Asia Cement (China) Holdings Corporation 亞 洲 水 泥 (中 國 ) 控 股 公 司 （於開曼群島註冊成立的有限公司） 中期報告 Interim Report 2023 股份代號： CONTENTS 目錄 2 Corporate Information 公司資料 5 Financial Highlights 財務摘要 Condensed Consolidated Financial Statements 簡明綜合財務報表 6 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 簡明綜合損益及其他全面收益表 7 Condensed Consolidated Statement of Financial Position 簡明綜合財務狀況表 9 Condensed Consolidated Statement of Changes in Equity 簡明綜合權益變動表 10 Condensed Consolidated Statement of Cash Fl ...

Financial Performance - Revenue decreased by 17% to approximately RMB 4,105,100,000 compared to RMB 4,947,000,000 in the same period last year[2] - Profit attributable to owners of the company was RMB 195,800,000, down from RMB 311,900,000 in the previous year, primarily due to a decrease in product selling prices[2] - Basic earnings per share were RMB 0.125, compared to RMB 0.199 in the previous year[4] - Gross profit was RMB 646,005,000, down from RMB 773,502,000 year-on-year[4] - The company reported a net profit of RMB 195,784 for the six months ended June 30, 2023, compared to RMB 311,892 in the same period of 2022, reflecting a decline of approximately 37.3%[25] - The company experienced a decline in sales prices due to increased competition and reduced demand in the market[39] - Net profit for the reporting period was RMB 200,300,000, a decrease of RMB 121,900,000 from RMB 322,200,000 in the same period last year, primarily due to a decline in product selling prices[45] Assets and Liabilities - The total assets less current liabilities amounted to RMB 18,086,496,000, compared to RMB 18,951,060,000 at the end of the previous year[6] - Non-current assets, including property, plant, and equipment, totaled RMB 6,304,214,000, down from RMB 6,583,410,000[5] - Current liabilities increased to RMB 2,402,053,000 from RMB 2,195,224,000 in the previous year[6] - The company's net assets were RMB 17,295,883,000, slightly down from RMB 17,390,864,000[6] - The company's total liabilities as of June 30, 2023, were RMB 1,085,909 thousand, an increase of 14.5% from RMB 948,248 thousand as of December 31, 2022[30] - Total assets as of June 30, 2023, were approximately RMB 20,488,500,000, down from RMB 21,146,300,000 as of December 31, 2022[46] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 803,936 thousand, compared to RMB 819,214 thousand in the same period of 2022[8] - The company reported a net cash outflow from financing activities of RMB (786,294) thousand for the first half of 2023, contrasting with an inflow of RMB 630,870 thousand in the prior year[8] - The company’s cash and cash equivalents at the end of June 30, 2023, were RMB 8,812,619 thousand, compared to RMB 8,793,260 thousand at the same time last year[8] Income and Expenses - Other income was RMB 100,141,000, slightly down from RMB 105,162,000 in the previous year[4] - The income tax expense for the six months ended June 30, 2023, was RMB 194,660, an increase from RMB 165,106 in the same period of 2022[19] - Distribution and selling expenses increased by RMB 17,000,000 or 8% to RMB 223,000,000, attributed to higher freight, unloading, and packaging costs for cement products[44] - Administrative expenses rose by 8% to RMB 166,000,000, up from RMB 153,800,000 in the same period last year, mainly due to increased other expenses[44] - Financing costs increased to RMB 36,046,000 from RMB 13,565,000 in the previous year[4] Market Conditions and Outlook - The company anticipates a recovery in demand in the second half of 2023, although it is expected to remain below the levels of the same period last year[37] - The company plans to maintain smooth sales channels and market share in the second half of 2023 as demand improves[37] - The cement industry is expected to face challenges and opportunities in the second half of 2023, with a cautious optimistic outlook from the company[55] - National infrastructure investment increased by 7.2% year-on-year in the first half of 2023, which is 3.4 percentage