Company Summary - Asia Cement (China) reported a revenue of 2.496 billion RMB for the six months ending June 30, 2025, representing a year-on-year decline of 7.2% [1] - The company recorded a profit attributable to shareholders of 114 million RMB, a significant improvement from a loss of 405 million RMB in the same period last year [1] - Basic earnings per share were reported at 0.073 RMB [1] Industry Insights - The cement industry is expected to see a shift away from overproduction, with stricter policies on daily and annual production limits for companies [1] - If these policies are fully implemented, the average capacity utilization rate in the national cement industry could increase from 50% to 70% [1] - Recent demand from hydropower projects is anticipated to catalyze a recovery in key engineering demand within the industry, leading to a potential resonance between supply and demand expectations [1]

Group 1 - Cement stocks are generally active, with increases of nearly 10%, 5%, 4%, and over 3% reported [1] - The establishment of Xinjiang-Tibet Railway Co., with a registered capital of 95 billion RMB, is expected to significantly boost cement demand in Xinjiang and Tibet regions, estimating a demand of about 40 million tons over 8 years [2] - The average cement price in the national market remains stable, with slight regional variations, indicating a challenging environment for cement companies due to high coal prices and low demand [3] Group 2 - Specific cement companies have shown notable price increases, such as Shanshui Cement (+9.88%) and China Tianrui Cement (+5.36%), reflecting positive market sentiment [2] - The average shipment rate for major cement companies is around 44%, indicating ongoing low demand in the market [3] - Companies in regions like the Yangtze River Delta and Hubei are discussing staggered production plans to alleviate operational pressures, which may lead to a potential price recovery [3]

期内收益减少主要由于集团产品销量下降。 亚洲水泥(中国)(00743)发布截至2025年6月30日止六个月业绩，收益24.96亿元(人民币，下同)，同比下 降7.2%;公司拥有人应占溢利1.14亿元，上年同期亏损4.05亿元;每股基本盈利0.073元。 ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides basic corporate information for Asia Cement (China) Holdings Corporation, including its board and key personnel [Corporate Information](index=3&type=section&id=Corporate%20Information) This chapter provides basic corporate information for Asia Cement (China) Holdings Corporation, including its key personnel and professional advisors - The company's Chairman is Mr Hsu, Hsu-Tung, and the Chief Executive Officer is Mr Chang, Chen-Kuen[8](index=8&type=chunk) - The company's auditor is Deloitte Touche Tohmatsu[12](index=12&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) The company achieved a turnaround to profitability for the six months ended June 30, 2025, despite a revenue decline [Financial Highlights](index=6&type=section&id=Financial%20Highlights) The company turned from a loss to a profit in H1 2025, driven by a significant gross margin improvement despite lower revenue Semi-Annual Performance Overview | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 2,496 million | RMB 2,689 million | -7.2% | | Gross Profit | RMB 411 million | RMB 133 million | +209% | | Profit (Loss) for the period | RMB 117 million | (RMB 411) million | Turnaround | | Profit (Loss) attributable to owners | RMB 114 million | (RMB 405) million | Turnaround | | Gross Profit Margin | 16% | 5% | +11 p.p. | | Basic Earnings (Loss) Per Share | RMB 0.073 | (RMB 0.258) | Turnaround | Key Financial Ratios | Indicator | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 3.59 | 4.77 | Decreased | | Quick Ratio | 3.35 | 4.53 | Decreased | | Gearing Ratio | 0.13 | 0.14 | Slightly Decreased | [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim financial statements, including income, financial position, equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's profit for the period turned positive to RMB 117 million, driven by a significant reduction in cost of sales Core Data from the H1 2025 Income Statement | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 2,496,296 | 2,689,407 | | Cost of sales | (2,085,056) | (2,556,427) | | **Gross Profit** | **411,240** | **132,980** | | Profit (loss) before tax | 169,915 | (223,643) | | **Profit (loss) for the period** | **116,972** | **(411,205)** | | Profit (loss) attributable to owners | 114,418 | (404,853) | | Basic