Financial Performance - For the six months ended June 30, 2024, revenue was RMB 2,689,407,000, a decrease from RMB 4,105,099,000 in the same period of 2023, representing a decline of approximately 34.6%[9] - Gross profit for the period was RMB 132,980,000, down from RMB 646,005,000 in 2023, resulting in a gross profit margin of 5%, compared to 16% in the previous year[9] - The loss attributable to owners of the Company for the period was RMB 404,853,000, compared to a profit of RMB 195,784,000 in the same period of 2023[9] - Basic loss per share was RMB (0.258), a significant decline from earnings of RMB 0.125 per share in the prior year[9] - The financial highlights indicate a significant downturn in performance metrics compared to the previous year, necessitating strategic reassessment[6] - The company reported a loss for the period attributable to owners of the Company of RMB (404,853,000) for the six months ended June 30, 2024, compared to a profit of RMB 195,784,000 in 2023[43] - 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[76] Financial Ratios and Assets - The current ratio and quick ratio calculations are based on current assets divided by current liabilities and current assets less inventories divided by current liabilities, respectively[7] - Current ratio improved to 5.14 as of June 30, 2024, compared to 4.92 at the end of 2023[10] - Quick ratio also increased to 4.85 from 4.65 in the previous period[10] - The gearing ratio improved to 0.13 from 0.15, indicating a reduction in leverage[10] - Total assets decreased to RMB 19,311,003 as of June 30, 2024, from RMB 20,282,899 at the end of 2023[10] - Net assets declined to RMB 16,731,355 from RMB 17,206,801 in the previous period[10] - The gearing ratio as of June 30, 2024, was 13%, a decrease from 15% as of December 31, 2023[77] Cash Flow and Operating Activities - The net cash from operating activities for the first half of 2024 was RMB 145,761, significantly lower than RMB 803,936 in the first half of 2023, indicating a decrease of about 81.8%[21] - The cash and cash equivalents at the end of the period were RMB 8,612,854, down from RMB 8,812,619 at the end of June 30, 2023, reflecting a decrease of approximately 2.3%[20] - The net decrease in cash and cash equivalents for the first half of 2024 was RMB 643,695, compared to a decrease of RMB 87,829 in the same period of 2023, indicating a significant increase in cash outflow[21] Segment Performance - The cement business generated external sales of RMB 2,621,481, while the concrete business contributed RMB 67,926, totaling RMB 2,689,407 for the period[28] - 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[28] Market Conditions and Outlook - Cement production in China decreased by 10% year-on-year to 850 million tonnes from January to June 2024[66] - In the Yangtze River region, cement demand remained sluggish, with prices fluctuating at low levels due to tight funding for infrastructure projects and a deep adjustment in the real estate market[66] - The Group's performance was impacted by postponed infrastructure demand and extreme weather, leading to a persistently weak demand in the cement market[66] - Looking ahead, cement demand is expected to decline due to a lack of significant improvement in the real estate sector, despite accelerated infrastructure investment[88] Corporate Governance and Compliance - The Company has complied with all code provisions set out in the Corporate Governance Code during the six months ended June 30, 2024[107] - 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 Independence Committee assesses potential conflicts of interest between the Group and related parties, with no new conflicts identified during the review period[108] Shareholder Information - As of June 30, 2024, Asia Cement holds a beneficial interest of approximately 67.73% in the Company, with an additional 5.34% interest through controlled corporations, totaling 73.07% of the issued share capital[100] - The total number of ordinary shares held by substantial shareholders includes 1,061,209,202 shares by Asia Cement, representing 67.73% of the issued share capital[100] - The Company did not recommend any dividend payment for the six months ended June 30, 2024, consistent with the previous year where no dividend was declared[110]

Financial Performance - Revenue for 2023 was RMB 7,427,010 thousand, a decrease from RMB 9,614,330 thousand in 2022[7] - Gross profit for 2023 was RMB 1,070,287 thousand, down from RMB 1,288,929 thousand in 2022[7] - Profit for the year in 2023 was RMB 111,235 thousand, significantly lower than RMB 423,992 thousand in 2022[7] - Gross profit margin increased to 14% in 2023 from 13% in 2022[7] - Asia Cement (China)'s operating revenue in 2023 was RMB 7,427,010,000, a year-on-year decrease of 23%[14] - Gross operating profit in 2023 was RMB 1,070,287,000, a year-on-year decrease of 17%[14] - Net operating profit in 2023 was RMB 285,251,000, a year-on-year decrease of 47%[14] - Gross operating margin increased by 1.0 percentage point to 14.4% in 2023[14] - Net operating margin decreased by 1.7 percentage points to 3.8% in 2023[14] - Revenue for 2023 decreased by 23% to RMB 7,427,010,000 from RMB 9,614,330,000 in 2022, primarily due to a decline in the average selling price of products[32][33] - Gross profit margin increased to 14% in 2023 from 13% in 2022, despite a decrease in gross profit to RMB 1,070,287,000[36] - Finance costs increased by 37% in 2023 due to higher bank borrowing interest rates[37] - Profit before tax decreased by RMB 217,370,000 to RMB 471,631,000 in 2023[37] - Income tax expense increased by 36% to RMB 360,396,000 