（Stock Code 股份代號：743） NOTIFICATION LETTER 通知信函 Asia Cement (China) Holdings Corporation 亞洲水泥（中國）控股公司 (incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） The English and Chinese versions of the Company's Current Corporate Communications(Note) are now available on the Company's website at (www.achc.com.cn) and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at (www.hkexnews.hk) respectively (the "Website Version"). The Company strongly recommends you to a ...

Asia Cement (China) Holdings Corporation 亞洲水泥（中國）控股公司 Should you have any queries relating to any of the above matters, please call the Branch Share Registrar's telephone hotline at (852) 2980 1333 from 9:00 a.m. to 6:00 p.m. Monday to Friday (excluding public holidays). By order of the Board Asia Cement (China) Holdings Corporation HSU Shu-tong Chairman （Stock Code 股份代號：743） NOTIFICATION LETTER 通知信函 Dear Non-Registered Holder(Note 1), 8 September 2025 Asia Cement (China) Holdings Corporation (the "Company" ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) The Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by various committees - The Board of Directors consists of executive, non-executive, and independent non-executive directors, with committees for audit, remuneration, nomination, independence, and corporate sustainability[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's auditor is Deloitte Touche Tohmatsu, and its stock code is **743**[12](index=12&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) The company achieved a significant turnaround in profitability for the six months ended June 30, 2025, despite a slight revenue decrease Key Financial Performance for the Six Months Ended June 30 | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,496,296 | 2,689,407 | -7.18% | | Gross profit | 411,240 | 132,980 | +209.25% | | Profit (loss) for the period | 116,972 | (411,205) | Returned to profitability | | Profit (loss) attributable to owners | 114,418 | (404,853) | Returned to profitability | | Gross profit margin | 16% | 5% | +11 ppts | | Basic EPS | RMB0.073 | RMB(0.258) | Returned to profitability | Key Financial Position as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Total assets | 19,628,972 | 19,677,550 | -0.25% | | Net assets | 16,996,967 | 16,879,995 | +0.69% | | Current ratio | 3.59 | 4.77 | -24.74% | | Quick ratio | 3.35 | 4.53 | -26.05% | | Gearing ratio | 0.13 | 0.14 | -7.14% | [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including statements of profit or loss, financial position, changes in 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) For the six months ended June 30, 2025, the company returned to profitability with a profit of **RMB116,972 thousand**, driven by a **209.25% increase in gross profit** and an **18.44% decrease in cost of sales** Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,496,296 | 2,689,407 | -7.18% | | Cost of sales | (2,085,056) | (2,556,427) | -18.44% | | Gross profit | 411,240 | 132,980 | +209.25% | | Profit (loss) for the period | 116,972 | (411,205) | Returned to profitability | | Basic EPS | 0.073 | (0.258) | Returned to profitability | [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current assets increased by **31.43%** due to a significant rise in bank time deposits, while total current assets decreased by **26.36%** mainly from reduced cash and bank balances, with total equity showing a **0.69%** increase Summary of Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 11,686,695 | 8,891,959 | +31.43% | | Total current assets | 7,942,277 | 10,785,591 | -26.36% | | Total current liabilities | 2,212,351 | 2,263,184 | -2.19% | | Total non-current liabilities | 419,654 | 534,371 | -21.47% | | Total equity | 16,996,967 | 16,879,995 | +0.69% | - Bank time deposits with original maturity over three months increased from zero at the end of 2024 to **RMB2,948,000 thousand** (non-current) and **RMB4,552,214 thousand** (current) as of June 30, 2025[18](index=18&type=chunk) - Bank balances and cash significantly decreased from **RMB8,883,071 thousand** at the end of 2024 to **RMB1,564,157 thousand** as of June 30, 2025[18](index=18&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased by **1.59%**, primarily due to a **profit of RMB116,972 thousand** for the period, a significant improvement from the loss in the prior year Summary of Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Metric | June 30, 2025 (thousand RMB) | June 30, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Profit (loss) attributable to owners of the Company for the period | 114,418 | (404,853) | Returned to profitability | | Total equity (end of period) | 16,996,967 | 16,731,355 | +1.59% | [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly increased by **119.46%**, while net cash used in investing and financing activities substantially decreased, resulting in a net increase of **RMB269,598 thousand** in cash and cash equivalents Summary of Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 319,885 | 145,761 | +119.46% | | Net cash