earnings (loss) per share | RMB 0.073 | (RMB 0.258) | [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The Group's total assets remained stable at RMB 19.63 billion, with a notable shift from cash to time deposits Key Balance Sheet Items | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Total Assets** | **19,628,972** | **19,677,550** | | Non-current Assets | 11,686,695 | 8,891,959 | | Current Assets | 7,942,277 | 10,785,591 | | **Total Liabilities** | **2,632,005** | **2,797,555** | | Current Liabilities | 2,212,351 | 2,263,184 | | Non-current Liabilities | 419,654 | 534,371 | | **Net Assets** | **16,996,967** | **16,879,995** | | **Total Equity** | **16,996,967** | **16,879,995** | - Bank balances and cash decreased from RMB 8.88 billion to RMB 1.56 billion, while time deposits with original maturity over three months increased by **RMB 7.50 billion**, indicating a shift in cash management strategy[17](index=17&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased to RMB 17.00 billion, primarily due to the profit generated during the period - Equity attributable to owners of the Company increased from RMB 16.52 billion at the beginning of 2025 to **RMB 16.63 billion**, mainly driven by the profit of RMB 114 million for the period[20](index=20&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities increased significantly, while cash used in investing activities decreased sharply Cash Flow Summary | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash from operating activities | 319,885 | 145,761 | | Net cash used in investing activities | (29,523) | (2,756,723) | | Net cash used in financing activities | (20,764) | (833,231) | | Net increase (decrease) in cash | 269,598 | (3,444,193) | | Cash at beginning of period | 1,294,559 | 5,718,017 | | **Cash at end of period** | **1,564,157** | **2,273,824** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue composition, and segment information, with no interim dividend declared [3. Revenue](index=13&type=section&id=3.%20Revenue) Total revenue in H1 2025 was RMB 2.50 billion, with cement products accounting for 97.7% of the total Revenue Breakdown | Product Category | H1 2025 Revenue (RMB'000) | H1 2024 Revenue (RMB'000) | | :--- | :--- | :--- | | Sales of cement products and related products | 2,438,060 | 2,621,481 | | Sales of concrete | 58,236 | 67,926 | | **Total** | **2,496,296** | **2,689,407** | [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The cement business segment was the key driver of the Group's turnaround, while the concrete business remained loss-making Segment Results | Business Segment | H1 2025 Segment Results (RMB'000) | H1 2024 Segment Results (RMB'000) | | :--- | :--- | :--- | | Cement business | 221,884 | (203,521) | | Concrete business | (17,089) | (14,924) | | **Total** | **204,795** | **(218,445)** | [9. Dividends](index=17&type=section&id=9.%20Dividends) The Board of Directors did not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for 2025 (H1 2024: Nil)[48](index=48&type=chunk)[49](index=49&type=chunk) [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, financial position, and future outlook amid challenging market conditions [Business and Financial Review](index=24&type=section&id=Business%20and%20Financial%20Review) The Group achieved a turnaround despite a sluggish market by improving cement selling prices and reducing coal costs - Market Environment: In H1 2025, real estate development investment **decreased by 11.2% year-on-year**, leading to continued weak demand in the national cement market, with national cement output falling by 4.3%[75](index=75&type=chunk)[76](index=76&type=chunk) - Performance Attribution: Despite lower sales volume, the company improved its average cement selling price through industry coordination and benefited from lower coal costs, boosting its **gross margin from 5% to 16%** and achieving a turnaround[77](index=77&type=chunk)[78](index=78&type=chunk)[84](index=84&type=chunk) Sales Analysis by Region | Region | H1 2025 Revenue (RMB'000) | H1 2024 Revenue (RMB'000) | | :--- | :--- | :--- | | Southeast region | 1,406,488 | 1,604,298 | | Central China region | 368,955 | 282,491 | | Southwest region | 720,853 | 802,618 | | **Total** | **2,496,296** | **2,689,407** | [Financial Resources and Liquidity](index=28&type=section&id=Financial%20Resources%20and%20Liquidity) The Group maintained a