,540,000 元，上述提议尚待 股东大会批准。 (34) 少数股东权益 归属于各子公司少数股东的少数股东权益 2008 年 12 月 31 日 2007 年 12 月 31 日 华新金猫水泥(苏州)有限公司 400,550,489 421,929,521 华新水泥(宜昌)有限公司 121,710,860 68,507,700 华新水泥(阳新)有限公司 113,921,432 106,861,400 华新水泥(西藏)有限公司 53,312,006 40,327,517 武汉武钢华新水泥有限责任公司 40,990,990 38,610,278 华新水泥(鹤峰)有限公司 23,347,523 - 华新水泥随州有限公司 16,356,520 - 其他子公司 74,486,156 45,305,424 844,675,976 721,541,840 (35) 营业收入和营业成本 2008 年度 2007 年度 主营业务收入 6,288,923,251 4,726,870,378 其他业务收入 60,536,396 43,237,763 6,349,459,647 4,770,108,141 2008 年度 2007 年度 主营业务成本 5,000,593,379 3,612,595,599 其他业务成本 30,699,479 24,444,978 5,031,292,858 3,637,040,577 61 (a) 主营业务收入和主营业务成本 2008 年度 2007 年度 主营业务收入 主营业务成本 主营业务收入 主营业务成本 水泥销售 5,819,941,931 (4,632,841,988) 4,499,514,252 (3,430,257,735) 熟料销售 178,070,565 (153,790,058) 28,633,041 (26,435,035) 混凝土销售 116,436,716 (101,423,671) 89,991,424 (72,991,109) 其他 174,474,039 (112,537,662) 108,731,661 (82,911,720) 6,288,923,251 (5,000,593,379) 4,726,870,378 (3,612,595,599) 本集团前五名客户销售的收入总额为 396,803,112 元(2007 年：494,999,501 元)，占本集团主营 业务收入的 6%(2007 年：10%)。 (b) 其他业务收入和其他业务成本 2008 年度 2007 年度 其他业务收入 其他业务成本 其他业务收入 其他业务成本 材料销售 39,137,203 (15,258,198) 28,316,944 (12,852,517) 电费 14,052,581 (12,924,814) 4,925,851 (4,339,280) 其他 7,346,612 (2,516,467) 9,994,968 (7,253,181) 60,536,396 (30,699,479) 43,237,763 (24,444,978) (36) 营业税金及附加 2008 年度 2007 年度 城建税 17,090,925 15,259,979 教育费附加 11,309,944 9,619,324 堤防费 2,773,053 4,229,958 营业税 3,040,945 3,349,446 资源税 40,684,530 29,559,316 其他 3,800,573 2,949,225 78,699,970 64,967,248 (37) 财务费用 2008 年度 2007 年度 利息支出 209,777,663 204,029,901 减：利息收入 (11,661,250) (4,824,687) 汇兑损失 2,957,226 3,188,556 减：汇兑收益 (22,741,395) (22,148,236) 其他 6,445,142 2,393,014 184,777,386 182,638,548 (38) 资产减值(损失)/转回 2008 年度 2007 年度 坏账损失转回 737,531 745,450 存货跌价转回/(损失) 4,508,107 (475,280) 在建工程减值损失 (1,365,777) - 固定资产减值损失 (4,617,998) - (738,137) 270,170 62 (39) 投资收益 2008 年度 2007 年度 可供出售金融资产收益 611,750 - 按权益法享有或分担的被投资公司净损益的份 额 (53,759) (103,094) 按成本法核算的被投资公司宣告发放的股利 - 2,333,227 557,991 2,230,133 (40) 营业外收入及营业外支出 (a) 营业外收入 2008 年度 2007 年度 处置固定资产利得 7,599,207 539,335 资源综合利用税收返还(附注 i) 74,046,045 72,358,903 政府补贴收入(附注 ii) 42,677,889 32,754,783 其他 9,135,673 1,052,874 133,458,814 106,705,895 (i) 本公司及部分子公司被认定为资源综合利用企业，可享受增值税退税。于 2008 年度共收到返还 的税收 74,046,045 元(2007 年: 72,358,903 元)。 (ii) 政 府 补 贴 收 入 主 要 是 地 方 政 府 财 政 补 助 收 入 。 于 2008 年 度 共 收 到 当 地 政 府 财 政 补 助 款 32,468,989 元(2007 年: 27,457,427 元)。 (b) 营业外支出 2008 年度 2007 年度 处置固定资产损失 12,696,729 7,650,642 捐赠支出 4,197,738 1,481,073 其他 2,105,907 3,371,930 19,000,374 12,503,645 (41) 所得税费用 2008 年度 2007 年度 当期所得税 64,899,783 93,393,811 递延所得税 (22,895,424) 16,058,553 42,004,359 109,452,364 将基于合并利润表的利润总额采用适用税率计算的所得税调节为所得税费用： 2008 年度 2007 年度 利润总额 576,944,469 448,819,327 按适用税率计算的所得税费用 100,313,537 132,570,348 新所得税法的颁布对原已确认的递延所得税余 额的影响 - 3,627,108 非应纳税收入 (139,498) (2,055,944) 63 税收减免(附注 a) (70,399,225) (28,375,923) 前期未确认递延所得税资产的可抵扣亏损 (3,042,454) - 当期可抵扣亏损未确认递延税款资产 10,907,670 2,624,312 不得扣除的成本、费用和损失 4,364,329 1,062,463 所得税费用 42,004,359 109,452,364 (a) 税收减免 (i) 于 2008 年度，华新水泥(宜昌)有限公司、华新水泥(武穴)有限公司、华新水泥(襄樊)有限公司获 得当地市国税局的批文，批准其因符合利用废弃原材料生产产品条件，免征 2007 年因该部分产 品所需缴纳的企业所得税。该等公司因此于本年对 2007 年已提取的应交所得税金共 35,647,284 元作出回拨处理。 (ii) 于 2008 年度，华新水泥(恩施)有限公司获得湖北省国税局的批文，批准其符合享受“老、少、 边、穷”地区税收优惠政策的条件，免征 2007 年企业所得税。华新水泥(恩施)有限公司因此于本 年对 2007 年已提取的应交所得税金共 17,077,850 元作出回拨处理。 (iii) 于 2008 年度，华新水泥(武穴)有限公司、华新水泥(阳新)有限公司获得湖北省国家税务局以及当 地市国税局的批文，批准其因技术改造国产设备投资抵免企业所得税共 17,674,091 元，其中已 于本年度抵扣应交税金 6,048,000 元，剩余可用于未来年度抵减的税款 11,626,091 元确认递延 所得税资产。 (42) 每股收益 (a) 基本每股收益 基本每股收益以归属于母公司普通股股东的合并净利润除以母公司发行在外普通股的加权平均数 计算： 2008 年度 2007 年度 归属于母公司普通股股东的合并净利润 459,975,559 290,245,247 发行在外普通股的加权平均数(附注(i)) 391,066,667 328,400,000 基本每股收益 1.18 0.88 (i) 截至 2008 年 2 月 3 日，发行在外普通股为 328,400,000 股；于 2008 年 2 月 4 日，本公司完成 向 外 国 战 略 投 资 者 Holchin B.V. 非 公 开 发 行 A 股 75,200,000 股 后 ， 发 行 在 外 普 通 股 为 403,600,000 股；加权平均后共计 391,066,667 股。 (b) 稀释每股收益 本公司无稀释性的潜在普通股，因此稀释每股收益与基本每股收益一致。 (43) 现金流量表附注 (a) 将净利润调节为经营活动现金流量 2008 年度 2007 年度 净利润 534,940,110 339,366,963 加：资产减值准备 738,137 (270,170) 固定资产折旧 421,689,020 375,263,956 无形资产摊销 25,489,334 17,298,012 长期待摊费用摊销 5,155,873 2,164,394 递延收益摊销 (2,962,950) (3,397,992) 64 处置固定资产及无形资产损失 5,097,522 7,111,307 财务费用 196,491,517 194,626,221 投资收益 (557,991) (2,230,133) 递延所得税 (22,895,424) 16,058,553 存货的增加 (50,353,969) (98,692,692) 经营性应收项目的减少/(增加) 10,215,569 (109,320,927) 经营性应付项目的增加 41,839,078 224,549,452 经营活动产生的现金流量净额 1,164,885,826 962,526,944 (b) 现金净变动情况 2008 年度 2007 年度 现金的年末余额 925,121,506 515,985,750 减：现金的年初余额 (515,985,750) (453,306,444) 现金净增加额 409,135,756 62,679,306 (c) 现金 2008 年 12 月 31 日 2007 年 12 月 31 日 货币资金 986,717,837 569,091,717 减：受到限制的存款 (61,596,331) (53,105,967) 现金年末余额 925,121,506 515,985,750 (d) 支付其他与经营活动有关的现金 现金流量表中支付其他与经营活动有关的现金主要包括： 2008 年度 2007 年度 销售经费、差旅费及交通费 55,034,724 54,727,830 业务招待费 8,885,787 7,537,076 办公费 13,089,158 11,955,321 排污费 4,310,348 4,475,928 宣教费、绿化费及警卫消防费 5,583,663 5,936,370 保险费 2,412,184 4,063,359 支付工会经费及教育经费 5,561,655 5,505,612 退休人员费用 8,402,955 9,831,128 广告费 4,857,497 6,451,608 备用金、保证金、押金 34,192,547 21,996,182 支付散装水泥专项基金 6,150,000 6,859,899 低值易耗品消耗 8,759,220 10,477,474 捐赠支出 1,802,069 1,481,073 其他 39,820,897 43,030,050 198,862,704 194,328,910 八 分部报告 由于本集团之营业收入、费用、资产及负债主要和生产和销售水泥及其相关产品有关，本集团没 有编制业务分部资料。由于本集团来自海外市场的销售收入及经营成果占集团收入及经营成果的 份额少于 10%；本集团所从事之业务在中国各地所需承担的风险和报酬并无显著差异，本集团 没有编制地区分部资料。 65 九 企业合并 非同一控制下企业合并 (a) 于 2008 年 5 月 6 日，本公司向湖北长友现代农业股份有限公司收购了其拥有的鹤峰县长宏水泥 有限公司(现更名为华新水泥(鹤峰)有限公司)51%的股权。本次交易的购买日为 2008 年 5 月 6 日，系本公司实际取得华新水泥(鹤峰)有限公司控制权的日期。收购取得的净资产与商誉的确认 情况如下： 合并成本 －支付的现金 23,800,483 －尚未支付的现金 500,000 合并成本合计 24,300,483 减：取得的可辨认净资产公允价值 (24,300,483) 商誉 - 华新水泥(鹤峰)有限公司于购买日的资产、负债及与收购相关的现金流量情况列示如下： 公允价值 账面价值 购买日 购买日 2007 年 12 月 31 日 现金 10,881 10,881 1,076,178 应收款项 1,915,024 1,915,024 5,379,243 固定资产 2,240,051 2,240,051 2,314,814 无形资产 7,875,560 7,875,560 7,951,610 在建工程 64,526,922 64,526,922 59,745,135 其他非流动资产 948,923 948,923 695,910 减：应付款项 (29,869,355) (29,869,355) (29,514,884) 净资产 47,648,006 47,648,006 47,648,006 按收购股权比例取得的净资产 24,300,483 24,300,483 以现金支付的对价 23,800,483 减：取得的被收购子公司的现金 (10,881) 取得子公司支付的现金净额 23,789,602 自购买日起至 2008 年 12 月 31 日止，华新水泥(鹤峰)有限公司仍在建设阶段，尚未开始正式营 运，无重大损益产生。 (b) 于 2008 年 12 月 9 日，本公司向随州市长城建材有限责任公司收购了其拥有的华新水泥随州有 限公司 60%的股权。本次交易的购买日为 2008 年 12 月 9 日，系本公司实际取得华新水泥随州 有限公司控制权的日期。收购取得的净资产与商誉的确认情况如下： 合并成本 －支付的现金 21,150,000 －尚未支付的现金 3,450,000 合并成本合计 24,600,000 减：取得的可辨认净资产公允价值 (24,600,000) 商誉 - 华新水泥随州有限公司于购买日的资产、负债及与收购相关的现金流量情况列示如下： 66 公允价值 账面价值 购买日 购买日 2008 年 10 月 15 日 (公司成立日) 现金 705,463 705,463 50,000 应收款项 53,500 53,500 - 预付账款 100,000 100,000 - 固定资产 27,695,080 27,695,080 - 无形资产 13,304,920 13,304,920 - 减：应付款项 (858,963) (858,963) - 净资产 41,000,000 41,000,000 50,000 按收购股权比例取得的净资产 24,600,000 24,600,000 以现金支付的对价 21,150,000 减：取得的被收购子公司的现金 (705,463) 取得子公司支付的现金净额 20,444,537 华新水泥随州有限公司自购买日至 2008 年 12 月 31 日止期间的收入、净利润和现金流量列示如下： 营业收入 2,700,270 净利润 108,699 经营活动现金净流入 329,839 现金流量净流入额 329,839 (c) 于 2008 年 12 月 15 日，本公司向湖北建源水泥股份有限公司收购了其拥有的华新水泥(石首)有 限公司 55%的股权。本次交易的购买日为 2008 年 12 月 15 日，系本公司实际取得华新水泥(石 首)有限公司控制权的日期。收购取得的净资产与商誉的确认情况如下： 合并成本 －支付的现金 8,712,000 －尚未支付的现金 2,178,000 合并成本合计 10,890,000 减：取得的可辨认净资产公允价值 (10,890,000) 商誉 - 华新水泥(石首)有限公司于购买日的资产、负债及与收购相关的现金流量情况列示如下： 公允价值 账面价值 购买日 购买日 2008 年 10 月 8 日 (公司成立日) 现金 2,034,452 2,034,452 30,000 应收款项 6,401,366 6,401,366 - 预付账款 288,797 288,797 - 固定资产 9,790,000 9,790,000 - 无形资产 3,980,000 3,980,000 - 减：预收账款 (2,694,615) (2,694,615) - 净资产 19,800,000 19,800,000 30,000 按收购股权比例取得的净资产 10,890,000 10,890,000 67 以现金支付的对价 8,712,000 减：取得的被收购子公司的现金 (2,034,452) 取得子公司支付的现金净额 6,677,548 华新水泥(石首)有限公司自购买日至 2008 年 12 月 31 日止期间的收入、净利润和现金流量列示 如下： 营业收入 2,917,812 净利润 316,869 经营活动现金净流出 (307,659) 现金流量净流出额 (307,659) 十 关联方关系及其交易 (1) 公司主要股东和子公司 子公司的基本情况及相关信息见附注六。 (a) 公司主 要股 东的基本 情况 注册地 与本公司关系 业务性质 Holchin B.V. 荷兰阿姆斯特丹 第一大股东 设立公司和其它企业；收购、管理、监督、 转让法人、公司、企业的股权和其它权益 华新集团有限公司 湖北省黄石市 第二大股东 制造、销售水泥制品、机械配件、 房地产开发、商业、服务等 Holchin B.V.为一投资控股公司，其最终控股股东为 Holcim Ltd. (b) 公司主要股东的注册资本及其变化 2007 年 2008 年 12 月 31 日 本年增加 本年减少 12 月 31 日 Holchin B.V. 欧元 90,756 欧元 9,244 - 欧元 100,000 华新集团有限公司 370,000,000 - - 370,000,000 (c) 公司主要股东对本公司的持股比例和表决权比例 2007 年 12 月 31 日 2008 年 12 月 31 日 持股比例 表决权比例 持股比例 表决权比例 Holchin B.V. 26.11% 26.11% 39.88% 39.88% 华新集团有限公司(含代管国家股) 27.14% 27.14% 22.09% 22.09% (2) 其他关联方的性质 关联方名称 与本集团的关系 Holcim Ltd. Holchin B.V.之最终控股公司 黄石亿瑞达投资有限公司 受华新集团有限公司之控制 黄石华新宾馆有限公司 本公司之联营公司 Holcim Group Support Ltd. 受 Holcim Ltd.之控制 Holcim Trading SA 受 Holcim Ltd.之控制 68 (3) 关联交易 (a) 定价政策 本集团销售给关联方的产品按市场价格作为定价基础。 (b) 销售货物 2008 年度 2007 年度 Holcim Trading SA 29,992,343 151,210,380 2008 年度本集团向关联方销售货物占同类交易的 0.5%(2007 年度：3.4%)。 (c) 接受劳务及服务 服务内容 2008 年度 2007 年度 华新集团有限公司 综合管理费 4,800,000 4,800,000 Holcim Group Support Ltd. 咨询费 2,050,380 2,209,410 6,850,380 7,009,410 (d) 关键管理人员薪酬 2008 年度 2007 年度 关键管理人员薪酬 7,536,316 7,216,555 (e) 提供担保 2008 年 2007 年 12 月 31 日 12 月 31 日 华新集团有限公司 10,000,000 - 于 2008 年 12 月 31 日，本集团 10,000,000 元(2007 年 12 月 31 日：无)长期借款由华新集团有 限公司提供担保。 (4) 关联方应收、应付款项余额 (a) 应收账款 2008 年 12 月 31 日 2007 年 12 月 31 日 Holcim Trading SA 192,807 8,093,620 于 2008 年 12 月 31 日，本集团应收关联方账款占应收账款总额 0.1%(2007 年 12 月 31 日：6%)。 (b) 其他应付款 2008 年 12 月 31 日 2007 年 12 月 31 日 华新集团有限公司 - 400,000 Holcim Group Support Ltd. 2,050,380 - 2,050,380 400,000 69 于 2008 年 12 月 31 日，本集团应付关联方款项占其他应付款项总额 1.7%(2007 年 12 月 31 日： 0.4%)。 (c) 预收账款 2008 年 12 月 31 日 2007 年 12 月 31 日 Holcim Trading SA 136,719 146,091,781 于 2008 年 12 月 31 日，本集团预收关联方款项占预收款项总额 0.1%(2007 年 12 月 31 日： 36%)。 (d) 长期应付款(包括一年内到期部分) 2008 年 12 月 31 日 2007 年 12 月 31 日 黄石亿瑞达投资有限公司 21,857,283 21,927,779 于 2008 年 12 月 31 日，本集团长期应付关联方占长期应付款项总额 47%(2007 年 12 月 31 日： 57%)。 十一 资本性支出承诺事项 2008 年 12 月 31 日 2007 年 12 月 31 日 房屋、建筑物及机器设备 1,035,744,372 232,185,446 十二 资产负债表日后事项 根据本公司股东大会于2008年8月2日通过的短期融资券议案，本公司计划发行6亿元人民币短期融 资券。有关申请文件已于2009年2月向有关审批机构递交，目前正在审批过程中。 十三 或有事项 于 2008 年 度 ， 本 公 司 为 信 阳 市 浉 河 区 公 路 工 程 有 限 责 任 公 司 向 信 阳 市 城 市 信 用 社 的 借 款 18,000,000 元提供担保。于 2008 年 12 月 31 日，该项借款已到期但尚未归还，根据有关法规本公 司对该项借款仍负有连带还款责任。 十四 扣除非经常性损益后的净利润 2008 年度 2007 年度 净利润 534,940,110 339,366,963 加/(减)：处置非流动资产净损失 5,097,522 7,111,307 所得税税率变动的影响 - 3,627,108 其他营业外收支净额 (2,832,028) 3,800,130 政府补贴收入 (42,677,889) (32,754,783) 非经常性损益的所得税影响数 7,523,917 4,137,858 扣除非经常性损益后的净利润 502,051,632 325,288,583 其中：归属于母公司股东 435,429,123 282,002,913 归属于少数股东 66,622,509 43,285,670 502,051,632 325,288,583 70 (1) 非经常性损益明细表编制基础 根据《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益[2008]》的规定，非经常 性损益是指与公司正常经营业务无直接关系，以及虽与正常经营业务相关，但由于其性质特殊和偶 发性，影响报表使用人对公司经营业绩和盈利能力作出正确判断的各项交易和事项产生的损益。 十五 公司财务报表主要项目附注 (1) 应收账款及其他应收款 (a) 应收账款 2007 年 本年增加 本年减少 2008 年 12 月 31 日 12 月 31 日 应收账款 80,560,321 89,512,918 减：坏账准备 (5,848,596) (22,120) 1,162,804 (4,707,912) 74,711,725 84,805,006 年末应收账款前五名债务人欠款金额合计为 48,221,629 元，账龄为一年以内，占应收账款总额的 54%。 于 2008 年 12 月 31 日，本公司应收账款中无持有本公司 5%(含 5%)以上表决权股份的股东之欠款 (2007 年 12 月 31 日：无)。 应收账款账龄及相应的坏账准备分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额 坏账准备 金额 占总额 坏账准备 比例 比例 一年以内 84,674,914 94.6% - 74,363,635 92.3% - 一到二年 - - - 260,846 0.3% (27,878) 二到三年 196,882 0.2% (66,790) 133,977 0.2% (29,179) 三年以上 4,641,122 5.2% (4,641,122) 5,801,863 7.2% (5,791,539) 89,512,918 100% (4,707,912) 80,560,321 100% (5,848,596) 应收账款按类别分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额比 坏账准备 计提 金额 占总额 坏账准备 计提 例 比例 比例 比例 单项金额重大 57,628,995 64.4% - - 37,877,575 47.0% - - 单项金额不重大但 组合风险较大 4,652,159 5.2% (4,652,159) 100% 5,791,539 7.2% (5,791,539) 100% 其他不重大 27,231,764 30.4% (55,753) 0.2% 36,891,207 45.8% (57,057) 0.2% 89,512,918 100% (4,707,912) 5.3% 80,560,321 100% (5,848,596) 7.3% 71 (b) 其他应收款 2007 年 2008 年 12 月 31 日 本年增加 本年减少 12 月 31 日 应收集团内子公司往来款 507,020,754 851,512,322 其他 12,317,266 39,534,086 519,338,020 891,046,408 减：坏账准备 (2,242,818) (6,959) 39,967 (2,209,810) 517,095,202 888,836,598 其他应收款及相应的坏账准备分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额比 坏账准备 金额 占总额 坏账准备 例 比例 一年以内 885,651,170 99.3% - 468,120,197 90.1% - 一到二年 3,048,516 0.4% (334,980) 47,848,882 9.2% - 二到三年 321,800 0.1% - 500,000 0.1% - 三年以上 2,024,922 0.2% (1,874,830) 2,868,941 0.6% (2,242,818) 891,046,408 100.0% (2,209,810) 519,338,020 100% (2,242,818) 其他应收款按类别分析如下： 2008 年 12 月 31 日 2007 年 12 月 31 日 金额 占总额 坏账准备 计提 金额 占总额 坏账准备 计提 比例 比例 比例 比例 单项金额重大 863,844,014 96.9% - - 504,359,029 97.1% - - 单项金额不重大但 100 组合风险较大 2,209,810 0.2% (2,209,810) 100% 1,868,941 0.4% (1,868,941) % 其他不重大 24,992,584 2.9% - - 13,110,050 2.5% (373,877) 2.9% 891,046,408 100% (2,209,810) 0.2% 519,338,020 100% (2,242,818) 0.4% 于 2008 年 12 月 31 日，其他应收账款中无持有本公司 5%(含 5%)以上表决权股份的股东之欠款。 年末其他应收账款前五名债务人欠款金额合计为 532,166,055 元(2007 年 12 月 31 日：466,589,543 元)，账龄为一年以内，占其他应收账款总额的 60%(2007 年 12 月 31 日：90%)。 (2) 长期股权投资 2008 年 12 月 31 日 2007 年 12 月 31 日 子公司(a) 2,909,535,339 1,593,242,697 联营企业 138,335 192,094 2,909,673,674 1,593,434,791 本集团无境外投资，故不存在长期投资变现及收益汇回的重大限制。 72 (a) 子公司 初始投资 2007 年 本年增加/ 2008 年 成本 追加投资 12 月 31 日 (减少) 12 月 31 日 华新水泥(仙桃)有限公司 14,658,136 - 14,658,136 - 14,658,136 华新南通水泥有限公司 89,680,203 - 89,680,203 - 89,680,203 黄石华新包装有限公司 7,870,000 - 7,870,000 - 7,870,000 武汉武钢华新水泥有限责 任公司 20,000,000 - 20,000,000 - 20,000,000 华新水泥(宜昌)有限公司 105,000,000 - 105,000,000 - 105,000,000 华新水泥(恩施)有限公司 40,200,000 - 40,200,000 - 40,200,000 黄石华新水泥科研设计有 限公司 990,000 - 990,000 - 990,000 华新金猫水泥(苏州)有限 公司 235,344,358 - 235,344,358 - 235,344,358 华新水泥(西藏)有限公司 30,000,000 - 30,000,000 - 30,000,000 华新水泥(昭通)有限公司 45,000,000 - 45,000,000 - 45,000,000 华新水泥(岳阳)有限公司 22,500,000 - 22,500,000 - 22,500,000 华新水泥(阳新)有限公司 400,000,000 - 400,000,000 - 400,000,000 华新水泥(武汉)有限公司 42,000,000 - 42,000,000 - 42,000,000 华新混凝土(武汉)有限公 司 14,000,000 66,502,159 14,000,000 66,502,159 80,502,159 华新水泥(襄樊)有限公司 140,000,000 - 140,000,000 - 140,000,000 湖南华新湘钢水泥有限公 司 36,000,000 - 36,000,000 - 36,000,000 华新水泥(武穴)有限公司 200,000,000 - 200,000,000 - 200,000,000 华新水泥(赤壁)有限公司 140,000,000 - 140,000,000 - 140,000,000 华新混凝土(黄石)有限公 司 10,000,000 - 10,000,000 (10,000,000) - 华新水泥技术管理(武汉) 有限公司 20,000,000 - - 20,000,000 20,000,000 华新水泥(郴州)有限公司 160,000,000 - - 160,000,000 160,000,000 华新水泥(秭归)有限公司 160,000,000 - - 160,000,000 160,000,000 华新水泥(麻城)有限公司 40,000,000 - - 40,000,000 40,000,000 华新水泥(株洲)有限公司 200,000,000 - - 200,000,000 200,000,000 华新水泥(河南信阳)有限 公司 140,000,000 - - 140,000,000 140,000,000 华新水泥(鹤峰)有限公司 24,300,483 - - 24,300,483 24,300,483 华新环保(武穴)废料处理 有限公司 10,000,000 - - 10,000,000 10,000,000 华新水泥(黄石)散装储运 有限公司 20,000,000 - - 20,000,000 20,000,000 华新水泥襄樊襄城有限公 司 40,000,000 - - 40,000,000 40,000,000 华新水泥(渠县)有限公司 160,000,000 - - 160,000,000 160,000,000 华新水泥(昆明东川)有限 公司 30,000,000 - - 30,000,000 30,000,000 华新水泥(黄石)装备制造 有限公司 60,000,000 - - 60,000,000 60,000,000 华新水泥重庆涪陵有限公 司 160,000,000 - - 160,000,000 160,000,000 华新水泥随州有限公司 24,600,000 - - 24,600,000 24,600,000 华新水泥(石首)有限公司 10,890,000 - - 10,890,000 10,890,000 2,853,033,180 66,502,159 1,593,242,697 1,316,292,642 2,909,535,339 (3) 营业收入和营业成本 2008 年度 2007 年度 主营业务收入 1,214,530,663 1,498,128,953 其他业务收入 1,647,178,999 741,844,577 2,861,709,662 2,239,973,530 73 2008 年度 2007 年度 主营业务成本 981,047,332 1,243,279,112 其他业务成本 1,625,372,482 692,053,390 2,606,419,814 1,935,332,502 (a) 主营业务收入和主营业务成本 2008 年度 2007 年度 主营业务收入 主营业务成本 主营业务收入 主营业务成本 销售水泥 1,018,329,517 (847,304,578) 1,349,680,422 (1,130,398,354) 销售熟料 4,412,980 (4,135,765) 17,316,567 (17,440,442) 其他 191,788,166 (129,606,989) 131,131,964 (95,440,316) 1,214,530,663 (981,047,332) 1,498,128,953 (1,243,279,112) 本公司前五名客户销售的收入总额为 238,239,110 元(2007 年：299,732,077 元)，占本公司全部 销售收入的 20%(2007 年：20%)。 (b) 其他业务收入和其他业务成本 2008 年度 2007 年度 其他业务收入 其他业务成本 其他业务收入 其他业务成本 销售材料 1,640,790,596 (1,619,549,499) 727,838,247 (691,267,636) 其他 6,388,403 (5,822,983) 14,006,330 (785,754) 1,647,178,999 (1,625,372,482) 741,844,577 (692,053,390) (4) 投资收益 2008 年度 2007 年度 按权益法享有或分担的被投资公司净损益的份额 (53,759) (103,094) 按成本法核算的被投资公司宣告发放的股利 1,200,000 353,340,214 可供出售金融资产收益 611,750 - 长期股权投资转让收益 2,993,318 - 4,751,309 353,237,120 74 华新水泥股份有限公司 2008 年度管理层提供的补充资料 (除特别注明外，金额单位为人民币元) 2008 年度合并资产减值准备明细表 本年减少额 项目 年初账面余额 本年计提额 转回 转销 合计 一、坏账准备合计 11,299,343 883,158 (1,620,689) (941,530) (2,562,21 其中: 应收账款 8,440,757 485,554 (1,580,722) (941,530) (2,522,25 其他应收款 2,858,586 397,604 (39,967) - (39,96 二、存货跌价准备 27,819,504 - (4,508,107) - (4,508,10 三、可供出售金融资产减值准备 2,775,600 - - - 四、持有至到期投资减值准备 - - - - 五、长期股权投资减值准备 - - - - 六、投资性房地产减值准备 - - - - 七、固定资产减值准备 59,871,456 4,617,998 - (17,046,428) (17,046,42 八、工程物资减值准备 - - - - 九、在建工程减值准备 6,939,396 1,365,777 - - 十、无形资产减值准备 - - - - 十一、商誉减值准备 - - - - 十二、其他 - - - - 合计 108,705,299 6,866,933 (6,128,796) (17,987,958) (24,116,75 75 华新水泥股份有限公司 2008 年度管理层提供的补充资料 (除特别注明外，金额单位为人民币元) 2008 年度公司资产减值准备明细表 本年减少额 项目 年初账面余额 本年计提额 转回 转销 合 一、坏账准备合计 8,091,414 29,079 (1,202,771) - (1,2 其中: 应收账款 5,848,596 22,120 (1,162,804) - (1,1 其他应收款 2,242,818 6,959 (39,967) - 二、存货跌价准备 18,417,216 - (4,508,107) - (4,5 三、可供出售金融资产减值准备 2,775,600 - - - 四、持有至到期投资减值准备 - - - - 五、长期股权投资减值准备 - - - - 六、投资性房地产减值准备 - - - - 七、固定资产减值准备 4,047,236 - - - 八、工程物资减值准备 - - - - 九、在建工程减值准备 - 1,365,777 - - 十、无形资产减值准备 - - - - 十一、商誉减值准备 - - - - 十二、其他 - - - - 合计 33,331,466 1,394,856 (5,710,878) - (5,7 76 十二、备查文件目录 1、载有法定代表人、主管会计工作负责人、会计机构负责人签名并盖章的会计报表。 2、载有会计师事务所盖章、注册会计师签名并盖章的审计报告原件。 3、报告期内在中国证监会指定报纸上公开披露过的所有公司文件的正本及公告的原稿。 华新水泥股份有限公司 董事长：陈木森 2009 年 3 月 9 日 77 HUAXIN CEMENT CO., LTD. - - -1- - Chapter 1 Important Notice 1. The Board of Directors of the Company and its members, Supervisory Committee of the Company and its members and members of Senior Management guarantee that there is no false or misleading statement or material omission in this report and shall be severally and jointly liable for the truthfulness, accuracy and completeness of its contents. 2. Independent Director Mr. Lin Zongshou did not attend this Board meeting due to attending Chinese People’s Political Consultative Conference and authorized Independent Director Mr. Zhang Tianwu to attend and exercise voting rights on his behalf. Director Mr. Paul O’ Callaghan did not attend this Board Meeting due to other personal issues and authorized Director Mr. Tom Clough to attend and exercise voting rights on his behalf. 3. PricewaterhouseCoopers Zhong Tian CPAs Limited Company issued standard audit reports without reserved comments for the Company. 4. Chairman of the Company Mr Chen Musen, CEO Mr Li Yeqing, CFO Mdm Kong Lingling, and chief of financial department Mr. Huang Kaishun declare and guarantee that this annual report is true and complete. --2-- Chapter 2 General 1. Legal Name of the Company: 华新水泥股份有限公司 Legal Abbreviation in Chinese: 华新水泥 Name in English: Huaxin Cement Co., Ltd. Abbreviation in English: HUAXINCEM 2. Legal Person Representative: Mr. Chen Musen 3. Secretary to the Board: Mr. Wang Ximing Tel: (027) 87773896 Fax: (027)87773897 E-mail: investor@huaxincem.com Liaison Address: 5# Building, International Enterprise Centre, Special No.1 Guanshan Road Ⅱ, Wuhan City, Hubei Province. Securities affairs representative: Ms. Wang Lu Tel: (027) 87773898 Fax: (027)87773897 E-mail: investor@huaxincem.com Liaison Address: 5# Building, International Enterprise Centre, Special No.1 Guanshan Road Ⅱ, Wuhan City, Hubei Province. 4. Registered location of the Company: 897 Huangshi Avenue, Huangshi City, Hubei Province Administrative location of the Company: 5# Building, International Enterprise Centre, Special No.1 Guanshan Road Ⅱ, Wuhan City, Hubei Province Post code: 430073 Web site: http://www.huaxincem.com E-mail: investor@huaxincem.com 5. Press for Information Disclosure: China Securities Journal, Shanghai Securities News, Hong Kong Commercial Daily Annual Report available on the Internet website appointed by CSRC: http://www.sse.com.cn The Place available: the Securities Office of the Company 6. Place of listing for A share: Shanghai Stock Exchange Abbreviation of A share: Huaxin Cement Stock Code: 600801 Place of listing for B share: Shanghai Stock Exchange Abbreviation of B share: Huaxin B share --3-- Stock Code: 900933 7. Other information: Date of first registration: November 30, 1993 First registered location of the Company: 897 Huangshi Avenue, Huangshi City, Hubei Province Registered Number of the Representative Business License: 420000400000283 Registered Number for Taxation: 420203706806882 Organization Structure Code: 70680688-2 Domestic and International Certified Public Accountants appointed by the Company: PricewaterhouseCoopers Zhong Tian CPAs Limited Company Address: 11th floor, PricewaterhouseCoopers Centre, No. 202, Hubin Road, Shanghai City --4-- Chapter 3 Financial Highlights 1. Financial Highlights for the Report Year Unit: RMB Item Amount Operating profit 462,486,029 Total profit 576,944,469 Net profit attributable to the shareholders 459,975,559 Net profit attributable to the shareholders after elimination 435,429,123 of extra-ordinary items Net cash flows from operating activities 1,164,885,826 2. Extra-ordinary items and amount Unit: RMB Extra-ordinary items Amount Remarks Mainly are the gains Gains from disposal of non-current assets -5,097,522 from disposal of fixed assets Mainly are the financial Government subsidies, excluding regular 42,677,889 subsidies from local fixed amount government subsidies government Other non-operating income and 2,832,028 expenditures Impacts from minority shareholders’ interests -8,342,042 Impacts from income tax -7,523,917 Total 24,546,436 3. Financial Statements summary and Financial Indicators of the last three years --5-- Unit: RMB Change over last Item 2008 2007 2006 year (%) Income from operations 6,349,459,647 4,770,108,141 33.11 3,558,602,157 Total profit 576,944,469 448,819,327 28.55 231,042,695 Net profit attributable to 459,975,559 290,245,247 58.48 152,869,885 the shareholders Net profit attributable to the shareholders after 435,429,123 282,002,913 54.41 148,202,363 extraordinary items Basic earning per share 1.18 0.88 34.09 0.47 (yuan/share) Diluted earning per 1.18 0.88 34.09 0.47 share (yuan/share) Basic earning per share after extra-ordinary 1.11 0.86 29.07 0.45 items (yuan/share) Fully diluted return on Decreased by 5.96 11.31 17.27 11.16 net assets, % percentage points Return on net assets, Decreased by 6.35 12.98 19.33 11.76 weighted average, % percentage points Return on net assets Decreased by 6.08 after extra-ordinary 10.70 16.78 10.82 percentage points items, fully diluted % Return on net assets after extra-ordinary Decreased by 6.49 12.29 18.78 11.42 items, weighted percentage points average % Net cash flow from 1,164,885,826 962,526,944 21.02 959,074,181 operating activities Net cash flow per share from operating activities 2.89 2.93 -1.37 2.92 (yuan/share) 2008 end 2007 end Change over the 2006 end last year end(%) Total assets 10,716,353,587 8,513,557,401 25.87 7,142,266,685 Shareholders’ equity 4,067,767,031 1,680,714,092 142.03 1,369,710,540 Net assets per share attributable to the 10.08 5.12 96.88 4.17 shareholders (yuan/share) --6-- Chapter 4 Changes in Share Capital and Shareholders (I) Changes in Share Capital 1. Changes in the capital structure Unit: share Before the change Change during the period +/- After the change Capital Placement Bonus Shares % reserves others Sub-total Shares % issue issue to share 1. shares subject to conditional sales 1. State-owned shares 79,250,648 24.13 -3,962,532 -3,962,532 75,288,116 18.65 2. Shares held by State 9,870,232 3.01 -9,870,232 -9,870,232 0 0 legal person 3. Shares held by other domestic investors Including: Shares held by domestic legal persons Shares held by domestic natural persons 4. Shares held by foreign 75,200,000 85,761,300 160,961,300 160,961,300 39.88 investors Including: Shares held by 75,200,000 85,761,300 160,961,300 160,961,300 39.88 foreign legal persons Shares held by foreign natural persons Sub-total 89,120,880 27.14 75,200,000 71,928,536 147,128,536 236,249,416 58.53 2. shares not subject to conditional sales 1.RMB ordinary shares 75,279,120 22.92 13,832,764 13,832,764 89,111,884 22.08 2.Domestic listed foreign 164,000,000 49.94 -85,761,300 -85,761,300 78,238,700 19.39 investment shares 3. Overseas listed foreign investment shares 4. Others Sub-total 239,279,120 72.86 -71,928,536 -71,928,536 167,350,584 41.47 Total 328,400,000 100.00 75,200,000 75,200,000 403,600,000 100.00 Approval of the share changing On January 3, 2008, “Notification in Respect of Approving the Private Placement of Shares of Huaxin Cement Co., Ltd.” (Zheng Jian Xu ke [2008] No.22) issued by China Securities Regulatory Commission approved the Company taking the manner of non-public issuance of shares to make a private placement of 75.2 million A shares to Holchin B.V. On February 18, 2008, the Company completed the relevant work of the private placement. Transfer of the share changing On February 4, 2008, the Company completed the share registration of the newly issued 75.2 million shares in China Securities Depository and Clearing Corporation Limited Shanghai Branch. 2. Changes of shares subject to conditional sales --7-- Unit: share Shareholder Amount of shares Shares releasing Increment of Shares Reasons for the Date for subject to from conditional shares subject subject to conditional sales releasing conditional sales sales this year to conditional conditional from at year beginning sales this year sales at year condition end al sales Holchin B.V. Subscribing the February 160,961,300 160,961,300 newly issued 4, 2011 shares of the Company State-owned Commitments for Decembe shares (held by 79,250,648 3,962,532 75,288,116 the Share r 29, 2008 Huaxin Group Partition Reform Co., Ltd.) Huaxin Group Commitments for Decembe Co., Ltd. 9,870,232 9,870,232 0 the Share r 29, 2008 Partition Reform Total 89,120,880 13,832,764 160,961,300 236,249,416 / / (II) Securities issuance and listing 1. Securities issuance in prior three years Type of the Amount be Issuing share or its Issuing Issuing approved to Termination price Listing date derivative date amount be listed and date for trade (yuan) securities traded February A share 26.95 75,200,000 4, 2008 Shares issued at this time could not be transferred for 3 years from the issuing day (conditional sales until February 4, 2011) 2. Changes of total shares and share structure of the Company After completing the private placement of 75.2 million A shares to Holchin B.V. in February 2008, total shares of the Company increased from the original 328.4 million shares to 403.6 million shares. After this issuance, total A shares of the Company increased from the original 164.4 million shares to 239.6 million shares. Moreover, according to the provisions contained in the “Administrative Rules on Strategic Investment in Listed Companies from Foreign Strategic Investors” and commitments made by Holchin B.V., the 75.2 million A shares subscribed this time and the original 85.7613 million B shares held by Holchin. B.V. are all locked, and the duration for the lock lasts for 3 years. 3. Existing internal employee shares There are no internal employee shares in the report period (II) General information of Shareholders and actual controller 1. Number of shareholders and share holding --8-- Unit: share Total number of shareholders at the end of report period 30,649 Top ten shareholders and share holding Shares Share Total Shares Change during subject to Mortgage Names of Shareholders In % holder type hold the report period conditional or frozen sales HOLCHIN B.V. Foreign 39.88 160,961,300 75,200,000 160,961,300 State-owned Shares (held by Huaxin 11,750,000 State 19.64 79,250,648 75,288,116 Group Co., Ltd.) mortgaged State Huaxin Group Co., Ltd. 2.45 9,870,232 Corporation MEINL BANK AKTIENGESELLSCHAFT Other 2.01 8,130,668 JPMORGAN CHASE BANK, NATIONAL Other 1.06 4,260,075 4,260,075 ASS0CIATION Greatwall Brand Advantage Selection Other 1.05 4,251,337 Fund GAO-LING FUND,L.P. Other 0.98 3,964,612 3,964,612 Pension Fund Project 108 Other 0.97 3,899,950 499,950 JPMCB/SCHRODER INTERNATIONAL SELECTION FUND-GREATER CHINA Other 0.84 3,374,627 537,748 FUND Huangshi Railway Affiliated Company Other 0.62 2,520,000 Top ten holders of shares not subject to conditional sales Names of Shareholders Number of Shares Type of share Huaxin Group Co., Ltd. 9,870,232 RMB ordinary shares Domestic listed foreign MEINL BANK AKTIENGESELLSCHAFT 8,130,668 investment shares JPMORGAN CHASE BANK, NATIONAL RMB ordinary shares 4,260,075 ASS0CIATION Greatwall Brand Advantage Selection Fund 4,251,337 RMB ordinary shares Domestic listed foreign GAO-LING FUND,L.P. 3,964,612 investment shares State-owned Shares (held by Huaxin Group RMB ordinary shares 3,962,532 Co., Ltd.) Pension Fund Project 108 3,899,950 RMB ordinary shares JPMCB/SCHRODER INTERNATIONAL Domestic listed foreign SELECTION FUND-GREATER CHINA 3,374,627 investment shares FUND Huangshi Railway Affiliated Company 2,520,000 RMB ordinary shares Morgan Stanley China A Share Fund 2,480,856 RMB ordinary shares Remarks on related It is unknown to the Company whether or not there exists any related party partnerships and relationship or concert-action relationship between other shareholders referred to in concert-action ships of the “Administrating Measures of Disclosing Changes in Shareholding for Listed the above shareholders Companies” except that state shares held by Huaxin Group Co., Ltd. on behalf of the State. --9-- Top ten holders of shares subject to conditional sales Unit: share Names of Number of Trading of shares Conditions Shareholders shares Tradable Time Increment of tradable shares Holchin B.V. 160,961,300 2011-02-04 160,961,300 State-owned 2009-12-29 7,925,065 Transaction price shall not Shares (held by be lower than 9 75,288,116 Huaxin Group Co., yuan/share. Ltd.) 2010-12-29 67,363,051 2. General information of the biggest shareholder and its controller 1). Biggest shareholder Unit: Euro Registered Date of Name Business range capital incorporation Setting up companies and other enterprises; acquiring, administrating, supervising and Holchin B.V. 100,000 June 16, 1998 transferring equity and other rights and interests of corporations, companies or enterprises. 