used in investing activities | (29,523) | (2,756,723) | -98.93% | | Net cash used in financing activities | (20,764) | (833,231) | -97.51% | | Net increase (decrease) in cash and cash equivalents | 269,598 | (3,444,193) | Returned to profitability | | Cash and cash equivalents at end of period | 1,564,157 | 2,273,824 | -31.21% | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering basis of preparation, principal accounting policies, revenue, segment information, other income, other expenses, income tax, profit for the period, EPS, PPE, quarry, inventories, trade and other receivables, trade and other payables, contract liabilities, share capital, commitments, and related party transactions [1. Basis of Preparation](index=12&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable disclosure requirements of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[24](index=24&type=chunk)[28](index=28&type=chunk) [2. Principal Accounting Policies](index=12&type=section&id=2.%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value, and current IFRS amendments have no significant impact - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[25](index=25&type=chunk)[29](index=29&type=chunk) - The application of amendments to International Financial Reporting Standards in the current period had no significant impact on the Group's financial position and performance[27](index=27&type=chunk)[29](index=29&type=chunk) [3. Revenue](index=13&type=section&id=3.%20Revenue) Revenue for the period primarily derived from the sale of cement products and related products, which saw a **7.00% decrease**, while concrete sales also declined by **14.39%** Revenue Analysis (For the Six Months Ended June 30) | Product | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Sales of cement products and related products | 2,438,060 | 2,621,481 | -7.00% | | Sales of concrete | 58,236 | 67,926 | -14.39% | | **Total** | **2,496,296** | **2,689,407** | **-7.18%** | [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The cement business segment returned to profitability with **RMB221,884 thousand**, while the concrete business segment's loss widened, resulting in a total segment profit turnaround Segment Results Analysis (For the Six Months Ended June 30) | Segment | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Cement business | 221,884 | (203,521) | Returned to profitability | | Concrete business | (17,089) | (14,924) | Loss widened | | **Total Segment Results** | **204,795** | **(218,445)** | Returned to profitability | - Segment results represent the profit earned (loss incurred) by each segment, before allocation of central administrative costs, directors' salaries, share of results of joint ventures and associates, investment income, and finance costs[37](index=37&type=chunk)[39](index=39&type=chunk) [5. Other Income](index=15&type=section&id=5.%20Other%20Income) Total other income decreased by **17.59%**, primarily due to a **51.96% reduction in government grants** and a **14.99% decrease in bank deposit interest income**, partially offset by new mining rights compensation Other Income Analysis (For the Six Months Ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Government grants | 3,000 | 6,245 | -51.96% | | Interest income from bank deposits | 85,369 | 100,442 | -14.99% | | Compensation income for mining rights settlement | 10,330 | – | N/A | | **Total** | **109,090** | **132,405** | **-17.59%** | [6. Other Expenses, Other Gains and Losses](index=15&type=section&id=6.%20Other%20Expenses%2C%20Other%20Gains%20and%20Losses) The company achieved a net gain of **RMB1,694 thousand** from other expenses, other gains and losses, a significant turnaround from a net loss in the prior year, mainly due to the absence of tax-related surcharges Other Expenses, Other Gains and Losses Analysis (For the Six Months Ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Taxes and related surcharges | – | (89,034) | -100% | | Loss on disposal of property, plant and equipment | (10,460) | (21,287) | -50.86% | | Impairment loss on assets | – | (9,620) | -100% | | Gain on changes in fair value of financial assets | 11,259 | 36,920 | -69.50% | | **Total** | **1,694** | **(83,055)** | Returned to profitability | [7. Income Tax Expense](index=16&type=section&id=7.%20Income%20Tax%20Expense) Total income tax expense decreased by **71.77%**, primarily due to a **53.84% reduction in PRC corporate income tax** and a turnaround in deferred tax from an expense to a credit Income Tax Expense Analysis (For the Six Months Ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | PRC corporate income tax | 56,432 | 122,250 | -53.84% | | Deferred tax | (3,489) | 65,312 | Returned to profitability | | **Total** | **52,943** | **187,562** | **-71.77%** | - The applicable tax rates for the Group's PRC subsidiaries range from **15% to 25%**[45](index=45&type=chunk)[48](index=48&type=chunk) [8. Profit for the Period](index=16&type=section&id=8.