points higher than the overall fixed asset investment growth rate[55] - The company anticipates that cement demand will continue to weaken but at a narrowing rate, with a potential recovery in demand expected in the fourth quarter of 2023[56] Corporate Governance - The company has adhered to all corporate governance codes as per the listing rules during the reporting period[57] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, confirming compliance with relevant accounting standards[59] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[60] - The company acknowledges the support from shareholders, business partners, banks, and auditors during the reporting period[62]

Financial Performance - For the three months ended March 31, 2023, the unaudited consolidated profit attributable to owners was approximately RMB 40.7 million[2]. - Revenue for the same period was RMB 1,896.8 million, a decrease of 9.4% compared to RMB 2,093.4 million in the previous year[3]. - Gross profit for the three months was RMB 173.6 million, down 42.7% from RMB 303.5 million year-on-year[3]. - The company reported a pre-tax profit of RMB 78.3 million, a decline of 63.2% from RMB 212.4 million in the same period last year[3]. - The financing costs increased to RMB 17.3 million from RMB 8.0 million year-on-year[3]. - The company does not recommend the payment of dividends for the first three months of 2023, consistent with the previous year[8]. Assets and Equity - The net cash and cash equivalents as of March 31, 2023, were RMB 8,959.1 million, an increase from RMB 7,141.4 million year-on-year[7]. - Total assets less current liabilities amounted to RMB 19,109.0 million, compared to RMB 18,951.1 million as of December 31, 2022[5]. - The company’s non-current assets decreased to RMB 9,764.2 million from RMB 9,948.9 million as of December 31, 2022[5]. - The total equity attributable to owners increased slightly to RMB 17,028.1 million from RMB 16,987.5 million[6]. Market Outlook - In Q1 2023, the national GDP reached 28,499.7 billion yuan, reflecting a year-on-year growth of 4.5%[9]. - The total cement production in China for Q1 2023 was 402 million tons, marking a 4.1% increase compared to 386 million tons in Q1 2022[10]. - The group's cement product sales volume was 6.15 million tons in Q1 2023, which is better than the same period last year[10]. - The group forecasts cement product sales to reach 13.67 million tons in the first half of 2023, despite anticipated market competition[10]. - The group maintains a cautiously optimistic outlook for the cement industry in Q2 and the second half of 2023, despite challenges such as weak demand and high costs[11]. - The real estate sector is expected to focus on "ensuring delivery" and "reducing inventory," which may suppress cement demand in the short term[11]. - Infrastructure investment is projected to remain robust, supported by the issuance of special bonds and timely financial policies, which will bolster cement demand[11]. - The overall cement demand is expected to weaken but at a narrowing rate, with potential rebounds in the second half of 2023 as key projects accelerate[12]. Strategic Plans - The group plans to continue its strategy of high efficiency, quality, service, and low cost, aiming to enhance customer experience and maintain market share[12]. - The group anticipates gradual improvement in performance throughout 2023, driven by national economic stabilization policies and reduced coal prices[12].

Asia Cement (China) Holdings Corporation 亞 洲 水 泥 (中 國 ) 控 股 公 司 （於開曼群島註冊成立的有限公司） Annual Report 2022 年 報 股份代號： CONTENTS 目錄 2 Corporate Information 公司資料 4 Financial Highlights 財務摘要 5 Chairman's Statement 主席報告 7 Vice Chairman's Statement 副主席報告 9 CEO's Report 行政總裁報告 12 Management Discussion and Analysis 管理層討論及分析 25 Corporate Governance Report 企業管治報告 44 Directors and Senior Management 董事及高級管理人員 50 Directors' Report 董事會報告 61 Independent Auditor's Report 獨立核數師報告 67 Consolidated Financial Statements 綜合財務報表 67 Conso ...