2) Actual controller of the biggest shareholder Unit: CHF Date of Name Registered capital Business range incorporation Manufacture and sales of cement, Holcim Ltd. 527,172,180 July 26, 1930 aggregate (gravel and sand) and RMC 3). Change of the biggest shareholder and the actual controller New biggest shareholder Holchin B.V. Actual controller of the new biggest shareholder Holcim Ltd. Changing date of the biggest shareholder February 4, 2008 Appointed news papers for disclosing the relevant China Securities Journal, Shanghai Securities information regarding change of the biggest News, Hong Kong Commercial Daily shareholder Date for disclosing the relevant information February 18, 2008 regarding change of the biggest shareholder 4). Ownership and controlling relationship between the Company and the biggest shareholder - - 10 - - Holcim Ltd. Switzerland 100％ Holderfin B.V. the Netherlands 100％ Holchin B.V. the Netherlands 39.88％ Huaxin Cement Co., Ltd. 3. Other corporation shareholders holding over 10% shares Unit: RMB Legal Registered Date of Name Representative capital incorporation Business range manufacture and sales of cement product, parts of Huaxin Group November 14, Mr. Chen Musen 370,000,000 machines, Co., Ltd. 1996 development of real estate, commerce, service and so on - - 11 - - Chapter 5 Directors, Supervisors and Senior Management (I) Information of the Directors, supervisors and senior management Unit: share Remunerat Remuneration/ Payment Shares Shares ion/ allowance from Reason from the held at held at allowance shareholder Name Position Sex Age Term Change for Company year year from company or change (k yuan) beginning end the other related before tax Company Company 2006.4.7~ 63,410 63,410 Yes No Chen Musen Chairman M 59 1044 2009.4.7 2006.4.7~ 54,042 54,042 Yes No Li Yeqing Director/CEO M 44 1044 2009.4.7 Vice 2006.4.7~ Yes Yes Tom Clough M 61 60 Chairman 2009.4.7 2008.4.22 Yes Yes Paul Director M 53 ~ 30 O'Callaghan 2009.4.7 2006.4.7~ Yes Yes Paul Thaler Director M 42 60 2009.4.7 2006.4.7~ 35,160 35,160 Yes No Ji Changhua Director M 54 724 2009.4.7 Zhang Independent 2006.4.7~ Yes No M 45 60 Tianwu director 2009.4.7 Independent 2006.4.7~ Yes No Xie Huobao M 41 60 director 2009.4.7 Lin Independent 2006.4.7~ Yes No M 51 60 Zongshou director 2009.4.7 Chairman of Yes No Zhou the 2006.4.7~ 30,900 30,900 M 54 685 Jiaming Supervisory 2009.4.7 Committee Yang 2006.4.7~ Yes No Supervisor M 57 170 Chunhua 2009.4.7 Winson 2006.4.7~ Yes Yes Supervisor M 47 12 Wong 2009.4.7 2006.4.7~ Yes No Jiang Dacai Supervisor M 50 233 2009.4.7 2006.4.7~ Yes No Chen Bing Supervisor M 41 233 2009.4.7 VP, Yes No 2006.4.7~ 32,500 32,500 Wang Ximing Secretary to M 49 710 2009.4.7 the Board 2006.4.7~ 41,500 37,775 Selling Yes No Peng Qingyu VP M 48 3,725 765 2009.4.7 shares Kong 2006.4.7~ 31,260 31,260 Yes No VP F 44 746 Lingling 2009.4.7 Feng 2006.4.7~ 20,800 20,800 Yes No VP M 41 703 Dongguan 2009.4.7 2006.4.7~ 21,100 21,100 Yes No Ke Youliang VP M 43 700 2009.4.7 3,269, Yes / Toatl / / / / 3,306,720 -3,725 / 8099 470 Major careers of Directors, Supervisors and Senior Management during the last 5 years: 1). Mr. Chen Musen, 59 years old, university graduate, senior economist. Mr. Chen Musen entered the Company at November 1999 as Chairman of the Company all along. Mr. Chen Musen is also the Chairman of Huaxin Group Co., Ltd., one shareholder of the Company. 2). Mr. Li Yeqing: 44 years old, Doctor, senior engineer. Mr. Li Yeqing graduated from Portland Major of Wuhan Building Material Institute (now Wuhan University of Technology and Science) as Bachelor of Science in 1984; in 1992 graduated from Industrial Management Major of Wuhan University of Technology as Master of Science; and graduated from Management Science and Engineer Major of Central China University of Science as Doctor of Business Administration at June 2002. Mr. Li Yeqing entered Huaxin Cement Plant (former name of the Company) at November 1987, taking position of quality control engineer of Central Lab, vice manager of Limestone Quarry, vice director of Extension Office and manager of production technology, and became vice manager of Huaxin Cement Plant at January 1993, he became Deputy General Manager of the - - 12 - - Company at June 1994, General Manager of the Company at December 1999 and CEO of the Company at March 2004. He has taken the position of director of the Company from 1994. 3). Mr. Tom Clough, 61 years old, British, Bachelor of Mining engineering of University of Leeds. From 1997 to now, he has taken position of Executive Director of PT Semen Makmur Of Holcim, CEO of Alsons Cement Corporation, Executive Director of PT Semen Cibinong Tbk and member of EXCO of Holcim Group. He became director of the Company from October 2004, and took the position of vice chairman of the Company from April 2006. 4). Mr. Paul O’Callaghan, 53 years old, Australian. Graduate Diploma of Management of University of Central Queensland in Australia. 1976-2001: Various engineering and project positions, Manager of Gladstone Cement Plant, Group Planning Executive, General Manager Southern Queensland Cement, General Manager Business Development, General Manager Sales and Distribution of Queensland Cement Ltd.; 2001-2002: Chief Operating Officer of Alsons Cement Company, Philippines; 2002-2007: Chief Operating Officer, and Director of Holcim Philippines; 2007-2008: Holcim Regional Manager, Australia/New Zealand. He became director of the Company from April 2008. 5). Mr. Paul Thaler, 42 years old, lawyer, Swiss. He is Master of Law and Doctor of Law of Zurich University and research scholar of Beijing University. He was the foreign lawyer of a Lawyer Firm in Beijing from 1997 to 1998; from 2000 to 2006 he has been partner of Wenger & Vieli and from 2007 managing director of Wenfei Attorneys-at-law Ltd. and chief representative of its Beijing Representative Office. He became director of the Company from April 2003. 6). Mr. Ji Changhua, 54 years old, Bachelor of Law, senior political engineer. Mr. Ji Changhua entered Huaxin Cement Plant (former name of the Company) at February 1972 and took position of vice secretary, vice director, director and secretary of Mechanic Workshop; he became Deputy general Manager of Huaxin Group Co., Ltd. from 1997. He became director and vice Secretary of Party Committee of the Company from February 2000. 7). Mr. Zhang Tianwu, 45 years old, Master of Law, lawyer. 1998 ~ 2005, vice director of Hubei Junshangjun Law Firm. From 2005, executive partner of Hubei Deweijunshang Law firm. He is now council member of Wuhan Lawyer Association, arbitrator of Wuhan Arbitration Committee, member of Wuhan Jiang’an District Political Consulting Committee. He became independent director of the Company from April 2002. 8). Mr. Xie Huobao, 41 years old, Doctor of Enterprise Management of Wuhan University, Post-Doctor of Accounting of Zhongnan University of Finance and Law. From 1993 to today he has been assistant professor, instructor, deputy professor, professor and vice director of Accounting Department of Business School of Wuhan University. He became independent director of the Company from April 2002. 9). Mr. Lin Zongshou, 51 years old, Master in Non-metal Material Department of Wuhan University of Technology, Doctor tutor in Wuhan University of technology and Science. He has been teacher, professor and doctor tutor of Wuhan University of technology and Science from 1985 to today. He is representative of Ninth and tenth People’s Congress of China. He became independent director of the Company from April 2003. 10). Mr. Zhou Jiaming, 54 years old, university graduate, engineer, senior economist. Mr. Zhou Jiaming entered Huaxin Cement Plant at November 1971, he use to take position of - - 13 - - vice director and director of Central Lab and was DGM of the Company from April 1997 to February 2000. From February 2000 he has been Secretary of Discipline Committee, Chairman of Labor Union and Chairman of Supervisory Committee. 11). Mr. Yang Chunhua, 57 years old, university graduate, senior economist. Mr. Yang Chunhua entered Huaxin Cement Plant at July 1970, and use to be chief in Organization Department, vice manager of Organization Department, vice manager of Personnel Department and manager of Labor and Personnel Department. He became DGM of Huangshi Branch, Vice Secretary of Discipline Committee. He became vice Chairman of Labor Union and Supervisor at April 2000. 12). Mr. Winson Wong, 47 years old, Master of Business Administration of York University (Toronto, Canada), Certified Public Accountant (CPA) of USA, Certified General Accountant (CGA) of Canada. Chief Financial Officer of Shanghai Shared Data Network Co. Ltd. (1995 to 1997). Chief Financial Officer of Suzhou Golden Cat Cement Co. Ltd. (1998 to 2001). Regional Controller of Holcim Group Support (Zurich) Ltd from 2001 to 2008. He became supervisor of the Company from April 2006. 13). Mr. Jiang Dacai, 50 years old, institute graduate, senior economist. He entered Huaxin Cement Plant in 1975 and used to be the chief of Calcination Department, manager of No.1 Plant and No.2 Plant. He became DGM of Huangshi Branch from March 2004 to January 2006 and became standing DGM of Huangshi Branch from February 2006. He became the general manager of Huangshi Branch from February 2008. He took the position of supervisor from April 2006. 14). Mr. Chen Bing, 41 years old, MBA, senior economist. He entered Huaxin Cement Plant in 1989 and used to be Technical Service Department of Planning and Development Department in Sales Company, manager of Wuhan Market Department; from February 2003, DGM of Sales Company, general manager Huaxin Wuhan Company; from July 2002 to September 2006, general manager of Wugang Huaxin Cement Co., Ltd.. From February 2006, general manager of Huaxin Cement (Wuhan) Ltd. From January 2009, DGM of RMC&AGG Business Administration Department of the Company. He became supervisor of the Company from April 2006. 15). Mr. Wang Ximing, 49 years old, MBA, senior economist. He graduate from Chemistry Major of Wuhan Steel Institute (Wuhan University of Science) and got Bachelor of Science at February 1982; and he graduate Business and Administration Major of Renming University of China and got MBA degree. Mr. Wang Ximing entered Huaxin Cement Plant in 1982 and used to be teacher in Huaxin Technique School, vice secretary of Youth League Committee of Huaxin Cement Co., Ltd., carders of Organization Department of CPC Huangshi Committee, Vice manager of Labor and Personnel Department of Huaxin Cement Plant, Vice Manager of Planning Department, Vice Manager, Manager of Securities Department of the Company, Secretary to the Board. He took position of DGM and Secretary to the Board of the Company from April 2000 and became Vice Present of the Company at March 2004. 16). Mr. Peng Qingyu, 48 years old, Master, senior economist. He graduated from Western Economics Major of Central China University of Science and got Master degree of Economics at April 2004. Mr. Peng Qingyu entered Huaxin Cement Plant at January 1979 and used to be Chief in Sales Department, Vice manager and manager of Huaxin Nantong Trading Company, Director of Shanghai Office, Manager of Sales Department of the Company and vice manager of Sales Company. He took position of DGM of the Company and manager of Sales Company from April 2000. He became Vice Present of the Company at March 2004. - - 14 - - 17). Mdm Kong Lingling, 44 years old, Master of Economics, senior economist. She graduated from Wuhan University of Technology and got Bachelor degree of Science in 1985; and graduated from Enterprise Administration Major of Fudan University and got Master degree of Economic in 1992. Mdm Kong Lingling entered Huaxin Cement Plant at July 1985 and used to be engineer in Research Firm of Huaxin Cement Plant, vice secretary of Youth League Committee, Vice Manager of Financial Department, Vice Manager of Planning Department and Manager of Financial Department. He became DGM of the Company from April 2000 and Vice President of the Company at March 2004. 18). Mr. Feng Dongguang, 41 years old, Master, senior engineer. He graduated from Portland Major of Wuhan University of Technology and got Bachelor degree of Science in 1989 and graduated from Business Administration Major of Central China University of Science and got MBA degree in 2003. Mr. Feng Dongguang entered Huaxin Cement Plant in 1989 and used to be assistant manager and manager of Dry Process Plant. He became assistant GM of the Company at November 2001 and DGM from April 2003. He took position of Vice President of the Company at March 2004. 19). Mr. Ke Youliang, 43 years old, Doctor of Management, senior economist. He graduated from Management Science and Engineering Major of Wuhan University of Technology and Science and got Doctor Degree of Management in 2007. Mr. Ke Youliang entered Huaxin Cement Plant in 1985 and used to be assistant manager of Investment Department, manager of Engineering Administration Department, vice manager of Comprehensive Administration Department of Engineering Division and manager of Planning and Development Department. He was appointed Assistant GM and Manager of Planning and Development Department at November 2001 and DGM of the Company from April 2003. He was appointed Vice President of the Company at March 2004. 2. Position at shareholder Company Has Name of shareholder Name Position Starting remuneration Company or allowance Mr. Chen Huaxin Group Co., Ltd. Chairman 1999-11-05 No Musen Mr. Li Yeqing Huaxin Group Co., Ltd. Party Secretary 2001-09-07 No Tom Clough Holchin B.V. Director 2004-11-1 No Mr. Ji Huaxin Group Co., Ltd. DGM 1997-04-02 No Changhua Chairman of Labour Union, No Mr. Zhou Huaxin Group Co., Ltd. Secretary of 2000-02-22 Jiaming Disciplinary Committee Position at other companies/units Directors Mr. Paul O’ Callaghan and Mr. Paul Thaler, three independent directors Mr. Zhang Tianwu, Mr. Xie Huobao and Mr. Lin Zongshou have their positions respectively at other companies/units (please see the above career experiences of directors and supervisors for details). (III). Remuneration for Directors, Supervisors and Senior Management - - 15 - - 1. Decision procedures of remuneration for directors, supervisors and senior management a). Proposal by the Remuneration and Assessment Committee of the Board of Directors; b). payment for senior management is discussed and decided by the Board of Directors; c). approval by the Shareholders' General Meeting in case of position allowance for directors and supervisors. 2. Basis for deciding remunerations for directors, supervisors and senior management 1). Basis for directors and supervisors: the Proposal in Respect of Adjusting Duty Allowance for Directors and Supervisors adopted by the Annual Shareholders’ General Meeting of the Company for 2003 convened on April 28, 2004. 2). Basis for senior management: the Proposal in Respect of Adjustment of the Top Management’s Remuneration and Short Term Incentive Plan adopted by the Annual Shareholders’ General Meeting of the Company for 2006 convened on April 6, 2007, confirmed the basic remuneration, short term incentive standards and KPIs for the senior management, the Remuneration and Assessment Committee was authorized to propose the annual basic salary and reasonable salary increment to the Board for its approval combined with the actual fulfilment of the operating performance indicators of the Company; the Proposal in Respect of Adjustment to the Basic Remuneration of the Top Management for 2008 and Proposal in Respect of 2008 Short Term Incentive KPI's for the Top Management adopted by the Twenty Fifth Meeting of the Fifth Board of Directors convened on June 27, 2008, confirmed the KPIs of the basic salary and short term incentives to the senior management for 2008; the Proposal in Respect of Rewarding Mid-Term Incentives to the Top Management and Core Employees adopted by the Thirty First Meeting of the Fifth Board of Directors convened on November 13, 2008 and the Third Extraordinary Shareholders’ General Meeting of the Company for 2008, confirmed the mid-term incentives standards and assessment indicators to the Management and core employees from 2008 to 2010. (IV). Changes of Directors, supervisor and senior management Mr. Daniel Bach resigned from the position of director of the Company due to a change of his job during the report period. (V). Employees By the end of the report period, the Company possess of 7,975 employees and the Company is responsible for paying for pension for 1,072 employees. Employee structure 1. Major structure Type Number Administrative/technique staff 1,431 Sales staff 503 Financial staff 240 Production and assistant staff 5,801 - - 16 - - 2. Education level Education level Number Doctor graduate 4 Master graduate 63 University graduate 688 Institute graduate 1,493 Technique school graduate 1,069 Others 4,658 - - 17 - - Chapter 6 Corporate Governing (I) Company Governance 1. Actual situation Legal person governance structure of the Company was in accordance with the requirements of modern enterprise system and Governance Rules of Listed Companies. In strict compliance with the requirements of the rules and regulations in Company Law, Securities Law, Governance Rules of Listed Companies and Stocks-Listing Rules of SSE, and combined with the actual situation, the Company continuously improved its legal person governance structure and operated regularly. During the report period, the Company has established Measures for the Work of Independent Directors with regard to Annual Reports and Rules of Procedures for the Work of Audit Committee of the Board of Directors with regard to Annual Reports, hence corporate governance of the Company was further improved. 2. Special Activities on Enhancing Corporate Governance Since 2007, according to the relevant requirements of “Notification on relevant matters of Launching Special Activities on Enhancing Corporate Governance in Listed Companies” issued by CSRC and “Notification on relevant matters of Special Activities on Enhancing Corporate Governance in Listed Companies” issued by Hubei Securities Regulatory Bureau, the Company cautiously organized and actively carried out special activities on enhancing corporate governance. On the basis of self-checking and public appraisal and in view of the problems found during the special activities, the Company established “Internal Control Measures of the Company” and “Investor Relationship Management Measures”, revised “Rules of Procedures for Special Committees of Board of Directors”, and fulfilled the relevant restructuring measures. (For the “Announcement on Self-Checking Report regarding Corporate Governing and Restructuring Plan of the Company” and “Report of Corrective Activities on Enhancing Corporate Governance of the Company”, please refer to China Securities Journal, Shanghai Securities News and Hong Kong Commercial Daily and website of SSE respectively published on July 17, 2007 and December 29, 2007.) On July 29, 2008, the Company convened the Twenty Seventh Meeting of the Fifth Board of Directors, reviewed and adopted the “Special Explanations on Improving Corporate Governance of Huaxin Cement Co., Ltd.”, the full text had been published on the website of SSE. Through such special activities, strictly abided by the new requirements of relevant laws and regulations, the Company further improved its internal control system, enhanced its regular operation. Meanwhile, through such special activities, the directors, supervisors and senior management of the Company had further strengthened their consciousness on diligence and responsibilities. (II) Performance of Functions by Independent Directors 1. Independent directors present at Board Meetings - - 18 - - Meeting number Present Present in Reasons for absence and Name Absent should attend in person proxy other remarks Zhang Tianwu 12 11 1 Other commitment Xie Huobao 12 11 1 Other commitment Lin Zongshou 12 12 2. Objection from independent directors to issues of the Company There is no objection from independent directors of the Company to proposals of Board Meetings and other non-board meeting proposals in the report period. 3. Other remarks on Performance of Functions by Independent Directors During the report period, the three independent directors worked diligently, strictly abide by provisions contained in the states laws, rules and regulations, and in the Articles of Association of the Company, participated in the Board meetings and Shareholders' General Meetings with an attitude of responsibility for all shareholders, expressed independent and objective opinions from legal, financial and technical perspectives on the strategic development, investments and guarantees, and remuneration assessment of the Senior Management. This helps positively in major decisions for a healthy and fast development of the Company. (III) The Company is independent from the Controlling Shareholders on Business, employee, assets, structure and finance. (IV) Establishment and improvement of Internal Control System of the Company According to the Articles of Association of the Company and relevant laws, rules and regulations and its practices for so many years, the Company has set up comprehensive internal control system. The Company has established its internal organization structure according to the requirements of modern enterprise management, formed scientific decision-making mechanism, implementation mechanism and supervising mechanism, in order to ensure realizing the Company’s operating and managerial targets; the Company has established effective risk control system, in order to ensure the effective and safe development of each business activity; the Company has set up accounting check and financial management system in compliance with the regulations and requirements of the accounting system, so as to regulate accounting activities of the Company and ensure the truthfulness and completeness of the accounting materials and improve the quality of accounting information; the Company has established Administrative Measures for the Matters regarding Information Disclosure, so as to enhance information communication with investors, increase transparency of information disclosure and protect the legitimate rights and interests of investors. (V) Self-evaluation Report of the Board on Internal Control of the Company and Verifying Opinions of the Audit Organization disclosed by the Company The Company does not disclose the Report of the Board on Internal Control of the Company. - - 19 - - (VI) Senior Management Personnel Assessment and Incentive Mechanism According to the Proposal in Respect of Adjustment of the Top Management’s Remuneration and Short Term Incentive Plan adopted by the Annual Shareholders’ General Meeting and the Proposal in Respect of Basic Remuneration and Target Bonus for the Top Management adopted by the Board of Directors, Remuneration and Assessment Committee of the Board assessed the performance of the Senior Management combined with the annual actual operating performance of the Company, submitted it to the Board for approval and then realized it. (VII) The Company does not disclose its CSR Report for 2008 when disclosing its Annual Report 2008, but it will disclose its CSR Report for 2008 at an appropriate time in the first half of 2009. - - 20 - - Chapter 7 Shareholders’ General Meeting (I) Annual Shareholders’ General Meeting The Annual Shareholders' General Meeting for 2007 of the Company was convened on April 22, 2008. The announcement on resolutions of the Meeting was published on China Securities Journal, Shanghai Securities News and Hong Kong Commercial Daily on April 23, 2008. (II) Extraordinary Shareholders’ General Meeting The First Extraordinary Shareholders’ General Meeting for 2008 was convened on August 1, 2008. The announcement on resolutions of the Meeting was published on China Securities Journal, Shanghai Securities News and Hong Kong Commercial Daily on August 2, 2008. The Second Extraordinary Shareholders’ General Meeting for 2008 was convened on November 3, 2008. The announcement on resolutions of the Meeting was published on China Securities Journal, Shanghai Securities News and Hong Kong Commercial Daily on November 4, 2008. The Third Extraordinary Shareholders’ General Meeting for 2008 was convened on December 9, 2008. The announcement of resolutions of the Meeting was published on China Securities Journal, Shanghai Securities News and Hong Kong Commercial Daily on December 9, 2008. - - 21 - - Chapter 8 Directors' Report (I) Discussion and analysis of the Management 1. Review of the Company’s Operation State during the Report Period (1) Overall Operations during the Report Period The cement industry is highly relevant to the scale of fixed assets investment, the development scale and speed of national economy. In 2008, although China’s national economy saw falling growth rate, GDP growth rate still reached 9.0% and fixed assets investment of the whole society increased by 25.5% over last year, or 0.7 percentage points higher than that of last year. Under this circumstance, despite the few natural disasters, the impact of international financial turmoil, suspension of some infrastructure projects during the Olympics and the soaring coal price, the boom indicator of the industry was still in an increasing trend, thanks to the drive of demand, optimization of the industrial structure and increased centralization degree of the industry. In 2008, the total cement production from rotary kilns in China amounted to 1,388,000,000 tons, increasing by 5.2% over last year (data source: National Bureau of Statistics). Investment in cement rose rapidly. In the whole year, cumulative fixed assets investment in cement amounted to 105,460,000,000 Yuan, increasing by 60.76% or 40 billion Yuan over last year. 120 large-size and new-type dry process cement production lines of 143,344,000 tpa clinker in total were commissioned (data source: Digital Cement, China Cement Association) . Meanwhile, cement price across the country showed a reasonable ascending trend, economic benefit of the industry kept growing, large groups accelerated their development pace and 14 enterprises had an annual production of over ten million tons. In 2008, the company’s development was privileged with a favorable growing market environment, driven by the favorable policies of the government’s development strategy of “Central Area’s Uprising”, Wuhan “1+8” City Circle Construction and the construction of new socialist countryside. Yet, the Company was also challenged, in terms of the management’s ability in control of operation and adaptability to market changes, by unfavorable factors such as the snow storm, drastic fluctuation in coal prices, and drops in prices of basic source materials under the impact of the financial crisis. In 2008, the company adhered to the concept of scientific development, clearly defined its operational roadmap, took effective countermeasures and actively responded to market changes. An 8-dimensional performance assessment system was implemented to improve the company’s governance and control strength. In the first quarter, when the snow storm caused enormous negative impact on the company, the company took hold of the blowout of cement demand after the snow, resolutely raised price and started mass sales. As a result, the company managed to maintain the same performance level as the same period of 2007. In the second quarter, coal price soared and resource supply was intense. Therefore, the company practiced a “Cost-driven” marketing strategy, kept a close eye on the marginal contribution of each product, adjusted marketing portfolio in time and strived for profit maximization. On one hand, the company expanded the supply channel of coal; on the other hand, strengthened communication with the clients to raise product sales price in due time. As a result, specific profit went upward instead of downward. In the third quarter, when coal price showed a downbeat momentum, the company decisively abated the stock of coal at various production plants and cut normal 15-day stock down to 5-day minimum stock, so as to obtain the utmost benefit out of falling coal prices and ensure maximized cash flow from operations. In the fourth quarter, domestic macro economy was hit by the worsening global financial crisis and cement price dropped sharply. Under the pressure, the company brought into full play its brand and capacity advantages in regional market, maintained cement price in Hubei region and made - - 22 - - stunning achievement of 757 million Yuan net cash flow from one-quarter’s operations. It reversed the passive operational cash flow conditions in the first three quarters. In 2008, all major economic indexes of the company saw substantial growth compared with the same period of last year and the operational performance was the best since its foundation. In the whole year, gross sales of cement and clinker reached 27,880 k tons (as per statistical criteria), increasing by 20.1% over 2007. The average sales price of cement per ton was 290.17 Yuan (including tax), increasing by 26.96 Yuan/ton over 2007. Operating income was 6,349,459,647 Yuan, increasing by 33.11% over 2007. Under the condition of 45.27% increase in coal price in the whole year, the company realized gross profit