%20Profit%20for%20the%20Period) Depreciation and amortization expenses decreased by **11.27%** for the six months ended June 30, 2025 Depreciation and Amortization (For the Six Months Ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Depreciation and amortization | 343,857 | 387,040 | -11.27% | [9. Dividends](index=17&type=section&id=9.%20Dividends) The Board did not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: **RMB nil**)[51](index=51&type=chunk)[52](index=52&type=chunk) [10. Earnings Per Share](index=17&type=section&id=10.%20Earnings%20Per%20Share) Basic earnings per share turned positive at **RMB0.073**, reflecting a significant turnaround from a loss per share in the prior year Earnings Per Share Analysis (For the Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Profit (loss) attributable to owners of the Company (thousand RMB) | 114,418 | (404,853) | Returned to profitability | | Basic EPS (RMB) | 0.073 | (0.258) | Returned to profitability | [11. Property, Plant and Equipment](index=18&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) The carrying value of property, plant and equipment decreased by **1.91%**, with additions of **RMB201,374 thousand** and depreciation of **RMB296,407 thousand** during the period Carrying Value of Property, Plant and Equipment (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Carrying value | 5,680,555 | 5,791,017 | -1.91% | - Additions during the period amounted to **RMB201,374 thousand**, with depreciation of **RMB296,407 thousand**[56](index=56&type=chunk) [12. Quarry](index=18&type=section&id=12.%20Quarry) The carrying value of quarry assets decreased by **3.79%**, with amortization of **RMB29,029 thousand** during the period Carrying Value of Quarry (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Carrying value | 735,320 | 764,349 | -3.79% | - Amortization during the period amounted to **RMB29,029 thousand**[58](index=58&type=chunk) [13. Inventories](index=19&type=section&id=13.%20Inventories) Total inventories increased slightly by **0.89%**, with increases in parts and materials and work-in-progress, while raw materials and finished goods decreased Inventories Analysis (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Parts and materials | 114,300 | 105,592 | +8.25% | | Raw materials | 161,076 | 172,385 | -6.56% | | Work-in-progress | 114,134 | 96,952 | +17.72% | | Finished goods | 147,588 | 157,435 | -6.26% | | **Total** | **537,098** | **532,364** | **+0.89%** | [14. Trade and Other Receivables](index=19&type=section&id=14.%20Trade%20and%20Other%20Receivables) Total trade and other receivables remained stable with a **0.17% increase**, as a decrease in trade receivables was offset by increases in bills receivable and other receivables Trade and Other Receivables Analysis (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Trade receivables (net of allowance for credit losses) | 262,970 | 298,334 | -11.85% | | Bills receivable | 334,129 | 331,626 | +0.75% | | Other receivables | 314,702 | 280,270 | +12.29% | | **Total** | **911,801** | **910,230** | **+0.17%** | - Credit terms for cement customers range from **30 to 180 days**, and for concrete customers from **180 to 365 days**[61](index=61&type=chunk)[62](index=62&type=chunk) Aging Analysis of Trade Receivables (Net of Allowance for Doubtful Debts, As of) | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | 0 to 90 days | 138,769 | 144,563 | -3.99% | | 91 to 180 days | 38,669 | 56,739 | -31.85% | | 181 to 365 days | 65,668 | 65,168 | +0.77% | | Over 365 days | 19,864 | 31,864 | -37.65% | | **Total** | **262,970** | **298,334** | **-11.85%** | [15. Trade and Other Payables](index=21&type=section&id=15.%20Trade%20and%20Other%20Payables) Total trade and other payables decreased by **15.50%**, driven by a **31.52% reduction in trade payables and bills payable** Trade and Other Payables Analysis (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Trade payables and bills payable | 255,281 | 372,719 | -31.52% | | Other payables and accrued expenses | 621,047 | 664,390 | -6.52% | | **Total** | **876,328** | **1,037,109** | **-15.50%** | - The average credit period for trade purchases is **30 to 90 days**[69](index=69&type=chunk) [16. Contract Liabilities](index=22&type=section&id=16.%20Contract%20liabilities) Total contract liabilities increased by **13.68%**, primarily due to higher receipts for cement products prior to delivery Contract Liabilities Analysis (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Receipts for cement products prior to delivery | 123,525 | 108,663 | +13.68% | | Receipts for concrete prior to delivery | 233 | 201 | +15.92% | | **Total** | **123,758** | **108,864** | **+13.68%** | [17. Share Capital](index=22&type=section&id=17.%20Share%20Capital) As of June 30, 2025, the issued share capital remained unchanged at **RMB140,390,000** - As of June 30, 2025, the issued share capital was **RMB140,390,000**, with no changes during the period[71](index=71&type=chunk)[72](index=72&type=chunk) [18. Commitments](index=22&type=section&id=18.