Financial Performance - For the nine months ended September 30, 2022, the unaudited consolidated profit attributable to owners was approximately RMB 371.4 million[2]. - Revenue for the nine months ended September 30, 2022, was RMB 7,086.93 million, compared to RMB 8,020.58 million for the same period in 2021, representing a decrease of approximately 11.6%[3]. - Gross profit for the nine months ended September 30, 2022, was RMB 1,025.85 million, down from RMB 2,601.65 million in 2021, indicating a decline of approximately 60.6%[3]. - The company's basic earnings per share for the nine months ended September 30, 2022, was RMB 0.237, down from RMB 0.874 in 2021, representing a decline of approximately 72.9%[3]. - The company did not recommend the payment of dividends for the nine months ended September 30, 2022, consistent with the previous year[7]. Cash Flow and Assets - The net cash generated from operating activities for the nine months ended September 30, 2022, was RMB 1,083.33 million, compared to RMB 1,584.03 million in 2021, reflecting a decrease of approximately 31.6%[6]. - The total assets less current liabilities as of September 30, 2022, amounted to RMB 18,905.996 million, compared to RMB 18,234.559 million as of December 31, 2021, showing an increase of approximately 3.7%[5]. - The total equity attributable to owners as of September 30, 2022, was RMB 16,938.75 million, compared to RMB 17,272.47 million as of December 31, 2021, indicating a decrease of approximately 1.9%[5]. - The total liabilities as of September 30, 2022, were RMB 1,554.45 million, compared to RMB 560.72 million as of December 31, 2021, reflecting a significant increase[5]. - The cash and cash equivalents as of September 30, 2022, were RMB 8,733.74 million, an increase from RMB 6,527.45 million in 2021[6]. Market and Sales Performance - In Q3 2022, the company's cement product sales totaled 20.18 million tons, a decrease of 1.68 million tons or 7.7% compared to 21.86 million tons in the same period of 2021[9]. - The company forecasts a total cement product sales volume of approximately 28.36 million tons for the entire year of 2022, representing a decline of 3.9%, which is less than the national average[10]. - National cement production in the first three quarters of 2022 was 1.36 billion tons, a year-on-year decrease of 12.5%[8]. Market Outlook - The company maintains a cautiously optimistic outlook for Q4 2022, expecting a gradual recovery in cement demand despite ongoing challenges in the real estate market[10]. - The company noted that the real estate market remains weak, but recent favorable policies may gradually improve cement demand in Q4[9]. - The company anticipates that supply-side adjustments will help alleviate the supply-demand imbalance in the cement industry in Q4 2022[10]. Pricing Trends - In the Yangtze River mid-lower reaches market, cement prices increased by 15 CNY/ton by the end of Q3 compared to the beginning of the quarter, while prices in Chengdu decreased by 20 CNY/ton[9]. - The company reported that the average price of cement in the Yangtze River region showed fluctuations, with a notable increase in October after a period of price reductions[9]. Strategic Plans - The company plans to continue leveraging its comprehensive logistics advantages and maintain a high-quality service brand image to adapt to the challenging market environment[10].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 4,946,981, a decrease of 6.6% compared to RMB 5,300,944 in the same period of 2021[6] - Gross profit for the period was RMB 773,502, representing a gross profit margin of 16%, down from 35% in 2021[6] - Profit for the period attributable to owners of the Company was RMB 311,892, a decline of 70.0% from RMB 1,073,434 in the previous year[6] - Basic earnings per share decreased to RMB 0.199 from RMB 0.685, reflecting a significant drop in profitability[6] - Profit before tax for the period was RMB 487,282, down from RMB 1,512,922 in the same period last year[11] - The Company reported a profit for the period of RMB 322,176, significantly lower than RMB 1,106,396 in 2021[11] - The net profit for the period was RMB 322.2 million, a decrease of RMB 784.2 million from RMB 1,106.4 million in the same period of 2021, primarily due to reduced sales volume and increased coal costs[74] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 