in 2023[37] - Net profit for 2023 decreased by RMB 312,757,000 to RMB 111,235,000[37] - Total assets decreased by 4% to RMB20,282,899,000, and total equity decreased by 1% to RMB17,206,801,000 as of 31 December 2023[38] - Cash generated from operating activities decreased from RMB1,614,656,000 in 2022 to RMB1,531,770,000 in 2023[38] - Cash used in investing activities amounted to RMB2,814,690,000 in 2023, compared to cash inflow of RMB257,340,000 in 2022[38] - Cash used in financing activities amounted to RMB973,667,000 in 2023, primarily due to repayments of bank borrowings[38] - Capital expenditure for 2023 was RMB310,078,000, mainly for new production lines[38] - Short-term borrowings increased to RMB1,148,000,000 (65% of total borrowings) in 2023, while long-term borrowings decreased to RMB625,000,000 (35%)[40] - The Group's gearing ratio decreased to 15% in 2023 from 18% in 2022[41] - Unutilized credit facilities amounted to RMB9,171,000,000 as of 31 December 2023[41] - The Group's total assets in 2023 amounted to US$105.3 billion, with annual revenues reaching US$23.4 billion[135] - The Group's revenue for the year ended 31 December 2023 is detailed in the consolidated statement of profit or loss and other comprehensive income on page 64 of the annual report[164] - The Board recommended a final dividend of RMB4.1 cents per ordinary share, totaling RMB64,241,000 for the year ended 31 December 2023[164] - A final dividend of RMB16 cents per ordinary share for the year 2022 was paid on 21 July 2023[164] - The company's distributable reserves as of 31 December 2023 amounted to approximately RMB 3,878,263,000, calculated under the Cayman Islands Companies Law[167] - Charitable donations made by the Group during the year amounted to RMB 2,600,000, a decrease from RMB 9,800,000 in 2022[167] - The aggregate sales attributable to the Group's five largest customers were less than 30% of the total turnover in both 2022 and 2023[173] - The aggregate purchases attributable to the Group's five largest suppliers were less than 30% of the total purchases in both 2022 and 2023[174] - No related party transactions during the year constituted connected transactions as defined under the Listing Rules[171] - The company did not purchase, sell, or redeem any of its listed securities during the year under review[167] - The company is not aware of any tax relief or exemption available to shareholders due to their holding of the company's securities[169] - The company's share capital details for the year are provided in note 34 of the consolidated financial statements[167] - The company's property, plant, and equipment movements during the year are detailed in note 15 of the consolidated financial statements[167] - The company's reserves and equity changes are detailed in note 44 and the consolidated statement of changes in equity on pages 67-68 of the annual report[167] Industry and Market Conditions - The cement industry's total profit dropped by more than 50% year-on-year due to fierce competition and a sharp decline in real estate investment[9] - China's GDP in 2023 reached RMB 126 trillion, a year-on-year increase of 5.2%, higher than the global growth rate of approximately 3%[19] - National cement output in 2023 was 2.02 billion tonnes, a year-on-year decrease of 0.7%, with industry profits expected to be around RMB 32 billion, down 50% year-on-year[19] - The real estate market is expected to stabilize after reaching its bottom in 2024, with property sales and investments likely to stabilize in the first half and moderately recover in the second half[46] - Cement industry faces severe supply-demand imbalance, with new capacity additions expected in 2024 and cement prices likely to exhibit a bottoming-out and volatile trend[47] - Coal prices fluctuated at high levels in 2023, ranging from RMB900-1,200 per tonne, posing risks of further price increases due to potential supply tightening[48] - Infrastructure investment is expected to increase in 2024, supported by RMB1 trillion additional government bonds issued at the beginning of the year[50] - Staggered peak production policies are expected to improve in 2024, with extended kiln suspension durations, easing the supply-demand imbalance[51] - The dual carbon goals and ultra-low emission policy will impose stricter requirements on cement enterprises, potentially leading to the elimination of obsolete capacities and increased industry concentration[51] - The company expects cement demand to slightly decrease in 2024, with market prices remaining low and volatile[53] Strategic Initiatives and Future Plans - The company focused on technological innovation and net zero emission goals, integrating resources and expanding intelligent projects[11] - The company built a dedicated intelligent energy management system and expanded intelligent projects to cover optimization control, quality management, logistics management, and equipment management[11] - The Group plans to initiate AI transformation and build digital mines and smart factories in the next five years[18] - All cement and clinker production lines will reach environmental protection class A standards[18] - The Group aims to optimize logistics and improve transshipment capabilities[18] - The Group will focus on cement + aggregates + concrete businesses[18] - The Group plans to increase the market position of its existing businesses and improve operational efficiency[18] - The company plans to sell 26,590,000 tonnes of cement products (cement and clinker) in 2024, maintaining the 2023 sales volume level[53] - The company will focus on operational strategies of high efficiency, high quality, excellent