Production and Technology - The company's clinker production lines are all equipped with advanced NSP technology and waste heat recovery power generation technology, effectively reducing electricity costs and pollution[5] - The Zhengzhou Xingyang clinker production line, with a daily production capacity of over 12,000 tons, has been operating smoothly and efficiently since its commissioning in 2009[5] - The company has upgraded multiple production and management processes to achieve "unmanned" operations, with several enterprises upgraded to smart factories[5] - The company is actively involved in the construction of smart mines in Zhengzhou Xingyang[5] Regional Operations and Resources - The company has a strong presence in Henan and Liaoning provinces, with additional operations in Tianjin and Anhui, forming three core regional markets[5] - The company has abundant limestone resources and mixed material supplies in Henan, Anhui, and Liaoning provinces, with plans to acquire more quarries[5] - The company's production facilities are strategically located along major highways and railway lines in Henan, Liaoning, Tianjin, and Anhui[12] - The company's production facilities are concentrated in the central and northeastern regions of China, including Henan, Anhui, Liaoning, and Tianjin[12] Environmental and Sustainability Initiatives - The company is committed to environmental protection and sustainable development, investing in waste heat recovery, dust recovery, and low nitrogen oxide emission facilities[6] - The company is a member of the World Business Council for Sustainable Development's Cement Sustainability Initiative (CSI), being one of the first three Chinese cement companies to be accepted[6] Production Capacity and Joint Ventures - The company has a total annual production capacity of 28.4 million tons of clinker and 56.4 million tons of cement as of December 31, 2023[12] - In the Henan region (including Anhui), the cement production capacity is 37.3 million tons and clinker production capacity is 20.0 million tons[12] - In the Liaoning region (including Tianjin), the cement production capacity is 19.1 million tons and clinker production capacity is 8.4 million tons[12] - The company holds a 40% direct equity stake in a joint venture operating 2 new dry-process clinker production lines with an annual capacity of 3.1 million tons[12] - The company's attributable production capacity is approximately 29.6 million tons of clinker and 56.4 million tons of cement as of December 31, 2023[12] - The company has 13 aggregate production lines with a total capacity of 30.2 million tons as of December 31, 2023[12] Financial Performance - Revenue for 2023 was RMB 7,888.8 million, a decrease of 28.6% compared to RMB 11,055.4 million in 2022[14][16] - Net loss attributable to the company's owners was RMB 633.9 million in 2023, compared to a profit of RMB 448.7 million in 2022[14][16] - Cement sales volume in 2023 was 25.2 million tons, a decrease of 9.0% from 27.7 million tons in 2022[16] - Average cement price in 2023 was RMB 241.5 per ton, a decrease of 21.8% from RMB 308.7 per ton in 2022[16] - Limestone aggregate sales volume in 2023 was 43.6 million tons, an increase of 4.1% from 41.9 million tons in 2022[16] - Average limestone aggregate price in 2023 was RMB 34.5 per ton, a decrease of 12.6% from RMB 39.5 per ton in 2022[16] - Clinker sales volume in 2023 was 1.3 million tons, a decrease of 51.9% from 2.7 million tons in 2022[16] - Total assets increased to RMB 40,573.5 million in 2023 from RMB 32,343.6 million in 2022[15] - Total liabilities increased to RMB 24,787.4 million in 2023 from RMB 15,753.5 million in 2022[15] - Equity attributable to the company's owners decreased to RMB 15,466.4 million in 2023 from RMB 16,314.8 million in 2022[15] - Revenue in 2023 was approximately RMB 7,888.8 million, a decrease of RMB 3,166.6 million or 28.6% compared to 2022[19] - Revenue from cement sales in 2023 was approximately RMB 6,087.3 million, a decrease of RMB 2,465.4 million or 28.8% compared to 2022[19] - Cement sales volume decreased by 2.5 million tons to approximately 25.2 million tons in 2023, a decrease of 9.0% compared to 2022[19] - Revenue from limestone aggregate sales in 2023 was approximately RMB 1,502.8 million, a decrease of RMB 150.2 million or 9.1% compared to 2022[19] - Sales revenue in the Central China region in 2023 was approximately RMB 