of 576,944,469 Yuan and net profit attributable to shareholders of the parent company 459,975,559 Yuan, increasing by 28.55% and 58.48% respectively over 2007. In 2008, the company endeavored in innovation of the enterprise’s management pattern, expansion of production capacity, exploration and development of new business, and made great progress in its scale advantage, innovative ability and profit-making potential. With respect to management system, a “high-speed multiple unit” operation management pattern was constructed to carry out whole dynamic system management. As a result, branches and subsidiaries gradually exhibited strong execution and operation ability. By creating unified culture and value, the company was able to work in harmony and collaboration as a whole and keep enhancing its performance. With respect to management approach, SAP project (the new ERP system) was deliberately implemented. SAP system went online in head office and 21 units in 2008, and will be rolled put to all the other branches and subsidies in 2009. The implementation of SAP system offers an efficient fundamental management and business operation platform that can help to realize high-speed and sustainable development of the company. In financing, the company completed private placement of 75,200,000 A shares to Holchin B. V., the wholly-owned indirect subsidiary of the strategic investor Holcim, and raised 2 billion Yuan. The company’s success in re-financing helped to reduce its debt ratio, improve its asset structure and mitigate the bottle-neck problem of capital for its rapid development. After that, cooperation between the company and Holcim reached a higher level and Holcim intensified support to the company. With regard to development, the company’s cement business achieved high-speed and stable growth through building new plants and M&A. In 2008, Xinyang 4500t/d clinker production line, Enshi Hefeng 1500t/d clinker production line, Yueyang phase II, Xiantao phase II and Macheng cement grinding station projects were completed and commissioned in succession. The company acquired Enshi Hefeng Changhong Cement Plant (i.e., the above mentioned Enshi Hefeng project), the 200,000t/y production line of Yunnan Kunming Dianbei Building Materials Co., Ltd., the 300,000t/y and 500,000t/y cement grinding stations at Shishou and Suizhou respectively. By the end of 2008, the company had formed a production capacity of 20,500,000t/y clinker and 38,500,000t/y cement. Six cement clinker production lines were under construction, and will, when commissioned in 2009, increase the production capacity by 9,600,000t/y clinker and by 13,450,000 t/year cement. Hunan Daoxian 4000 t/d and Yunnan Dongchuan 2000t/d cement clinker production lines started construction and will be commissioned in 2010. The company has made breakthrough in waste heat power generation projects. In 2008, Wuxue 18MW waste heat power generation project went into production, Yangxin 18MW, Golden Cat 11.5MW, Xiangfan 15MW, Xianning 7.5MW and Xinyang 9MW projects were under construction. Waste heat power generation and high-medium voltage frequency - - 23 - - conversion projects in Wuxue, Xiangfan, Xianning, Xinyang, Huangshi and Yichang have applied for state financial reward for energy-saving and emission reduction and comprehensive usage of resources. The approved projects will gain financial support and subsidy from the central and local governments. State Development and Reform Commission has approved Xiangfan 170,000t, Xinyang 150,000t, Chibi 150,000t, Yangxin 500,000t and Wuxue 500,000t CO2 trading CDM (clean development mechanism) projects. In 2008, the company newly built seven concrete plants, completed construction of Wuxue 1,500,000t/y aggregate project and finished the preliminary work of Yangxin 100,000,000t/y aggregate production line. The company’s aggregate and concrete business has embarked on a road of high-speed development. In addition, the company has also made material progress in developing circular economy and facilitating the cement industry development in harmony with the environment and the ecology, as shown by the implementation of AFR projects, including the trial burning urban sewage sludge in Golden Cat and Yichang plants, trial burning and disposing Dupont man-made marble fly-ash in Wuxue plant, obtaining approval from Hubei Environmental Protection Bureau on the company’s utilizing cement kilns to co-dispose more than ten types of hazardous wastes, signing the contract on disposal of waste pesticide with the Ministry of Agriculture. Meanwhile, exploration in AFR technology and accumulation of experience also give birth to a new profiting point in the future. However, it is noteworthy that some production plants of the company, mainly in Suzhou and east Hubei regions, didn’t give satisfactory performance due to enormous surplus of production capacity, sluggish increase in price and soaring cost of coal supply. (2) Main products and market share The main products produced and operated by the Group was cement. In 2008, the Company sold cement 13,100 k tons In Hubei, market share was 24.7%; sold cement 3,520 k tons in Jiangsu, market share was 3%; sold cement 410 k tons in Tibet, market share was 16.1%; sold cement 1,310 k tons in Hunan, market share was 2.4%; sold cement 1,130 k tons in Yunnan, market share was 2.9%; sold cement 760 k tons in Chongqing, market share was 2.3%; sold cement 580 k tons in Shanghai, market share was 2.1% (internal statistics). (3) Main suppliers and clients The total purchasing amount of the Company to the top 5 suppliers was 1,095,325,296 yuan, covering 21% of the total annual purchasing amount; total sales amount of the Company to the top 5 clients was 396,803,112 yuan, covering 6% of the total sales amount of the Company. (4) Changes of assets structure during the report period - - 24 - - Unit: RMB Report period Report period Item change Main reasons for the change end beginning Cash at bank and in Received capital from A Share 986,717,837 569,091,717 73% hand private placement Notes transferred and discounted Notes receivable 125,065,982 183,391,990 -32% notes increased Security deposit and fund of Other receivables 65, 949,887 33,175,059 99% disbursement increased Market value of shares of Bank of Available-for-sale Communication and China Pacific 26,585,846 68,373,606 -61% financial assets Insurance held by the Company dropped Assets disposal receivable Long term receivables 54,866,665 37,484,906 46% increased Investment in WHPG projects and Construction in progress 1,523,894,887 432,405,440 252% new projects increased Investment in WHPG projects and Construction materials 13,350,340 8,942,244 49% new projects increased Investment in ERP system software Intangible assets 1,064,457,556 730,974,821 46% increased, new projects purchased land use right Long term prepaid Overburden stripping expenses for 41,344,698 23,037,346 79% expenses quarry exploitation increased Confirmed the domestic equipments Deferred income tax 52,894,235 32,337,443 62% could countervail income tax assets amount Operation scale expanded, working Short term loans 1,289,600,000 976,300,000 32% capital demand increased Scale expanded, purchasing Notes payable 225,290,000 155,067,359 45% amount of materials increased Repaid prepayment of Holcim, and advances from compensation for the Advances from 133,598,728 410,996,161 -67% demolition and resettlement customers transferred into liquidation of fixed assets Accrued payroll and Accrued payroll and welfare benefits 23,339,304 35,976,994 -35% welfare benefits decreased Repaid the interest of short term Interest payable 9,017,634 13,093,858 -31% liabilities of the Company Dividends payable 29,900,126 62,149,033 -52% Paid dividends Fair-value of available-for-sale financial assets changed; deferred Deferred income tax 12,769,126 25,554,698 -50% tax liabilities and deferred tax assets liabilities are listed at the net value after their elimination. Achieved A share private placement Capital surplus 2,477,102,124 575,581,414 330% at the beginning of the year Undistributed profits 1,002,930,571 600,880,127 67% Profits increased (5) Changes of profit structure of the Company during the report period - - 25 - - Unit: RMB Item 2008 2007 Change Main reasons for the change Production scale expanded and Operating income 6,349,459,647 4,770,108,141 33% sales price rose Production scale expanded and Operating cost 5,031,292,858 3,637,040,577 38% cost of raw materials rose Provision for the asset Provision for depreciation of fixed 738,137 -270,170 -373% impairment assets increased Net investment Dividends from the invested units 557,991 2,230,133 -75% income decreased Non-operating Loss on fixed assets disposal 19,000,374 12,503,645 52% expenses increased Income tax rate dropped and Income taxes 42,004,359 109,452,364 -62% revenue became preferential Net profit attributable Operation scale expanded, profit to owners of the 459,975,559 290,245,247 58% increased Company Operation scale expanded, profit Minority interests 74,964,551 49,121,716 53% increased (6) Changes of cash flows during the report period Unit: RMB Item 2008 2007 Change Main reasons for the change Investment in WGPG projects and new Net cash flow from -2,198,447,134 -1,207,053,007 82% production line projects increased investing activities largely Net cash flow from 1,442,976,462 308,255,854 368% 75,200,000 A shares were issued financing activities (7) Operation and achievement of major subsidiaries Unit: RMB .Name Registered capital Assets scale Net profit Huaxin Golden Cat Cement (Suzhou) Ltd. USD 136,000,000 1,192,685,343 -43,630,677 Huaxin Cement (Yichang) Ltd. 150,000,000 655,201,273 112,757,092 Huaxin Cement (Enshi) Ltd. 60,000,000 303,584,340 56,984,739 Huaxin Cement (Xiangfan) Ltd. 140,000,000 709,105,057 52,475,181 Huaxin Cement (Zhaotong) Ltd. 75,000,000 390,639,117 113,370,807 Huaxin Cement (Yangxin) Ltd. 500,000,000 1,146,141,258 40,117,567 Huaxin Cement (Wuxue) Ltd. 200,000,000 1,064,664,062 28,951,676 Huaxin Cement (Tibet) Ltd. 50,000,000 218,133,674 34,461,222 Huaxin Cement (Chibi) Ltd. 140,000,000 486,774,923 20,644,915 Huaixn Cement (Kunming Dongchuan) Ltd. 30,000,000 55,825,796 628,866 Huaxin Nantong Cement Co., Ltd. 108,000,000 146,867,736 13,265,256 Huaxin Cement (Xiantao) Co., Ltd. 23,900,000 56,916,329 2,653,230 Huaxin Cement (Wuhan) Co., Ltd. 60,000,000 293,840,196 -13,891,020 Wugang Huaxin Cement Co., Ltd. 40,000,000 140,897,275 4,761,420 Huaxin Cement (Yueyang) Co., Ltd. 25,000,000 136,599,516 10,325,267 - - 26 - - Huaxin Xianggang Cement Co., Ltd. 60,000,000 262,129,144 37,919,224 Huaxin Cement (Shishou) Ltd. 19,800,000 24,064,578 316,869 Huaxin Cement Suizhou Ltd. 41,000,000 46,610,009 -108,698 Huaxin Concrete (Wuhan) Co., Ltd. 80,000,000 168,748,826 2,821,916 Huangshi Huaxin Cement Research and Designing Co., Ltd. 1,000,000 10,852,200 -746,604 Huangshi Huaxin Packaging Co. Ltd. 8,000,000 92,699,524 9,258,842 Huaxin Environmental Protection (Wuxue) Waste Treatment Ltd. 10,000,000 49,736,428 139,180 Huaxin Cement (Huangshi) Bulking Storage and Transportation Ltd. 20,000,000 115,646,265 1,136,194 Huaxin Cement Technical Management (Wuhan) Ltd. 20,000,000 86,515,207 728,480 2. Future Development of the Company (1) Development Trend of the Industry and Competition Pattern of the Market In the short run, there is great uncertainty in the development trend of China’s cement industry due to evident recession in external demand caused by the global financial crisis, the on-going downturn of domestic housing market, downgoing growth of fixed assets investment of the whole society and the pressure on the supply end caused by the newly released cement production capacity. However, China’s cement industry will continue to develop in the medium and long run, as long as the intrinsic conditions for long-term growth of China’s economy remain unchanged, the pace of industrialization and urbanization is still on its way of long-term acceleration, the country remains persistent in policies of phasing out shaft kilns and supporting the “Top 60” cement enterprises. It is estimated that China’s cement industry will display the following features in the coming years: With the government’s 4 trillion Yuan investment intended to drive domestic demand, the cement consumptions will continue to grow, though weakly, and vary from region to region conspicuously. Cement demand in western and central regions will remain strong for a period of time, while demand in eastern coastal regions will be low. Some provinces might see continuous downslide in gross demand. In 2009, investment in construction of new-type dry process projects in central and western China will reach climax, but after that, investment will slow down and the focus of investment of the industry will shift to M&As. Release of enormous newly increased production capacity at the same time poses great pressure on the cement price and the profitability of the industry. In the mean time, the pace to phase out backward technology such as shaft kiln will speed up due to political and market pressures. Large enterprises with capital strength can maintain rapid development and the concentration ratio of the industry will keep increasing. However, large enterprises will try to elbow out each other’s development space and competition between them will be intensified. The pressure of market competition will be heavier. The cement industry is picking up speed in blending into circular economy, pure low temperature waste heat power generation will be quickly applied in the cement industry and enterprises are confronted with higher standard for environmental protection and emission reduction. The use of alternative energy and recycle of pollutants and wastes - - 27 - - offers important options in the development of technology and equipments of the cement industry. The price of raw and fuel materials and human resource might fluctuate with changes in the macro economic situation, but the overall ascending trend in the long run won’t change. Contest for resources between enterprises will be more heated. (2) Future Development Opportunities and Challenges and Operation Plan for the New Year The country’s support to the development of central and western regions and the structural adjustment of the cement industry are far from coming to an end. With an enormous growth space ahead, the company will keep enlarging investment in the cement industry, take initiative in extending the industrial chain, increase investment in energy saving and emission reduction, explore and implement core technology of the cement industry, energy saving and emission reduction and a new approach of re-utilizing regional resources, and always maintain the leading position in the industry in scale, technology, environmental protection and performance. In the coming years, the company will focus cement business on Hubei, Hunan, Sichuan and Chongqing regions. Under the condition that the existing projects are put into production as scheduled, thorough market research should be conducted for further new investment projects and the time and mode of entering the market must be carefully selected so as to ensure the efficiency of investment. Moreover, the company should reinforce study of M&A patterns and grasp M&A opportunities. As for development of new business, firstly, the company will treat aggregate and RMX business as a long-term mission, do it well and do it in time and make every effort to maintain rapid growth in five years consecutively. Secondly, the company will establish the new concept of environment-friendly industry, forcefully develop circular economy, speed up the construction of waste heat power generation projects, take an active part in cooperation on CDM projects and reinforce collaborative disposal and recycle of various industrial residues and urban wastes. In 2009, the company plans to sell 33,590 k tons of cement, increasing by 10,130 k tons over 2008, 1060 k cubic meters of concrete, and realize 40% growth in operating income over 2008. (3) Major Capital Expenditures In 2009, gross investment expenditure of the company is estimated to be 4,292,590 k Yuan, out of which 3,323,400 k Yuan is used for investment in cement clinker production line projects, 110,440 k Yuan for cement grinding station projects, 256,350 k Yuan for waste heat power generation projects, 116,000 k Yuan for aggregate, 200,090 k Yuan for maintenance investment expenditure and 286,310 k Yuan for other expenditures. In addition to the projects under construction and newly launched in 2008, the company will start construction of Sichuan Wanyuan 2500t/d and Tibet phase II 2000t/d cement clinker production lines, Huangshi 15MW, Yichang 10.5MW and Shaotong 7.5MW waste heat power generation projects. The capital mainly comes from cash flow from operations, project loan from banks, cash as at year-beginning and equity financing. - - 28 - - (4) Analysis of Risk Factors In the opinion of the management, the company is mainly in face of the following risks in future development: 1.) At the current stage, people still have different perceptions about the disposal of polluting wastes and the government authorities haven’t constituted relevant laws yet to reward institutions that have made contribution to disposal of wastes. Under this context, though new business, especially AFR business, is deployed and brings in prominent environmental benefit and social benefit, the company might make no or incommensurate profit out of the investment. 2.) Shortage of talents is another risk confronted by the company as development of human resource cannot satisfy the rapid development of the company. In view of this problem, the company will take the following measures: firstly, reinforce training for the employees in service and enhance staff training as a long-term strategic mission. Multi-level, multi-discipline and multi-frequency training classes should be held to speed up growth of the employees in service. Secondly, reasonably plan the employees’ career, practise talent succession management, carry out instructor plan for new employees, create favourable conditions and atmosphere for the talents to stand out and intensify the company’s cohesiveness. Thirdly, innovate the recruiting mode and reinforce introduction of high-level talents. Fourthly, further push forward the “lean plan” at production plants and enhance the usage rate of stocking talents. 3. Major operations 1. The classification of major operation according to industry and product Unit RMB Operating Operating Operating cost Operating profit income change change over profit change over the last Industry or Operating Operating the last year % over the last year Product income cost year % % % Industry Decreased by 3.46 Cement 5,998,012,496 4,786,632,046 20.20 32.46 38.47 percentage point Decreased by 6.00 RMC 116,436,716 101,423,671 12.89 29.39 38.95 percentage points Increased by 9.69 Others 235,010,435 143,237,141 39.05 54.64 33.42 percentage points Product Decreased by 0.84 Cement 32.5 2,896,843,777 2,138,872,073 26.17 14.92 16.25 percentage point Cement 42.5 Decrease by 4.95 2,923,098,154 2,493,969,915 14.68 47.72 56.81 and above percentage points Increased by 5.96 Clinker 178,070,565 153,790,058 13.64 521.91 481.77 percentage points Decreased by 6.00 RMC 116,436,716 101,423,671 12.89 29.39 38.95 percentage points Increased by 9.69 Others 235,010,435 143,237,141 39.05 54.64 33.42 percentage points 2. The classification of major operation according to regions - - 29 - - Unit: RMB Operating income Operating Income change Region over the last year % Hubei 3,479,617,582 44.51 Jiangsu 852,347,448 37.21 Shanghai 220,312,279 5.12 Jiangxi, Anhui 292,393,319 88.83 Fujian 11,745,340 -85.59 Hunan 431,877,809 85.41 Henan 142,309,236 5.74 Zhejiang 28,220,499 125.03 Chongqing 266,910,996 -19.17 Tibet 152,883,467 17.21 Yunnan 335,915,840 54.81 Export 59,812,849 -69.08 Others 75,112,981 70.73 (II) Investments Total investment of the Company in the report period is 2,189,206,944 yuan, increasing by 1,155,543,971 yuan or 111.79% over the previous year. Please refer to the “Construction in Progress” in Note VII (11) to Consolidated Financial Statements for details about the major outside investment. 1. Application of the raised funds Unit: RMB Usage and Use amount in Accumulative Amount not direction for the Year Manner Total amount this year use amount been used yet proceeds not been used yet Additional 2008 2,006,850,200 2,006,850,200 2,006,850,200 offering As of December 31, 2008, the raised fund had accrued interest in amount of 1,393,387 yuan. 2. Projects utilizing the raised funds - - 30 - - Unit: RMB Whether Whether Remarks for the Whether accorded not reaching Planned Actual Estimated Income Project project meet the progress with the the planned investment investment income been made been schedule estimated schedule changed income and income Coal and power Xiangfan prices rose 4,000t/d Put into greatly in clinker operation 2008, which No 399,430,000 399,430,000 Yes 87,940,000 58,737,800 No cement in October caused the production 2006 income line failing to reach the estimation Zhaotong Put into 4,000t/d operation clinker No 200,982,000 200,982,000 Yes in 107,660,000 113,847,500 Yes cement September production 2006 line Remove of the residents nearby was slower than Wuhan Put into the planned 2000 kt/y operation progress, cement No 182,889,000 182,889,000 Yes in 28,040,000 -17,797,000 No which grinding November caused the station 2007 plant only playing 27.64% of its capacity Coal and power Yangxin prices rose phase II Put into greatly in 4,800t/d operation 2008, which clinker No 253,704,000 253,704,000 Yes 75,350,000 34,672,000 No in January caused the cement 2007 income production failing to line reach the estimation It just put into operation for a year, Xianning coal and Put into 4,000t/d power operation clinker prices rose No 353,820,000 353,820,000 Yes in 87,000,000 29,600,500 No cement greatly in December production 2008, which 2007 line caused the income failing to reach the estimation Being used to Completed reduce No 616,025,200 616,025,200 Yes before the debt of June 2008 the Company Total / 2,006,850,200 2,006,850,200 / / / / / - - 31 - - 3. Funds of other sources Project Investment Progress Income Main body of the cement production line was Estimated total Accumulatively produced Xinyang 4500T/D put into operation on August 18, 2008, the investment is cement 280 k tons, clinker 460 k clinker cement WHPG project is estimated to be put into 584.71 million tons, realized sales income production line operation by the end of the second quarter yuan 116,140 k yuan. of 2009. Hunan Yueyang Estimated total It was put into operation on November 29, phase II 800 kt/y It is in the commissioning period, investment is 55 2008, actual investment was about 47.56 cement grinding and did not make any income million yuan million yuan station Estimated total Hubei Macheng Basically finished construction by the end of investment is It is in the commissioning period, 1100 kt/y cement 2008, accumulative investment was 85.88 105.96 million and did not make any income grinding station million yuan yuan Hefeng 1300T/D Estimated total It was put into operation on December 15, It is in the commissioning period, clinker cement investment is 150 2008, accumulative investment was 149.87 and did not make any income production line million yuan million yuan Estimated total Wuxue 18MW investment is It was put into operation on December 30, It is in the commissioning period, WHPG project 106.757 million 2008 and did not make any income yuan Estimated total Yangxin 18MW investment is It is estimated to be put into operation in WHPG project 107.838 million March 2009 yuan Estimated total Xiangfan phase I investment is It is estimated to be put into operation in July 7.5MW WHPG 50.715 million 2009 project yuan Estimated total Xianning 7.5MW investment is It is estimated to be put into operation in July WHPG project 50.841 million 2009 yuan Xiangfan phase II Estimated total Accumulatively finished investment of 185.8 4000t/d cement investment is million yuan, it is estimated to be put into clinker production 379.38 million operation in March 2009 line yuan Yichang Zigui Estimated total Accumulatively finished investment of 4000T/D clinker investment is 211.07 million yuan, it is estimated to be put cement production 617.28 million into operation in June 2009 line yuan Sichuan Quxian Estimated total Accumulatively finished investment of 41.24 4000T/D clinker investment is million yuan, it is estimated to be put into cement production 480.34 million operation in July 2009 line yuan Hunan Zhuzhou Estimated total Accumulatively finished investment of 89.74 4500T/D clinker investment is million yuan, it is estimated to be put into cement production 639.17 million operation in October 2009 line yuan Estimated total Hunan Chenzhou Accumulatively finished investment of 79.57 investment is 4500T/D clinker million yuan, it is estimated to be put into 623.18 million production line operation in October 2009 yuan Chongqing Fuling Estimated total Accumulatively finished investment of 34.98 4600T/D clinker investment is million yuan, it is estimated to be put into cement production 497.84 million operation in October 2009 line yuan Estimated total Hubei Xiangfan 2000 investment is It is estimated to be put into operation in July kt/y cement 169.35 million 2009 grinding station yuan Kunming Estimated total It started construction on December 23, Dongchuan 2000T/D investment is 350 2008, and it is estimated to be put into clinker cement million yuan operation in the second quarter of 2010. - - 32 - - production line Hunan Daoxian Estimated total It started construction on December 25, 4000T/D clinker investment is 2008, and it is estimated to be put into cement production 429.66 million operation in the second quarter of 2010. line yuan (III) During the report period, the Company did not have any change of account policies, account estimation, or important account mistakes. (IV) Work of the Board of Directors 1. Board meetings and resolutions Convening Press for information Disclosing Board Meeting Resolutions time disclosure date Reviewed and adopted the Proposal in Respect of Setting up Huaxin Cement (Zigui) Ltd, Proposal in Respect of Setting up Huaxin Cement (Macheng) Ltd, Proposal in Respect of Setting up Huaxin The Twentieth Cement (Zhuzhou) Ltd, Proposal in Respect of January Meeting of the Fifth Setting up Huaxin Cement (Chenzhou) Ltd, 29, 2008 Board of Directors Proposal in Respect of Setting up Huaxin Environmental Protection (Wuxue) Waste Treatment Ltd, Proposal in Respect of Setting up Huaxin Aggregate Ltd and Proposal in Respect of Setting up Huaxin Technical Management Ltd The Twenty First Reviewed and adopted the Proposal in Respect of February Meeting of the Fifth Revising Partial Articles Contained in Articles of 4, 2008 Board of Directors Association of the Company. China Securities The Twenty Second Journal, Shanghai March 5, March 7, Meeting of the Fifth Securities News and 2008 2008 Board of Directors Hong Kong Commercial Daily China Securities The Twenty Third Journal, Shanghai March 17, March 19, Meeting of the Fifth Securities News and 2008 2008 Board of Directors Hong Kong Commercial Daily Reviewed and adopted the First Quarter Report of the Company for 2008, Proposal in Respect of Investing to Construct Chongqing Fuling 4600 TPD Clinker and Cement Production Line and Setting up the Corresponding Company, Proposal in Respect of Investing to Construct Chongqing Yubei 4600 TPD Clinker and Cement Production The Twenty Fourth Line and Setting up the Corresponding Company, April 22, Meeting of the Fifth Proposal in Respect of Investing to Construct 2008 Board of Directors Sichuan Quxian 4000 TPD Clinker and Cement Production Line and Setting up the Corresponding Company, Proposal in Respect of Investing to Construct Hunan Daoxian 4000 TPD Clinker and Cement Production Line and Setting up the Corresponding Company and Proposal in Respect of Equity Acquisition of Yichang Hongyang Cement Ltd Reviewed and adopted Proposal in Respect of 2008 Short Term Incentive KPI's for the Top Management, Proposal in Respect of Adjustment to the Basic Remuneration of the Top Management for 2008, Proposal in Respect of The Twenty Fifth June 27, Setting up Huaxin Cement Chongqing Yubei Ltd., Meeting of the Fifth 2008 Proposal in Respect of Setting up Huaxin Cement Board of Directors (Kunming Dongchuan) Ltd., Proposal in Respect of Setting up Huaxin Cement (Huangshi) Mechanical Manufacturing Ltd. and Proposal in Respect of Setting up Huaxin Cement (Huangshi) Bulk Handling Ltd. - - 33 - - China Securities The Twenty Sixth Journal, Shanghai July 15, Meeting of the Fifth Securities News and July 17, 2008 2008 Board of Directors Hong Kong Commercial Daily China Securities The Twenty Seventh Journal, Shanghai July 25, Meeting of the Fifth Securities News and July 29, 2008 2008 Board of Directors Hong Kong Commercial Daily China Securities The Twenty Eighth Journal, Shanghai September September 2, Meeting of the Fifth Securities News and 1, 2008 2008 Board of Directors Hong Kong Commercial Daily China Securities The Twenty Ninth Journal, Shanghai October October 18, Meeting of the Fifth Securities News and 17, 2008 2008 Board of Directors Hong Kong Commercial Daily Reviewed and adopted the Third Quarter Report of The Thirtieth the Company for 2008 and Proposal in Respect of October Meeting of the Fifth Investing to Construct Sichuan Wanyuan 2500 tpd 28, 2008 Board of Directors Clinker Cement Production Line Project and Setting up Huaxin Cement (Wanyuan) Ltd. Reviewed and adopted the Financial Budget The Thirty First November Report of the Company for 2009 and Proposal in Meeting of the Fifth 13, 2008 Respect of Rewarding Mid-Term Incentives to the Board of Directors Top Management and Core Employees 2. Execution of resolutions of the Shareholders’ General Meetings In the year, the Board did the duties pursuant to the Company Law and the Articles of Association of the Company; strictly executed resolutions adopted by the Shareholders’ General Meeting. 