service, and high environmental protection in 2024[53] - The company aims to leverage its integrated storage and transportation competitive edge to pursue cost reduction and efficiency improvement[53] - The company will actively participate in market competition with a more efficient and professional business team to maintain core market share[53] Corporate Governance and Board Structure - The Board is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[54] - The company has complied with all provisions of the Corporate Governance Code as set out in the Listing Rules of the Hong Kong Stock Exchange[54] - The Board comprises 11 Directors, including 6 executive Directors, 1 non-executive Director, and 4 independent non-executive Directors[55] - The company has issued service contracts to executive Directors, with terms ranging from 3 years and termination requiring 3 months' prior notice[58] - The non-executive Director, Mr. HSU Shu-tong, has a 3-year appointment letter starting from 27 April 2023, with termination requiring 1 month's prior notice[59] - The company has issued appointment letters to independent non-executive directors for a term of three years, with specific start dates for each director[60] - Mr. TSIM, Tak-Lung Dominic has served as a director for over 9 years and continues to provide objective and independent guidance[62] - The company has established a Board Independence Evaluation Mechanism to ensure strong independent judgment and safeguard shareholders' interests[63] - All directors completed independence evaluations via questionnaires and interviews, with satisfactory results reported to the Board[66] - The roles of Chairman and Chief Executive Officer are separate, with Mr. HSU, Shu-tong as Chairman and Mr. CHANG Chen-kuen as CEO[67] - The Board is responsible for overseeing the Group's businesses, strategic decisions, and performance, with senior management handling day-to-day operations[68] - The Board planned and held four meetings in 2023, with directors receiving at least 14 days' notice for regular meetings[71] - Attendance details for Board meetings in 2023 show that most directors attended all four meetings, with some attending three out of four[73] - The Audit Committee held 4 meetings in 2023 with management and/or external auditors, with attendance records showing full participation by the chairman and one member, and 3 out of 4 meetings attended by another member[82][83] - The Audit Committee's main duties include reviewing financial statements, monitoring external auditor independence, and overseeing the company's financial reporting and risk management systems[80] - All directors received training relevant to the company's business or their duties, with individual training records maintained for the financial year ended 31 December 2023[77][79] - The company provides comprehensive induction training for newly appointed directors to ensure understanding of business operations and regulatory responsibilities[76][79] - One-third of the company's directors are subject to retirement by rotation and re-election every three years according to the Articles of Association[74] - Directors appointed to fill casual vacancies must be re-elected at the first general meeting after their appointment[74] - The Audit Committee comprises one non-executive director and two independent non-executive directors, chaired by Mr. TSIM, Tak-lung Dominic[81] - The company encourages continuous professional development for directors, providing updates on regulatory changes and business environment developments[76][79] - The Audit Committee's terms of reference were last amended in 2015 and are available on the Hong Kong Exchanges and Clearing Limited's website[83] - Non-executive directors are appointed for three-year terms and subject to retirement by rotation every three years[75] - The Remuneration Committee is responsible for approving the remuneration policy and packages for executive Directors and senior management, ensuring transparency and performance-based decisions[84][85] - In 2023, the Remuneration Committee held one meeting, with all members attending, including Chairman Dr. WANG, Kuo-ming[86][87] - The remuneration of senior management in 2023 ranged from HK$1,000,001 to HK$1,500,000 and HK$2,000,001 to HK$2,500,000, with 4 individuals falling within these bands[90] - The Independence Committee reviewed transactions between the Group, Asia Cement Corporation, Far Eastern New Century Corporation, and Far Eastern Group to ensure compliance with commercial terms and fairness[91][93] - The Independence Committee held one meeting in 2023, with all members, including Chairman Mr. LEE, Kao-chao, in attendance[92][94] - The Nomination Committee reviewed the structure, size, and composition of the Board and recommended changes to align with the company's corporate strategy[95] - The Nomination Committee assessed the independence of independent non-executive Directors and recommended the re-election of Directors[95] - The Nomination Committee comprises Mr. HSU, Shu-tong (Chairman), Mr. TSIM, Tak-lung Dominic, and Mr. WANG Wei, all of whom attended 1 out of 1 meeting in 2023[97] - The Board Diversity Policy was adopted on 25 October 2013 and amended on 31 December 2018, focusing on gender, age, cultural and educational background, and professional experience[98] - As of the annual report date, the Board consists of 1 female and 10 male Directors, with a target to achieve at least one female Director and appropriate gender balance across all levels of the Group[98] - The Corporate Sustainability Committee held 2 meetings in 2023, with all members attending both