21,615,089, an increase from RMB 21,416,855 at the end of 2021[8] - As of June 30, 2022, total assets less current liabilities amounted to RMB 18,234,559, a slight decrease from RMB 18,306,940 as of December 31, 2021[13] - The net assets as of June 30, 2022, were RMB 17,290,933, a decrease from RMB 17,673,840 at the end of 2021[14] - Total equity attributable to owners of the company decreased to RMB 16,879,279 from RMB 17,272,470[14] - The company’s total liabilities increased to RMB 3,182,296 from RMB 3,308,149, indicating a reduction in overall debt[14] Cash Flow and Liquidity - The company reported a net cash inflow from operating activities of RMB 819,214 for the six months ended June 30, 2022, compared to RMB 928,245 in the same period of 2021[18] - Cash and cash equivalents at the end of the period were RMB 8,793,260, up from RMB 7,115,874 year-over-year[18] - Net current assets increased to RMB 8,065,307 from RMB 7,730,123, indicating improved liquidity[13] - The current ratio improved slightly to 3.44 from 3.43, indicating stable liquidity[8] - The gearing ratio increased to 0.20 from 0.17, suggesting a rise in leverage[8] Sales and Revenue Breakdown - Sales of cement products amounted to RMB 4,797,949, down from RMB 5,141,531 in 2021, reflecting a decline of 6.7%[21] - The concrete sales were RMB 149,032, a decrease of 6.5% from RMB 159,413 in the previous year[21] - Cement and related products accounted for 97% of total revenue, while ready-mix concrete accounted for 3% during the reporting period[67] - In the first half of 2022, the Group's cement sales volume totaled 13.36 million tonnes, a decrease of 780,000 tonnes or 5.5% compared to 14.14 million tonnes in the same period of 2021[60] Other Income and Expenses - Other income for the period was RMB 105,162, compared to RMB 89,429 in the previous year, indicating a positive trend in non-operating income[11] - Distribution and selling expenses were RMB 206.0 million, a decrease of 12% from RMB 233.0 million in the same period of 2021, attributed to lower transportation fees and handling charges[74] - Administrative costs increased by 7% to RMB 153.8 million from RMB 143.8 million in the corresponding period of 2021, due to higher other expenses[74] - The depreciation and amortization expenses for the period were RMB 432,301,000, down from RMB 447,572,000 in the previous year[33] Market Conditions and Future Outlook - The Group expects improved shipments in the second half of the year as demand is anticipated to recover following the pandemic-related disruptions[58] - The overall demand for the cement industry is on a downward trend, but infrastructure investment is expected to contribute to demand recovery, with Hubei's planned investment of RMB 303.8 billion, a 47% increase from the previous year[84] - Cement prices are expected to recover and rise in mid to late August 2022, indicating a potential turnaround in the cement market[85] Corporate Governance and Shareholding - The Company has complied with all provisions of the Corporate Governance Code during the six months ended June 30, 2022[101] - The Company did not grant any options under the Share Option Scheme that expired on April 26, 2018, as of June 30, 2022[101] - As of June 30, 2022, Asia Cement holds a beneficial interest of approximately 67.73% in the company, equating to 1,061,209,202 shares[98] - The total interest of Asia Cement, including both direct and controlled interests, is approximately 73.07% of the company's issued share capital[98]

Financial Performance - The unaudited consolidated profit attributable to owners for the three months ended March 31, 2022, was approximately RMB 123.9 million[2] - Revenue for the three months ended March 31, 2022, was RMB 2,093.4 million, a decrease of 8.9% compared to RMB 2,298.4 million in the same period of 2021[3] - Gross profit for the same period was RMB 303.5 million, down from RMB 762.4 million year-on-year, indicating a significant decline[3] - The net cash used in operating activities for the three months ended March 31, 2022, was RMB 198.8 million, compared to a net cash inflow of RMB 97.6 million in the same period of 2021[5] - The company reported a basic earnings per share of RMB 0.079 for the first quarter of 2022, down from RMB 0.298 in the same period of 2021[3] - The company did not recommend the payment