healthy financial position with a low gearing ratio of 13% as of June 30, 2025 - As of June 30, 2025, the Group held **RMB 1.56 billion in cash and cash equivalents**, along with RMB 7.50 billion in time deposits with original maturity over three months[95](index=95&type=chunk)[98](index=98&type=chunk) - The Group's gearing ratio (total liabilities to total assets) **decreased from 14% at the end of 2024 to 13%** as of June 30, 2025[96](index=96&type=chunk)[98](index=98&type=chunk) [Prospects](index=31&type=section&id=Prospects) Management anticipates continued market challenges but expects performance to improve through supply-side discipline and cost control - Market Expectation: The downward trend in overall cement demand is expected to continue, with industry profitability dependent on **supply-side improvements and corporate self-discipline**[121](index=121&type=chunk)[123](index=123&type=chunk) - Industry Policy: The China Cement Association's push to curb excessive competition by requiring production according to filed capacity is expected to **reduce supply and rationalize the market**[121](index=121&type=chunk)[123](index=123&type=chunk) - Company Strategy: The Group will adhere to its high-efficiency and high-quality strategy, continue cost reduction efforts, and strengthen industry communication, expecting **further performance improvement in H2**[122](index=122&type=chunk)[123](index=123&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) This section covers shareholder interests and corporate governance practices during the reporting period [Disclosure of Interests](index=32&type=section&id=Disclosure%20of%20Interests) This section discloses the interests of directors and substantial shareholders, with Asia Cement being the controlling shareholder Substantial Shareholders' Interests | Name of shareholder | Capacity | Number of shares held | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Asia Cement | Beneficial owner & controlled corporation | 1,144,862,000 | 73.07% | | Far Eastern New Century Corporation | Beneficial owner & controlled corporation | 1,144,862,000 | 73.07% | [Corporate Governance](index=35&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code and its Audit Committee reviewed the interim financial statements - The company has complied with all provisions of the Corporate Governance Code for the six months ended June 30, 2025[135](index=135&type=chunk)[141](index=141&type=chunk) - The Audit Committee has reviewed the interim financial statements and considers their preparation to be in compliance with accounting standards and adequately disclosed[137](index=137&type=chunk)[142](index=142&type=chunk)

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 亞洲水泥(中國)控股公司 (於開曼群島註冊成立之有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00743 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 ...

Financial Performance - In 2024, the company's revenue decreased to RMB 5,885,495, down 20.7% from RMB 7,427,010 in 2023[14] - The gross profit for 2024 was RMB 592,563, representing a gross profit margin of 10%, compared to 14% in 2023[14] - The company reported a loss for the year of RMB 262,565, a significant decline from a profit of RMB 111,235 in 2023[14] - In 2024, Asia Cement (China) reported operating revenue of RMB 5,885,495,000, a year-on-year decrease of 21%[22] - The gross profit for 2024 was RMB 592,563,000, representing a year-on-year decrease of 45%[22] - The net loss for the year amounted to RMB 262,565,000, a decrease of RMB 373,800,000 from a profit of RMB 111,235,000 in 2023[22] - The Group's cost of sales decreased by approximately 17% to RMB 5,292,932,000 in 2024 from RMB 6,356,723,000 in 2023, attributed to lower coal costs[45] - Profit before tax for 2024 was RMB 54,439,000, a decrease of RMB 417,192,000 compared to a profit of RMB 471,631,000 in 2023[52] - Cash generated from operating activities decreased from RMB 1,531,770,000 in 2023 to RMB 459,738,000 in 2024, representing a decline of approximately 70%[64] - Cash used in investing activities amounted to RMB 4,124,058,000 in 2024, compared to cash inflow of RMB 2,814,690,000 in 2023[65] - Cash used in financing activities was RMB 759,138,000 in 2024, down from cash inflow of RMB 973,667,000 in 2023, primarily due to repayments of bank borrowings[66] Asset and Liquidity Position - Total assets decreased to RMB 19,677,550, down