meetings[100][102] - The Board amended and adopted the written terms of reference for the Corporate Sustainability Committee on 8 September 2023, in compliance with the CG Code[100] - The Corporate Sustainability Committee is responsible for consolidating and disclosing corporate sustainability information, planning and executing sustainability projects, and coordinating external evaluations on corporate sustainability[99] - The Corporate Sustainability Committee comprises 3 members: Dr. WANG Kuo-ming (Chairman, Independent Non-Executive Director), Mr. HSU Shuping (Executive Director), and Ms. WU Ling-ling (Executive Director)[100][102] - The Corporate Sustainability Committee evaluates the implementation of corporate governance, fostering of a sustainable environment, maintenance of public welfare, and promotion of economic development[101][102] - The Corporate Sustainability Committee develops policies, systems, management guidelines, and concrete promotion plans for implementing sustainable development initiatives[102] - The Corporate Sustainability Committee identifies major stakeholders and their concerns, and sets future enhancement directions and goals[102] - The Board reviewed the effectiveness of the company's risk management and internal control systems for the year ended 31 December 2023 and found them to be effective and adequate, with no significant concerns affecting shareholders[108] - The company paid RMB 9,497,000 in total to Deloitte Touche Tohmatsu for audit and non-audit services in 2023, compared to RMB 6,000,000 in 2022[106] - The Internal Audit Department continuously reviews the company's material controls and aims to cover all major operations cyclically to identify major risk areas and control issues[111] - The company has a Whistleblowing Policy allowing employees and external parties to confidentially report concerns about possible improprieties to the Head of Internal Audit or the Audit Committee[113] - The company maintains an Anti-Corruption Policy with an internal reporting channel for employees to report suspected corruption and bribery, and conducts anti-corruption training and inspections[114] - The company's risk management and internal control systems are designed to manage, not eliminate, risks of failing to achieve business objectives, providing reasonable but not absolute assurance against material misstatement or loss[107] - The Board regularly reviews the adequacy of resources, qualifications, and experience of accounting and financial reporting staff, as well as their training programs and budget[111] - The Audit Committee evaluated the performance of the risk management and internal control system during 2023 and was satisfied with its effectiveness[112] - The company secretary, Ms. Mok Ming Wai, undertook over 15 hours of professional training in 2023 to update her skills and knowledge[103] - The Board is responsible for ensuring the financial statements reflect a true and fair view of the company's affairs, results, and cash flow, and are prepared in compliance with relevant laws and Listing Rules[103] - The company has established a Corporate Sustainability Committee to enforce and implement sustainable development policies, with the CEO as the director and the Secretariat of the Administration Office as the General Convener[115][117] - The company has implemented a whistleblowing policy and anti-corruption policy, allowing employees to report misconduct anonymously through internal channels[116] - The company has adopted regulatory measures to control inside information, limiting access to senior management and directors, and ensuring strict confidentiality[118][122] - The company discloses inside information to the public as soon as reasonably practicable, ensuring announcements are clear, balanced, and free from false or misleading statements[119][122] - Shareholders holding at least one-tenth of the paid-up capital can request to convene extraordinary general meetings and propose resolutions within 21 days[121][123] - The company provides shareholders with comprehensive operational and financial performance information through annual and interim reports, and holds annual general meetings for direct communication with the board[120][123] - The company emphasizes effective communication with shareholders through annual general meetings, where the Chairman, executive directors, and independent non-executive directors are available to address shareholder queries[125][127] - The 2023 annual general meeting was held on 9 June 2023, with the notice sent to shareholders on 25 April 2023[126][127] - The Company maintains a website (http://www.achc.com.cn) for up-to-date financial and corporate governance information[130] - The Company's dividend policy, established on 31 December 2018, outlines principles for distributing net profits as dividends to shareholders[133] - The Company updated its Memorandum and Articles of Association to align with the latest Listing Rules changes during the 2023 annual general meeting[134] - The Group's investor relations team actively communicates with the investment community to introduce the Group's strengths and growth strategies[131] - The register of members will be closed from 4 June 2024 to 7 June 2024 for the annual general meeting[164] Leadership and Key Personnel - Mr. HSU, Shu-ping, aged 78, is the executive Director and vice chairman of the Group, responsible for formulating the overall business strategy in China[140] - Mr. CHEN Ruey-long, aged 76, is an executive Director with extensive experience in economic affairs and corporate governance, serving as chairman of SINOCON Industrial Standards Foundation and vice president of Cross-Strait CEO Summit[140] - Mr. LEE, Kun-yen, aged 83, has over 60 years of experience in the cement and concrete industries, currently serving as Director and general manager of Asia Cement Corporation[141][142] - Ms. WU, Ling-ling, aged 57, has over 30 years of experience in finance and corporate strategy, specializing in mergers and acquisitions, working capital management, and regulatory accounting[143][144] - Mr. CH