%20Commitments) Total capital expenditure commitments significantly increased by **200.31%**, mainly driven by a substantial rise in commitments for the acquisition of property, plant, and equipment Capital Expenditure Commitments (As of) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 629,909 | 169,732 | +271.12% | | Investment in a PRC enterprise | 59,000 | 59,000 | 0% | | **Total** | **688,909** | **228,732** | **+200.31%** | [19. Related Party Transactions](index=23&type=section&id=19.%20Related%20Party%20Transactions) Related party transactions included sales of goods to a joint venture and transportation expenses, while directors' emoluments saw a slight decrease Transactions with Joint Ventures (For the Six Months Ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Sales of goods | 22,764 | – | N/A | | Purchases of goods | – | 404 | -100% | | Transportation expenses | 40,372 | 48,930 | -17.49% | Directors' Emoluments (For the Six Months Ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Short-term employee benefits | 2,222 | 2,300 | -3.39% | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational and financial performance, market conditions, and future outlook - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, with fixed asset investment increasing by **2.8%** (excluding real estate development investment, which grew by **6.6%**)[79](index=79&type=chunk)[80](index=80&type=chunk) - National cumulative cement output was **815 million tons**, a **4.3%** year-on-year decrease, with the decline narrowing by **5.7 percentage points** compared to the same period last year[79](index=79&type=chunk)[80](index=80&type=chunk) - The cement market in the middle and lower reaches of the Yangtze River exhibited 'weak demand, with prices higher in the first half and lower in the second,' while the Sichuan market continued its downward price trend, but is expected to stabilize and rebound in the second half[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - The Group actively participated in staggered production and industry coordination, leading to a year-on-year increase in average cement selling prices and a return to profitability in the first half[82](index=82&type=chunk) [BUSINESS AND FINANCIAL REVIEW](index=23&type=section&id=BUSINESS%20AND%20FINANCIAL%20REVIEW) In the first half of 2025, despite a complex international environment and domestic economic pressures, the Group achieved a turnaround to profitability through increased average selling prices and reduced coal costs, despite a decline in national cement demand [Revenue](index=26&type=section&id=Revenue) The Group's revenue decreased by **7%** to **RMB2,496,296 thousand**, primarily due to lower product sales volumes - The Group's revenue was **RMB2,496,296 thousand**, a **7% decrease** compared to the same period in 2024, primarily due to lower product sales volume[84](index=84&type=chunk) Sales Analysis by Region (For the Six Months Ended June 30) | Region | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Southeast Region | 1,406,488 | 1,604,298 | -12.33% | | Central China Region | 368,955 | 282,491 | +30.61% | | Southwest Region | 720,853 | 802,618 | -10.20% | | **Total** | **2,496,296** | **2,689,407** | **-7.18%** | - Sales of cement and related products accounted for **98%** of revenue (2024: **97%**), while sales of ready-mixed concrete accounted for **2%** (2024: **3%**)[85](index=85&type=chunk) [Cost of Sales and Gross Profit](index=27&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased by **18.44%** to **RMB2,085,056 thousand**, leading to a **209.25% increase in gross profit** and a gross profit margin of **16%**, primarily due to reduced coal costs and higher product selling prices - Cost of sales was **RMB2,085,056 thousand** (2024: **RMB2,556,427 thousand**), a **18.44% decrease**, primarily due to reduced coal costs[87](index=87&type=chunk)[93](index=93&type=chunk) - Gross profit was **RMB411,240 thousand** (2024: **RMB132,980 thousand**), with a gross profit margin of **16%** (2024: **5%**), mainly due to increased product selling prices and reduced coal costs[88](index=88&type=chunk)[93](index=93&type=chunk) [Other Income](index=27&type=section&id=Other%20Income) Other income decreased by **18%** to **RMB109,090 thousand**, mainly attributable to lower interest income - Other income was **RMB109,090 thousand**, an **18% decrease** compared to the same period in 2024, primarily due to reduced interest income[89](index=89&type=chunk)[94](index=94&type=chunk) [Other Expenses, Other Gains and Losses](index=27&type=section&id=Other%20Expenses%2C%20Other%20Gains%20and%20Losses) Net other gains and losses significantly improved to a net gain of **RMB1,694 thousand** from a net loss in the prior year, mainly due to reduced tax-related surcharges - Net other gains and losses amounted to a net gain of **RMB1,694 thousand**, a significant improvement from a net loss of **RMB83,055 thousand** in the same period of 2024, primarily due to reduced tax-related surcharges levied by tax authorities[90](index=90&type=chunk)[95](index=95&type=chunk) [Distribution