6,449.4 million, a decrease of RMB 2,385.6 million or 27.0% compared to 2022[20] - Sales revenue in the Northeast China region in 2023 was approximately RMB 1,439.5 million, a decrease of RMB 780.9 million or 35.2% compared to 2022[20] - Gross profit in 2023 was approximately RMB 1,629.3 million, a decrease of RMB 1,084.5 million or 40.0% compared to 2022[22] - EBITDA in 2023 was RMB 1,476.5 million, a decrease of RMB 1,442.0 million or 49.4% compared to 2022[23] - Pre-tax loss in 2023 was approximately RMB 629.8 million, compared to a pre-tax profit of RMB 687.9 million in 2022[26] - Income tax credit in 2023 was approximately RMB 6.3 million, compared to an income tax expense of RMB 148.6 million in 2022[26] - Other expenses decreased by RMB 40.1 million or 36.4% to RMB 70.0 million in 2023 compared to RMB 110.1 million in 2022, mainly due to reduced seasonal shutdown costs[27] - The company recorded a loss attributable to owners of RMB 633.9 million in 2023, compared to a profit of RMB 448.7 million in 2022[27] - Financial expenses increased by RMB 118.7 million or 11.5% to RMB 1,152.1 million in 2023 from RMB 1,033.4 million in 2022, primarily due to increased borrowing scale[27] - Trade and other receivables increased from RMB 9,240.2 million in 2022 to RMB 19,606.2 million in 2023, mainly due to increased bills receivable and prepayments to suppliers[28] - Cash and bank balances increased by RMB 187.0 million or 18.9% to RMB 1,174.8 million in 2023 from RMB 987.8 million in 2022, driven by net cash flows from operating, investing, and financing activities[30] - Total borrowings and bonds increased by RMB 8,955.9 million or 93.1% to RMB 18,578.6 million in 2023 from RMB 9,622.7 million in 2022[32] - The company's gearing ratio increased to 61.1% in 2023 from 48.7% in 2022, a rise of 12.4 percentage points[32] - Net debt ratio increased to 79.3% in 2023 from 24.9% in 2022, a rise of 54.4 percentage points[33] - Capital expenditures decreased to RMB 639.4 million in 2023 from RMB 936.6 million in 2022[35] - Assets pledged as collateral for bank borrowings amounted to RMB 4,030.0 million in 2023, compared to RMB 3,847.6 million in 2022[36] Risk Management and Liquidity - The company has established a liquidity risk management system to monitor and maintain appropriate levels of cash and cash equivalents, ensuring operational funding and reducing the impact of cash flow volatility[39] - The company faces currency risk due to operations primarily denominated in RMB, with some bank balances and borrowings in HKD or USD, and currently has no foreign currency hedging policy[40] Employee and Workforce - In 2023, the company had 6,892 employees (down from 7,299 in 2022) with employee costs of approximately RMB 562.3 million (compared to RMB 564.7 million in 2022)[41] Government and Market Outlook - The Chinese government's 2024 work report emphasizes stable economic growth, with a general public budget expenditure of RMB 28.5 trillion, an increase of RMB 1.1 trillion from the previous year[42] - The company expects the national cement market prices to continue fluctuating and plans to focus on cost reduction and market expansion to improve profitability in 2024[43] - The company aims to implement energy consumption and emission control measures, optimize production processes, and enhance market competitiveness in 2024[44] - A new national standard for general Portland cement (GB 175–2023) will be implemented from June 1, 2024, which is expected to eliminate low-quality cement products and reduce market supply[45] - The company plans to strengthen internal management, stabilize existing customers, and explore new markets, including high-grade cement for key projects and low-grade cement for civilian use[46] - The company will continue to extend its industrial chain, explore new energy businesses, and promote intelligent and green development to seek new profit growth points[46] Corporate Governance and Board Structure - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023[47][48] - Li Liufa, aged 66, is the founder of the group and has been a non-executive director since July 2, 2011, and a member of the nomination committee since June 15, 2018. He is responsible for the overall strategic planning and business management of the group[49] - Li Xuanyu, aged 37, was appointed as an executive director and chairman of the board on October 21, 2022. He has