Financial Performance - For the three months ended March 31, 2024, the company reported an unaudited consolidated loss attributable to owners of approximately RMB 129.7 million[2]. - Revenue for the three months was RMB 1,223.8 million, a decrease from RMB 1,896.8 million in the same period last year, representing a decline of approximately 35.5%[3]. - Gross profit for the period was a loss of RMB 231, compared to a gross profit of RMB 173.6 million in the previous year[3]. - Other income increased to RMB 62.3 million from RMB 46.4 million year-on-year, reflecting a growth of approximately 34.2%[3]. - The company reported a net cash outflow from operating activities of RMB 215.3 million for the three months ended March 31, 2024, compared to a net inflow of RMB 58.7 million in the same period last year[6]. - The company's cash and cash equivalents as of March 31, 2024, were RMB 9,041.3 million, down from RMB 9,256.5 million at the end of the previous year[6]. - The company does not recommend the payment of dividends for the first three months of 2024, consistent with the previous year[7]. Assets and Liabilities - As of March 31, 2024, total assets amounted to RMB 17,710.8 million, a decrease from RMB 18,065.3 million as of December 31, 2023[4]. - The company's non-current liabilities decreased to RMB 635.8 million from RMB 858.5 million as of December 31, 2023[5]. Market Conditions - In Q1 2024, the national GDP reached 29,629.9 billion yuan, with a year-on-year growth of 5.3%, accelerating by 0.1 percentage points compared to the previous quarter[8]. - In Q1 2024, the group's cement product sales (cement + clinker) decreased by 14% year-on-year due to a downturn in the real estate market and tight project financing[9]. - The national fixed asset investment in Q1 2024 grew by 4.5% year-on-year, while infrastructure investment increased by 6.5%[8]. - The cement market demand in Q1 2024 was weak, with a total cement production of 337 million tons, down 16.3% year-on-year[9]. - The group anticipates that the cement market demand will slightly decline overall in 2024, with real estate demand continuing to bottom out[12]. - The group maintains a cautious optimism regarding the cement industry's development, expecting marginal improvement in demand in the second half of 2024[10]. - The group expects that the cement price will gradually return to a rational range after experiencing a "price war" in 2023[10]. Strategic Initiatives - The group plans to enhance customer service and leverage its comprehensive storage advantages to maintain core market share amid competitive pressures[12]. - The group aims to improve performance in the second half of the year through a series of strategic measures[12]. Executive Changes - The board announced changes in executive directors effective April 29, 2024, with three current executive directors transitioning to non-executive roles[2]. - Mr. Chen, Mr. Li, and Ms. Wu will be appointed as non-executive directors effective April 29, 2024[13]. Executive Compensation - Mr. Chen's remuneration for 2020, including director's fees, salary, and other benefits, was approximately HKD 240,000[14]. - Mr. Li holds 200,000 shares in the company, representing his equity interest[16]. - Mr. Li's remuneration for 2020, including director's fees, salary, and other benefits, was also approximately HKD 240,000[16]. - Ms. Wu has over 30 years of financial professional experience and has held various director and supervisory roles in more than 30 companies[18]. - Ms. Wu has extensive experience in mergers and acquisitions, financial management, internal control, and regulatory accounting[19]. - Ms. Wu's total compensation for 2020, including director fees, salary, and other benefits, amounted to HKD 240,000[19]. - Ms. Wu holds a registered accountant qualification in both the United States and Taiwan[19].

Financial Performance - Revenue decreased by approximately 23% to RMB 7,427,000,000 compared to RMB 9,614,300,000 in 2022[2] - Profit attributable to owners of the company was RMB 106,100,000, down from RMB 420,100,000 in 2022[2] - Basic earnings per share decreased to RMB 0.068 from RMB 0.268 in 2022[2] - Gross profit was RMB 1,070,287,000, down from RMB 1,288,929,000 in 2022[4] - The company reported a total rental income from investment properties of RMB 6,356,723,000 in 2023, compared to RMB 8,237,584,000 in 2022, reflecting a decline of 22.8%[7] - The group reported a loss of RMB 20,992 thousand from the sale of property, plant, and equipment in 2023, compared to a loss of RMB 2,806 thousand in 2022[16] - The company’s net profit attributable to shareholders for 2023 was RMB 106,088,000, a decrease of 74.7% compared to RMB 420,072,000 in 2022[21] - Net profit for the group in 2023 was RMB 111.2 million, a decrease of RMB 312.8 million from RMB 424 million in 2022[48] Assets and Liabilities - Total assets decreased to RMB 19,282,899,000 from RMB 21,146,284,000 in 2022[5] - Non-current assets decreased to RMB 9,363,152,000 from RMB 9,948,966,000 in 2022[5] - Current liabilities decreased to RMB 2,217,566,000 from RMB 2,195,224,000 in 2022[6] - Net asset value decreased to RMB 17,206,801,000 from RMB 17,390,864,000 