and Selling Expenses, Administrative Expenses and Finance Costs](index=27&type=section&id=Distribution%20and%20Selling%20Expenses%2C%20Administrative%20Expenses%20and%20Finance%20Costs) Distribution and selling expenses decreased by **1%**, administrative expenses by **4%**, and finance costs by **43%**, driven by reductions in depreciation, packaging materials, and average borrowing rates - Distribution and selling expenses decreased by **1%** to **RMB161,844 thousand**, mainly due to reduced depreciation and packaging materials[91](index=91&type=chunk)[96](index=96&type=chunk) - Administrative expenses decreased by **4%** to **RMB143,785 thousand**, mainly due to reduced depreciation and amortization expenses[92](index=92&type=chunk)[96](index=96&type=chunk) - Finance costs decreased by **43%** to **RMB18,162 thousand**, primarily due to a decrease in the average borrowing interest rate[92](index=92&type=chunk)[96](index=96&type=chunk) [Profit for the Period](index=28&type=section&id=Profit%20for%20the%20Period) The Group's net profit significantly increased to **RMB116,972 thousand** from a loss in the prior year, primarily due to higher product selling prices and reduced coal costs - The Group's net profit was **RMB116,972 thousand**, a substantial increase from a loss of **RMB411,205 thousand** in the same period of 2024, primarily due to increased product selling prices and reduced coal costs[97](index=97&type=chunk)[101](index=101&type=chunk) [Financial Resources and Liquidity](index=28&type=section&id=Financial%20Resources%20and%20Liquidity) As of June 30, 2025, the Group maintained a sound financial and liquidity position with total assets of **RMB19,628,972 thousand** and total equity of **RMB16,996,967 thousand** - As of June 30, 2025, the Group maintained a sound financial and liquidity position, with total assets of **RMB19,628,972 thousand** and total equity of **RMB16,996,967 thousand**[98](index=98&type=chunk)[102](index=102&type=chunk) - Cash and cash equivalents amounted to **RMB1,564,157 thousand**, and time deposits with original maturity over three months totaled **RMB7,500,214 thousand**[99](index=99&type=chunk)[102](index=102&type=chunk) - The gearing ratio was **13%** (December 31, 2024: **14%**)[100](index=100&type=chunk)[102](index=102&type=chunk) [Borrowings](index=28&type=section&id=Borrowings) Total borrowings remained unchanged at **RMB1,144,000 thousand**, all unsecured, unguaranteed, fixed-rate RMB borrowings with interest rates ranging from **1.99% to 3.55%** Borrowings Maturity Analysis (As of) | Maturity | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Within one year | 1,144,000 | 1,012,000 | +13.04% | | Over one year but not exceeding two years | – | 132,000 | -100% | | **Total** | **1,144,000** | **1,144,000** | **0%** | - All borrowings are unsecured and unguaranteed fixed-rate RMB borrowings, with interest rates ranging from **1.99% to 3.55%** (December 31, 2024: **2.60% to 3.68%**)[104](index=104&type=chunk) [Capital Expenditure and Capital Commitments](index=29&type=section&id=Capital%20Expenditure%20and%20Capital%20Commitments) Capital expenditure for the six months ended June 30, 2025, was **RMB217,168 thousand**, with planned investments in production line upgrades, capacity expansion, energy saving, and environmental protection measures - Capital expenditure for the six months ended June 30, 2025, amounted to **RMB217,168 thousand**[105](index=105&type=chunk)[111](index=111&type=chunk) - The Group will invest in the renovation and upgrade of production lines and facilities, including capacity replacement, expansion of non-cement business capacity, energy saving and consumption reduction, safety and environmental protection measures, and production process improvements[105](index=105&type=chunk)[115](index=115&type=chunk) - Payments for new reserve mining rights (Jiangxi Yadong and Huanggang Yadong mines) are also required in the short term[106](index=106&type=chunk)[111](index=111&type=chunk) [Pledge of Assets](index=29&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged or mortgaged assets, consistent with the prior year - As of June 30, 2025, the Group had no pledged or mortgaged assets (December 31, 2024: **nil**)[107](index=107&type=chunk)[112](index=112&type=chunk) [Contingent Liabilities](index=29&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Board was not aware of any significant contingent liabilities - As of June 30, 2025, the Board was not aware of any significant contingent liabilities (December 31, 2024: **nil**)[108](index=108&type=chunk)[113](index=113&type=chunk) [Human Resources](index=29&type=section&id=Human%20Resources) As of June 30, 2025, the Group had **2,760 employees**, with remuneration based on performance and experience, and no share options granted - As of June 30, 2025, the Group had a total of **2,760 employees**[109](index=109&type=chunk)[114](index=114&type=chunk) - The Group remunerates employees based on their performance and experience, with compensation packages reviewed