from RMB 20,282,899 in the previous year[14] - The current ratio fell to 4.77 from 4.92, indicating a decrease in liquidity[14] - The Group's bank balances and cash as of December 31, 2024, were approximately RMB 8,883,071,000, down from RMB 9,256,549,000 in 2023[63] - Total assets decreased by approximately 3% to RMB 19,677,550,000 as of December 31, 2024, from approximately RMB 20,282,899,000 in 2023[69] - The Group's borrowings as of December 31, 2024, totaled RMB 1,144,000,000, down from RMB 1,773,000,000 in 2023, with short-term borrowings increasing to 88% of total borrowings[74] - The gearing ratio as of December 31, 2024, was approximately 14%, a slight decrease from 15% in 2023[75] Market and Industry Trends - The cement industry is expected to control production capacity at approximately 1.8 billion tonnes by the end of 2025, as per the State Council's Action Plan[16] - National cement output in 2024 was 1,830 million tonnes, reflecting a year-on-year decrease of 9.5%[28] - The cement industry's profits were expected to be approximately RMB 25 billion, with a year-on-year narrowed decrease of about 20%[28] - The Group anticipates that property investment will not show positive growth in 2025, with cement demand continuing to decline[99] - The planned cement sales volume for the Group in 2025 is expected to be similar to that of 2024, considering various market factors[100] - The average price of coal is likely to decline in 2025, which may reduce production costs but could also intensify price competition in the cement market[95] - Cement price competition was fierce in the first three quarters of 2024, leading to a significant downward trend in average prices, but a recovery in profitability is expected as companies respond to "anti-involution" strategies[98] Strategic Initiatives - The company is focusing on low-carbon development and has integrated AI digital technology into its operations[17] - The company expanded its market presence along the Yangtze River and increased clinker production capacity in the Hubei region[17] - A centralized purchasing and smart procurement strategy was implemented to reduce costs and facilitate project advancement[17] - The company aims to complete the upgrade of 50% of clinker production capacity to ultra-low emissions by the end of 2025[16] - Asia Cement (China) is focusing on green transformation and intelligent upgrades to lay a foundation for future profitability recovery[22] - The company plans to deepen transformation in strategy, organization, and talent to reshape core competitiveness[23] - The Group will focus on operational strategies emphasizing high efficiency, quality, service, and environmental protection in 2025[101] Corporate Governance - The Company complied with all provisions of the Corporate Governance Code for the year ended December 31, 2024, except for the noted deviations[108] - Mr. Lee Kao-chao resigned as an independent non-executive Director effective October 17, 2024, resulting in the number of independent non-executive Directors falling below one-third of the Board[106] - Mr. Wu Chun-pang was appointed as an independent non-executive Director effective January 1, 2025, restoring compliance with the relevant Listing Rules[107] - The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the CG Code[111] - The Board currently consists of eleven Directors, including three executive Directors, four non-executive Directors, and four independent non-executive Directors[114] - The Company has established a Board Independence Evaluation Mechanism to ensure a strong independent element on the Board[137] - The Company has provisions requiring Directors to abstain from voting on transactions where they have a material interest[155] Committee Activities - The Audit Committee is responsible for reviewing the financial statements and the effectiveness of the Company's financial reporting system and internal control system[166] - The Remuneration Committee is tasked with making recommendations on the remuneration policy and structure for executive Directors and senior management[170] - The Audit Committee held four meetings in 2024, with Mr. TSIM, Tak-lung Dominic and Mr. HSU, Shu-tong attending all meetings[169] - The Remuneration Committee held one meeting in 2024, with all members attending[175] - The Independence Committee also held one meeting in 2024, with all members present