in 2022[6] - The company's total liabilities amounted to RMB 825,163,000 in 2023, a decrease of 13.0% from RMB 948,248,000 in 2022[30] - Total assets decreased by approximately 4% to RMB 20.28 billion as of December 31, 2023, compared to RMB 21.15 billion in 2022[49] Cash Flow and Expenditures - Cash and cash equivalents increased to approximately RMB 9.26 billion in 2023 from RMB 8.90 billion in 2022[49] - Operating cash inflow decreased from RMB 1.61 billion in 2022 to RMB 1.53 billion in 2023[50] - Capital expenditures for the year ended December 31, 2023, were approximately RMB 301 million, down from RMB 379.6 million in 2022[51] Dividends - The board proposed a final dividend of RMB 0.041 per share[2] - The company declared a proposed final dividend of RMB 4.1 cents per share for the year ending December 31, 2023, totaling approximately RMB 64,241,000[20] - The proposed final dividend is 4.1 cents per share, subject to approval at the upcoming annual general meeting[60] Industry and Market Trends - The national cement production in 2023 was 2.02 billion tons, reflecting a year-on-year decrease of 0.7%[34] - The estimated profit for the cement industry in 2023 is approximately RMB 32 billion, representing a year-on-year decline of around 50%[34] - Cement prices are likely to continue fluctuating at low levels due to high inventory and weak demand, with ongoing competition among companies[58] - The real estate market is anticipated to stabilize in 2024, supported by favorable policies, although the impact on cement demand will take time to materialize[57] Operational Strategy - The group will focus on high efficiency, quality, service, and environmental protection in its operational strategy to enhance customer experience and reduce production costs[59] - The group plans to implement peak-shaving production policies to address supply-demand imbalances, although the overall supply will still exceed demand[58] - The group will continue to leverage its comprehensive logistics advantages to improve operational efficiency and maintain core market share[59] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules throughout the fiscal year ending December 31, 2023[63] - The audit committee, established on April 27, 2008, is responsible for reviewing the financial reporting, risk management, and internal control systems of the group[63] - No purchases, sales, or redemptions of the company's listed securities were made by the company or any of its subsidiaries during the fiscal year ending December 31, 2023[65] Employee and Operational Costs - The total employee costs for 2023 amounted to RMB 569,578,000, down from RMB 582,010,000 in 2022, reflecting a reduction of 2.4%[7] - Distribution and sales expenses increased from RMB 437.2 million in 2022 to RMB 447.3 million in 2023, primarily due to increased unloading costs for cement products[46] - Administrative expenses rose approximately 6% from RMB 319 million in 2022 to RMB 337.8 million in 2023[46] Taxation - The income tax expense for the group was RMB 360,396 thousand in 2023, compared to RMB 265,009 thousand in 2022, reflecting an increase in current tax liabilities[17] - Income tax expenses increased by approximately 36%, from RMB 265 million in 2022 to RMB 360.4 million in 2023[46]

Financial Performance - For the nine months ended September 30, 2023, the unaudited consolidated profit attributable to owners of the company was approximately RMB 116.2 million[2]. - Revenue for the nine months ended September 30, 2023, was RMB 5,715.8 million, compared to RMB 6,061.1 million for the same period in 2022, representing a decrease of approximately 5.7%[3]. - Gross profit for the nine months ended September 30, 2023, was RMB 845.8 million, down from RMB 1,025.8 million in 2022, reflecting a decline of about 17.5%[3]. - Basic earnings per share for the nine months ended September 30, 2023, was RMB 0.074, down from RMB 0.237 in the same period of 2022, representing a decline of approximately 68.8%[3]. - The company did not recommend the payment of dividends for the nine months ended September 30, 2023, consistent with the previous year[7]. Cash Flow and Assets - The company reported a net cash inflow from operating activities of RMB 1,241.9 million for the nine months ended September 30, 2023, compared to RMB 1,083.3 million in 2022, indicating an increase of approximately 14.7%[6]. - As of September 30, 2023, total assets amounted to RMB 18,153.2 million, a decrease from RMB 18,951.1 million as of December 31, 2022[4]. - The company's net asset value as of September 30, 2023, was RMB 17,217.2 million, compared to RMB 17,390.9 million as of December 31, 2022[5]. - The total liabilities as of September 30, 2023, were RMB 935.9 million, a significant decrease from RMB 1,560.2 million as of December 31, 2022[5]. Market and Sales Performance - From January to September 2023, the group's cement product sales (cement + clinker) totaled 19.61 million tons, a decrease of 570,000 tons or 2.8% compared to the same period in 2022[9]. - The group's forecast for full-year 2023 cement product sales is approximately 27.09 million tons, reflecting a decline of 3.2% compared to 2022[11]. - The cement market in the Yangtze River region experienced price declines of RMB 10-30 per ton in Q3 2023 due to weak demand and high inventory levels[8]. Economic Context - In Q3 2023, China's GDP reached RMB 31,999.2 billion, growing by 4.9% year-on-year, while the GDP for the first three quarters was RMB 91,302.7 billion, with a growth of 5.2%[8]. - National fixed asset investment grew by 3.1% year-on-year in the first three quarters, with infrastructure investment