3. Report on performance of function by Audit Committee of the Board Strictly abided by the relevant requirements of CSRC, SSE, the Rules of Procedures for Special Committees of Board of Directors of the Company, and the Rules of Procedures for the Work of Audit Committee with regard to Annual Reports of the Company, the Audit Committee of the Board fully participated in the audit process. Before the annual audit CPA of the Company - PricewaterhouseCoopers Zhong Tian CPAs Limited Company (hereinafter referred to as “the Accounting Firm”) entered the Company to start auditing and during the preliminary audit, financial principal of the Company had in time notified the Audit Committee the starting time for auditing of the Accounting Firm and their plan and arrangement for the audit work, she had also sent an email of “Suggestion Letter on Pricing for the Annual Audit of Huaxin Cement” to each member of the Audit Committee on November 24, 2008. On December 17, 2008 at the communication meeting, the Accounting Firm had notified the Audit Committee their personnel structure of the audit team, their audit plan, risk estimation, testing and evaluation methods for risks and malpractices, and the key points for the annual audit work this year. The Audit Committee agreed the time arrangement for the audit work of the financial report for 2008 of the Company, and they required the Accounting Firm to complete the audit report in time. On February 1, 2009, according to the suggestion of communication through email made - - 34 - - by the Audit Committee, financial principal of the Company offered the Audit Committee the adjustment explanations on the audit of the financial statements of the Company for 2008. On February 10, 2009, according to the newest requirements of CSRC, the Audit Committee agreed to submit the revised “Rules of Procedures for the Work of Audit Committee with regard to Annual Reports” to the Board for approval. On February 26, 2009, the Audit Committee reviewed the “Audit Report” (draft) and the “Final Report on the Audit Work of the Company for 2008” provided by the Accounting Firm. On March 5, 2009, after the Accounting Firm issued their preliminary audit opinions, the Audit Committee further reviewed the financial accounting statements of the Company, believed it had truly, accurately and completely reflected the overall situation of the Company and agreed to submit such statements to the Board for approval. Meanwhile, the Audit Committee submitted the final report on the audit work engaged by the Accounting Firm for this year and the resolution on reappointing the Accounting Firm for the next year to the Board, they believed that the appointed PricewaterhouseCoopers Zhong Tian CPAs Limited Company were attentive to their duties, could abided by their profession guidelines of independence, objectiveness and fairness during their annual audit service to the Company for 2008, and had well fulfilled each job entrusted by the Company. Therefore, the Audit Committed suggested the Company reappointing PricewaterhouseCoopers Zhong Tian CPAs Limited Company as the auditor of the Company for 2009. 4. Report on performance of function by Remuneration Committee of the Board Strictly abided by the relevant regulations contained in the Rules of Procedures for Special Committees of Board of Directors of the Company, the Remuneration and Assessment Committee of the Board had fully performed their duties, gradually improved the incentive mechanism of the Operating Management. 1. According to the Proposal in Respect of Adjustment of the Top Management’s Remuneration and Short Term Incentive Plan adopted by the Shareholders’ General Meeting and combined with the operation status of the Company in 2008, the Remuneration and Assessment Committee deliberated and formed a resolution, proposed that the Proposal in Respect of Short Term Incentives for 2008 of the Senior Management be reviewed and adopted at the Thirty Third Meeting of the Fifth Board of Directors convened on March 9, 2009. 2. After carefully checking the actual production and operation results of the Company for 2008, the Remuneration and Assessment Committee had made assessment on the remuneration of the Directors, Supervisors and Senior Management disclosed in the Annual Report of the Company for 2008 and issued the written approval opinions as: Confirmation of the basic remuneration of the Directors, Supervisors and Senior Management was in compliance with the relevant resolutions of the Shareholders’ General Meeting and Board Meeting of the Company and the relevant administrative rules on remuneration; the actual remuneration of the Directors, Supervisors and Senior Management disclosed in the Annual Repot 2008 of the Company was calculated and confirmed based on the basic remuneration and according to the actual fulfillment of the targets contained in the Board Budget for 2008 and the annual performance assessment plan, so it is actual, reasonable and complete. 3. The Company always actively explored and promoted the equity incentive plan. As - - 35 - - CSRC issued 2 Memos during the first half of the year, putting forward new restrictions to the listed companies for promoting equity incentive plan, which caused the long term incentive plan of the Company with the design basis of shares or stock option coming to a deadlock. But the two big shareholders of the Company and the Board constantly paid close attention to this matter. On November 13, according to the proposal put forward by the two big shareholders regarding rewarding mid-term incentives to the Top Management and core employees, the Remuneration and Assessment held discussions, had communications many times with the Management and the two big shareholders of the Company, combined with the actual situation of the Company, they finally submitted the Proposal in Respect of Rewarding Mid-Term Incentives to the Top Management and Core Employees to the Thirty First Meeting of the Fifth Board of Directors of the Company to review and got approval. In the future, the Company will quicken its steps to set up and improve a favorable long term incentive plan which makes the individual performance consistent with the performance of the Company and benefits of the shareholders when the time comes, so as to promote the Company’s further fast development. (V) Profit Distribution Proposal for 2008 The net profit of the Company for 2008 was 82,817,855 yuan (parent company) or 459,975,559 yuan after consolidation. Pursuant to the relevant provisions contained in the new Company Law and the new Accounting Rule, 10%, i.e. 8,281,786 yuan will be appropriated to statutory surplus common reserve fund. The allocable profit of the parent company is 418,695,543 yuan by the end of December 2008. The Board proposes that on the basis of the total 403.6 million shares, a cash dividend of 0.15 yuan per share (incl. tax) shall be distributed to all shareholders, hence 60,540,000 yuan shall be distributed, and the whole of the remaining shall be booked as unallocated profit. (VI) Dividend distribution for the last 3 years Unit: RMB Year Cash dividends amount (incl. tax) Net profit for the year (%) 2005 19,704,000 62,073,250 31.74 2006 19,704,000 126,727,033 15.55 2007 48,432,000 290,245,247 16.69 - - 36 - - Chapter 9 Supervisors' Report (I) Work of the Supervisory Committee Four meetings were convened by the Supervisory Committee in 2008. The first meeting: a). reviewed and adopted the Annual Report of the Company for 2007, Final Financial Report of the Company for 2007, and Profit Distribution Proposal of the Company for 2007; and b). reviewed and adopted the Work Report of Supervisory Committee for 2007. The second meeting: reviewed and adopted the First Quarter Report of the Company for 2008. The third meeting: reviewed and adopted the Half Year Report of the Company for 2008. The fourth meeting: reviewed and adopted the Third Quarter Report of the Company for 2008. (II) Operation of the Company According to Law In the report period, members of the Board and the Management did not have conducts, when implementing their duties that violated laws, rules and regulations and the Articles of Association of the Company or harmed the benefits of the Company. The Senior Management worked diligently for the benefits of all shareholders and employees, seized the opportunities, made decisions in a scientific manner, so that strategic plans were implemented steadily, production scale was continuously enlarged, and the Company gained good profits. (III) Financial Supervision In the report period, the Company strictly abided by relevant laws and regulations, as well as the financial system of the Company, so that the finance functioned properly. The Supervisory Committee reviewed the auditing report issued by PricewaterhouseCoopers Zhong Tian CPAs Limited Company and the related issues, and believed that the financial reports fairly reflected the financial positions and operating results of the Company. The members involved in compiling and auditing of the Annual Report all acted with strict confidentiality. (IV) Application of last proceeds During the report period, on the basis of the development requirements, the Company offered A share private placement to the foreign strategic investor and raised proceeds of 2026.64 million yuan, which was invested to the construction of 5 cement clinker production line projects like Hubei Xiangfan, Yunnan Zhaotong, etc, and the projects were put into operation in succession according to the plan. This financing was approved by the MOFCOM, NDRC, and CSRC, and the whole process was also in conformity with the provisions contained in the State laws, rules and Articles of Association of the Company. All the raised proceeds was injected in the 5 projects construction, the special funds was used specially, so it strictly implemented the State Rules on Administration and Use of the Raised Proceeds and did not violate any rules and regulations. (V) Assets acquisition and disposal During the report period, the Company acquired the following 3 projects: 1. The Company paid 24.3 million yuan to acquire the 1000 t/d clinker precalcining kiln production line of Hubei Changhong Cement Ltd. and took 51% equity of the newly - - 37 - - established Huaxin Cement (Hefeng) Ltd.. 2. The Company paid 10.89 million yuan to acquire the 300 kt/y grinding station of Hubei Jianyuan Cement Co., Ltd. and took 55% equity of the newly established Huaxin Cement (Shishou) Ltd. 3. The Company paid 24.6 million yuan to acquire the 500 kt/y grinding station of Hubei Suizhou Changcheng Building Materials Ltd. and took 60% equity of the newly established Huaxin Cement (Suizhou) Ltd. During the above assets acquisition process, the Company appointed some agencies to make legal due-diligence research, financial auditing and assets evaluation; it accorded with the relevant requirements for listed companies. After acquisition, each project has started operation in accordance with the plan, which made positive effect to the Company further expanding its market share in Hubei area. (VI) Related transactions In the report period, the related transactions of the Company were equal, fair and open, and did not harm the interests of the Company. - - 38 - - Chapter 10 Major Events (I) The Company did not get involved in any new material lawsuit or arbitration in the report period. (II) The Company had no events of bankruptcy or restructuring. (III) Analysis on other major events, their impacts and solutions 1. Equity holding of other listed companies Unit: RMB Profit and Owners’ equity Book value Stock Original loss during change during Accounting Stock name at period code investment the report the report subject end period period Bank of Available-for-sale 601328 2,000,000 8,185,980 431,750 -14,092,320 Communication financial assets China Pacific Available-for-sale 601601 696,000 6,672,000 180,000 -17,248,500 Insurance financial assets Total 2,696,000 14,857,980 611,750 -31,340,820 / (IV) Assets transaction 1. Assets acquisition Unit: RMB Whether Net profit Profit contribute Whether the contribution d by the the creditor’s Trading Acquired Purchasing Acquisition from the Related Pricing assets in property right and subject assets day price purchasing transaction principle the total right been liabilities day to the profit (%) transferred been year end diverted 51% equity Yes Yes Enshi from Enshi Hefeng Hefeng March 17, Net assets Changhong 24,300,483 No Changhong 2008 proportion Cement Cement Plant Ltd. Kunming Buildings, Yes Yes Dianbei equipments Assets July 15, Building , land use 33,000,000 628,866 No evaluation 0.14 2008 Materials right, value Ltd. mining right Suizhou 60% equity Yes Yes Changchen of Huaxin Assets November g Building Cement 24,600,000 -65,219 No evaluation -0.01 12, 2008 Materials Suizhou value Ltd. Liability Ltd. 55% equity Yes Yes Hubei of Huaxin Assets Jianyuan December Cement 10,890,000 174,278 No evaluation 0.04 Cement 3, 2008 (Shishou) value Co., Ltd. Ltd. (V) Important related transaction in the report period 1. The related transaction in connection with the daily operation - - 39 - - Unit: RMB % in same Pricing Related party Relation Type Content Amount transaction Payment principle type Other Holcim Trading Selling Selling related Market price 29,992,343 100 Cash SA goods cement party Receiving Receiving Huaxin Group Other labour labour Market price 4,800,000 70.07 Cash Co., Ltd. service service Other Receiving Receiving HOLCIM GROUP related labour labour Market price 2,050,380 29.93 Cash SUPPORT LTD party service service Total / 36,842,723 / 2. Related creditor’s rights and debt Unit: RMB Related party Relationship Provide capital to the related party Related party provides capital to the Company Actual amount Outstanding Actual amount Outstanding Holcim Other related party Trading SA -7,900,813 192,807 -145,955,064 136,719 Total -7,900,813 192,807 -145,955,064 136,719 Reasons for forming the related Cement products from the Sales Company creditor’s rights and debt (VI) Major contracts and implementation 1. Trust, contracting, renting and leasing (1) No trust occurred in the report period. (2) No contracting occurred in the report period. (3) No renting or leasing occurred in the report period. 2. Guarantee in the report period - - 40 - - Unit: RMB Guarantee from the Company to subsidiaries Guarantee amount for subsidiaries occurred in the report 825,430,000 period Guarantee amount for subsidiaries left at the report period 1,479,410,000 end Total guarantee amount (including guarantee for subsidiaries) Total guarantee amount 1,479,410,000 % in net assets of the Company 30 Including Debt guarantee amount provided directly or indirectly to 700,000,000 subjects whose debt ratio is over 70% Total guarantee amount 700,000,000 3. No entrustment occurred in the report period. 4. There is no other important contract in the report period. (VII) Execution of commitment Commitments made by the Company or its shareholders holding shares more than 5% during the report period or lasting to the report period The largest shareholder of the Company Holchin B.V. undertook the following in the “Issuance Report and Announcement on Equity Changes Regarding Private Placement of RMB Ordinary Shares (A Share) of Huaxin Cement Co., Ltd. to the Foreign Strategic Investor” published on February 18, 2008.: 1. Holchin B.V. acknowledges and agrees the existing development strategies of the Company, and will support the management of the Company to implement such strategies. If circumstances dictate a change in strategy, such change in strategy will then be mutually agreed between Holchin B.V. and the management of the Company. 2. Holchin B.V. undertakes not to directly or indirectly invest, own, control and/or operate any building material companies other than the Company and the subsidiaries of the Company that are located in such a place that they have competitive business with that of the Company and the subsidiaries of the Company in Mainland China. The shareholder, the ultimate controller and the other subsidiaries of the ultimate controller of Holchin B.V. are aware of and agree to comply with the undertakings. 3. Holchin B.V. undertakes to maintain management stability of the Company by not making substantial personnel changes or replacements of the top management (current direct reports to the chief executive officer) for the foreseeable future. 4. With regard to any related party transactions with the Company that take place after the Completion of the Private Placement, Holchin B.V. undertakes that such transactions will be processed in a fair, equitable and reasonable manner, and the pricing method for such related party transaction will be fair and advantageous to the business of the Company. The shareholder, the ultimate controller and the other subsidiaries of the ultimate controller of Holchin B.V. are aware of and agree to comply with the undertakings. - - 41 - - 5. Holchin B.V. undertakes not to change the Company’s name or its product brand unless the management and the Board of the Company and the City of Huangshi have agreed to a change that is clearly advantageous to the business of the Company. 6. Holchin B.V. agrees to ensure that any new owner of the Placement Shares, should they be transferred, after 3 years, accepts to assume the undertakings insofar as the timing of such a transfer is such that the undertakings are still relevant and reasonable. Some of the above undertakings have been fulfilled while others are being implemented. The shareholder of the Company Huaxin Group Co., Ltd. committed the following in the “Proposal of Share Partition Reform of Huaxin Cement Co., Ltd.”: 1. None of the shares shall be listed, traded or transferred 12 months after the Share Partition Reform Plan is successfully implemented. 2. None of the state shares held on behalf of the state and the domestic legal person shares shall be listed, traded or sold in the SSE during the period from the thirteenth month to the thirty sixth month after the Share Partition Reform Plan is successfully implemented. 3. The number of the state shares held on behalf of the state that would be listed, traded or sold in the SSE from the thirty seventh month to the forty eighth month shall not exceed 5% (equivalent to 1.21% of the current total shares of the Company) of the state shares that Huaxin Group Co., Ltd. holds after the Share Partition Reform, and the transaction price shall not be lower than 9 yuan/share (subject to conversions in case of dividends distribution, bonus issue, capital reserve conversion during the period from the implementing date of Share Partition Reform to sales of the shares by Huaxin Group, if any). 4. The number of the state shares held on behalf of the state that would be listed, traded or sold in the SSE from the forty ninth month to the sixtieth month shall not exceed 10% (equivalent to 2.41% of the current total shares of the Company) of the state shares that Huaxin Group Co., Ltd. holds after the Share Partition Reform, and the transaction price shall not be lower than 9 yuan/share (subject to conversions in case of dividends distribution, bonus issue, capital reserve conversion during the period from the implementing date of Share Partition Reform to sales of the shares by Huaxin Group, if any). 5. For each 1% of the total shares of Huaxin Cement that are held on behalf of the state and sold through the listing system of the SSE, an announcement will be made within 2 working days after such transaction, during which 2 days the transactions do not have to be suspended. The above commitments are being implemented. (XIII). Appointment of Certified Public Accountants During the report period, the Company did not change its CPAs. The Company still appointed PricewaterhouseCoopers Zhong Tian CPAs Limited - - 42 - - Company as both domestic CPA and international CPA of the Company and paid about 2,160,000.00 yuan for its auditing service in previous year. By the end of the report period, the CPA has provided auditing service to the Company for 3 years. The Company proposed to pay about 2,360,000.00 yuan for its annual auditing service. (IX). The Company, its directors, supervisors, Senior Management, shareholders and actual controller were not inspected, issued disciplinary actions or criticized through issuance of notifications by CSRC, or reproached publicly by the Shanghai Stock Exchange during the report period. (X). The Company did not have any other major events during the report period. (XI). Reference of Information disclosure Items Newspapers Date of Website disclosure Announcement on Obtaining the Approval from China Securities Journal, January 9, www.sse.com.cn CSRC to the Application of the Private Placement Shanghai Securities News, 2008 of Shares and Holchin B.V. Exempting from a Hong Kong Commercial Daily General Offer Related to Subscribing the Shares Issuance Report and Announcement on Equity China Securities Journal, February 18, www.sse.com.cn Changes Regarding Private Placement of RMB Shanghai Securities News, 2008 Ordinary Shares (A Share) of Huaxin Cement Co., Hong Kong Commercial Daily Ltd. to the Foreign Strategic Investor Announcement on Resolution of the Twenty China Securities Journal, March 7, 2008 www.sse.com.cn Second Meeting of the Fifth Board of Directors Shanghai Securities News, Hong Kong Commercial Daily Announcement on Resolutions of the Twenty China Securities Journal, March 19, www.sse.com.cn Third Meeting of the Fifth Board of Directors and Shanghai Securities News, 2008 on Convening the Annual Shareholders’ General Hong Kong Commercial Daily Meeting for 2007 Announcement on the Resolutions of the Sixth China Securities Journal, March 19, www.sse.com.cn Meeting of the Fifth Board of Supervisors Shanghai Securities News, 2008 Hong Kong Commercial Daily Announcement on Resolutions of the Annual China Securities Journal, April 23, 2008 www.sse.com.cn Shareholders’ General Meeting for 2007 Shanghai Securities News, Hong Kong Commercial Daily Announcement of Abnormal Fluctuations of the China Securities Journal, May 15, 2008 www.sse.com.cn Share Transaction Shanghai Securities News, Hong Kong Commercial Daily Announcement on Annual Dividends Distribution China Securities Journal, June 3, 2008 www.sse.com.cn for 2007 Shanghai Securities News, Hong Kong Commercial Daily Announcement on Expected Growth of Operating China Securities Journal, July 10, 2008 www.sse.com.cn Results for the First Half of 2008 Shanghai Securities News, Hong Kong Commercial Daily Announcement on Resolutions of the Twenty Sixth China Securities Journal, July 17, 2008 www.sse.com.cn Meeting of the Fifth Board of Directors and on Shanghai Securities News, Convening the First Extraordinary Shareholders’ Hong Kong Commercial Daily General Meeting for 2008 Announcement on Resolutions of the Twenty China Securities Journal, July 29, 2008 www.sse.com.cn Seventh Meeting of the Fifth Board of Directors Shanghai Securities News, Hong Kong Commercial Daily Announcement on Resolutions of the First China Securities Journal, August 2, www.sse.com.cn Extraordinary Shareholders’ General Meeting for Shanghai Securities News, 2008 - - 43 - - 2008 Hong Kong Commercial Daily Announcement on Resolutions of the Twenty China Securities Journal, September 2, www.sse.com.cn Eighth Meeting of the Fifth Board of Directors Shanghai Securities News, 2008 Hong Kong Commercial Daily Announcement on Providing Guarantees China Securities Journal, September 2, www.sse.com.cn Shanghai Securities News, 2008 Hong Kong Commercial Daily Announcement on Resolutions of the Twenty China Securities Journal, October 18, www.sse.com.cn Ninth Meeting of the Fifth Board of Directors and Shanghai Securities News, 2008 on Convening the Second Extraordinary Hong Kong Commercial Daily Shareholders’ General Meeting for 2008 Announcement on Providing Guarantees China Securities Journal, October 18, www.sse.com.cn Shanghai Securities News, 2008 Hong Kong Commercial Daily Third Quarter Report of the Company for 2008 China Securities Journal, October 30, www.sse.com.cn Shanghai Securities News, 2008 Hong Kong Commercial Daily Announcement on Resolution of the Second China Securities Journal, November 4, www.sse.com.cn Extraordinary Shareholders’ General Meeting for Shanghai Securities News, 2008 2008 Hong Kong Commercial Daily Announcement on Resolutions of the Thirty First China Securities Journal, November 18, www.sse.com.cn Meeting of the Fifth Board of Directors and on Shanghai Securities News, 2008 Convening the Third Extraordinary Shareholders’ Hong Kong Commercial Daily General Meeting for 2008 Announcement on Resolution of the Third China Securities Journal, December 10, www.sse.com.cn Extraordinary Shareholders’ General Meeting for Shanghai Securities News, 2008 2008 Hong Kong Commercial Daily Announcement on Listing of Shares Subject to China Securities Journal, December 23, www.sse.com.cn Conditional Sales Shanghai Securities News, 2008 Hong Kong Commercial Daily - - 44 - - Chapter 11 Accounts and Auditors' Reports （I）Report of the Auditors Report of the Auditors PwC ZT Shen Zi (2009) No.10013 To the Shareholders of Huaxin Cement Co., Ltd., We have audited the accompanying consolidated financial statements of Huaxin Cement Co., Ltd. (the “Company”) and its subsidiaries (the “Group”) which comprise the consolidated and company balance sheets as of 31 December 2008, the consolidated and company income statements, consolidated and company cash flow statements and the consolidated and company statements of changes in equity for the year then ended and notes to these financial statements. Management’s Responsibility for the Financial Statements Management of the Company is responsible for the preparation of these financial statements in accordance with the Accounting Standards for Business Enterprises. This responsibility includes: 1) designing, implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 2) selecting and applying appropriate accounting policies; and 3) making accounting estimates that are reasonable in the circumstances. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying financial statements present fairly, in all material - - 45 - - respects, the financial position of the Group and the Company as of 31 December 2008 and financial performance of the Group and cash flows and the Company for the year then ended in accordance with the Accounting Standards for Business Enterprises. PricewaterhouseCoopers Zhong Tian CPAs Limited Company Shanghai, the People’s Republic of China 9 March 2009 - - 46 - - HUAXIN CEMENT CO., LTD. BALANCE SHEETS AS AT 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) 31 December 2008 31 December 2007 31 December 31 December ASSETS Notes Consolidated Consolidated 2008 Company 2007 Company Current assets Cash at bank and in hand VII(1) 986,717,837 569,091,717 428,262,156 68,953,331 Notes receivable VII (2) 125,065,982 183,391,990 25,546,600 37,625,749 VII Accounts receivable (3),XV(1) 144,321,573 134,050,106 84,805,006 74,711,725 Advances to suppliers VII (4) 70,925,755 57,083,984 11,230,206 52,767,593 Dividends receivable - - - 233,091,328 VII Other receivables (3),XV(1) 65,949,887 33,175,059 888,836,598 517,095,202 Inventories VII (5) 596,607,092 541,745,016 156,198,437 117,976,867 Total current assets 1,989,588,126 1,518,537,872 1,594,879,003 1,102,221,795 Non-current assets Available-for-sale financial assets VII (6) 26,585,846 68,373,606 26,585,846 68,373,606 Long-term receivables VII (7) 54,866,665 37,484,906 88,331 - Long-term equity VII investments (8),XV(2) 138,335 192,094 2,909,673,674 1,593,434,791 Fixed assets VII (9) 5,829,269,206 5,651,802,483 703,939,045 1,004,263,926 Fixed assets pending for disposal VII (10) 110,494,547 - 109,702,467 - Construction in progress VII (11) 1,523,894,887 432,405,440 128,105,329 270,820,403 Construction materials VII (12) 13,350,340 8,942,244 - - Intangible assets VII (13) 1,064,457,556 730,974,821 173,591,369 117,870,566 Goodwill VII (14) 9,469,146 9,469,146 - - Long-term prepaid expenses VII (15) 41,344,698 23,037,346 8,390,538 9,311,761 Deferred income tax assets VII (29) 52,894,235 32,337,443 19,021,828 18,003,596 Total non-current assets 8,726,765,461 6,995,019,529 4,079,098,427 3,082,078,649 TOTAL ASSETS 10,716,353,587 8,513,557,401 5,673,977,430 4,184,300,444 - - 47 - - HUAXIN CEMENT CO., LTD. BALANCE SHEETS AS AT 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) LIABILITIES AND OWNER’S 31 December 2008 31 December 2007 31 December 31 December EQUITY Notes Consolidated Consolidated 2008 Company 2007 Company Current liabilities Short-term loans VII (16) 1,289,600,000 976,300,000 700,000,000 340,700,000 Notes payable VII (17) 225,290,000 155,067,359 142,910,000 101,567,359 Accounts payable VII (18) 998,856,973 809,964,422 390,453,818 188,162,745 Advances from customers VII (19) 133,598,728 410,996,161 75,539,793 330,248,751 Accrued payroll and welfare benefits VII (20) 23,339,304 35,976,994 11,255,083 11,965,401 Taxes and other levies payable VII (21) 149,004,656 196,466,312 60,099,416 79,351,318 Interest payable 9,017,634 13,093,858 2,904,162 12,448,203 Dividends payable VII (22) 29,900,126 62,149,033 576,326 576,326 Other payables VII (23) 117,345,198 94,431,613 638,181,899 314,906,637 Current portion of non-current liabilities VII(24) 692,044,977 704,610,458 229,034,937 395,479,478 Other current liabilities VII(25) - 498,875,000 - 498,875,000 Total current liabilities 3,667,997,596 3,957,931,210 2,250,955,434 2,274,281,218 Non-current liabilities Long-term loans VII (26) 1,924,580,982 1,940,838,309 104,950,982 581,698,309 Long-term payables VII (27) 46,693,070 38,793,884 - - Government grants payable 8,260,000 - - - Provisions VII (28) 126,106,639 128,617,250 54,850,280 60,156,061 Deferred income tax liabilities VII (29) 12,769,126 25,554,698 3,040,495 13,487,435 Other non-current liabilities 17,503,167 19,566,118 9,188,036 13,580,453 Total non-current liabilities 2,135,912,984 2,153,370,259 172,029,793 668,922,258 Total liabilities 5,803,910,580 6,111,301,469 2,422,985,227 2,943,203,476 OWNERS’ EQUITY Share capital VII (30) 403,600,000 328,400,000 403,600,000 328,400,000 Capital surplus VII (31) 2,477,102,124 575,581,414 2,244,562,324 343,390,611 Surplus reserve VII (32) 184,134,336 175,852,551 184,134,336 175,852,550 Undistributed profits VII (33) 1,002,930,571 600,880,127 418,695,543 393,453,807 Equity attributable to the shareholders of the Company 4,067,767,031 1,680,714,092 3,250,992,203 1,241,096,968 Minority interests VII (34) 844,675,976 721,541,840 - - Total owners’ equity 4,912,443,007 2,402,255,932 3,250,992,203 1,241,096,968 TOTAL LIABILITIES AND OWNERS’ EQUITY 10,716,353,587 8,513,557,401 5,673,977,430 4,184,300,444 The accompanying notes form an integral part of these financial statements. Legal Person in charge of Person in charge of representative: Mr.Chen Musen accounting function: Ms.Kong Lingling accounting department: Mr.Huang Kaishun - - - 48 - - HUAXIN CEMENT CO., LTD. INCOME STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) Year ended 31 December 2008 2007 2008 2007 Notes Consolidated Consolidated Company Company VII Sales (35),XV(3) 6,349,459,647 4,770,108,141 2,861,709,662 2,239,973,530 Less: Cost of sales VII (35) (5,031,292,858) (3,637,040,577) (2,606,419,814) (1,935,332,502) Tax and surelarge VII (36) (78,699,970) (64,967,248) (15,196,470) (19,198,740) Selling and distribution expenses (340,341,170) (324,025,885) (44,279,974) (54,526,188) Administrative expenses (251,682,088) (209,319,109) (81,778,153) (86,548,303) Finance expense - net VII (37) (184,777,386) (182,638,548) (23,149,935) (68,144,736) (Provision for)/Reversal of the asset impairment VII (38) (738,137) 270,170 4,316,022 825,182 VII Add: Investment income (39),XV(4) 557,991 2,230,133 4,751,309 353,237,120 Including: Share of results of associates (53,759) (103,094) (53,759) (103,094) Operating profit 462,486,029 354,617,077 99,952,647 430,285,363 Add: Non-operating income VII (40) 133,458,814 106,705,895 16,116,035 15,211,469 Less: Non-operating expenses VII (40) (19,000,374) (12,503,645) (7,884,785) (7,383,447) Including: Loss on disposal of non-current assets (12,696,729) (7,650,642) (5,217,251) (6,250,366) Profit before tax 576,944,469 448,819,327 108,183,897 438,113,385 Less: Income taxes VII (41) (42,004,359) (109,452,364) (25,366,042) (35,348,952) Net profit 534,940,110 339,366,963 82,817,855 402,764,433 Attributable to shareholders of the Company 459,975,559 290,245,247 82,817,855 402,764,433 Minority interests 74,964,551 49,121,716 - - Earnings per share Basic earnings per share VII (42) 1.18 0.88 0.21 1.23 Diluted earnings per share VII (42) 1.18 0.88 0.21 1.23 The accompanying notes form an integral part of these financial statements. Legal Person in charge of Person in charge of representative: Mr.Chen Musen accounting function: Ms.Kong Lingling accounting department: Mr.Huang Kaishun - 49 - HUAXIN CEMENT CO., LTD. CASH FLOW STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) Year ended 31 December 2008 2007 2008 2007 Items Notes Consolidated Consolidated Company Company 1. Cash flows from operating activities Cash generated from sales of goods or rendering of services 7,473,230,824 5,686,587,918 2,618,671,448 2,353,158,534 Refund of taxes and levies 106,515,034 124,739,668 9,164,896 30,444,440 Cash received relating to other operating activities 72,281,952 57,208,908 1,375,940,563 399,298,822 Sub-total of cash inflows 7,652,027,810 5,868,536,494 4,003,776,907 2,782,901,796 Cash paid for goods and services purchased (5,291,205,671) (3,961,154,210) (2,450,780,168) (2,084,618,952) Cash paid to and on behalf of employees (342,920,861) (276,560,705) (94,895,910) (104,106,187) Payments of taxes and levies (654,152,748) (473,965,725) (136,397,048) (101,785,357) Cash paid relating to other operating activities VII(43(d)) (198,862,704) (194,328,910) (261,782,709) (47,720,459) Sub-total of cash outflows (6,487,141,984) (4,906,009,550) (2,943,855,835) (2,338,230,955) Net cash flows from operating activities VII(43(a)) 1,164,885,826 962,526,944 1,059,921,072 444,670,841 2. Cash flows from investing activities Cash received from disposal of investments - 36,800 12,993,318 36,800 Cash received from returns on investments - 2,338,215 123,215,835 8,338,215 Net cash received from disposal of fixed assets 22,976,283 46,445,162 3,955,902 22,576,605 Cash received relating to other investing activities 9,131,141 - 50,000,000 - Sub-total of cash inflows 32,107,424 48,820,177 190,165,055 30,951,620 Cash paid to acquire fixed assets, intangible assets and other long-term assets (2,158,642,871 (1,255,873,184) (660,358,113) (589,896,555) Net cash paid for acquisition of a subsidiaries and other operating entities (50,911,687) - (1,222,164,642) (42,000,000) Cash paid relating to other investing activities (21,000,000) - (121,000,000) - Sub-total of cash outflows (2,230,554,558) (1,255,873,184) (2,003,522,755) (631,896,555) Net cash flows from investing activities (2,198,447,134) (1,207,053,007) (1,813,357,700) (600,944,935) 3. Cash flows from financing activities Cash received from capital injection 2,008,870,262 - 2,006,850,200 - Including: Capital injection to subsidiaries from minority interests 2,020,062 - - - Cash received from borrowings 2,851,730,000 2,021,200,000 920,000,000 659,200,000 Cash received form issue of short-term debenture - 497,750,000 - 497,750,000 Cash received from other financing activities 4,164,708 - 2,164,708 - Sub-total of cash inflows 4,864,764,970 2,518,950,000 2,929,014,908 1,156,950,000 Cash repayments of amounts borrowed (3,068,702,574) (1,931,191,454) (1,691,302,574) (1,040,191,454) Cash payments for interest expenses and distribution of dividends or profits (350,034,954) (276,002,692) (118,319,744) (106,321,143) Including: Interest and dividend paid to minority interests (34,756,907) (33,595,164 - - Cash payments relating to other financing activities (3,050,980) (3,500,000) - - Sub-total of cash outflows (3,421,788,508) (2,210,694,146) (1,809,622,318) (1,146,512,597) Net cash flows from financing activities 1,442,976,462 308,255,854 1,119,392,590 10,437,403 4. Effect of foreign exchange rate changes on cash (279,398) (1,050,485) 475,504 695,481 5. Net increase/(decrease) in cash VII(43(b)) 409,135,756 62,679,306 366,431,466 (145,141,210) Add: Opening balance of cash 515,985,750 453,306,444 42,620,161 187,761,371 6. Ending balance of cash 925,121,506 515,985,750 409,051,627 42,620,161 The accompanying notes form an integral part of these financial statements. Legal Person in charge of Person in charge of representative: Mr.Chen Musen accounting function: Ms.Kong Lingling accounting department: Mr.Huang Kaishun - 50 - HUAXIN CEMENT CO., LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) 2007 Attributable to the shareholders of the Company Items Minority Total Less: General Capital Surplus Share capital Treasury risk Undistributed Others interests owners’ equity surplus reserve share provision profits 1. As at 31 December 2006 328,400,000 533,758,209 - 135,576,108 - 371,976,223 - 767,587,995 2,137,298,535 Changes in accounting policies - - - - - - - - - Correction of errors - - - - - - - - - 2. As at 1 January 2007 328,400,000 533,758,209 - 135,576,108 - 371,976,223 - 767,587,995 2,137,298,535 3. Increase/(decrease) - (1)Profit for the year - - - - - 290,245,247 - 49,121,716 339,366,963 (2)Gain or loss directly charge to - 40,462,305 - - - - - - 40,462,305 equity Changes of fair value of available-for-sale financial - 53,949,740 - - - - - - 53,949,740 assets Effect of other changes in investees' equity under equity - - - - - - - - - method Effect of income tax related to the items directly recognised in - (13,487,435) - - - - - - (13,487,435) owners' equity Others - - - - - - - - - Subtotal of items (1) and (2) - 40,462,305 - - - 290,245,247 - 49,121,716 379,829,268 (3)Capital injection Capital contribution by the - - - - - - - - - owners Share-based payment - - - - - - - - - charged to equity Others - - - - - - - - - (4) Appropriation Transfer to surplus reserve - - - 40,276,443 - (40,276,443) - - - General risk provision accrual - - - - - - - - - Dividends - - - - - (19,704,000) - (95,167,871) (114,871,871) Others - - - - - - - - - (5)Transfer within equity From capital reserve to share - - - - - - - - - capital From surplus reserve to share - - - - - - - - - capital From surplus reserve to - - - - - - - - - accumulated losses Others - 1,360,900 - - - (1,360,900) - - - 4. 31 December 2007 328,400,000 575,581,414 - 175,852,551 - 600,880,127 - 721,541,840 2,402,255,932 - 51 - HUAXIN CEMENT CO., LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) 2008 Attributable to the shareholders of the Company Items Minority Total Less: General Capital Surplus Undistributed interests owners’ equity Share capital Treasury risk surplus reserve profits Others share provision 1. As at 31 December 2007 328,400,000 575,581,414 - 175,852,551 - 600,880,127 - 721,541,840 2,402,255,932 Changes in accounting - - - - - - - - policies - Correction of errors - - - - - - - - - 2. As at 1 January 2008 328,400,000 575,581,414 - 175,852,551 - 600,880,127 - 721,541,840 2,402,255,932 3. Increase/(decrease) - - - - - - - - - (1)Profit for the year - - - - - 459,975,559 74,964,551 534,940,110 (2)Gain or loss directly charge - - - - - - - to equity (31,340,820) (31,340,820) Changes of fair value of available-for-sale financial - - - - - - - assets (41,787,760) (41,787,760) Effect of other changes in investees' equity under - - - - - - - - - equity method Effect of income tax related to the items directly - - - - - - - recognised in owners' equity 10,446,940 10,446,940 Others - - - - - - - - - Subtotal of items (1) and (2) - (31,340,820) - - - 459,975,559 - 74,964,551 503,599,290 (3)Capital injection Capital contribution by the 1,931,650,20 owners 75,200,000 0 - - - - - 50,677,585 2,057,527,785 Share-based payment - - - - - - - - - charged to equity Others - - - - - - - - - (4) Appropriation Transfer to surplus reserve - - - - - - 8,281,785 - (8,281,785) General risk provision - - - - - - - - - accrual Dividends - - - - - (48,432,000) - (2,508,000) (50,940,000) Others - - - - - - - - - (5)Transfer within equity From capital reserve to - - - - - - - - - share capital From surplus reserve to - - - - - - - - - share capital From surplus reserve to - - - - - - - - - accumulated losses Others - - 1,211,330 - - - (1,211,330) - - 2,477,102,12 4. 31 December 2008 403,600,000 4 - 184,134,336 - 1,002,930,571 - 844,675,976 4,912,443,007 The accompanying notes form an integral part of these financial statements. Legal Person in charge of Person in charge of representative: Mr.Chen Musen accounting function: Ms.Kong Lingling accounting department: Mr.Huang Kaishun - 52 - HUAXIN CEMENT CO., LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) 2007 Items Less: Total Surplus Undistributed Share capital Capital surplus Treasury Others reserve profits owners’ equity share 1. As at 31December 2006 328,400,000 302,065,973 - 135,576,107 51,532,150 - 817,574,230 Changes in accounting - - - - - - - policies Correction of errors - - - - - - - 2. As at 1 January 2007 328,400,000 302,065,973 - 135,576,107 51,532,150 - 817,574,230 3. Increase/(decrease) - - - - - - - (1)Profit for the year - - - - 402,764,433 - 402,764,433 (2)Gain or loss directly charge - 40,462,305 - - - - 40,462,305 to equity Changes of fair value of available-for-sale financial - 53,949,740 - - - - 53,949,740 assets Effect of other changes in investees' equity under - - - - - - - equity method Effect of income tax related to the items - (13,487,435) - - - - (13,487,435) directly recognised in owners' equity Others - - - - - - - Subtotal of items (1) and (2) - 40,462,305 - - 402,764,433 - 443,226,738 (3)Capital injection Capital contribution by the - - - - - - - owners Share-based payment - - - - - - - charged to equity Others - - - - - - - (4) Appropriation Transfer to surplus reserve - - - 40,276,443 (40,276,443) - Dividends - - - - (19,704,000) - (19,704,000) Others - - - - - - - (5)Transfer within equity From capital reserve to - - - - - - - share capital From surplus reserve to - - - - - - - share capital From surplus reserve to - - - - - - - accumulated losses Others - 862,333 - - (862,333) - - 4. 31 December 2007 328,400,000 343,390,611 - 175,852,550 393,453,807 - 1,241,096,968 The accompanying notes form an integral part of these financial statements. Legal Person in charge of Person in charge of representative: Mr.Chen Musen accounting function: Ms.Kong Lingling accounting department: Mr.Huang Kaishun - 53 - HUAXIN CEMENT CO., LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) 2008 Items Cap Less: Total Surplus Undistributed Share capital Treasury Others ital surplus reserve profits owners’ equity share 1. As at 31December 2007 328,400,000 343,390,611 - 175,852,550 393,453,807 - 1,241,096,968 Changes in accounting - - - - - - - policies Correction of errors - - - - - - - 2. As at 1 January 2008 328,400,000 343,390,611 - 175,852,550 393,453,807 - 1,241,096,968 3. Increase/(decrease) - - - - - - - (1)Profit for the year - - - - 82,817,855 - 82,817,855 (2)Gain or loss directly charge to equity - (31,340,820) - - - - (31,340,820) Changes of fair value of available-for-sale financial assets - (41,787,760) - - - - (41,787,760) Effect of other changes in investees' equity under equity method - - - - - - - Effect of income tax related to the items directly in owners' equity - 10,446,940 - - - - 10,446,940 Others - - - - - - - Subtotal of items (1) and (2) - (31,340,820) - - 82,817,855 - 51,477,035 (3)Capital injection Capital contribution by the owners 75,200,000 1,931,650,200 - - - - 2,006,850,200 Share-based payment charged to equity - - - - - - - Others - - - - - - - (4) Appropriation Transfer to surplus reserve - - - 8,281,786 (8,281,786) - - Dividends - - - (48,432,000) - (48,432,000) Others - - - - - - - (5)Transfer within equity From capital reserve to share capital - - - - - - - From surplus reserve to share capital - - - - - - - From surplus reserve to accumulated losses - - - - - - - Others - 862,333 - - (862,333) - - 4. 31 December 2008 403,600,000 2,244,562,324 - 184,134,336 418,695,543 - 3,250,992,203 The accompanying notes form an integral part of these financial statements. Legal Person in charge of Person in charge of representative: Mr.Chen Musen accounting function: Ms.Kong Lingling accounting department: Mr.Huang Kaishun - - - 54 - HUAXIN CEMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) [English Translation for Reference Only] （I）General information Huaxin Cement Co., Ltd. (the “Company”) is a joint stock limited company established and domiciled in the People's Republic of China (the “PRC”). The Company’s shares were listed on the Shanghai stock Exchange. In 2006, as approved by Ministry of Commence of the PRC, the Company was changed to a Sino-foreign joint stock limited company. On 4 February 2008, the Company issued 75,200,000 ordinary shares to Holchin B.V., a foreign strategic investor. The total issued shares increased to 403,600,000 with par value of RMB1 each, including 239,600,000 shares traded in Renminbi (“RMB”) (“A Share”) and 164,000,000 shares traded in foreign currencies (“B Share”). The address of the Company’s registered office is 897 Huangshi Avenue, Huangshi City, Hubei Province. The Company and its subsidiaries (the “Group”) are principally engaged in manufacturing and sales of cement. The majority of the sales are made in the PRC. The financial statements were authorised for issue by the board of directors of the Company on 9 March 2009. （II）The basis of preparation of the financial statements The Group adopted the “Accounting Standards for Business Enterprises” (comprising one basic standard and 38 specific standards) promulgated by the Ministry of Finance on 15 February 2006, the application guidance and interpretation to the Accounting Standards for Business Enterprises and other relative regulations subsequently promulgated by Ministry of Finance (here in after collectively as referred to the “CAS 2006”). As at 31 December 2008, bank loans due for repayment in the next one year from 31 December 2008 amouted to RMB1,964,774,937 and the Group’s current liabilities exceeded current assets by RMB1,678,409,470. As at 31 December 2008, the Group’s debt to equity ratio is 1.2. The Group has been able to continuously generate positive operating cash flow and maintain a good credit record with its major bankers, and has not experienced any difficulty in renewing and obtaining banking facilities. In addition, as at 31 December 2008, the Group had available banking facilities that are adequate to cover its net current liabilities and to meet its capital commitments. Thus, management is of the view that the Group will have sufficient financial resources to meet its financial obligations as they fall due and carry on its business without a significant curtailment of operations in the next twelve months from the balance sheet date. Accordingly, the financial statements have been prepared on a going concern basis. （III）Statement of compliance with the Accounting Standards for Business Enterprises The consolidated financial statements of the Gruop for the year ended 31 December 2008 truly and completely present the financial position of the Group and the Company as of 31 December 2008 and the operating results, cash flows and other information of the Group and the Company for the year then ended in accordance with the Accounting Standards for Business Enterprises. （IV） Summary of significant accounting policies and accounting estimates (1) Accounting period The Company’s accounting year starts on 1 January and ends on 31 December. - - - 55 - (2) Recording currency The recording currency is Renminbi (“RMB”) (3) Measurement basis Besides of fair value, net realisable vablue and present value. Historical cost is generally applied as measurement basis. (4) Foreign currency translation Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions. At the balance sheet date, monetary items denominated in foreign currency are translated into RMB using the spot exchange rate on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition, construction or production of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currency that are measured in terms of historical cost are translated into RMB at the balance sheet date using the spot exchange rate at the date of the transaction. The effect of exchange rate changes of cash and cash equivalent is separately presented in the cash flow statement. (5) Cash For the purposes of the cash flow statement, cash refers to all cash in hand and call deposits. (6) Financial assets Financial assets are classified into the following categories at initial recognition: receivables and available-for-sale financial assets. The classification of financial assets depends on the Group’s intention and ability to hold the financial assets. (a) Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, comprising accounts receivable and other receivables (Note IV (7)). (b) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are designated to be available for sale upon initial recognition and financial assets not classified in any other categories. Available-for-sale financial assets are included in other current assets if management intends to dispose of them within 12 months from balance sheet date. (c) Recognition and measurement Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. Transaction costs that are directly attributable to the acquisition of the financial assets are included in financial assets at initial recognition. Financial assets are derecognised when the contractual rights to receive the cash flows from the financial assets have expired, or all substantial risks and rewards of ownership of the financial assets have been transferred. Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured at amortised cost using the effective interest method. - - - 56 - A gain or loss arising from a change in fair value of an available-for-sale financial asset is recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from the translation of monetary financial assets. When such financial asset is derecognised, the cumulative gain or loss previously recognised in equity is recognised in profit or loss accounts. Cash dividends declared by the investee on available-for-sale investments in equity instruments are recognised as investment income in profit or loss accounts. (d) Impairment of financial assets The Group assesses the carrying amount of a financial asset other than that at fair value through profit or loss at each balance sheet date. If there is objective evidence that the financial asset is impaired, the Group shall determine the amount of any impairment loss accounts. If an impairment loss on a financial asset carried at amortised cost has been incurred, the amount of loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss accounts. In the case of a significant or prolonged decline in the fair value of an available-for-sale financial assets, the cumulative loss arising from the decline in fair value that had been recognised directly in equity is removed from equity and recognised in impairment loss. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss accounts, the previously recognised impairment loss is reversed and directly recognised in equity. Impairment loss incurred on an investment in an equity instrument not quoted in an active market and whose fair value cannot be reliably measured is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows of similar financial assets, capitalised based on the returns ratio of the market at the same time. The impairment losses are not allowed to be reversed even if the value is recovered in a subsequent period. (7) Receivables Receivables comprise notes receivable, accounts receivable and other receivables. Accounts receivable arising from sale of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyer. Receivables are presented at amortised cost using the effective interest method net of provision for bad debts. Receivables that are individually significant are subject to separate impairment assessment, if there is objective evidence that the Group will not be able to collect the full amounts according to the original terms, a provision for impairment of the receivable is established at the difference between the carrying amount of the receivable and the present value of estimated future cash flows. Receivables that are not individually significant are grouped on the basis of similar credit risk. The impairment losses are determined by considering the current conditions and the experience of bad debt for the groups of receivables with the similar credit risk. - - - 57 - When the Group transfers the accounts receivable to financial institutions without recourse, the difference between proceeds derived from the transaction, net of the carrying amounts of the accounts receivable and relevant taxes is recognised in profit or loss accounts of. (8) Inventories Inventories include raw materials, work in progress, finished goods, spare parts and turnover materials, and are presented at the lower of cost and net realisable value. Cost is determined using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labour and an allocation of all production overhead expenditures incurred based on normal operating capacity. Turnover materials include low cost consumables and packaging materials. Spare parts, low cost consumables and packing materials are expensed are expensed upon issuance. Provisions for declines in the value of inventories are determined at the carrying value of the inventories net of their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and relevant taxes. The Group adopts the perpetual inventory system. (9) Long-term equity investments Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, the Group’s long-term equity investments in its associates. (a) Subsidiaries Subsidiaries are all investees over which the Company is able to control, i.e. has the power to govern the financial and operating policies so as to obtain benefits from their operating activities. The existence and effect of potential voting rights (including that derived from the convertible bonds and warrants that are currently convertible or exercisable) is considered to determine whether the Group has control over the investee. Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjusted using the equity method when preparing the consolidated financial statements. Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Investment income is recognised in profit or loss for the cash dividends or profit declared by the investee. Such recognition is made only to the extent of the distributions received from accumulated net profits of the investees arising after the investment was made. Cash dividends or distributions received in excess of such profits are regarded as a recovery of the initial cost of the investments. (b) Associates Associates are all investees that the Group has significant influence on their financial and operating policies. Investments in associates are accounted for using the equity method. Where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at cost. Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted accordingly. When using the equity method of accounting, the Group recognised the investment income - - - 58 - based on its share of net profit or loss of the investee. The Group discontinues recognising its share of net losses of an investee after the carrying amount of the long-term equity investment together with any long-term interests that, in substance, form part of the investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the conditions on recognition of provision are satisfied in accordance with the accounting standards on contingencies, the Group continues to recognise the investment losses and the provision. For changes in owner’s equity of the investee other than those arising from its net profit or loss, the Group record directly in capital surplus its proportion, provided that the Group’s proportion of shareholding in the investee remains unchanged. The carrying amount of the investment is reduced by the Group’s share of the profit or cash dividends declared by an investee. (10) Fixed assets Fixed assets comprise buildings, machinery and equipment, motor vehicles, computer and electronic equipment and office equipment. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the economic benefits associated with the fixed asset will flow to the Group and its cost can be reliably measured. The carrying amount of those parts that are replaced is derecognized and all the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred. Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets being provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives. The estimated useful lives, estimated residual values expressed as a percentage of cost and annual depreciation rates are as follows: Estimated useful Estimated residual Annual depreciation lives value rate Buildings 25-40 years 4% 2.4% to 3.8% Machinery and 8-16 years 4% 6% to 12% equipment Office equipment and 8-18 years 4% 5.3% to 12% fixtures Motor vehicles 8-12 years 4% 8% to 12% The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at least at each financial year-end. A fixed asset classified as an asset held for sale is recorded at the lower of the carrying amount and the fair value less costs to sell. The excess of the original carrying amount over the fair value less the costs to sell is recognised as an asset impairment loss. A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period. - - - 59 - (11) Construction in progress Construction in progress is measured at actual cost. Actual cost comprises construction costs, other costs necessary to bring the the fixed assets ready for their intended use. Borrowing costs that are eligible for capitalization incurred before the assets are ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month (12) Intangible assets Intangible assets include land use rights, trademarks, mining rights, computer software and technology patents, which initially recognised at cost, and amortised on the straight-line basis over their estimated useful lives. For an intangible asset with a finite useful life, review and adjustment on useful life and amortization method are performed at each year-end. The intangible asset classified as an asset held for sale is recorded the lower of the carrying amount and the fair value less costs to sell. The excess of the original carrying amount over the fair value less the costs to sell is recognised as an asset impairment loss. (13) Goodwill Goodwill is recognised at the excess of the cost of a business combination involving enterprises not under common control over the interest in the fair value of the acquirees’ identifiable net assets acquired in the business combination as at the acquisition date. (14) Long-term prepaid expenses Long-term prepaid expenses include mine development cost, railway improvement cost and other prepayments that should be borne by the current and subsequent periods and amortised over more than one year. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at cost net of accumulated amortisation. (15) Impairment of long-term assets Fixed assets, construction in progress, intangible assets with finite useful lives, and long-term equity investments in subsidiaries and associates are tested for impairment if there is any indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. A provision for asset Impairment is determined and recognised on an individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows. Separately recognised goodwill is tested at least annually for impairment, irrespective of whether there is any indication that the asset may be impaired. During the test, the carrying value of goodwill is allocated to the related asset group or groups of asset group which is expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or groups of asset group including the goodwill allocated is lower than its carrying amount, the corresponding impairment loss is recognized. The impairment loss is first deducted from the carrying amount of goodwill allocated to the asset group or groups of asset group, and then deducted from the carrying amount of the remaining assets of the asset group or groups of asset group pro rata with goodwill. - - - 60 - Once the asset impairment loss mentioned above is recognised, it is not allowed to be reversed for the value recovered in the subsequent periods. (16) Borrowing costs The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long period of time of acquisition and construction for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed. (17) Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred, and subsequently stated at amortized cots using the effective interest method. Borrowings of which the period is within one year (one year included) are classified as the short-term borrowings, and the others are classified as long-term borrowings. (18) Employee benefits Employee benefits mainly include wages or salaries, bonuses, allowances and subsidies, staff welfare, social security contributions, housing funds, labour union funds, employee education funds and other expenditures incurred in exchange for service rendered by employees. Employee benefits are recognised as a liability in the accounting period in which an employee has rendered service, and as costs of assets or expenses to whichever the employee service is attributable. (19) Provisions Provisions for employee benefits and mine restoration are recognised when the Group has a present obligation, and it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably. A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency such as the risks, uncertainties and the time value of money are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense. The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate. (a) Provision for employee benefits Pension scheme: Pursuant to the Company’s policies, the Company and its certain subsidiaries are obligated to pay allowances to certain retired and early retired employees until they pass away. - - - 61 - Post-employment medical benefit plans: Pursuant to the local medical insurance regulations, during certain period in future, the Company and certain subsidiaries are obligated to contribute an amount based on the certain percentage of average salary to local government as a fund to finance the payments of medical expenses of retired employees of these companies. The expenses are estimated by considering number of retirees, retiring age, average life of retiree, annual increase rate of average salary and money discount value, etc. (b) Mine restoration In accordance with relevant government regulations, the Group is required to remediate the area that it mines. The Group estimates the remediation obligation on the basis of expected future payment on the remediation efforts and established a liability accordingly. (20) Government grants Government grant is the monetary asset the Group receives from the government for free, excluding the capital injection from the government as shareholder. Government grant can be defined as grant related assets or grant related to income. Grants from the government are recognised when there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grant is measured at the amounts received or receivable. Government grants relating to income, which is used to compensate the expenses/costs incurred in future, are recognised as deferred income and then credited to the income statement over the period necessary to match them with the expenses that they are intended to compensate. Government grants relating to income, which is used to compensate the expenses/costs incurred in the past, are credited to the income statement directly. Government grants relating to assets are recognised as deferred income and are credited to the income statement on a straight-line basis over the expected lives of the related assets. Deferred income is included in non-current liabilities in balances sheet. (21) Deferred tax asset and deferred tax liability Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax base of assets and liabilities and their carrying amount (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in in accordance with the tax law. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss) At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised. Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except where the Group is able to control the timing of the - - - 62 - reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries and associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding deferred tax assets are recognised. Deferred tax assets and liabilities are offset when: • The deferred taxes are relate to the same tax payer within the group and same fiscal authority, and; • That tax payer has a legally enforceable right to offset current tax assets against current tax liabilities. (22) Revenue recognition The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, rebates, discounts and returns. Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the relevant revenue can be reliably measured and specific revenue recognition criteria have been met for each of the Group’s activities as described below: (a) Sales of goods The Group is engaged in manufacturing and sales of cement. Revenue from sales of goods is recognized when the goods are delivered, significant risks and rewards of ownership of the goods are transferred to the buyers, the Group retains neither continuing managerial involvement to the degree usually associated with the ownership nor effective control over the goods sold, relevant consideration or the documents which grant the right to receive the relevant consideration has been received, and related costs can be measured reliably. (b) Interest income Interest income is recognised on a time-proportion basis using the effective interest method. (c) Service income Service income is recognised when related service is rendered to customers. (23) Operating leases Leases where a significant portion of the risks and rewards of ownership are retained by the leaser are classified as operating leases. Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as an expense for the current period. (24) Profit distribution Cash dividends distribution is recognised as a liability in the period in which the dividends are approved by the shareholders’ meeting. (25) Business combinations involving enterprises not under common control The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at the fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is - - - 63 - recognised in profit or loss for the current period. Costs directly attributable to the combination are included in the cost of combination. (26) Basis of preparation of consolidated financial statements The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are fully consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company during the preparation of the consolidated financial statements, where the accounting policies and the accounting periods are inconsistent between the Company and subsidiaries. For subsidiaries acquired from a business combination involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date. All significant inter-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of a subsidiary’s equity and the portion of a subsidiary’s net profits and losses for the period not held by the Company are recognised as minority interests and presented separately in the consolidated balance sheet within equity and net profits respectively. (27) Segment reporting A business segment is a distinguishable component of the Group that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. A geographical segment is a distinguishable component of the Group that is engaged in providing products or services within a particular economic environment and that is subject to risks and returns that are different from those of components operating in other economic environments. (28) Determination of the fair value of the financial instruments The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of a financial instrument for which the market is not active is determined by using a valuation technique. Valuation techniques include using prices of recent market transactions between knowledgeable, willing parties, reference to the current fair value of another financial asset that is substantially the same with this instrument, and discounted cash flow analysis. When a valuation technique is used to establish the fair value of a financial instrument, use market data as much as possible and avoid use of data that is particularly related to the Group. (29) Critical accounting estimates and assumptions The Group continually evaluates the critical accounting estimates and key judgments applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below: (a) Estimated impairment of fixed assets Fixed assets are reviewed for impairment whenever events or changes in circumstances - - - 64 - indicate that the carrying amount may not be recoverable. The recoverable amounts of fixed assets have been determined based on value-in-use calculations. These calculation and valuations require the use of judgment and estimates. (b) The calculation of present value of retirement benefits depends on a number of accounting estimation (Note IV (19)(a)). If the discount rate used in calculation of future cash flow is adjusted downward by 1.02% to 1.17% as at 31 December 2009, the provision of retirement benefits would increase by RMB 604,399. Management believe that the possibilities of change in other estimation used in the calculation of the provision of retired benefits will not be high or the impact of change will not be significant. (c) Income taxes The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgment is required from the Group in determining the provision for income taxes in each of these jurisdictions. The Group recognises income taxes in each jurisdiction based on estimates. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (d) Deferred taxation Deferred tax assets arising from the unutilised tax losses and other deductible temporary differences have been recognised at balance sheet date. Realization of the deferred tax assets depends on whether there is sufficient taxable profit in future. If actual future profit is less than what is expected, deferred tax assets may have been impaired. The provision of deferred tax assets will be charged to income statement when exists an impairment. （V ）Tax The taxation items and applicable tax rates for the Group are as follows: Taxation items Tax rate Tax basis Enterprise income 15 and 25% Taxable income tax Value-added tax 17% Taxable value added amount (tax payable represents output VAT calculated using the taxable sales amount multiplied by the effective tax rate less deductible input VAT) Business tax 3% and 5% Taxable service income On 16 March 2007, the National People’s Congress approved the Corporate Income Tax Law of the People’s Republic of China (the “new CIT Law”), which is effective from 1 January 2008. Except for the special preference tax treatments of the companies mentioned below, the enterprise income tax rate applicable to group companies changed from 33% to 25% from 1 January 2008. Huaxin Cement (Tibet) Co., Ltd. is a manufactucing enterprise established in western development zone of the PRC. Pursuant to the circular issued by local municipal authority, the applicable enterprise income tax rate of Huaxin Cement (Tibet) Co., Ltd. is 15% until 2010. Huaxin Cement (Zhaotong) Co., Ltd. is a manufactucing enterprise established in Yunnan ethnic minority autonomous regions. Pursuant to the relevant tax regulation, Huaxin Cement (Zhaotong) Co., Ltd. is entitled to full exemption from enterprise income tax for the first three years and 50% deduction in enterprise income tax for the next two years starting from the year when the company commences its operation. Huaxin Cement (Zhaotong) Co., Ltd. started its operation in 2006, - - - 65 - enterprise income tax was exempted in 2008. Huaxin Xianggang Cement Co., Ltd. is a manufactucing enterprise established in Xiangtan City, Hunan Province. Pursuant to the relevant tax regulation of the PRC and approval issued by local tax authority, Huaxin Xianggang Cement Co., Ltd is entitled to an exemption of enterprise income tax from 2007 to 2009. （VI） Subsidiaries The subsidiaries of the Company and the scope of the consolidated financial statements: Amounts are in RMB thousand unless otherwise stated： (Amounts are in RMB thousand unless otherwise stated) Interest held by the Company* Registered place Registered capital Principal business Direct Indirect Huaxin Cement (Xiantao) Co., Ltd. 23,900 Production and sale of cement 80% - Huaxin Nantong Cement Co., Ltd. 108,000 Production and sale of cement 85% - (note (a)) Huangshi Huaxin Packaging Co., Ltd. 8,000 Production and sale of 98.38% - packaging materials Wuhan Wugang Huaxin Cement Co., 40,000 Production and sale of cement 50% - Ltd. (note (b)) and scoria Huaxin Cement (Yichang) Co., Ltd. 150,000 Production and sale of cement 70% - Huaxin Cement (Enshi) Co., Ltd. 60,000 Production and sale of cement 67% 23.1% Huaxin Cement Scientific Research 1,000 Designing of cement project and 99% - and Design Co., Ltd. consulting service for cement production Huaxin Yidu Packaging Co., Ltd. (note 1,740 Production and sale of - 50.2% (c)) packaging materials Huaxin Cement (Tibet) Co., Ltd. 50,000 Production and sale of cement 60% - Huaxin Cement (Zhaotong) Co., Ltd. 75,000 Production and sale of cement 60% 28% Huaxin Cement (Yueyang) Co., Ltd. 25,000 Production and sale of cement 90% 7% Huaxin Cement (Yangxin) Co., Ltd. 500,000 Production and sale of cement 80% - Huaxin Cement (Wuhan) Co., Ltd. 60,000 Production and sale of cement 70% 24% Huaxin Concrete (Wuhan) Co., Ltd. 80,000 Production and sale of concrete 100% (note (d)) Huaxin Cement (Xiangfan) Co., Ltd. 140,000 Production and sale of cement 100% - Hunan Huaxin Xianggang Cement 60,000 Production and sale of cement 60% - Co., Ltd. Huaxin Cement (Wuxue) Co., Ltd. 200,000 Production and sale of cement 100% - Huaxin Concrete (Huangshi) Co., Ltd. 10,000 Production and sale of concrete - 100% (note (e)) Huaxin Golden Cat Cement (Suzhou) USD136,000 Production and sale of cement 51% - Co., Ltd. thousand Huaxin Cement (Chibi) Co., Ltd. 140,000 Production and sale of cement 100% - Huaxin Cement (Henan Xinyang) Co., 140,000 Production and sale of cement 100% Ltd. (note (f)) Huaxin Environment Protection 10,000 100% - (Wuxue) Waste Treatment Co., Ltd. Production and sale of cement (note (g)) additive and relative product Huaxin Cement Technology 20,000 R&D and consulting service 100% - Management (Wuhan) Co., Ltd. (note (h)) Huaxin Cement (Hefeng) Co., Ltd. 47,640 51% - (note (i)) Production and sale of cement - - - 66 - Huaxin Cement (Zigui)Co., Ltd. (note 160,000 100% - (j)) Production and sale of cement Huaxin Cement (Chenzhou) Co., Ltd. 160,000 Production and sale of cement 100% - (note (k)) Huaxin Cement (Zhuzhou) Co., Ltd. 200,000 Production and sale of cement 100% - (note (l)) Huaxin Cement (Macheng) Co., Ltd. 40,000 Production and sale of cement 100% - (note (m)) Huaxin Chibi Packaging Co., Ltd. 3,200 Production and sale of - 50.4% (note (n)) packaging materials Huaxin Ezhou Packaging Co., Ltd. 8,000 Production and sale of - 98.38% (note (o)) packaging materials Huaxin Cement (Huangshi) Logistics 20,000 Load, unload, storage and 100% - Co., Ltd. (note (p)) transport of bulk and bagged cement materials Huaxin Cement (Kunming 30,000 Production and sale of cement 100% - Dongchuan) Co., Ltd. (note (q)) Huaxin Cement Xiangfan Xiangcheng 40,000 Production and sale of cement 100% - Co., Ltd. (note (r)) Huaxin Cement (Quxian) Co., Ltd. 160,000 Production and sale of cement 100% - (note (s)) Huaxin Cement (Huangshi) 60,000 Manufacturing, maintenance 100% - Equipment Manufacturing Co., Ltd. and installation of Mechanical (note (t)) and Electrical Equipment Huaxin Cement Chongqing Fuling 160,000 Production and sale of cement 100% - Co., Ltd. (note (u)) Huaxin Cement Suizhou Co., Ltd. 41,000 Production and sale of cement 60% - (note (v)) Huaxin Cement (Shishou) Co., Ltd. 19,800 Production and sale of cement 55% - (note (w)) * The voting right percentage held by the Company is not significantly different to the percentage of equity interest held by the Company. (a) According to the agreement entered into by the Company and RDC International Pte Ltd. (“RDC”) on 21 March 2002, RDC entrusted the Company to hold on its behalf of 26% equity interest in Huaxin Nantong Cement Co., Ltd. Consequently, the Company substantially holds 85% equity interest of Huaxin Nantong Cement Co., Ltd.. On 8 June 2005, the Company entered into an agreement with RDC to formally acquire the RDC’s equity interest in Huaxin Nantong Cement Co., Ltd. At the date of this report, the share transfer was not yet approved by other shareholders of Huaxin Nantong Cement Co., Ltd.. (b) Wugang Huaxin Cement Co., Ltd. is a subsidiary of the Company as the Company can control its operating decision. (c) In 2008, the minority shareholder of Huaxin Cement (Yidu) Co., Ltd. made additional capital injection to Huaxin Cement (Yidu) Co., Ltd. which has diluted the Company’s sharing of equity interests in Huaxin Cement (Yidu) Co., Ltd. (d) On 24 April 2008, the Company has acquired 30% equity interests in Huaxin Concrete (Wuhan) Co., Ltd. from Huaxin Cement (Yangxin) Co., Ltd., a subsidiary of the Company, and became 100% shareholder of Huaxin Concrete (Wuhan) Co., Ltd. On 20 May 2008, the Company made additional capital injection of RMB60,000,000 to Huaxin Concrete (Wuhan) Co., Ltd. The registered capital of Huaxin Concrete (Wuhan) Co., Ltd. increased to RMB80,000,000 accordingly. (e) On 22 April 2008, the Company transferred 100% equity interest of Huaxin Concrete (Huangshi) Co., Ltd. to Huaxin Concrete (Wuhan) Co., Ltd., which is a wholly owned - - - 67 - subsidiary of the Company. (f) The Company established Huaxin Cement (Henan Xinyang) Co., Ltd. on 21 February 2008, of which the registered capital is RMB140,000,000 and the operating period is 50 years. (g) The Company established Huaxin Environment Protection (Wuxue) Waste Treatment Co., Ltd. on 21 January 2008, of which the registered capital is RMB10,000,000 and the operating period is 50 years. (h) The Company established Huaxin Cement Technology Management (Wuhan) Co., Ltd. on 10 April 2008, of which the registered capital is RMB20,000,000 and the operating period is 50 years. (i) On 6 May 2008, the Company acquired 51% equity interest in Hefeng Chonghong Cement Co., Ltd. (company name was subsequently changed to Huaxin Cement (Hefeng) Co., Ltd.) from Hubei Changyou Advance Agriculture Co., Ltd. (Note IX (a)). (j) The Company established Huaxin Cement (Zigui) Co., Ltd. on 25 March 2008, of which the registered capital is RMB160,000,000 and the operating period is 50 years. (k) The Company established Huaxin Cement (Chenzhou) Co., Ltd. on 11 April 2008, of which the registered capital is RMB160,000,000 and the operating period is 50 years. (l) The Company established Huaxin Cement (Zhuzhou) Co., Ltd. on 20 May 2008, of which the registered capital is RMB200,000,000 and the operating period is 50 years. (m) The Company established Huaxin Cement (Macheng) Co., Ltd. on 29 May 2008, of which the registered capital is RMB40,000,000 and the operating period is 50 years. (n) Huaxin Chibi Packaging Co., Ltd. was established on 26 March 2008. Its registered capital is RMB3,200,000, and its operating period is 50 years. The Group contributed paid-in capital of RMB1,640,000 to Huaxin Chibi Packaging Co., Ltd. and accounts for 50.4% effective equity interests of Huaxin Chibi Packaging Co., Ltd. (o) Huangshi Huaxin Packaging Co., Ltd. established Huaxin Ezhou Packaging Co., Ltd. on 11 April 2008, of which registered capital is RMB8,000,000 and the operating period is 50 years. Accordingly, the Company indirectly holds 98.38% interest of Huaxin Ezhou Packaging Co., Ltd. (p) The Company established Huaxin Cement (Huangshi) Logistics Co., Ltd. on 10 July 2008, of which the registered capital is RMB20,000,000 and the operating period is 50 years. (q) The Company established Huaxin Cement (Kunming Dongchuan) Co., Ltd. on 11 September 2008, of which the registered capital is RMB30,000,000 and the operating period is 50 years. (r) The Company established Huaxin Cement Xiangfan Xiangcheng Co., Ltd. on 7 October 2008, of which the registered capital is RMB40,000,000 and the operating period is 50 years. (s) The Company established Huaxin Cement (Quxian) Co., Ltd. on 17 October 2008, of which the registered capital is RMB160,000,000 and the operating period is 50 years. (t) The Company established Huaxin Cement (Huangshi) Equipment Manufacturing Co., Ltd.. on 28 October 2008, of which the registered capital is RMB60,000,000 and the operating period - - - 68 - is 50 years. (u) The Company established Huaxin Cement Chongqing Fuling Co., Ltd. on 18 November 2008, of which the registered capital is RMB160,000,000 and the operating period is 50 years. (v) On 9 December 2008, the Company acquired 60% equity interest in Huaxin Cement Suizhou Co., Ltd. from Suizhou Great Wall Building Materials Co., Ltd. (Note IX(b)). (w) On 15 December 2008, the Company acquired 55% equity interest in Huaxin Cement (Shishou) Co., Ltd. from HuBei Jian Yuan Cement Co., Ltd. (Note IX(c)). The registered capital and the interests held by the Group of other subsidiaries were not changed during the year. （VII） Notes to the significant items in the consolidated financial statements （1） Cash at bank and in hand 31 December 2008 31 December 2007 Cash in hand 253,088 238,369 Cash at bank 924,868,418 515,747,381 Restricted cash 61,596,331 53,105,967 986,717,837 569,091,717 Cash at bank and in hand denominated in foreign currency are set out as below: 31 December 2008 31 December 2007 Foreign Foreign currencies Exchange Converted in currencies Exchange Converted balances rate RMB balances rate in RMB US dollars 53,205 6.8346 363,635 40,779 7.3046 297,874 HK dollars 9,915 0.8819 8,744 9,814 0.9364 9,190 Singapore dollars 1,543 4.7530 7,334 807 5.0518 4,077 Switzerland franc 5 6.4624 32 4 6.4900 26 Euro 2,064 9.6590 19,936 2,062 10.6669 21,995 399,681 333,162 As at 31 December 2008, bank deposits of RMB61,596,331 (31 December 2007: RMB53,105,967) have been pledged to banks as collateral for issuance of bank acceptances. (2) Notes receivable 31 December 2008 31 December 2007 Trade acceptances 17,887,411 5,267,174 Bank acceptances 107,178,571 178,124,816 125,065,982 183,391,990 As at 31 December 2008, the undue notes having been endorsed by the Group amounted to RMB484,998,655 (31 December 2007: RMB430,645,042), the undue notes having been discounted to the bank by the Group amounted to RMB51,823,941(31 December 2007: Nil). - - - 69 - (3) Accounts receivable and other receivables （a）Accounts receivable 31 December 2007 Addition Decrease 31 December 2008 Accounts receivable 142,490,863 150,725,632 Less: Bad debt provisions (8,440,757) (485,554) 2,522,252 (6,404,059) 134,050,106 144,321,573 The ageing of accounts receivable and related provisions for bad debts are analysed below: 31 December 2008 31 December 2007 % of total Bad debt % of total Bad debt Amount balance provisions Amount balance provisions Within 1 year 126,340,569 83.8% - 129,721,624 91.0% - Between 1 and 2 years 18,191,001 12.1% (370,987) 4,495,821 3.2% (714,590) Between 2 and 3 years 417,048 0.3% (256,058) 139,599 0.1% (29,179) Over 3 years 5,777,014 3.8% (5,777,014) 8,133,819 5.7% (7,696,988) 150,725,632 100% (6,404,059) 142,490,863 100% (8,440,757) Accounts receivable classified by categories of customers: 31 December 2008 31 December 2007 Amount % Bad debt % of Amount % Bad debt % of provisions provision provisions provision Debtors with significant balance 52,235,129 34.7% - - 36,749,826 25.8% (15,775) 0.1% Debtors with insignificant balance but of high credit risk 5,971,866 4.0% (5,971,866) 100.0% 8,181,803 5.7% (8,181,803) 100% Others 92,518,637 61.3% (432,193) 0.5% 97,559,234 68.5% (243,179) 0.2% 150,725,632 100% (6,404,059) 4.2% 142,490,863 100% (8,440,757) 5.9% As at 31 December 2008, accounts receivable aged between one to two years mainly comprised amounts of RMB15,891,261 receivable from two major construction projects. Management is of the view that there is no significant recoverability problem in these receivables and therefore no provision has been made in the financial statements. As at 31 December 2008, there is no amounts due from the Company’s major shareholders who individually holds more than 5% (including 5%) of the Company’s shares (31 December 2007: Nil); receivables from the related parties of Company’s major shareholder who individually holds more than 5% (including 5%) of the Company’s shares amounted to RMB192,807 (31 December 2007: RMB8,093,620) (Note X(4)(a)). As at 31 December 2008, amounts due from top five customers totaled to RMB35,417,915 (31 December 2007: RMB30,204,263) which accounted for 23% (31 December 2007: 21%) of the total accounts receivable. These receivables are aged within one year. Accounts receivable denominated in foreign currency are set out as below: - - - 70 - 31 December 2008 31 December 2007 Foreign Exchange Converted Foreign Exchange Converted currency rate in RMB currency rate in RMB US dollars 12,800 6.8346 87,483 1,108,017 7.3046 8,093,621 （b）Other receivables 31 December 2007 Addition Decrease 31 December 2008 Advances to staff 4,664,300 8,525,762 Deposits 5,248,457 24,620,896 Others 26,120,888 36,019,452 36,033,645 69,166,110 Less: Bad debt provisions (2,858,586) (397,604) 39,967 (3,216,223) 33,175,059 5,949,887 The ageing of other receivables and the related provision for bad debts are analysed as follows: 31 December 2008 31 December 2007 Amount % of total Bad debt Amount % of total Bad debt balance provision balance provision Within 1 year 54,752,153 79.1% - 21,082,690 58.4% - Between 1 and 2 years 3,268,055 4.7% (334,980) 5,172,521 14.4% - Between 2 and 3 years 3,049,082 4.4% - 4,997,021 13.9% - Over 3 years 8,106,820 11.8% (2,881,243) 4,781,413 13.3% (2,858,586) 69,166,110 100% (3,216,223) 36,033,645 100% (2,858,586) Other receivables classified by nature: 31 December 2008 31 December 2007 Amount % Bad debt % of Amount % Bad debt % of provision provisio provision provisio n n Debtors with significant balance 36,568,520 52.8% - - 4,737,752 13.4% - - Debtors with insignificant balance but of high credit risk 3,216,223 4.7% (3,216,223) 100% 2,484,709 6.9% (2,484,709) 100% Others 29,381,367 42.5% - - 28,811,184 79.7% (373,877) 1% 69,166,110 100% (3,216,223) 4.6% 36,033,645 100% (2,858,586) 8% As at 31 December 2008, there is no amount due from shareholders who individually holds more than 5% (including 5%) shares of the Company (31 December 2007: RMB6,245); As at 31 December 2008, the amounts due from top five debtors totaled to RMB32,865,278 (31 December 2007: RMB9,942,780) which accounted for 48% (31 December 2007: 28%) of total other receivables. - - - 71 - (4) Advances to suppliers 31 December 2008 31 December 2007 % of total % of total Amount balance Amount balance Ageing Within 1 year 53,743,757 75.8% 55,949,751 98.0% Between 1 and 2 years 16,308,690 23.0% 279,983 0.5% Between 2 and 3 years 81,160 0.1% 323,767 0.6% Over 3 years 792,148 1.1% 530,483 0.9% 70,925,755 100% 57,083,984 100% As at 31 December 2008, there is no advance to shareholders who individually holds more than 5% (including 5%) of the Company’s shares (31 December 2007: Nil). As at 31 December 2008, advance to supplier with ageing over one year amounted to RMB17,181,998 (31 December 2007: RMB1,134,233), mainly comprises the prepayment for acquisition of mining right. (5) Inventories 31 December 2007 Addition Decrease 31 December 2008 Cost Raw materials 189,853,986 209,746,002 Work in progress 64,607,079 86,158,797 Finished goods 165,422,096 137,059,431 Spare parts 141,902,839 177,425,057 Other materials 7,778,520 9,529,202 569,564,520 619,918,489 Less: Provision for write-down of inventories: Raw materials (2,103,401) - - (2,103,401) Spare parts (25,406,645) - 4,508,107 (20,898,538) Other materials (309,458) - - (309,458) (27,819,504) - 4,508,107 (23,311,397) 541,745,016 596,607,092 （6）Available-for-sale financial assets 31 December 2007 Decrease 31 December 2008 Measured at fair value - available-for-sale equity instruments (Note (a)) 56,645,740 (41,787,760) 14,857,980 Measured at cost method - available-for-sale equity instruments (Note (b)) 14,500,266 - 14,500,266 - available-for-sale bonds 3,200 - 3,200 14,503,466 - 14,503,466 - - - 72 - Less: Provision for impairment (2,775,600) - (2,775,600) 11,727,866 - 11,727,866 68,373,606 (41,787,760) 26,585,846 As at 31 December 2008, available-for-sale financial assets of the Group were denominated in RMB and without fixed maturity, (a) Amounts represented investments in equity securities of two A share listed companies. These investments are stated at fair value by reference to the market price of the equity securities. The accumulated gain from changes in fair value as at 31 December 2008 amounted to RMB12,161,980 (31 December 2007: RMB53,949,740), which has been recognised in capital surplus. (b) Amounts mainly comprised an investment in equity instruments of an unlisted local electric power supply enterprise controlled by Hubei Electric Power Bureau. The investment is stated at cost of RMB11,724,466 as at 31 December 2008, which accounted for 3.9% equity interests of the electric power supply enterprise (31 December 2007: 3.9%). As at 31 December 2008, full provision of RMB2,775,600 had been made for certain investments, basing on the assessment of operating results of investee. (7) Long-term receivables 31 December 2008 31 December 2007 Receivables from minority interests (Note (a)) 38,534,484 37,484,906 Loans to staff 7,653,463 - Receivable from a third party 8,678,718 - 54,866,665 37,484,906 (a) Amounts represent cash advances made to the minority interests, which are unsecured, interest-free and without fixed repayment date. The amounts were not expected to be collectible in the next 12 months from the balance sheet date. Management is of the view that no significant provision is necessary for these receivables. The ageing of long-term receivables and related provision for bad debt are analysed below: 31 December 2008 31 December 2007 Amount % of total Bad debt Amount % of total Bad debt balance provision balance provision Within 1 year 16,332,181 29.8% - - - - Between 2 and 3 years - - - 37,484,906 100.0% - Between 3 and 4 years 38,534,484 70.2% - - - - 54,866,665 100% - 37,484,906 100% - Long-term equity investments 31 December 2008 31 December 2007 Associates 138,335 192,094 - - - 73 - As at 31 December 2008, amount represents an equity investment in Huangshi Huaxin Hotel Co., Ltd., which is an unlisted company in the PRC. The Company hold 49% equity interests in Huangshi Huaxin Hotel Co., Ltd. The initial investment cost is RMB294,000. (9) Fixed assets Office Machinery and equipment and Buildings equipment fixtures Motor vehicles Total Cost 31 December 2007 2,946,159,479 4,611,732,675 47,205,563 330,071,986 7,935,169,703 Transfer from construction in progress 520,101,883 153,941,659 43,297,741 35,295,952 752,637,235 Other addition 20,855,095 19,003,731 23,178,472 12,758,297 75,795,595 Acquisition of subsidiaries (Note IX) 18,989,178 20,864,601 118,988 316,384 40,289,151 Disposals (254,610,338) (372,063,908) (10,376,286) (53,021,077) (690,071,609) 31 December 2008 3,251,495,297 4,433,478,758 103,424,478 325,421,542 8,113,820,075 Accumulated depreciation 31 December 2007 (566,810,700) (1,509,205,149) (17,970,043) (129,509,872) (2,223,495,764) Depreciation (102,944,117) (282,994,613) (6,533,255) (29,217,035) (421,689,020) Acquisition of subsidiaries (Note IX) (367,732) (115,911) (19,874) (60,503) (564,020) Disposals 112,525,967 260,581,845 2,352,309 33,180,840 408,640,961 31 December 2008 (557,596,582) (1,531,733,828) (22,170,863) (125,606,570) (2,237,107,843) Provision for impairment loss 31 December 2007 (32,573,239) (26,923,549) (5,245) (369,423) (59,871,456) Addition - (4,617,998) - - (4,617,998) Disposals 4,289,660 12,746,503 5,245 5,020 17,046,428 31 December 2008 (28,283,579) (18,795,044) - (364,403) (47,443,026) Net book value 31 December 2008 2,665,615,136 2,882,949,886 81,253,615 199,450,569 5,829,269,206 31 December 2007 2,346,775,540 3,075,603,977 29,230,275 200,192,691 5,651,802,483 (a) As at 31 December 2008, buildings and equipment with net book value of RMB 2,093,947,848 (original cost of RMB3,460,667,277) (31 December 2007: net book value of RMB2,340,589,145, original cost of RMB3,555,038,685), have been pledged as security for short-term loans of RMB238,000,000 (31 December 2007: RMB210,000,000) (Notes VII (16)(a)) and long-term loans of RMB1,132,657,047 (31 December 2007: RMB1,468,710,663) (Notes VII(26)(a)). (b) As at 31 December 2008, ownership certificate of certain buildings with net book value of RMB66,193,870 (original cost of RMB66,909,661) (31 December 2007: net book value of RMB37,810,812, original cost of RMB37,810,812) is to be obtained. (c) Depreciation charges for the years ended 31 December 2008 and 2007 were expensed in the following categories in the consolidated in come statements: - - - 74 - 31 December 2008 31 December 2007 Cost of sales 343,183,719 384,462,793 Selling and distribution expenses 20,701,731 18,208,237 Administrative expense 16,524,496 13,872,000 421,689,020 375,263,956 (d) As at 31 December 2008, machinery and equipments with a net book value of RMB67,597,565 (original cost of RMB254,647,071) and buildings with a net book value of RMB127,785,386 (original cost of RMB233,576,667) were in the progress of disposed and have been transferred to fixed assets pending for disposal(NoteVII(10)), as local government would acquire the land use rights where the buildings and equipments were located. Management is of the view that the carrying amounts of the fixed assets and land use rights to be disposed of will not exceed their net realisable value of RMB257,480,170 which represents the fair value of land use right to be obtained and compensation from the government totaling RMB261,288,200 less the estimated disposal expenses of approximately RMB3,808,030. Management considered that the disposal work and transferring land use right could not be completed in 2009. (10) Fixed assets pending for disposal Amounts mainly comprised fixed assets pending for disposal of RMB195,382,951 (original cost of RMB488,223,738) (Note VII(9)(d)) net of received consideration of RMB86,952,468. (11) Construction in progress - - - 75 - HUAXIN CEMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) [English Translation for Reference Only] 31 December Acquisition of Transfer to fixed 31 December Project name Budget 2007 subsidiaries(note IX) Addition assets 2008 Fin Huaxin Cement (Yangxin) Co., Ltd. - Wo Cogeneration Project 107,838,000 - - 82,129,744 - 82,129,744 an Huaxin Cement (Xiangfan) Co., Ltd. - 4000 T/D Production Line Wo Phase II 379,380,000 350,201 - 194,029,353 - 194,379,554 an Hunan Huaxin Xianggang Cement Co., Ltd. - 2 million Ton Production Wo Line 160,000,000 54,283,298 - 75,100,492 (123,407,126) 5,976,664 an Huaxin Cement (Xinyang) Co., Ltd. Wo - 4500 T/D Clinker Production Line 450,000,000 122,317,984 - 295,455,676 (417,556,618) 217,042 an The Company – Building of mechanical R&M branch 97,000,000 20,298,483 - 65,905,050 - 86,203,533 Wo Huaxin Cement (Zigui) Co., Ltd. - Wo 4000 T/D Production Line 617,280,000 31,481,198 - 193,426,633 - 224,907,831 an Huaxin Cement (Chenzhou) Co., Wo Ltd. - 4500 T/D Production Line 623,179,100 3,548,529 - 72,883,010 - 76,431,539 an Systems, Application and Products in Data processing Wo (SAP project) 60,000,000 24,912,428 - 41,950,450 (62,834,199) 4,028,679 an Subtotal carried forward 257,192,121 - 1,020,880,408 (603,797,943) 674,274,586 - 76 - HUAXIN CEMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) [English Translation for Reference Only] 31 December Acquisition of Transfer to fixed 31 December Project name Budget 2007 subsidiaries Addition assets 2008 Financ (note IX(a)) Subtotal brought forward 257,192,121 - 1,020,880,408 (603,797,943) 674,274,586 Huaxin Cement Technology Management (Wuhan) Co., Ltd. - Wuxue Phosphogysum Project 34,000,000 21,258,451 - 21,720,524 (41,119,922) 1,859,053 Workin Huaxin Cement (Wuxue) Co., Ltd. - Workin Source with previous Project 106,757,000 10,311,416 - 78,825,441 - 89,136,857 and lo Huaxin Cement (Quxian) Co., Ltd. - 4000 T/D Clinker Production Workin Line 480,340,000 - - 73,795,463 - 73,795,463 and lo Huaxin Cement (Hefeng) Co., Ltd. Workin Project (note IX(a)) 150,000,000 - 64,526,922 67,684,202 - 132,211,124 and lo Huaxin Cement Chongqing Fuling Co., Ltd. - 4600 T/D Workin Production Line 497,840,000 - - 50,308,324 - 50,308,324 and lo Huaxin Cement (Zhuzhou) Co., Ltd. - 4500 T/D Production Workin Line 639,174,500 4,436,018 - 110,611,023 - 115,047,041 and lo Other projects 146,146,830 - 393,660,152 (144,239,370) 395,567,612 439,344,836 64,526,922 1,817,485,537 (789,157,235) 1,532,200,060 Including: Borrowing cost capitalised 5,958,313 - 53,424,091 (25,051,758) 34,330,646 Less: Provision for impairment (6,939,396) - (1,365,777) - (8,305,173) 432,405,440 1,523,894,887 Borrowing costs capitalised in construction in progress during the year ended 31 December 2008 is calculated based 6.61% (2007: 6.23%). - 77 - HUAXIN CEMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) [English Translation for Reference Only] (12) Construction materials 31 December 2008 31 December 2007 Machinery and equipment 13,350,340 8,942,244 - 78 - HUAXIN CEMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 DECEMBER 2008 (All amounts in Renminbi yuan unless otherwise stated) [English Translation for Reference Only] (13) Intangible assets Acquisition of Transfer from 31 December construction subsidiaries Original cost 2007 in progress (note IX) Addition Amortisation Land use rights 1,002,916,933 611,235,364 - 25,094,606 264,576,459 (13,401,614) Trademarks 50,006,820 17,916,718 - 4,092 - (2,500,403) Software 39,441,660 824,171 36,520,000 - 1,671,660 (369,464) Technology patents 6,000,000 - - - 6,000,000 (50,000) Mining rights 133,688,164 100,956,301 - 61,782 25,043,470 (9,125,586) —Acquisition cost of mining right 55,981,439 23,449,445 - 61,782 24,843,601 (2,621,177) —Mine restoration fees 77,706,725 77,506,856 - - 199,869 (6,504,409) Others - 42,267 - - - (42,267) 1,232,053,577 730,974,821 36,520,000 25,160,480 297,291,589 (25,489,334) (a) As at 31 December 2008, land use rights with net book value of RMB279,461,068 (original cost of RMB345 book value of RMB340,633,317, original cost of RMB340,633,317) have been pledged to the banks as sec RMB238,000,000 (31 December 2007: RMB210,000,000 ) (Note VII (16)(a)) and long-term loans of RMB1 RMB1,468,710,663) (Note VII (26)(a)). (b) As at 31 December 2008, land use rights with net book value of RMB16,050,016 (original cost of RMB22,97 government. - 79 - (14) Goodwill 31 December 2008 31 December 2007 Goodwill 9,469,146 9,469,146 Amount represents excess of consideration over the respective share of fair value of identifiable net assets of Huaxin Nantong Cement Co., Ltd. at the date of acquisition of Huaxin Nantong Cement Co., Ltd. (15) Long-term prepaid expenses 31 December 31 December 2007 Addition Amortisation 2008 Mine development cost 19,973,204 20,640,415 (4,168,519) 36,445,100 Railway improvement cost 1,949,964 - (649,988) 1,299,976 Others 1,114,178 2,822,810 (337,366) 3,599,622 23,037,346 23,463,225 (5,155,873) 41,344,698 (16) Short-term loans Currency 31 December 2008 31 December 2007 Pledged bank loans (Note(a)) RMB 238,000,000 210,000,000 Guaranteed bank loans (Note(a)) RMB 18,000,000 - Unsecured bank loans (Note (b)) RMB 1,033,600,000 766,300,000 1,289,600,000 976,300,000 (a) Bank loans of RMB238,000,000 (31 December 2007: RMB210,000,000) were secured with pledge by buildings and equipments with a net book value of RMB287,323,574 (original cost of RMB458,551,446) (Note VII(9)(a)) and land use rights with net book value of RMB182,227,439 (original cost of RMB239,199,205) (Note VII (13)(a)). 40% and 60% of Bank loans of RMB18,000,000 (31 December 2007: Nil), were guaranteed by Xiangtan Steel (Group) Co., Ltd., a minority shareholder of a subsidiary, and the Company, respectively. (b) Unsecured bank loans include bank loans of RMB155,000,000 (31 December 2007: RMB165,000,000) of the subsidiaries of the Group guaranteed by the Company. The weighted average interest rate of short-term loans for year ended 31 December 2008 is 6.6% per annum (2007: 5.6% per annum). - 80 - (17) Notes payable 31 December 200 31 December 200 Bank acceptances 225,290,00 155,067,35 (18) Accounts payable As at 31 December 2008, there is no payables to shareholders who individually holds more than 5% (including 5%) of the Company’s share. (31 December 2007: Nil) As at 31 December 2008, accounts payable with ageing over 1 year amounted to RMB71,044,317 (31 December 2007: RMB98,922,585), which mainly comprised of payables for construction fee and purchase of equipments. The amounts will be settled after the respective projects have passed the quality verification. (19) Advances from customers As at 31 December 2008, advance payments of RMB136,719 (31 December 2007: RMB146,091,781) (Note X(4)(c)) were made by shareholders who individually holds more than 5% (including 5%) of the Company’s share. As at 31 December 2008, advances from customers with ageing over 1 year amounted to RMB23,887,580, which mainly are relocation compensation received from local government. As the relocation is still in the progress, the advance is not settled. Advances from customers denominated in foreign currency are set out as follows: 31 December 2008 31 December 2007 Foreign Exchange Converted to Foreign Exchange Converted to currency rate RMB currency rate RMB balance balance US dollars 20,004- -6.8346 -136,719 20,183,046 7.3046 147,429,078 (20) Accrued payroll and welfare expenses 31 December 2007 Addition Decrease 31 December 2008 Salaries, bonuses and allowances 26,244,459 246,922,754 (261,211,320) 11,955,893 Staff welfare 2,432,065 25,752,998 (28,185,063) - Social insurance 398,289 61,593,107 (59,423,410) 2,567,986 Housing fund 1,432,968 19,620,097 (18,330,181) 2,722,884 Labour union funds and employee education fee 5,469,213 1,582,058 (5,561,655) 1,489,616 Termination benefits - 7,663,659 (3,060,734) 4,602,925 35,976,994 363,134,673 (375,772,363) 23,339,304 (21) Taxes and other levies payable - 81 - 31 December 2008 31 December 2007 Enterprise income tax payable 53,381,658 84,051,581 Value-added-tax payable 39,801,905 63,849,411 Business tax payable 816,252 1,100,417 Resource tax payable 12,422,853 10,212,204 Civil infrastructure maintenance and construction fee payable 3,566,953 5,086,243 Education fee payable 3,792,774 3,316,893 Flood prevention fee payable 16,988,476 14,446,126 Others 18,233,785 14,403,437 149,004,656 196,466,312 (22) Dividends payable 31 December 2008 31 December 2007 Minority interests 29,323,800 61,572,707 Shareholders of the Company 576,326 576,326 29,900,126 62,149,033 (23) Other payables 31 December 2008 31 December 2007 Freight charges 31,751,692 31,089,629 Deposits 20,043,387 11,967,881 Withholding taxes 2,781,705 5,488,177 Others 62,768,414 45,885,926 117,345,198 94,431,613 As at 31 December 2008, payables to shareholders who holds more than 5% (including 5%) shares of the Company amounted to RMB2,050,380 (31 December 2007: RMB400,000)(Note X(3)(c)). As at 31 December 2008, other payables with ageing over one year amounted to RMB19,979,777 (31 December 2007: RMB20,786,416), which mainly comprised of the deposits made by large construction projects and will be settled upon completion of the projects. a) Current portion of non-current liabilities 31 December 2008 31 December 2007 Current portion of long-term loans (Note VII(26)) 675,174,937 699,979,478 Current portion of long-term payables (Note VII(27)) 16,870,040 4,630,980 692,044,977 704,610,458 - 82 - (25) The Company issued a short-term bond with par value of RMB500,000,000 in July 2007. The bond bears interests of 4.59% per annum and would be matured in one year. The bond has been fully repaid in July 2008. (26) Long-term loans 31 December 2008 31 December 2007 Pledged bank loans (Note (a)) 1,132,657,047 1,468,710,663 Guaranteed bank loans (Note (b)) 92,988,872 108,127,124 Unsecured (Note (c)) 1,374,110,000 1,063,980,000 2,599,755,919 2,640,817,787 Less: current portion of long-term loans (675,174,937) (699,979,478) - Pledged (Note (a)) (394,625,097) (388,074,942) - Guaranteed (Note (b)) (41,509,840) (1,904,536) - Unsecured (Note (c)) (239,040,000) (310,000,000) 1,924,580,982 1,940,838,309 As at 31 December 2008, long-term loans comprised: (a) Bank loans of denomiated in RMB of RMB1,017,160,000 (31 December 2007: RMB1,299,160,000), bank loans denominated in US dollar of RMB114,497,550 (31 December 2007: RMB166,179,650) and bank loans denominated in Euro of RMB1,017,497 (31 December 2007: RMB3,371,013) are secured by pledge of certain fixed assets with net book value of RMB1,806,624,274 (original cost of RMB3,002,115,831) (Note VII(9)(a)) and land use rights with net book value of RMB97,233,629 (original cost of RMB106,468,130) (Note VII (13)(a)). (b) Bank loans of RMB10,000,000 (31 December 2007: Nil) was guaranteed by Huaxin Group Co., Ltd., the second major shareholder of the company, of which the interest is payable every month and the principal is to be repaid in 2010 (Note X(3)(e)). Bank loans denominated in Denmark Kroner of RMB12,988,872 (31 December 2007: RMB18,127,124) were jointly guaranteed by Hubei Construction Bank and Hubei Government, of which the interest is payable every six months and the principal is to be repaid by installment from 2009 to 2021. Bank loans of RMB70,000,000 (31 December 2007: RMB90,000,000) were guaranteed by Xiangtan Steel (Group) Co., Ltd. and the Company at proportion of 40% and 60%, respectively. Loan interests are payable every three months and loan principal should be repaid by instalments during 2009 to 2010. (c) Unsecured loans of the subsidiaries of the Group of RMB1,271,610,000 (31 December 2007: RMB434,980,000) were guaranteed by the Company. Long-term loans were borrowed from the following banks: - 83 - 31 December 2008 31 December 2007 Bank of China 959,971,950 795,392,050 China Construction Bank 450,000,000 641,123,671 China Agricultural Bank 357,130,000 398,100,000 China Import and Export Bank 127,479,032 16,222,588 China Minsheng Bank 30,000,000 90,000,000 1,924,580,982 1,940,838,309 The maturity of long-term loans is as follows: 31 December 2008 31 December 2007 Between 1 to 2 years 518,964,714 584,668,207 Between 2 to 5 years 1,357,996,091 1,347,565,658 Over 5 years 47,620,177 8,604,444 1,924,580,982 1,940,838,309 The weighted average interest rate of long-term loan for the year ended 31 December 2008 is 7.1% per annum (2007: 6.5% per annum). (27) Long-term payables 31 December 2008 31 December 2007 Land use rights payables 41,548,560 43,414,371 Loans from local government 22,014,550 - Others - 10,493 Less: current portion (16,870,040) (4,630,980) - current portion of land use rights payables (4,855,490) (4,630,980) - current portion of loans from local government (12,014,550) - 46,693,070 38,793,884 The maturity of long-term payables is as follows: 31 December 2008 31 December 2007 Between 1 to 2 years 13,972,521 3,972,572 Between 2 to 5 years 11,297,345 11,297,345 Over 5 years 21,423,204 23,523,967 46,693,070 38,793,884 - 84 - (28) Provisions 31 December 31 December 2007 Addition Decrease 2008 Provision for employee benefits (Note (a)) 51,110,394 810,627 (6,794,738) 45,126,283 Provision for mine restoration 77,506,856 3,473,500 - 80,980,356 128,617,250 4,284,127 (6,794,738) 126,106,639 (a) Provision for employee benefits 31 December 2008 31 December 2007 Pension scheme 15,820,320 20,992,275 Post-employment medical benefits plans 29,305,963 30,118,119 45,126,283 51,110,394 Provision for employee benefits are measured based on discounted estimated future cash flow. Details of pension scheme and post-employment medical benefits plans are set out in Note IV (19)(a). The principal assumptions used in discounted future cash flow method are as follows: Annual increase rate of average salary rate 10% Discount rate (government bond) 2.19% The average life expectancy of pensioners is 70 years （29） Deferred income tax assets and liabilities Deferred income tax assets and deferred income tax liabilities without taking into consideration the offsetting of balances are as follows: (a) Deferred income tax assets 31 December 2008 31 December 2007 Deductible Deductible Deferred income temporary Deferred income temporary tax assets differences tax assets differences Provision for assets impairment 5,382,420 21,529,680 6,084,708 24,338,834 Accrued expenses 6,189,652 24,758,607 5,785,691 23,126,900 Unrealised profit arising from elimination of inter-company transactions 17,342,133 69,368,530 5,252,508 21,010,030 Tax losses 6,651,688 26,606,752 1,078,672 4,314,690 Provision for employee benefits 9,794,674 39,178,698 10,815,266 43,276,925 Amortisation of pre-operating 1,984,807 7,939,227 3,320,598 13,282,390 - 85 - expenses Unused tax credit 11,626,091 - - - 58,971,465 189,381,494 32,337,443 129,349,769 As at 31 December 2008, the Group did not recognise deferred income tax assets of RMB40,422,166 (31 December 2007: RMB35,011,197) in respect of the tax losses of RMB161,688,666 (31 December 2007: RMB140,044,789), which will expire between 2010 and 2013. (b) Deferred income tax liabilities 31 December 2008 31 December 2008 Taxable Taxable Deferred income temporary Deferred income temporary tax liabilities difference tax liabilities difference Capitalisation of loss incurred in trial production 2,612,673 10,450,693 3,009,534 12,038,140 Capitalisation of loan interests 11,562,405 46,249,618 7,115,652 28,462,611 Long-term payables measured at amortised cost 1,630,783 6,523,133 1,942,077 7,768,308 Change in fair value of available-for-sale financial assets 3,040,495 12,161,980 13,487,435 53,949,740 18,846,356 75,385,424 25,554,698 102,218,799 The net balances of deferred income tax assets and liabilities after offsetting are as follows: 31 December 2008 31 December 2007 Deferred tax assets, net 52,894,235 32,337,443 Deferred tax liabilities, net 12,769,126 25,554,698 (30) Share capital 31 December 31 December 2007 Addition Decrease 2008 Listed shares with restriction of trading: Shares held by the State (Note a) 79,250,648 - (3,962,532) 75,288,116 Shares held by PRC legal persons (Note a) 9,870,232 - (9,870,232) - Shares held by foreign legal persons (Note b) - 160,961,300 - 160,961,300 89,120,880 160,961,300 (13,832,764) 236,249,416 Listed shares without restriction of trading: A shares, listed 75,279,120 13,832,764 - 89,111,884 B shares, listed (Note b) 164,000,000 - (85,761,300) 78,238,700 239,279,120 13,832,764 (85,761,300) 167,350,584 - 86 - Total share capital 328,400,000 174,794,064 (99,594,064) 403,600,000 31 December 31 December 2006 Addition Decrease 2007 Listed shares with restriction of trading: Shares held by the State 79,250,648 - - 79,250,648 Shares held by legal persons 13,710,232 - (3,840,000) 9,870,232 92,960,880 - (3,840,000) 89,120,880 Listed shares without restriction of trading: A shares, listed 71,439,120 3,840,000 - 75,279,120 B shares, listed 164,000,000 - - 164,000,000 235,439,120 3,840,000 - 239,279,120 Total share capital 328,400,000 3,840,000 (3,840,000) 328,400,000 (a) Pursuant to the resolution of General Meeting held on 16 December 2005, additional 13,832,764 shares of the restricted shares have been released for trading in the market on 29 December 2008. (b) Pursuant to the approval from China Securities Regulatory Commission (CSRC permission [2008] 22) on 3 January 2008, the Company issued 75,200,000 new A shares with par value of RMB1 each to Holchin B.V. The subscription price is RMB2,026,640,000. The surplus, after net of the issuance cost of approximately RMB19,789,800, amounting to RMB1,931,650,200 (Including 85,761,300 B shares held without restriction before and new 75,200,000 additional shares issued in 2008) was recognised as capital surplus. After subscription of additional A shares Holchin B.V. held 39.88% shares of the Company. The 160,961,300 shares held by Holchin B.V. is restricted for trading until 4 February 2011. (31) Capital surplus 31 December 31 December 2007 Addition Decrease 2008 Share premium (Note VII(30)(b)) 265,238,482 1,931,650,200 - 2,196,888,682 Other Capital surplus -Change in fair value of available-for-sale financial assets 40,462,305 - (31,340,820) 9,121,485 -Government grant (Note a) 269,880,627 1,211,330 - 271,091,957 575,581,414 1,932,861,530 (31,340,820) 2,477,102,124 - 87 - 31 December 31 December 2006 Addition Decrease 2007 Share premium 265,238,482 - - 265,238,482 Other Capital surplus -Change in fair value of available-for-sale financial assets - 40,462,305 - 40,462,305 -Government grant (Note a) 268,519,727 1,360,900 - 269,880,627 533,758,209 41,823,205 - 575,581,414 (a) The amounts transferred from undistributed profits to capital surplus represent government grants recognised in income statement amounting to RMB1,211,330 (2007: RMB1,360,900). In accordance with the relevant PRC regulations, such government grant cannot be distributed to shareholders of the Company. (32) Surplus reserve 31 December 31 December 2007 Addition 2008 Statutory surplus reserve 112,272,222 8,281,785 120,554,007 Discretionary surplus reserve 63,580,329 - 63,580,329 175,852,551 8,281,785 184,134,336 31 December 31 December 2006 Addition 2007 Statutory surplus reserve 71,995,779 40,276,443 112,272,222 Discretionary surplus reserve 63,580,329 - 63,580,329 135,576,108 40,276,443 175,852,551 In accordance with the Company Law of the PRC, the Company’s Articles of Association and the resolution of board of directors of the Company, appropriations of 10% of net profit should be made to the statutory surplus reserve, after offsetting accumulated losses from prior years, until the accumulated statutory surplus reserve reaches 50% of the share capital. Statutory surplus reserve can be used to make up losses or to increase share capital. Pursuant to the resolution of Board of Directors, the Company appropriated RMB8,281,785, 10% of net profit for the year ended 31 December 2008, to the statutory surplus reserve (2007: 10% of net profit, RMB40,276,443). The amount of appropriation to the discretionary surplus reserve should be proposed by the board of directors of the Company and approved by general meeting of shareholders. Discretionary surplus reserve can be used to make up losses or to increase share capital after certain approval. The Company has not made any appropriation to discretionary surplus reserves in the year (2007: Nil). (33) Undistributed profits - 88 - As at 31 December 2008, included in the undistributed profits, an amount of RMB135,744,989 is subsidiaries’ surplus reserve attributable to the Company (31 December 2007: RMB89,888,316), among which RMB45,856,673 is appropriated for the current year (2007: RMB29,476,673). Pursuant to the resolution at the Board of shareholders’ general meeting on 22 April 2008, cash dividends in respect of 2007 of RMB48,432,000 (RMB0.12 per share) was paid based on the issued shares of 403,600,000. Pursuant to the resolution of Board at the Board of Directors’ meeting on 9 March 2009, cash dividends in respect of 2008 of RMB 60,540,000 (RMB0.15 per share) was proposed which is based on the issued shares of 403,600,000. This proposed dividend is subject to the approval of shareholders’ general meeting. (34) Minority Interests 31 December 31 December 2008 2007 Huaxin Golden Cat Cement (Suzhou) Co., Ltd. 400,550,489 421,929,521 Huaxin Cement (Yichang) Co., Ltd. 121,710,860 68,507,700 Huaxin Cement (Yangxin) Co., Ltd. 113,921,432 106,861,400 Huaxin Cement (Tibet) Co., Ltd. 53,312,006 40,327,517 Wuhan Wugang Huaxin Cement Co., Ltd. 40,990,990 38,610,278 Huaxin Cement (Hefeng) Co., Ltd. 23,347,523 - Huaxin Cement (Suizhou) Co., Ltd. 16,356,520 - Others 74,486,156 45,305,424 844,675,976 721,541,840 (35) Sales and cost of sales 2008 2007 Revenue from main