except for Mr. WU, Chun-pang who was appointed after the meeting[186] - The Nomination Committee conducted one meeting in 2024, with all members in attendance[194] Diversity and Inclusion - The Nomination Committee has adopted a Board Diversity Policy to enhance diversity among Board members, considering factors such as gender, age, cultural and educational background, and professional experience[195] - As of the annual report date, the Board consists of 1 female and 10 male directors, reflecting the company's commitment to gender diversity[198] - The company aims to achieve at least one female Director and an appropriate balance of female employees at all levels, considering its current gender diversity satisfactory[199] - The Director Nomination Policy was adopted on December 31, 2018, to ensure a balance of skills, experience, and diversity of perspectives on the Board[200]

Financial Performance - The unaudited consolidated profit attributable to owners for the three months ended March 31, 2025, is approximately RMB 3,081,000[2] - Revenue for the three months ended March 31, 2025, is RMB 1,223,847,000, representing an increase from RMB 1,149,339,000 in the same period of 2024[3] - Gross profit for the same period is RMB 143,393,000, with a gross margin of approximately 11.7%[3] - The company reported a loss before tax of RMB 98,045,000 for the three months ended March 31, 2025[3] - The company does not recommend the payment of dividends for the first three months of 2025, consistent with the previous year[7] Assets and Liabilities - Total assets as of March 31, 2025, amount to RMB 17,414,366,000, compared to RMB 17,666,017,000 as of December 31, 2024[4] - Current liabilities are reported at RMB 1,037,109,000, an increase from RMB 911,574,000 in the previous period[5] - Cash and cash equivalents as of March 31, 2025, total RMB 9,041,261,000, compared to RMB 8,901,845,000 at the beginning of the year[5] - Non-current assets are valued at RMB 8,891,959,000 as of March 31, 2025, showing a slight increase from RMB 8,771,239,000 in the previous period[4] Cash Flow - The company experienced a net cash outflow from operating activities of RMB 33,332,000 for the three months ended March 31, 2025[5] Market and Economic Conditions - In Q1 2025, China's GDP reached RMB 31.9 trillion, growing by 5.4% year-on-year and 1.2% quarter-on-quarter[8] - National fixed asset investment increased by 4.2% year-on-year, with manufacturing investment rising by 9.1%[8] - Cement demand recovery was slow, with total cement production at 331 million tons, a year-on-year decrease of 1.4%[9] - The average cement price increased compared to the same period last year, leading to a turnaround from loss to profit for the company[9] - The real estate market remains in deep adjustment, with weak construction intentions from real estate companies[10] Operational Strategies - In Q1 2025, the company implemented peak-shifting policies, increasing kiln shutdown days from 55 to 60 days[10] - Infrastructure investment, particularly in water management, is expected to be a new growth point for cement demand[10] - The company anticipates a continued decline in cement demand in Q2 2025, but the rate of decline is expected to narrow compared to last year[11] - The company aims to enhance operational efficiency and customer service while participating in industry cooperation to improve performance in the second half of 2025[12]

Financial Performance - Revenue decreased by approximately 21% to RMB 5,885,495,000 (2023: RMB 7,427,010,000) [3] - The loss attributable to the company's owners was RMB 263,682,000 (2023: profit of RMB 106,088,000) [3] - Basic loss per share was RMB 0.168 (2023: basic earnings of RMB 0.068) [3] - The company reported a gross profit of RMB 592,563,000 (2023: RMB 1,070,287,000) [4] - Total revenue for the group in 2024 was RMB 5,885,495,000, down from RMB 7,427,010,000 in 2023, indicating a decrease of approximately 20.7% [16] - Cement sales accounted for 83% of total revenue in 2024, down from 86% in 2023, with sales amounting to RMB 4,875,970,000 [58] - Gross profit for 2024 was RMB 592,563,000, resulting in a gross margin of 10%, down from 14% in 2023 [59] - The company reported a loss of RMB 262,565,000 in 2024, a decrease of RMB 373,800,000 compared to a profit of RMB 111,235,000 in 2023 [67] Dividends - The board recommended no final dividend for