extensive experience in administration and corporate management and holds multiple leadership positions within the group and its subsidiaries[50] - Li Fengluan, aged 61, has been an executive director since January 18, 2018, with over 30 years of experience in finance, accounting, auditing, and operational management. She holds a CPA qualification in China[50] - Ding Jifeng, aged 54, has been an executive director since May 15, 2017, and is the general manager of Tianrui Cement Group Co., Ltd. He has extensive experience in the cement industry and is responsible for the daily operations of the company[51] - Xu Wuxue, aged 48, has been an executive director and CFO since May 11, 2013, with extensive experience in finance and accounting. He has held various financial leadership roles within the group[52] - Li Jiangming, aged 46, has been an executive director since June 11, 2014, and is responsible for capital market financing and investor relations. He has extensive experience in capital operations[52] - Kong Xiangzhong, aged 69, has been an independent non-executive director since December 24, 2012, and serves as the chairman of the nomination committee and a member of the audit and remuneration committees[53] - Kong Xiansheng is the Executive President of the China Cement Association, a professor-level senior engineer, and an expert enjoying special government allowances from the State Council[54] - Wang Ping has nearly 20 years of experience in corporate finance, auditing, accounting, and taxation, and currently serves as an independent non-executive director for multiple listed companies[54] - Du Xiaotang has extensive experience in corporate finance, capital markets, private equity investment, mergers and acquisitions, and legal compliance consulting for listed companies[56] - Li Fengluan is the Chairman of Tianrui Cement Group Co., Ltd., with detailed experience outlined in the "Directors" section[56] - Ding Jifeng is the General Manager of Tianrui Cement Group Co., Ltd., with detailed experience outlined in the "Directors" section[56] - Jing Xianyu has rich experience in the cement industry and has held various senior management positions within the group since joining in 2000[56] - Xu Wuxue serves as the Chief Financial Officer of the company and the Financial Director of Tianrui Cement Group Co., Ltd.[57] - Li Jiangming is the Deputy General Manager of Tianrui Cement Group Co., Ltd. and the Chief Representative for Hong Kong business[58] - Lü Xing is the Deputy Financial Director of the company and the Chief Accountant of Tianrui Cement Group Co., Ltd., with extensive experience in financial reporting and analysis[58] - Li Tao is the Deputy General Manager and Head of the Quality Department of Tianrui Cement Group Co., Ltd., with a background in quality engineering and cement production[58] Financial Reserves and Dividends - The company's distributable reserves as of December 31, 2023, were RMB 1,683 million, compared to RMB 1,746 million in the previous year[61] - The company did not recommend a final dividend for the year ended December 31, 2023, consistent with the previous year[60] Subsidiaries and Financial Statements - The company's major subsidiaries are detailed in Note 50 of the consolidated financial statements, primarily engaged in limestone mining, clinker, and cement production, sales, and distribution[60] - The company's property, plant, and equipment changes during the year are detailed in Note 17 of the consolidated financial statements[60] - Bank loans and other borrowings details are provided in Notes 32, 33, 34, and 36 of the consolidated financial statements[60] - The company's public shareholding percentage remained compliant with the Hong Kong Stock Exchange's minimum public float requirements[61] - The company's directors and senior management held approximately 69.58% of the company's shares through controlled entities as of December 31, 2023[66] - During the year, the company released and re-pledged shares as loan guarantees, with 180 million shares released and 160 million shares re-pledged on January 9, 2023, and 70 million shares released and 45 million shares re-pledged on September 11, 2023[67] - The company did not have any share capital changes during the year ended December 31, 2023[60] - The company's reserves and equity changes are detailed in the consolidated statement of changes in