of dividends for the first quarter of 2022, consistent with the previous year[6] Asset Management - The total assets less current liabilities as of March 31, 2022, amounted to RMB 18,469.5 million, an increase from RMB 18,234.6 million as of December 31, 2021[4] - The total non-current assets as of March 31, 2022, were RMB 10,339.7 million, slightly down from RMB 10,504.4 million as of December 31, 2021[4] Market Conditions - The cement production in China for the first quarter of 2022 was 387 million tons, a decrease of 12.1% compared to the same period in 2021, reflecting weak demand in the market[7] - In the first quarter of 2022, the group's cement product sales were 5.37 million tons, a decrease of 14% compared to the same period in 2021[9] - The group expects cement product sales to reach 8.2 million tons in the second quarter of 2022, a growth of 4% compared to 7.89 million tons in the same period in 2021[9] - The group anticipates that after the pandemic control measures are lifted, market demand for cement will gradually recover in the second quarter[10] - The national investment in major infrastructure projects is expected to drive cement demand in the second half of 2022, with a projected increase in demand[10] Pricing Trends - In March 2022, the price of clinker increased by a total of RMB 110 per ton, while cement prices rose by RMB 30 to 50 per ton[8] - In April 2022, the price of clinker decreased by RMB 80 per ton, and cement prices fell by RMB 20 to 50 per ton due to high inventory levels[8] Operational Challenges - The company faced challenges in production and operations due to an unstable external environment and ongoing domestic pandemic situations, impacting economic recovery efforts[7] - The group expects a slight decrease in total cement supply in 2022 due to tightening supply dynamics[11] Strategic Outlook - The group maintains a cautiously optimistic outlook for the cement industry despite facing challenges such as declining market demand and high costs[9] - The group plans to further promote digital transformation to reduce costs and enhance overall competitiveness[11] - The group aims to maintain a high-quality brand image and solidify its core market share in preparation for future market competition[11]

股份代號： （於開曼群島註冊成立的有限公司） CONTENTS 目錄 Consolidated Financial Statements 綜合財務報表 188 Financial Summary 財務概要 2 Corporate Information 公司資料 4 Financial Highlights 財務摘要 5 Chairman's Statement 主席報告 8 Vice Chairman's Statement 副主席報告 11 CEO's Report 行政總裁報告 15 Management Discussion and Analysis 管理層討論及分析 29 Corporate Governance Report 企業管治報告 44 Directors and Senior Management 董事及高級管理人員 50 Directors' Report 董事會報告 61 Independent Auditor's Report 獨立核數師報告 67 Consolidated Statement of Profit or Loss and Other Comprehensive In ...

Financial Performance - The company's revenue for 2020 was RMB 10,823,753,000, a decrease of 14.1% from RMB 12,608,716,000 in 2019[5] - Gross profit for 2020 was RMB 4,518,782,000, down from RMB 5,319,126,000 in 2019, maintaining a gross margin of 42%[5] - Net profit attributable to shareholders was RMB 2,668,708,000, a decline of 15.2% compared to RMB 3,147,340,000 in 2019[5] - The total assets decreased to RMB 21,634,251,000 from RMB 23,985,754,000 in 2019[5] - The company's revenue for 2020 was 10,823,753 thousand yuan, a decrease of 14% compared to the previous year, with a gross profit of 4,518,782 thousand yuan, down 15%[15] - The group's revenue for 2020 was RMB 10,823.8 million, a decrease of RMB 1,784.9 million or 14% from RMB 12,608.7 million in 2019, primarily due to a decline in sales volume and average selling price[33] - The group's net profit for 2020 was RMB 2,750,400,000, down from RMB 3,230,100,000 in 2019, representing a decrease of RMB 479,700,000[36] - Basic earnings per share for 2020 was RMB 1.703, down from RMB 2.009 in 2019, representing a decrease of 15.2%[144] Asset and Liability Management - The company's current ratio improved to 3.79 from 1.64 in 2019, indicating better short-term financial health[5] - The debt ratio decreased to 0.24 from 0.39 in 2019, reflecting a stronger balance sheet[5] - Total liabilities decreased significantly from RMB 7,695,352,000 in 2019 to RMB 2,820,087,000 in 2020, a reduction of 63.3%[146] - The company's net asset value increased to RMB 16,531,228,000 in 2020 from RMB 14,642,994,000 in 2019, an increase of 