the year ending December 31, 2024 [3] - The company did not declare a final dividend for the year ending December 31, 2024, compared to a final dividend of RMB 0.041 per share in 2023, totaling approximately RMB 64,241,000 [27] - The company will not declare a final dividend for the year ending December 31, 2024 [95] Assets and Liabilities - Total non-current assets decreased to RMB 8,891,959,000 (2023: RMB 9,363,152,000) [5] - Current assets decreased to RMB 10,785,591,000 (2023: RMB 10,919,747,000) [5] - Current liabilities increased to RMB 2,263,184,000 (2023: RMB 2,217,566,000) [5] - Total assets less current liabilities decreased to RMB 17,414,366,000 (2023: RMB 18,065,333,000) [5] - Total assets decreased by approximately 3% to RMB 19,677,550,000 as of December 31, 2024, from RMB 20,282,899,000 in 2023 [68] - Total borrowings as of December 31, 2024, were RMB 1,144,000,000, a decrease from RMB 1,773,000,000 in 2023 [75] - The debt ratio as of December 31, 2024, was approximately 14%, down from 15% in 2023 [76] Income and Expenses - Other income increased slightly to RMB 240,228,000 in 2024 from RMB 237,211,000 in 2023, showing a growth of about 0.9% [20] - The company recognized a total tax expense of RMB 317,004,000 for 2024, down from RMB 360,396,000 in 2023, representing a decrease of approximately 12% [6] - Total depreciation and amortization expenses decreased to RMB 758,255,000 in 2024 from RMB 834,780,000 in 2023, reflecting a reduction of approximately 9.1% [24] - Employee costs, including director remuneration, decreased to RMB 455,486,000 in 2024 from RMB 569,578,000 in 2023, a decline of about 20% [24] - Financing costs decreased to RMB 54,730,000 (2023: RMB 78,056,000) [4] - The company’s administrative expenses decreased by approximately 11% to RMB 302,081,000 in 2024 from RMB 337,779,000 in 2023, mainly due to lower salary and tax expenses [62] Sales and Production - Revenue from cement products and related products decreased to RMB 5,735,672,000 in 2024 from RMB 7,241,675,000 in 2023, representing a decline of approximately 20.8% [16] - Revenue from concrete sales also decreased to RMB 149,823,000 in 2024 from RMB 185,335,000 in 2023, a decline of about 19.1% [16] - The group’s cement sales volume in 2024 was 21,561 thousand tons, a decrease of 10.4% from 24,054 thousand tons in 2023 [53] - The group’s clinker sales volume increased by 17.3% to 2,391 thousand tons compared to 2,039 thousand tons in 2023 [53] - In the Southeast region, cement sales volume was 12,397 thousand tons, down 8.9% from 13,604 thousand tons in 2023 [53] - In the Southwest region, cement sales volume decreased by 10.9% to 5,910 thousand tons from 6,630 thousand tons in 2023 [53] Market Conditions - The group faced significant competition leading to price reductions, with cement prices fluctuating throughout the year [52] - The company anticipates that the supply-demand imbalance in the cement market will intensify, making price increases more difficult [86] - The cement industry is expected to face challenges in 2025, with insufficient demand and limited infrastructure investment growth [85] - It is anticipated that cement prices will show a trend of being low at the beginning of 2025 and gradually increasing, with the industry expected to recover profitability [91] Corporate Governance - The company has complied with all applicable corporate governance codes, except for certain deviations noted [97] - The appointment of a new independent non-executive director, effective January 1, 2025, ensures compliance with relevant listing rules [100] - The company will continue to regularly review and monitor its corporate governance practices to maintain high standards [100] - The Audit Committee was established on April 27, 2008, in accordance with the corporate governance code, with responsibilities including reviewing financial reports and risk management [101] Employee Information - The company had 2,822 employees as of December 31, 2024, and provides various employee benefits according to applicable laws [80] Cash Flow - Operating cash inflow decreased from RMB 1,531,770,000 in 2023 to RMB 459,738,000 in 2024 [71] - Investment cash outflow increased to RMB 4,124,058,000 in 2024 from RMB 2,814,690,000 in 2023 [73] - Capital expenditure for the year ended December 31, 2024, was approximately RMB 481,400,000, up from RMB 310,078,000 in 2023 [73] Other Information - There are no significant events following the reporting period [94] - The company will suspend share transfer registration from May 21, 2025, to May 26, 2025, to determine the eligibility of shareholders for the annual general meeting [96] - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website at the appropriate time for the fiscal year ending December 31, 2024 [105] - The company expressed gratitude to management, employees, shareholders, business partners, banks, and auditors for their support during the reporting period [106]