operations 4,726,870,378 6,288,923,251 Other operating income 60,536,396 43,237,763 6,349,459,647 4,770,108,141 2008 2007 Cost of main operations 5,000,593,379 3,612,595,599 Other operating expenses 30,699,479 24,444,978 5,031,292,858 3,637,040,577 - 89 - (a) Revenue and cost of main operations 2008 2007 Revenue of Cost of main Revenue of Cost of main main operations operations main operations operations Sales of cement 5,819,941,931 (4,632,841,988) 4,499,514,252 (3,430,257,735) Sales of clinker 178,070,565 (153,790,058) 28,633,041 (26,435,035) Sales of concrete 116,436,716 (101,423,671) 89,991,424 (72,991,109) Others 174,474,039 (112,537,662) 108,731,661 (82,911,720) 6,288,923,251 (5,000,593,379) 4,726,870,378 (3,612,595,599) The sales to top five customers of the Group totaled to RMB396,803,112 (2007: RMB494,999,501), which accounted for 6% (2007: 10%) of the total revenue from main operations. (b) Other operating income and expenses 2008 2007 Other operating Other operating Other operating Other operating income expenses income expenses Sales of materials 39,137,203 (15,258,198) 28,316,944 (12,852,517) Electricity fee 14,052,581 (12,924,814) 4,925,851 (4,339,280) Others 7,346,612 (2,516,467) 9,994,968 (7,253,181) 60,536,396 (30,699,479) 43,237,763 (24,444,978) (36) Tax and surcharges 2008 2007 Civil infrastructure maintenance and construction fee 17,090,925 15,259,979 Education fee 11,309,944 9,619,324 Flood prevention fee 2,773,053 4,229,958 Business tax 3,040,945 3,349,446 Resource tax 40,684,530 29,559,316 Others 3,800,573 2,949,225 78,699,970 64,967,248 (37) Financial expenses – net - 90 - 2008 2007 Interest expenses 209,777,663 204,029,901 Less: Interest income (11,661,250) (4,824,687) Exchange losses 2,957,226 3,188,556 Less: Exchange gains (22,741,395) (22,148,236) Others 6,445,142 2,393,014 184,777,386 182,638,548 (38) (Provision for) /reversal of the asset impairment 2008 2007 Reversal of provision of bad debts 737,531 745,450 Reversal/(addition) of provision of write-down 4,508,107 (475,280) of inventory Impairment losses of construction in progress (1,365,777) - Impairment losses of fixed assets (4,617,998) - (738,137) 270,170 (39) Investment income 2008 2007 Income from available-for-sale financial assets 611,750 - Share of losses in an associated company (53,759) (103,094) Cash divided from investments stated at cost - 2,333,227 557,991 2,230,133 (40) Non-operating income and expenses (a) Non-operating income: 2008 2007 Gain on disposal of fixed assets 7,599,207 539,335 Tax refund from sales of goods having utilised wasted natural materials (Note (i)) 74,046,045 72,358,903 Government grant (Note (ii)) 42,677,889 32,754,783 Others 9,135,673 1,052,874 133,458,814 106,705,895 (i) The amount represents refund of VAT totaling RMB74,046,045 for sales of goods having utilised wasted natural materials (2007: RMB72,358,903). (ii)Amounts mainly comprissed subsidy from local government totaling RMB32,468,989 (2007: RMB27,457,427). - 91 - (b) Non-operating expenses 2008 2007 Losses on disposal of fixed assets 12,696,729 7,650,642 Donation 1,481,073 4,197,738 Others 3,371,930 2,105,907 19,000,374 12,503,645 (41) Income taxes 2008 2007 Current income tax 64,899,783 93,393,811 Deferred income tax (22,895,424) 16,058,553 42,004,359 109,452,364 The reconciliation from income tax calculated based on applicable tax rate and total profit presented in the consolidated financial statements to the income tax expenses is as follows: 2008 2007 Profit before tax 576,944,469 448,819,327 Income tax calculated at applicable tax rates 100,313,537 132,570,348 Effect of changes in tax rate - 3,627,108 Income not subject to tax (139,498) (2,055,944) Tax exemption (Note a) (70,399,225) (28,375,923) Utilisation of previously unrecognised tax losses (3,042,454) - Tax losses for which no deferred income tax asset was recognised 10,907,670 2,624,312 Expenses not deductible for tax purposes 4,364,329 1,062,463 Income taxes 42,004,359 109,452,364 - 92 - (a) Tax exemption (i) Pursuant to relevant tax regulation and subject to review and approval of local tax authorities, the group companies utilise wasted materials in production of goods for sale can enjoy an exemption from income tax related to sales of these products. In 2008, Huaxin Cement (Yichang) Co., Ltd., Huaxin Cement (Wuxue) Co., Ltd. and Huaxin Cement (Xiangfan) Co., Ltd. have obtained approval from respective local state tax bureaus for exemption from income tax of RMB35,647,284 for 2007. Accordingly, the provision of income tax made in 2007 has been reversed in the year. (ii) Huaxin Cement (Ensi) Co., Ltd. is a manufacturing enterprise established in minority nationality residential zone, pursuant to relevant tax regulation and subject to review and approval of local tax authorities, it can enjoy a preference tax treatment. In 2008, Huaxin Cement (Ensi) Co., Ltd. has obtained approval from Hubei Provincial Tax Bureau of exemption from income tax for 2007. The provision of income tax of RMB17,077,850 for 2007 has been reversed in the year. (iii) In 2008, Huaxin Cement (Wuxue) Co., Ltd. and Huaxin Cement (Yangxin) Co., Ltd. have obtained approval from Hubei Provincial Tax Bureau for tax credits of approximately RMB17,674,091 for technical improvement of domestic manufacturing machinery, of which RMB6,048,000 has been utilised in the year and the remaining unused tax credit was recognised as deferred tax assets. (42)Earnings per share (a) Basic earnings per share Basic earnings per share is calculated by consolidated net profit attributable to shareholders of the Company divided by the weighted average number of ordinary shares in issue: 2008 2007 Consolidated net profit attributable to shareholders of the Company 459,975,559 290,245,247 Weighted average number of ordinary shares in issue (Note (i)) 391,066,667 328,400,000 Basic earnings per share 1.18 0.88 (i) As at 3 February 2008, the Company issued 75,200,000 new A shares to Holchin B.V., the number of issued shares of the Company increased from 328,400,000 to 403,600,000. The weighted average number of ordinary shares for the year is 391,066,667. The weighted average number of ordinary shares for the year is 391,066,667. (b) Diluted earnings per share The Company has no potential outstanding ordinary shares, the diluted earning per share equals to the basic earnings per share. (43) Notes to cash flow statement (a) Reconciliation of net profit to cash flows from operating activities - 93 - 2008 2007 Net profit 534,940,110 339,366,963 Add: Provision for assets impairment 738,137 (270,170) Depreciation of fixed assets 421,689,020 375,263,956 Amortisation of intangible assets 25,489,334 17,298,012 Amortisation of long-term prepaid expenses 5,155,873 2,164,394 Amortisation of deferred income (2,962,950) (3,397,992) Loss on disposal of fixed assets and intangible assets 5,097,522 7,111,307 Finance expenses 196,491,517 194,626,221 Investment income (557,991) (2,230,133) Deferred income tax (22,895,424) 16,058,553 Increase in inventories (50,353,969) (98,692,692) Decrease/(increase) in receivables related to operating activities 10,215,569 (109,320,927) Increase in payables related to operating activities 41,839,078 224,549,452 Net cash flows from operating activities 1,164,885,826 962,526,944 (b) Net changes in cash 2008 2007 Ending balance of cash 925,121,506 515,985,750 Less: Beginning balance of cash (515,985,750) (453,306,444) Increase in cash 409,135,756 62,679,306 (c) Cash 31 December 2008 31 December 2007 Cash at bank and in hand 569,091,717 986,717,837 Less: Restricted cash (53,105,967) (61,596,331) Ending balance of cash 515,985,750 925,121,506 (d) Cash paid relating to other operating activities In the cash flow statement, cash paid relating to other operating activities comprises: 2008 2007 Selling and traveling expenses 55,034,724 54,727,830 Entertainment expenses 8,885,787 7,537,076 Office expenses 13,089,158 11,955,321 - 94 - Drainage expenses 4,310,348 4,475,928 Training, fire security and greenery expenses 5,583,663 5,936,370 Insurance premiums 2,412,184 4,063,359 Labor union funds and employee education fee 5,561,655 5,505,612 Welfare of retired employee 8,402,955 9,831,128 Advertising expense 4,857,497 6,451,608 Payment of deposits 34,192,547 21,996,182 Payments of bulk cement fund 6,150,000 6,859,899 Low cost consumables 8,759,220 10,477,474 Donations 1,802,069 1,481,073 Others 39,820,897 43,030,050 198,862,704 194,328,910 VIII Segment reporting No business segment information of the Group is presented as the Group’s sales, expenses, assets and liabilities are primarily attributable to manufacturing and sales of cement and related products. As less than 10% of the Group’s consolidated sales and results are attributable to the market outside the PRC and less than 10% of the Group’s consolidated assets are located outside the PRC, there is no significant difference in risk and reward in different locations of PRC where the Group’s operation is undertaken, no geographical segment information is presented. IX Business combination (a) On 6 May 2008, the Company acquired 51% of equity interests in Hefeng Changhong Cement Co., Ltd. (the company name was subsequently changed to Huaxin Cement (Hefeng) Co., Ltd.) from Hubei Changyou Advance Agriculture Co., Ltd. The acquisition date is 6 May 2008, which is the date when the Company effectively obtains the right to control Hefeng Changhong Cement Co., Ltd. Details of net assets acquired and goodwill are as follows: Consideration Cash paid 23,800,483 Consideration to be paid 500,000 24,300,483 Less: Fair value of net assets acquired (24,300,483) Goodwill - The identifiable assets, liabilities of Hefeng Changhong Cement Co., Ltd. at the acquisition date, and the cash flows relating to the acquisition are set out as follows: Fair value Carrying amount Acquisition date Acquisition date 31 December 2007 Cash 10,881 10,881 1,076,178 - 95 - Accounts receivables 1,915,024 1,915,024 5,379,243 Fixed assets 2,240,051 2,240,051 2,314,814 Intangible assets 7,875,560 7,875,560 7,951,610 Construction in progress 64,526,922 64,526,922 59,745,135 Other non-current assets 948,923 948,923 695,910 Less: Accounts payable (29,869,355) (29,869,355) (29,514,884) Net assets 47,648,006 47,648,006 47,648,006 Net assets acquired 24,300,483 24,300,483 Consideration settled in cash 23,800,483 Less: cash in the subsidiary acquired (10,881) Net cash outflow on acquisition of the subsidiary 23,789,602 During the period from the acquisition date to 31 December 2008, Huaxin Cement (Hefeng) Co., Ltd. was in pre-operating stage and has not incurred significant profit or loss. (b) On 9 December 2008, the Company acquired 60% of equity interest in Huaxin Cement Suizhou Co., Ltd. from Suizhou Great Wall Building Materials Co., Ltd. The acquisition date is 9 December 2008, which is the date when the Company effectively obtains the right to control Huaxin Cement Suizhou Co., Ltd. Details of net assets acquired and goodwill are set out as follows: Consideration Cash paid 21,150,000 Consideration to be paid 3,450,000 24,600,000 Less: Fair value of net assets acquired (24,600,000) Goodwill - The identifiable assets, liabilities of Huaxin Cement Suizhou Co., Ltd. at the acquisition date and the cash flows relating to the acquisition are as follows: Fair value Carrying amount Acquisition date Acquisition date 15 October 2008 (date of incorporation) Cash 705,463 705,463 50,000 Accounts receivables 53,500 53,500 - Advance to suppliers 100,000 100,000 - Fixed assets 27,695,080 27,695,080 - Intangible assets 13,304,920 13,304,920 - Less: Accounts payable (858,963) (858,963) - Net assets 41,000,000 41,000,000 50,000 - 96 - Net assets acquired 24,600,000 24,600,000 Consideration settled in cash 21,150,000 Less: cash in the subsidiary acquired (705,463) Net cash outflow on acquisition of subsidiary 20,444,537 Revenue, net profit and cash flows of Huaxin Cement Suizhou Co., Ltd. for the period from the acquisition date to 31 December 2008 are set out as follows: Revenue 2,700,270 Net profit 108,699 Cash inflows from operating activities 329,839 Net cash inflows 329,839 (c) On 15 December 2008, the Company acquired 55% of equity interest in Huaxin Cement (Shishou) Co., Ltd. from Hubei Jian Yuan Cement Co., Ltd. The acquisition date is 15 December 2008, which is the date when the Company effectively obtains the right to control Huaxin Cement (Shishou) Co., Ltd. Details of net assets acquired and goodwill are as follows: Consideration Cash paid 8,712,000 Consideration to be paid 2,178,000 10,890,000 Less: Fair value of net assets acquired (10,890,000) Goodwill - The identifiable assets, liabilities of Huaxin Cement (Shishou) Co., Ltd. at the acquisition date and the cash flows relating to the acquisition are as follows: Fair value Carrying amount Acquisition date Acquisition date 8 October 2008 (date of incorporation) Cash 2,034,452 2,034,452 30,000 Accounts receivable 6,401,366 6,401,366 - Advance to suppliers 288,797 288,797 - Fixed assets 9,790,000 9,790,000 - Intangible assets 3,980,000 3,980,000 - Less: Advance from customers (2,694,615) (2,694,615) - Net assets 19,800,000 19,800,000 30,000 Net assets acquired 10,890,000 10,890,000 - 97 - Cash consideration 8,712,000 Less: cash in the subsidiary acquired (2,034,452) Net cash outflow on acquisition of subsidiary 6,677,548 Revenue, net profit and cash flows of Huaxin Cement (Shishou) Co., Ltd. for the period from the acquisition date to 31 December 2008 are set out as follows: Revenue 2,917,812 Net profit 316,869 Cash outflows from operating activities (307,659) Net cash outflows (307,659) X Related party relationships and significant related party transactions (1 ) Major shareholders and subsidiaries of the Company The general background and other related information of the subsidiaries is set out in Note VI. (a) General information of major shareholders of the Campany Registered Relationship with address the Company Principal business Holchin Amsterdam, The largest B.V. Holland shareholder Investment holdings Huaxin Huangshi City, The second Group Co., the PRC largest Production and sales of cement, related Ltd. shareholder machinery and spare parts, real estate development, trading and rendering of service etc. Holchin B.V. is an investment holding company and its ultimate holding company is Holcim Ltd. (b) Registered capital and changes in registered capital of major shareholders of the Company 31 December 2007 Increase Decrease 31 December 2008 Holchin B.V. Euro90,756 Euro9,244 - Euro100,000 Huaxin Group Co., Ltd. RMB370,000,000 - - RMB370,000,000 - 98 - (c) Interest and voting rights held by the major shareholders 31 December 2007 31 December 2008 percentage of percentage of percentage percentage of shares voting right of shares voting right Holchin B.V. 26.11% 26.11% 39.88% 39.88% Huaxin Group Co., Ltd. (including shares held on behalf of the State) 27.14% 27.14% 22.09% 22.09% (2) Other related parties Related parties Relationship with the Company Holcim Ltd. Ultimate holding company of Holchin B.V. Huangshi Yiruida Investment Co., Ltd. Controlled by Huaxin Group Co., Ltd. Huangshi Huaxin Hotel Co., Ltd. Associate of the Company Holcim Group Support Ltd. Controlled by Holcim Ltd. Holcim Trading SA Controlled by Holcim Ltd. (3) Related party transactions (a) Pricing policies The Group’s pricing policies on sales of goods to related parties are based on market prices. (b) Sales of goods 2008 2007 Holcim Trading SA 29,992,343 151,210,380 The Group’s sales to the related parties accounted for 0.5% of total sales of the Group in the year ended 31 December 2008 (2007: 3.4%). (c) Services received Nature 2008 2007 Huaxin Group Co., Ltd. Management fee 4,800,000 4,800,000 Holcim Group Support Ltd. Consultancy fee 2,050,380 2,209,410 6,850,380 7,009,410 (d)Salaries of key management 2008 2007 Salaries of key management 7,536,316 7,216,555 (e) Guarantees provided by related party 31 December 2008 31 December 2007 Huaxin Group Co., Ltd. 10,000,000 - As at 31 December 2008, long-term loans of RMB10,000,000 (31 December 2007: Nil) were guaranteed by Huaxin Group Co.,Ltd. - 99 - (4) Accounts receivable from and payables to related parties (a) Accounts receivable 31 December 2008 31 December 2007 Holcim Trading SA 192,807 8,093,620 As at 31 December 2008, the accounts receivable from related parties accounted for 0.1% of total accounts receivable of the Group (31 December 2007: 6%). (b) Other payables 31 December 2008 31 December 2007 Huaxin Group Co., Ltd. - 400,000 Holcim Group Support Ltd. 2,050,380 - 2,050,380 400,000 As at 31 December 2008, the other payables to related parties accounted for 1.7% of total other payables of the Group (31 December 2007: 0.4%). (c) Advance from customers 31 December 2008 31 December 2007 Holcim Trading SA 136,719 146,091,781 As at 31 December 2008, the advances from related parties accounted for 0.1% of total advances from customers of the Group (31 December 2007: 36%). (d) Long-term payables (including current portion) 31 December 2008 31 December 2007 Huangshi Yiruida Investment Co., Ltd. 21,857,283 21,927,779 As at 31 December 2008, the Group’s long-term payables to related parties accounted for 47% of long-term payables of the Group (31 December 2007: 57%). XI Capital commitments 31 December 2008 31 December 2007 Buildings, machinery and equipment 1,035,744,372 232,185,446 XII Events after balance sheet date Pursuant to the resolution of shareholders’ Meeting held on 2 August 2008, the Company plans to issue a short-term bond with a value of RMB600,000,000. The application documents have been submitted to relevant authority for approval in February 2009. XIII Contingencies In 2008, the Company has entered into an agreement to guarantee a loan of Xinyang City Shihe District Highway Construction Co., Ltd. amounting to RMB18,000,000. As at 31 December 2008, the loan was not yet repaid. - 100 - XIV Net profit excluding non-routine items 2008 2007 Net profit 534,940,110 339,366,963 Add/(less): Net loss on disposal of non-current assets 5,097,522 7,111,307 Effect of change in tax rate - 3,627,108 Other non-operating (income)/expenses, net (2,832,028) 3,800,130 Government grant (42,677,889) (32,754,783) Tax impact of above non-routine items 7,523,917 4,137,858 Net profit excluding non-routine items 502,051,632 325,288,583 Including: Attributable to shareholders of the Company 435,429,123 282,002,913 Attributable to minority interests 66,622,509 43,285,670 502,051,632 325,288,583 (1) Basis of preparation According to the “Information Disclosures Requirement Interpretation for Listed Companies No.1 - non-routine gain and loss”, non-routine gain and loss represent those gain or loss that are not related to the daily operation of the Group or even if being related to the daily operation, separate disclosure of these items will help a better understanding of results and profitability of the Group’s operation by considering their nature and frequency. XV Notes to the material items in the company financial statements (1) Accounts receivable and other receivables (a) Accounts receivable 31 December Addition Decrease 31 December 2007 2008 Accounts receivable 80,560,321 89,512,918 Less: Bad debt provisions (5,848,596) (22,120) 1,162,804 (4,707,912) 74,711,725 84,805,006 As at 31 December 2008, the amounts due from top five customers amounted to RMB48,221,629. The amounts are aged within one year, and accounted for 54% of the total accounts receivable. As at 31 December 2008, there is no receivable due from shareholders who holds more than 5% (including 5%) shares of the Company (31 December 2007: Nil). Ageing of accounts receivable and related provisions for bad debts are analysed below: 31 December 2008 31 December 2007 % of % of total Bad debts total Bad debts Amount balance provisions Amount balance provisions Within 1 year 94.6% - 74,363,635 92.3% - - 101 - 84,674,914 Between 1 and 2 years - - - 260,846 0.3% (27,878) Between 2 and 3 years 0.2% (66,790) 196,882 133,977 0.2% (29,179) Over 3 years 5.2% (4,641,122) 4,641,122 5,801,863 7.2% (5,791,539) 89,512,918 100% (4,707,912) 80,560,321 100% (5,848,596) Accounts receivable classified by categories of customers: 31 December 2008 31 December 2007 Amount % Bad debt % of Amount % Bad debt % of provisions provision provisions provision Debtors with significant amount 57,628,995 64.4% - - 37,877,575 47.0% - - Debtors with insignificant amount but of high credit risk 4,652,159 5.2% (4,652,159) 100% 5,791,539 7.2% (5,791,539) 100% Others 27,231,764 30.4% (55,753) 0.2% 36,891,207 45.8% (57,057) 0.2% 89,512,918 100% (4,707,912) 5.3% 80,560,321 100% (5,848,596) 7.3% (b)Other receivables 31 December 2007 Addition Decrease 31 December 2008 Amounts due from subsidiaries 507,020,754 851,512,322 Others 12,317,266 39,534,086 519,338,020 891,046,408 Less: Bad debt provisions (2,242,818) (6,959) 39,967 (2,209,810) 517,095,202 888,836,598 Ageing of other receivables and the related provision for bad debt are analysed as follows: 31 December 2008 31 December 2007 Amount % of total Provision Amount % of total Provision balance for bad debts balance for bad debts Within 1 year 885,651,170 99.3% - 468,120,197 90.1% - Between 1 and 2 years 3,048,516 0.4% (334,980) 47,848,882 9.2% - Between 2 and 3 years 321,800 0.1% - 500,000 0.1% - Over 3 years 2,024,922 0.2% (1,874,830) 2,868,941 0.6% (2,242,818) 891,046,408 100.0% (2,209,810) 519,338,020 100% (2,242,818) - 102 - Other receivables classified by nature: 31 December 2008 31 December 2007 Amount % Bad debt % of Amount % Bad debt % of provisions provision provisions provision Debtors with significant amount 863,844,014 96.9% - - 504,359,029 97.1% - - Debtors with insignificant amount but of high credit risk 2,209,810 0.2% (2,209,810) 100% 1,868,941 0.4% (1,868,941) 100% Others 24,992,584 2.9% - - 13,110,050 2.5% (373,877) 2.9% 891,046,408 100% (2,209,810) 0.2% 519,338,020 100% (2,242,818) 0.4% As at 31 December 2008, there is no amount due from shareholders who holds more than 5% (including 5%) shares of the Company. As at 31 December 2008, the receivables from top five debtors amounted to RMB532,166,055 (31 December 2007: RMB466,589,543). The amounts are aged within one year and accounted for 60% of the total accounts receivable of the Company (31 December 2007： 90%). (2) Long-term equity investments 31 December 2008 31 December 2007 Subsidiaries (Note (a)) 2,909,535,339 1,593,242,697 Associates 138,335 192,094 2,909,673,674 1,593,434,791 The Group has no investment in overseas. The long-term equity investments of the Group are not subject to significant restriction on realising in cash or remittance of investment income. (a) Subsidiaries nitial Additional 31 December 2Addition / 31 December nvestment investment 2007 (decrease) 2008 Huaxin Cement (Xiantao) Co., Ltd. 14,658,136 - 14,658,136 - 14,658,136 Huaxin Nantong Cement Co., Ltd. 89,680,203 - 89,680,203 - 89,680,203 Huangshi Huaxin Packaging Co., Ltd. 7,870,000 - 7,870,000 - 7,870,000 Wuhan Wugang Huaxin Cement Co., Ltd. 20,000,000 - 20,000,000 - 20,000,000 Huaxin Cement (Yichang) Co., Ltd. 105,000,000 - 105,000,000 - 105,000,000 Huaxin Cement (Enshi) Co., Ltd. 40,200,000 - 40,200,000 - 40,200,000 Huaxin Cement Scientific Research and Design - - Co., Ltd. 990,000 990,000 990,000 Huaxin Golden Cat Cement (Suzhou) Co., Ltd. 235,344,358 - 235,344,358 - 235,344,358 Huaxin Cement (Tibet) Co., Ltd. 30,000,000 - 30,000,000 - 30,000,000 Huaxin Cement (Zhaotong) Co., Ltd. 45,000,000 - 45,000,000 - 45,000,000 Huaxin Cement (Yueyang) Co., Ltd. 22,500,000 - 22,500,000 - 22,500,000 Huaxin Cement (Yangxin) Co., Ltd. 400,000,000 - 400,000,000 - 400,000,000 Huaxin Cement (Wuhan) Co., Ltd. 42,000,000 - 42,000,000 - 42,000,000 Huaxin Concrete (Wuhan) Co., Ltd. 14,000,000 66,502,159 14,000,000 66,502,159 80,502,159 - 103 - Huaxin Cement (Xiangfan) Co., Ltd. 140,000,000 - 140,000,000 - 140,000,000 Hunan Huaxin Xianggang Cement Co., Ltd. 36,000,000 - 36,000,000 - 36,000,000 Huaxin Cement (Wuxue) Co., Ltd. 200,000,000 - 200,000,000 - 200,000,000 Huaxin Cement (Chibi) Co., Ltd. 140,000,000 - 140,000,000 - 140,000,000 Huaxin Concrete (Huangshi) Co., Ltd. 10,000,000 - 10,000,000 (10,000,000) - Huaxin Cement Technology Management (Wuhan) Co., Ltd. 20,000,000 - - 20,000,000 20,000,000 Huaxin Cement (Chenzhou) Co., Ltd. 160,000,000 - - 160,000,000 160,000,000 Huaxin Cement (Zigui) Co., Ltd. 160,000,000 - - 160,000,000 160,000,000 Huaxin Cement (Macheng) Co., Ltd. 40,000,000 - - 40,000,000 40,000,000 Huaxin Cement (Zhuzhou) Co. Ltd. 200,000,000 - - 200,000,000 200,000,000 Huaxin Cement (Henan Xinyan) Co., Ltd. 140,000,000 - - 140,000,000 140,000,000 Huaxin Cement (Hefeng) Co., Ltd. 24,300,483 - - 24,300,483 24,300,483 Huaxin Environment Protection (Wuxue) Waste Treatment Co., Ltd. 10,000,000 - - 10,000,000 10,000,000 Huaxin Cement (Huangshi) Logistics Co., Ltd. 20,000,000 - - 20,000,000 20,000,000 Huaxin Cement Xiangfan Xiangcheng Co., Ltd. 40,000,000 - - 40,000,000 40,000,000 Huaxin Cement (Quxian) Co., Ltd. 160,000,000 - - 160,000,000 160,000,000 Huaxin Cement (Kunming dongchuan) Co., Ltd. 30,000,000 - - 30,000,000 30,000,000 Huaxin Cement (Huangshi) Equipment Manufacturing Co., Ltd. 60,000,000 - - 60,000,000 60,000,000 Huaxin Cement Chongqing Fuling Co., Ltd. 160,000,000 - - 160,000,000 160,000,000 Huaxin Cement Suizhou Co., Ltd. 24,600,000 - - 24,600,000 24,600,000 Huaxin Cement (Shishou) Co., Ltd. 10,890,000 - - 10,890,000 10,890,000 2,853,033,180 66,502,159 1,593,242,697 1,316,292,6422,909,535,339 (3) Sales and cost of sales 2008 2007 Revenue of main operations 1,214,530,663 1,498,128,953 Other operating income 1,647,178,999 741,844,577 2,861,709,662 2,239,973,530 2008 2007 Cost of main operations 981,047,332 1,243,279,112 Other operating expenses 1,625,372,482 692,053,390 2,606,419,814 1,935,332,502 (a)Revenue and cost of main operations - 104 - 2008 2007 Revenue of main Cost of main Revenue of main Cost of main operations operations operations operations Sales of cement 1,018,329,517 (847,304,578) 1,349,680,422 (1,130,398,354) Sales of clinker 4,412,980 (4,135,765) 17,316,567 (17,440,442) Others 191,788,166 (129,606,989) 131,131,964 (95,440,316) 1,214,530,663 (981,047,332) 1,498,128,953 (1,243,279,112) The sales to top five customers of the Company amounted to RMB238,239,110 (2007: RMB299,732,077), which accounted for 20% of the total revenue from main operation (2007: 20%). (b)Other operating income and expenses 2008 2007 Other operating Other operating Other operating Other operating income expenses income expenses Sales of materials 1,640,790,596 (1,619,549,499) 727,838,247 (691,267,636) Others 6,388,403 (5,822,983) 14,006,330 (785,754) 1,647,178,999 (1,625,372,482) 741,844,577 (692,053,390) (4)Investment income 2008 2007 Share of losses in an associated company (53,759) (103,094) Cash dividends of investments stated at cost 1,200,000 353,340,214 Income from available-for-sale financial assets 611,750 - Income from disposal of long-term investments 2,993,318 - 4,751,309 353,237,120 - 105 - Consolidated provision for impairment of assets for the year ended 31December 2008 Decrease Items 31 December 2007 Addition Write back Write off 1.Provision for bad debts 11,299,343 883,158 (1,620,689) (94 Including: Accounts receivable 8,440,757 485,554 (1,580,722) (94 Other receivables 2,858,586 397,604 (39,967) 2.Provision for declines in the value of inventories 27,819,504 - (4,508,107) 3.Impairment provision for available-for-sale financial assets 2,775,600 - - 4.Impairment provision for held-to-maturity investment - - - 5.Impairment provision for long-term equity investment - - - 6.Impairment provision for investment property - - - 7.Impairment provision for fixed assets 59,871,456 4,617,998 - (17,04 8.Impairment provision for construction materials - - - 9.Impairment provision for construction in progress 6,939,396 1,365,777 - 10.Impairment provision for intangible assets - - - 11.Impairment provision for goodwill - - - 12.Others - - - Total 108,705,299 6,866,933 (6,128,796) (17,98 - 106 - Provision for impairment of assets in the Company for the year ended 31 December 2008 Decrease Items 31 December 2007 Addition Write back Write off 1.Provision for bad debts 8,091,414 29,079 (1,202,771) Including: Accounts receivable 5,848,596 22,120 (1,162,804) Other receivables 2,242,818 6,959 (39,967) 2.Provision for declines in the value of inventories 18,417,216 - (4,508,107) 3.Impairment provision for available-for-sale 2,775,600 - - financial assets 4.Impairment provision for held-to-maturity - - - investment 5.Impairment provision for long-term equity - - - investment 6.Impairment provision for investment property - - - 7.Impairment provision for fixed assets 4,047,236 - - 8.Impairment provision for construction materials - - - 9.Impairment provision for construction in - 1,365,777 - progress 10.Impairment provision for intangible assets - - - 11.Impairment provision for goodwill - - - 12.Others - - - Total 33,331,466 1,394,856 (5,710,878) - 107 - Chapter 12 Documents for Inspection 1. Financial Statements carrying the signatures of the legal representative, administrative leader of accounting and chief of accounting department. 2. Original Auditors’ Report, audited and signed by the CPAs. 3. All original copies of the public notice and documents that were published on presses designated by CSRC. Chairman: Chen Musen Huaxin Cement Co., Ltd. March 9, 2009 - 108 -