increasing by 6.2%[9]. - As of September 21, 2023, the total issuance of new special bonds nationwide reached RMB 3,275.5 billion, completing 86% of the annual quota, which is expected to support infrastructure projects and stabilize cement demand[9]. Future Outlook and Strategy - The group maintains a cautiously optimistic outlook for Q4 2023, anticipating a gradual recovery in cement demand driven by seasonal factors[9]. - The group plans to enhance customer service and reduce production costs while ensuring quality to adapt to increasing market competition[11]. - The cement industry is expected to face challenges and opportunities, with many companies reaching profitability bottoms and anticipating stronger recovery in performance by year-end[11]. - The group emphasizes the importance of adhering to high efficiency, quality, service, and environmental protection in its operational strategy moving forward[11].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 4,105,099, a decrease of 16.9% compared to RMB 4,946,981 in the same period of 2022[7] - Gross profit for the period was RMB 646,005, down 16.4% from RMB 773,502 in 2022, maintaining a gross profit margin of 16%[7] - Profit for the period attributable to owners of the Company was RMB 195,784, a decline of 37.2% from RMB 311,892 in the previous year[7] - Basic earnings per share decreased to RMB 0.125 from RMB 0.199, reflecting a 37.1% drop year-on-year[7] - Profit before tax was RMB 394,977, down from RMB 487,282 in 2022, reflecting a decrease of 18.9%[11] - Other income for the period was RMB 100,141, compared to RMB 105,162 in the previous year[11] - The total tax expense for the period was RMB 194,660,000, an increase of 17.9% from RMB 165,106,000 in 2022[34] - The net profit for the period was RMB 200.3 million, down RMB 121.9 million from RMB 322.2 million in the corresponding period of 2022, primarily due to decreased selling prices[72] Assets and Liabilities - Net assets as of June 30, 2023, were RMB 17,295,883, slightly down from RMB 17,390,864 at the end of 2022[9] - Current ratio decreased to 4.53 from 5.10, indicating a decline in liquidity[9] - Quick ratio also fell to 4.24 from 4.69, suggesting a tighter cash position[9] - Total assets less current liabilities increased to RMB 18,951,060, up from RMB 18,086,496, reflecting a growth of 4.8%[13] - Net current assets decreased to RMB 9,002,094 from RMB 8,474,417, indicating a decline of 6.2%[13] - Non-current liabilities decreased to RMB 1,560,196 from RMB 1,361,646, representing an increase of 14.6%[15] - Total equity attributable to owners of the Company was RMB 16,932,547, down from RMB 16,987,459, reflecting a decrease of 0.3%[15] - Cash and cash equivalents at the end of the period were RMB 8,812,619, slightly up from RMB 8,793,260, showing a marginal increase of 0.2%[20] Segment Performance - For the six months ended June 30, 2023, the Group's revenue from cement products and related products was RMB 4,028,123, a decrease of 16% compared to RMB 4,797,949 in the same period of 2022[24] - The total revenue for the cement business was RMB 4,044,439, while the concrete business generated RMB 76,976, leading to a consolidated total of RMB 4,105,099 after eliminations[25] - The segment result for the cement business was RMB 426,378, and for the concrete business, it was RMB 27,289, resulting in a total segment profit of RMB 453,667[25] - Sales of cement and related products accounted for 98% of total revenue in the first half of 2023, up from 97% in 2022[68] Market Conditions - The company experienced a slow recovery in cement demand due to a sluggish real estate market and fewer new construction projects[60] - Cement prices are expected to stabilize after a decline, with demand anticipated to improve in the second half of the year but still below last year's levels[60] - The market experienced pricing chaos in May 2023, with industry players cutting prices or offering rebates to secure orders amid shrinking demand[62] - The Group expects improved demand in the second half of 2023, allowing it to maintain its market share[63] Cost Management - The Group's cost of sales decreased to RMB 3,459.1 million for the six months ended June 30, 2023, down from RMB 4,173.5 million in 2022, primarily due to lower coal costs[70] - Distribution and selling expenses increased by 8% to RMB 223.0 million from RMB 206.0 million in the previous year, driven by higher transportation fees and handling charges[70] - Administrative costs rose by 8% to RMB 166.0 million from RMB 153.8 million in 2022, attributed to increased other expenses[70] - Finance costs surged by 165% to RMB 36.0 million from RMB 13.6 million in the previous year, mainly due to higher borrowing rates[70] Strategic Outlook - The Group plans to implement cost-efficiency measures to reduce production costs while ensuring quality[83] - The Group will maintain its business strategy focused on high efficiency, high quality, excellent service, and high environmental standards in the second half of the year[83] - The company aims to achieve its established performance targets despite the challenging market environment[84] - The overall strategy includes a focus on new product development and market expansion to enhance competitiveness[84] Corporate Governance - The company has complied with all corporate governance code provisions during the six months ended June 30, 2023[102] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[103] - The Board does not recommend any dividend for the six months ended June 30, 2023, consistent with the previous year[113]

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].