regularly[109](index=109&type=chunk)[114](index=114&type=chunk) - No share options were granted or agreed to be granted under the share option scheme as of June 30, 2025[110](index=110&type=chunk)[114](index=114&type=chunk) [Material Acquisition and Disposals of Subsidiaries and Affiliated Companies](index=30&type=section&id=Material%20Acquisition%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) The Group had no material acquisitions or disposals of subsidiaries and affiliated companies for the six months ended June 30, 2025 - The Group had no material acquisitions or disposals for the six months ended June 30, 2025[116](index=116&type=chunk)[121](index=121&type=chunk) [Foreign Exchange Risk Management](index=30&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's sales and purchases are primarily denominated in RMB, and management monitors foreign exchange risk, considering hedging significant exposures when necessary - The majority of the Group's sales and purchases during the reporting period were denominated in RMB[117](index=117&type=chunk)[122](index=122&type=chunk) - The RMB is not a freely convertible currency, and its exchange rate may be affected by PRC government controls, domestic and international economic developments, and political changes[118](index=118&type=chunk)[122](index=122&type=chunk) - Management continuously monitors foreign exchange risk and will consider hedging significant foreign exchange exposures when necessary[119](index=119&type=chunk)[123](index=123&type=chunk) [EVENTS AFTER THE REPORTING PERIOD](index=30&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) No significant events affecting the Group occurred after the reporting period up to the date of this announcement - No significant events affecting the Group occurred from the end of the reporting period up to the date of publication of this interim results announcement[120](index=120&type=chunk)[124](index=124&type=chunk) [PROSPECTS](index=31&type=section&id=PROSPECTS) For the second half of 2025, overall cement demand is expected to continue its downward trend due to declining real estate demand, with industry profitability dependent on supply-side policy enforcement and corporate self-discipline, while the Group aims for continued performance improvement through high-efficiency operations and cost reduction - The decline in real estate demand has not yet reached an inflection point in the second half, with infrastructure investment continuing to provide support, but overall cement demand is unlikely to reverse its downward trend[125](index=125&type=chunk)[127](index=127&type=chunk) - The China Cement Association issued 'Opinions on Further Promoting High-Quality Development of the Cement Industry to Combat 'Involution' and Ensure 'Stable Growth',' aiming to rectify the 'misalignment of approved and constructed capacity' and promote strict adherence to registered production capacity by cement enterprises[125](index=125&type=chunk)[127](index=127&type=chunk) - The Group will adhere to a high-efficiency, high-quality, high-service, and high-environmental protection operating strategy, leveraging its integrated storage and transportation advantages to promote cost reduction and efficiency improvement[126](index=126&type=chunk)[127](index=127&type=chunk) - The Group will actively respond to national 'anti-involution' policies, strengthen industry communication, and strive to seize opportunities in intense market competition, with performance expected to continue improving in the second half[126](index=126&type=chunk)[127](index=127&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) This section covers disclosures regarding directors' and substantial shareholders' interests, share option schemes, corporate governance, committee reviews, and other statutory information [DISCLOSURE OF INTERESTS](index=32&type=section&id=DISCLOSURE%20OF%20INTERESTS) This section discloses the long positions of directors and chief executives in the shares and underlying shares of the Company and its associated corporation, Asia Cement Corporation Directors' Long Positions in Shares of the Company (As of June 30, 2025) | Director Name | Total Interest (Number of Ordinary Shares) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | | Mr. Hsu Hsu-Tung | 3,000,000 | 0.19% | | Mr. Hsu Hsu-Ping | 200,000 | 0.01% | | Mr. Chang Chen-Kun | 713,000 | 0.05% | | Mr. Lin Sheng-Chang | 700,000 | 0.04% | | Mr. Lee Kun-Yen | 200,000 | 0.01% | | Ms. Wu Ling-Ling | 50,000 | 0.003% | Directors' Long Positions in Shares of Associated Corporation (Asia Cement Corporation) (As of June 30, 2025) | Director Name | Total Ordinary Shares Held in Associated Corporation | Percentage of Associated Corporation's Equity | | :--- | :--- | :--- | | Mr. Hsu Hsu-Tung | 29,630,801 | 0.84% | | Mr. Hsu Hsu-Ping | 13,454,981 | 0.38% | | Mr. Lee Kun-Yen | 3,933,557 | 0.11% | | Mr. Chang Chen-Kun | 35,103 | 0.001% | | Mr. Lin Sheng-Chang | 17,368 | 0.0005% | | Ms. Wu Ling-Ling | 305,000 | 0.01% | | Dr. Wang Kuo-Ming | 320 | 0.000009% | | Mr. Wu