Financial Performance - The company reported a net loss attributable to owners of approximately RMB 458,998,000 for the nine months ended September 30, 2024[1] - Revenue for the nine months ended September 30, 2024, was RMB 4,118,612,000, a decrease from RMB 5,715,769,000 in the same period of 2023[2] - Gross profit for the nine months ended September 30, 2024, was RMB 224,885,000, significantly lower than RMB 845,754,000 in the same period of 2023[2] - The company's total assets as of September 30, 2024, were RMB 17,397,195,000, compared to RMB 18,065,333,000 as of December 31, 2023[3] - Cash and cash equivalents decreased by RMB 564,919,000 to RMB 8,691,630,000 as of September 30, 2024, from RMB 9,256,549,000 at the beginning of the year[4] - The company's net asset value as of September 30, 2024, was RMB 16,678,451,000, down from RMB 17,206,801,000 as of December 31, 2023[4] - The company did not recommend paying dividends for the first nine months of 2024, consistent with the same period in 2023[5] Economic Indicators - 2024 Q3 GDP reached 3,329.1 billion yuan, a year-on-year increase of 4.6%, with the first three quarters GDP totaling 9,497.46 billion yuan, up 4.8% year-on-year[7] - National fixed asset investment grew by 3.4% year-on-year in the first nine months, with infrastructure investment up 4.1% and manufacturing investment up 9.2%[7] - National real estate development investment fell by 10.1% year-on-year in the first nine months, while industrial added value increased by 5.8%[7] - National cement production in the first nine months was 1.327 billion tons, down 10.7% year-on-year, with September production hitting the lowest level since 2010[7] Cement Market Trends - In the Yangtze River mid-downstream market, cement prices increased by 90 yuan/ton in September, with downstream markets seeing a one-time price hike of 100 yuan/ton for clinker and cement[8] - In the Sichuan region, cement prices dropped by 90 yuan/ton in July and August but rebounded with two price increases totaling 90 yuan/ton in September, followed by another 50 yuan/ton hike in mid-October[9] - The company expects a moderate recovery in cement demand in Q4, with price increases from Q3 likely to be maintained through the end of the year[12] Company Strategy and Outlook - The company will continue to focus on high efficiency, quality, service, and environmental protection, leveraging its logistics advantages to maintain market share[12] - The company anticipates a short-term continuation of the real estate market's bottoming-out phase, despite recent policy support aimed at stabilizing the sector[11] Board and Management - Mr. Lui has over 10 years of experience in the company secretary field and has been working at Tricor since October 2011[14] - Mr. Lui holds a Bachelor's degree in Economics and Statistics from University College London, obtained in August 2011[14] - Mr. Lui is a Fellow of both the Hong Kong Chartered Governance Institute (HKCGI) and the Chartered Governance Institute UK & Ireland[14] - The Board of Directors expressed gratitude to Ms. Mok for her contributions and welcomed Mr. Lui's appointment[15] - The current executive directors of the company are Mr. Xu Xuping, Mr. Zhang Zhenkun, and Mr. Lin Shengzhang[15] - The non-executive directors include Mr. Xu Xudong (Chairman), Mr. Li Kunyan, Mr. Chen Ruilong, and Ms. Wu Lingling[15] - The independent non-executive directors are Mr. Zhan Delong, Mr. Wang Wei, and Dr. Wang Guoming[15]