Financial Performance - Asia Cement (China) reported a revenue of RMB9,614,330,000 in 2022, a year-on-year decrease of 18%[9]. - The gross operating profit for 2022 was RMB1,288,929,000, reflecting a significant year-on-year decrease of 65%[9]. - The net operating profit amounted to RMB532,702,000, representing an 82% decline compared to the previous year[9]. - The gross operating margin was recorded at 13.4%, while the net operating margin stood at 5.5%[9]. - In 2022, Asia Cement (China) reported a revenue of CNY 9,614,330 thousand, a decrease of 18% compared to the previous year[10]. - The operating gross profit for 2022 was CNY 1,288,929 thousand, down 65% year-on-year, with a gross profit margin of 13.4%[10]. - The net profit for 2022 was CNY 532,702 thousand, reflecting an 82% decline from the previous year, resulting in a net profit margin of 5.5%[10]. - The total revenue for Asia Cement (China) in 2022 was RMB9,614,330,000, a year-on-year decrease of 18%[17]. - The gross operating profit and net operating profit were RMB1,288,929,000 and RMB532,702,000, reflecting year-on-year decreases of 65% and 82% respectively[17]. - The total comprehensive income for the year 2022 was RMB 420,072, compared to RMB 1,768,307 in 2021, indicating a significant decline of approximately 76.3%[176]. Industry Challenges - The cement industry faced challenges due to rising production costs driven by increasing coal and electricity prices[6]. - The cement industry's profits are expected to drop by over 50% in 2022 due to high production costs and weak demand[15]. - The cement industry faced a 39.4% year-on-year decline in newly started residential area and a 53.4% year-on-year decrease in land acquisition area in 2022[59]. - The price of coal surged to RMB1,600 per tonne in 2022, creating significant business pressure for the cement industry[60]. - Environmental protection and low carbon policies are anticipated to deepen in 2023, further suppressing cement supply and increasing cost pressure on backward enterprises[62]. Strategic Initiatives - Asia Cement (China) is focusing on high-quality development and green transformation in response to the "dual carbon" policy[8]. - The company is investing in digitalization and green factory construction to enhance operational efficiency[8]. - Asia Cement (China) plans to achieve production capacity targets of 40 million tonnes for cement, 20 million tonnes for aggregates, and 10 million tonnes for products over the next five years[11]. - The company aims to meet environmental grade A standards for all cement and clinker production lines, focusing on low-carbon transformation and energy-saving technologies[11]. - The company is committed to high-quality development and comprehensive talent cultivation to create long-term value for customers, employees, and society[11]. - The company is focusing on green and low-carbon development, utilizing industrial waste in raw material mixtures and treating 73,000 tons of various wastes throughout the year to enhance resource utilization[24]. - The company is accelerating its transformation towards renewable energy and has begun to invest in photovoltaic and energy storage sectors[20]. Market Outlook - For 2023, the GDP growth rate is estimated to be approximately 5%, with expectations of stabilization in the property market and strong support for cement demand[11]. - The cement industry is expected to see improved operating efficiency in 2023 due to a rebound in cement prices and coal prices returning to reasonable levels[11]. - The Group expects that infrastructure construction will become one of the important drivers of economic growth in 2023, supporting cement demand[61]. - The Group anticipates industry profits will improve slightly due to the gradual implementation of key construction projects and favorable real estate policies[64]. - The Group expects the overall cement market to continue declining in 2023, but the decline will significantly narrow, especially in the second half of the year, with cement demand expected to stabilize[64]. Corporate Governance - The Board is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[67]. - The Board comprises eleven Directors, including six executive Directors, one non-executive Director, and four independent non-executive Directors[68]. - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2022[67]. - The Board is responsible for overseeing the Group's businesses, strategic decisions, and performance, promoting the Company's success[72]. - The Company emphasizes the importance of independent non-executive directors attending general meetings to understand shareholder views[71]. Financial Position - The company's total assets were valued at RMB21,146,284,000, with net assets of RMB17,390,864,000[5]. - The current ratio improved to 5.10, while the gearing ratio was reported at 0.18[5]. - Total equity decreased by approximately 2% to RMB17,390.9 million as of December 31, 2022, down from RMB17,673.8 million in 2021[51]. - Cash generated from operating activities decreased from RMB2,498.9 million in 2021 to RMB1,614.7 million in 2022[51]. - The Group's borrowings as of December 31, 2022, included short-term borrowings of RMB1,014 million and long-term borrowings of RMB1,361.6 million[53]. Employee and Social Responsibility - The company emphasizes corporate social responsibility and will actively participate in the construction of "Zero Waste City" initiatives[11]. - The Group has policies to select suppliers and contractors that align with its social, environmental, and labor practice standards[158]. - Employees are compensated equitably and competitively, with ongoing training and development opportunities provided to enhance performance and achieve corporate goals[158]. - Charitable donations made by the Group during the year totaled RMB9.8 million, a significant increase from RMB1.4 million in 2021[137].

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].