12.9%[147] - Cash and cash equivalents, including restricted bank deposits, were approximately RMB 5,275,600,000 as of December 31, 2020, down from RMB 7,957,100,000 in 2019[39] Production and Sales - In 2020, the total cement production reached 2.377 billion tons, a year-on-year increase of 1.6% despite the impact of COVID-19[14] - The company produced 23.91 million tons of clinker, a decrease of 4% year-on-year, and sold 26.79 million tons of cement, a decline of 5.4%[15] - Cement sales accounted for 86% of total revenue in 2020, consistent with 2019, while ready-mixed concrete sales contributed 5%[34] - The sales volume of cement in 2020 was 26,786 thousand tons, a decrease of 6.5% from 28,652 thousand tons in 2019[27] - The average selling price of cement decreased by 34 yuan to 346 yuan per ton (excluding tax) in 2020[15] Strategic Initiatives - The company aims to enhance its innovation capabilities through increased investment in technology and digitalization[8] - The company is focusing on digital transformation and enhancing environmental investments to improve operational efficiency[8] - The company aims to enhance resource reserves, extend the industrial chain, and focus on digital transformation and green development over the next five years[12] - The company plans to implement a five-year plan for Cement 4.0, focusing on smart manufacturing and reducing environmental impact[12] - The company is actively pursuing mergers and acquisitions to integrate resources and explore new profit growth points[15] Corporate Social Responsibility - The company actively supported hospital construction during the pandemic and donated materials and funds to combat COVID-19[8] - The company is committed to corporate social responsibility and sustainable development, focusing on green mining and low-carbon manufacturing[12] - The company is actively involved in corporate social responsibility initiatives, donating 4.8 million yuan directly for pandemic relief efforts[20] - The group made charitable donations of RMB 8,200,000 during the year, a significant increase from RMB 1,400,000 in 2019[104] Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules throughout the year ending December 31, 2020[55] - The board consists of 11 members, including 6 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring diverse opinions in discussions[55] - The company has established a three-year service contract for its executive directors, with the option for termination upon three months' written notice[56] - The independent non-executive directors have confirmed their independence, and any director serving over nine years requires shareholder approval for continued appointment[57] - The company has a clear process for handling significant transactions involving potential conflicts of interest, requiring directors to abstain from voting[62] Risk Management - The risk management and internal control systems were deemed effective and sufficient by the board, with no significant areas identified that could affect shareholders[79] - The company has a strong financial risk management framework detailed in the notes to the consolidated financial statements[99] - The company has assessed that it has sufficient resources to continue operating in the foreseeable future, thus continuing to adopt the going concern basis in preparing the financial statements[165] Future Outlook - The expected GDP growth for 2021 is around 8%, supported by infrastructure investments and urbanization initiatives[11] - The group anticipates a stable cement market in 2021, with a planned sales volume of over 30.54 million tons, a 5.9% increase from 28.84 million tons in 2020[52] - The group expects cement prices to gradually recover starting from March-April 2021 as major infrastructure projects commence[52] Employee and Management - The company has established a competitive compensation policy for employees based on performance and qualifications[123] - Employee training and development opportunities are provided to enhance performance and achieve company goals[126] - The management team is actively promoting energy-saving and environmentally friendly practices in the cement production process[90] - The executive team has over 53 years of experience in the cement industry, contributing to advanced production technology and efficient operational management[90]