Financial Performance - For the six months ended June 30, 2024, revenue was RMB 2,689,407, a decrease of 34.5% compared to RMB 4,105,099 for the same period in 2023[9]. - Gross profit for the period was RMB 132,980, resulting in a gross profit margin of 5%, down from 16% in the previous year[9]. - The company reported a loss attributable to owners of RMB 404,853, compared to a profit of RMB 195,784 in the same period last year[9]. - The company incurred a loss before tax of RMB 223,643,000 compared to a profit of RMB 394,977,000 in the previous year, reflecting a negative swing of approximately 156.6%[12]. - The profit for the period attributable to the owners of the Company was a loss of RMB 404,853,000 for the six months ended June 30, 2024, compared to a profit of RMB 195,784,000 in the same period of 2023[41]. - For the six months ended June 30, 2024, the Group reported a net loss of RMB 411,205,000, a decrease of RMB 611,522,000 from a net profit of RMB 200,317,000 for the same period in 2023[73]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 19,311,003, a decrease from RMB 20,282,899 as of December 31, 2023[10]. - Total assets less current liabilities stood at RMB 17,330,070,000 as of June 30, 2024, down from RMB 18,065,333,000 at the end of 2023[16]. - The company’s net assets were reported at RMB 16,731,355,000, down from RMB 17,206,801,000 at the end of 2023, reflecting a decrease of about 2.8%[16]. - The Group's borrowings as of June 30, 2024, totaled RMB 973,000,000, a decrease from RMB 1,773,000,000 at the end of 2023[76]. - The Group reported a significant increase in trade and other payables, totaling RMB 982,946,000 as of June 30, 2024, compared to RMB 825,163,000 as of December 31, 2023[51]. Cash Flow - For the six months ended June 30, 2024, the net cash from operating activities was RMB 145,761, a significant decrease from RMB 803,936 in the same period of 2023[20]. - Cash and cash equivalents at the end of the period were RMB 8,612,854, a decrease from RMB 8,812,619 at the end of June 2023[20]. - The company reported a net decrease in cash and cash equivalents of RMB 643,695, compared to a decrease of RMB 87,829 in the prior year[20]. Market Conditions - The company is focusing on market expansion and new product development to improve future performance[6]. - Management anticipates a challenging market environment but remains committed to strategic initiatives to enhance operational efficiency[6]. - The total cement production in China decreased by 10% year-on-year to 850 million tonnes from January to June 2024[63]. - The real estate market continued to decline, impacting cement demand significantly in key urban markets[65]. - The decline in cement demand was exacerbated by extreme weather events and a slowdown in infrastructure investment growth[65]. Segment Performance - The cement business generated revenue of RMB 2,621,481, while the concrete business contributed RMB 67,926, indicating a decline in both segments compared to the previous year[25]. - The segment result for the cement business was a loss of RMB 203,521, and for the concrete business, a loss of RMB 14,924, leading to a total segment loss of RMB 218,445[27]. Expenses - Distribution and selling expenses decreased by 27% to RMB 163,167,000 from RMB 223,006,000 in 2023, due to lower transportation fees and handling charges[71]. - Administrative costs decreased by 10% to RMB 149,274,000 from RMB 165,969,000, mainly due to reduced employee compensation and benefits[71]. - The depreciation and amortization expense for the six months ended June 30, 2024, was RMB 387,040,000, down from RMB 419,769,000 in the same period of 2023, reflecting a decrease of approximately 8%[37]. Shareholder Information - As of June 30, 2024, Asia Cement holds a beneficial interest of approximately 67.73% in the Company, with an additional corporate interest of 5.34%, totaling 73.07% of the issued share capital[97]. - The total number of ordinary shares held by substantial shareholders includes 1,061,209,202 shares (67.73%) held by Asia Cement and 83,652,798 shares (5.34%) controlled by corporations, indicating significant ownership concentration[97]. - The Company did not recommend any dividend for the six months ended June 30, 2024, consistent with the previous year where no dividend was paid[107]. Corporate Governance - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and found compliance with applicable accounting standards[108]. - The Company has complied with all code provisions set out in the Corporate Governance Code during the six months ended June 30, 2024[109]. - The Nomination Committee is responsible for reviewing the structure and composition of the Board, currently comprising non-executive Directors[101].