Chun-Pang | 160,086 | 0.005% | [SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTEREST IN SHARES AND UNDERLYING SHARES](index=34&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20AND%20OTHER%20PERSONS%27%20INTEREST%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) This section identifies substantial shareholders, Asia Cement and Far Eastern New Century, both holding **73.07%** long positions in the Company's issued share capital Substantial Shareholders' Long Positions in Shares of the Company (As of June 30, 2025) | Name | Capacity | Number of Shares | Approximate Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Asia Cement Corporation | Beneficial owner and interest of controlled corporation | 1,144,862,000 | 73.07% | | Far Eastern New Century Corporation | Beneficial owner and interest of controlled corporation | 1,144,862,000 | 73.07% | - Asia Cement beneficially owns approximately **67.73%** interest in the Company and is deemed to have an additional approximately **5.34%** interest through its controlled corporations (Asia Cement Singapore, Asia Engineering Corporation, Falcon Investments Private Limited)[136](index=136&type=chunk) - Far Eastern New Century holds approximately **21.16%** of Asia Cement's issued share capital, and together with certain companies whose voting rights it controls, holds a total of approximately **24.96%** of Asia Cement's issued share capital[136](index=136&type=chunk) [SHARE OPTION SCHEMES](index=35&type=section&id=SHARE%20OPTION%20SCHEMES) The Company's share option scheme expired in 2018, and no share options were granted under the scheme as of June 30, 2025 - The Company's share option scheme, approved and adopted on April 27, 2008, expired on **April 26, 2018**[138](index=138&type=chunk)[144](index=144&type=chunk) - No share options were granted under the share option scheme as of June 30, 2025, or up to the date of this interim report[138](index=138&type=chunk)[144](index=144&type=chunk) [CORPORATE GOVERNANCE](index=35&type=section&id=CORPORATE%20GOVERNANCE) The Company has complied with all code provisions of Part 2 of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has complied with all code provisions of Part 2 of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[139](index=139&type=chunk)[145](index=145&type=chunk) [AUDIT COMMITTEE](index=35&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, chaired by Mr. Cham Tak Lung, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and found them to be in compliance with relevant accounting standards and disclosure requirements - The Audit Committee was established on **April 27, 2008**, with primary responsibilities including reviewing the Group's financial reporting, risk management, and internal control systems[140](index=140&type=chunk)[146](index=146&type=chunk) - The Audit Committee is chaired by Mr. Cham Tak Lung[140](index=140&type=chunk)[146](index=146&type=chunk) - The Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and considers them to be in compliance with relevant accounting standards and requirements[141](index=141&type=chunk)[146](index=146&type=chunk) [REMUNERATION COMMITTEE](index=35&type=section&id=REMUNERATION%20COMMITTEE) The Remuneration Committee, chaired by Dr. Wang Kuo-Ming, is responsible for reviewing the remuneration packages, bonuses, and other emoluments of directors and senior management - The primary responsibilities of the Remuneration Committee include reviewing the remuneration packages, bonuses, and other emoluments of directors and senior management[142](index=142&type=chunk)[147](index=147&type=chunk) - The Remuneration Committee is chaired by Dr. Wang Kuo-Ming[142](index=142&type=chunk)[147](index=147&type=chunk) [NOMINATION COMMITTEE](index=36&type=section&id=NOMINATION%20COMMITTEE) The Nomination Committee, chaired by Mr. Hsu Hsu-Tung, is responsible for reviewing the Board's structure, size, and composition, and identifying suitable candidates for Board membership - The primary duties of the Nomination Committee are to review the structure, size, and composition of the Board, and to identify individuals suitably qualified to become Board members[148](index=148&type=chunk)[153](index=153&type=chunk) - The Nomination Committee is chaired by Mr. Hsu Hsu-Tung[148](index=148&type=chunk)[153](index=153&type=chunk) [INDEPENDENCE COMMITTEE](index=36&type=section&id=INDEPENDENCE%20COMMITTEE) The Independence Committee reviews transactions and potential conflicts of interest between the Group, Asia Cement, and Far Eastern Group, with no other ongoing relationships or potential conflicts identified during the review period - The primary responsibilities of the Independence Committee include reviewing transactions between the Group, Asia Cement, and Far Eastern Group, and assessing any potential conflicts of interest involved[149](index=149&type=chunk)[154](index=154&type=chunk) - No other ongoing relationships or potential conflicts of interest were identified during the review period[149](index=149&type=chunk)[154](index=154&type=chunk) [CORPORATE SUSTAINABILITY COMMITTEE](index=36&type=section&id=CORPORATE%20SUSTAINABILITY%20COMMITTEE) The Corporate Sustainability Committee, chaired by Dr. Wang Kuo-Ming, is responsible for promoting and strengthening corporate governance, integrity management, and developing corporate sustainability matters - The primary responsibilities of the Corporate Sustainability Committee are to promote and strengthen corporate governance and integrity management systems, advance and develop corporate sustainability matters, and oversee sustainability-related work items resolved by the Board[150](index=150&type=chunk)[155](index=155&type=chunk) - The Corporate Sustainability Committee is chaired by Dr. Wang Kuo-Ming, an independent non-executive director[151](index=151&type=chunk)[155](index=155&type=chunk) [DISCLOSURE OF INFORMATION OF DIRECTORS PURSUANT TO RULE 13.51B(1) OF THE LISTING RULES](index=36&type=section&id=DISCLOSURE%20OF%20INFORMATION%20OF%20DIRECTORS%20PURSUANT%20TO%20RULE%2013.51B%281%29%20OF%20THE%20LISTING%20RULES) As of the date of this report, no changes in directors' information requiring disclosure under Rule 13.51B(1) of the Listing Rules have occurred - No changes in directors' information requiring disclosure under Rule 13.51B(1) of the Listing Rules have occurred[152](index=152&type=chunk)[156](index=156&type=chunk) [PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES](index=37&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20LISTED%20SECU RITIES) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[157](index=157&type=chunk)[161](index=161&type=chunk) [DIVIDENDS](index=37&type=section&id=DIVIDENDS) The Board does not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **nil**)[158](index=158&type=chunk)[162](index=162&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS](index=37&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS) All directors confirmed compliance with the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules throughout the review period - Following specific enquiries with all directors, all directors confirmed their compliance with the Model Code throughout the review period[159](index=159&type=chunk)[163](index=163&type=chunk) [SUFFICIENCY OF THE PUBLIC FLOAT](index=37&type=section&id=SUFFICIENCY%20OF%20THE%20PUBLIC%20FLOAT) The directors confirmed that the Company maintained the sufficient public float required under the Listing Rules for the six months ended June 30, 2025 - The directors confirmed that the Company maintained the sufficient public float required under the Listing Rules for the six months ended June 30, 2025[160](index=160&type=chunk)[164](index=164&type=chunk) [APPRECIATION](index=37&type=section&id=APPRECIATION) The Board expresses sincere gratitude to the Group's management, staff, shareholders, business partners, banks, and auditors for their dedication and support - The Board extends its sincere gratitude to the Group's management and all employees for their dedication and hard work, and also thanks shareholders, business partners, banks, and auditors for their strong support during the period[165](index=165&type=chunk)

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9月1日 I. 法定/註冊股本變動 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8月31日 狀態: 新提交 致：香港交易及結算所有限公司 | 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 ...

Group 1 - Asian 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] Group 2 - The decline in revenue was primarily attributed to a decrease in product sales [1] - The cement industry is expected to see a shift away from overproduction, with stricter policies on daily and annual production limits [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 expected to catalyze a recovery in key engineering demand within the industry [1]

Group 1 - The core viewpoint of the article highlights that 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] Group 2 - The decline in revenue is primarily attributed to a decrease in product sales [1] - According to Guotai Junan, the cement industry is expected to implement stricter policies to limit overproduction, focusing 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%, which would help manage supply constraints effectively [1] Group 3 - Recent demand expectations for key engineering projects in the industry are anticipated to recover, driven by hydropower projects [1] - There is an expectation of a resonance between supply and demand in the industry, which could lead to improved market conditions [1]

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]

Group 1 - The core viewpoint of the article is that Asia Cement (China) (00743) reported a revenue of 2.496 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 7.2% [1] - The company recorded a profit attributable to owners 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 for the period were 0.073 RMB [1] Group 2 - The decline in revenue was primarily attributed to a decrease in product sales [1]

[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)