equity[60] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[69] - The company's financial and operational independence from Pingdingshan Ruiping Shilong was confirmed as of December 31, 2023[71] - The company holds the option to acquire shares in Shanshui Cement but decided not to exercise it at this stage, considering its recent performance[72] - The company's directors and controlling shareholders did not have any interests in businesses competing with the group as of December 31, 2023[73] - The independent non-executive directors reviewed and confirmed compliance with the non-compete deed by the controlling shareholders[74] - The company made contributions of RMB 49.3 million to employee welfare plans during the year ended December 31, 2023[77] Shareholding and Loans - Yukuo holds 2,044,484,822 shares, representing 69.58% of the company's total shares[80] - China Huarong Asset Management holds 470,000,000 shares, representing 16.00% of the company's total shares[80] - Yukuo pledged 160,000,000 shares as collateral for a loan on January 9, 2023[81] - Yukuo pledged 45,000,000 shares as collateral for a loan on September 11, 2023[81] - Loan A of RMB 80,000,000 was secured by 45,000,000 shares, representing 1.53% of the company's total shares[83] - Loan B of USD 29,570,000 was secured by 140,000,000 shares, representing 4.76% of the company's total shares[84] - Loan C of RMB 173,000,000 was secured by 160,000,000 shares, representing 5.45% of the company's total shares[84] - Loan D of RMB 166,500,000 was secured by 97,000,000 shares, representing 3.3% of the company's total shares[84] - Tianrui Group must maintain at least 50% ownership of the company's total shares to avoid default on Loan A[83] - Li Liufa and Li Fenglian must jointly hold at least 51% of the company's total shares to avoid default on Loan B[84] Transactions and Guarantees - The total transaction amount for clinker purchased by Tianrui Cement from Ruiping Shilong in 2023 was RMB 136.0 million[87] - The annual cap for clinker purchase transactions under the framework agreement for 2022, 2023, and 2024 is RMB 1.2 billion each year[87] - The annual cap for limestone supply transactions under the 2021 framework agreement for 2022, 2023, and 2024 is RMB 300 million each year[89] - The total transaction amount for limestone sold by Tianrui Cement to Ruiping Shilong in 2023 was zero[89] - The maximum daily balance of guarantees provided by Tianrui Cement to Tianrui Group in 2023 was RMB 2 billion[91] - The maximum daily balance of guarantees provided by Tianrui Group to Tianrui Cement in 2023 was RMB 8.2 billion[91] - The daily balance cap for guarantees provided by Tianrui Cement under the 2022 framework agreement is RMB 3 billion annually from 2023 to 2025[92] - The daily balance cap for guarantees provided by Tianrui Group under the 2022 framework agreement is RMB 7 billion annually from 2023 to 2025[92

Revenue and Profit Decline - Revenue decreased to RMB 7,888,810 thousand in 2023 from RMB 11,055,439 thousand in 2022, a decline of 28.6%[2] - Gross profit dropped to RMB 1,629,323 thousand in 2023 from RMB 2,713,844 thousand in 2022, a decrease of 40%[2] - Net loss attributable to the company's owners was RMB 633,875 thousand in 2023, compared to a profit of RMB 448,690 thousand in 2022[2] - Basic loss per share was RMB 0.22 in 2023, compared to a profit of RMB 0.15 per share in 2022[2] - Revenue from cement sales in 2023 was RMB 6,087,333 thousand, a decrease from RMB 8,552,711 thousand in 2022[12] - Revenue from limestone aggregate sales in 2023 was RMB 1,502,820 thousand, down from RMB 1,652,967 thousand in 2022[12] - Revenue from clinker sales in 2023 was RMB 298,657 thousand, significantly lower than RMB 849,761 thousand in 2022[12] - Total revenue in 2023 was RMB 7,888,810 thousand, compared to RMB 11,055,439 thousand in 2022[12] - The company's net loss attributable to owners in 2023 was RMB 633.875 million, compared to a net profit of RMB 448.690 million in 2022[29] - Total revenue in 2023 decreased by 28.6% to RMB 7,888.8 million compared to 2022[35] - The company's revenue in 2023 was approximately RMB 7,888.8 million, a decrease of 28.6% compared to RMB 11,055.4 million in 2022[40] - Revenue from cement sales in 2023 was approximately RMB 6,087.3 million, a decrease of 28.8% compared to 2022, with cement sales volume decreasing by 9.0% to 25.2 million tons[40] - Revenue from limestone aggregate sales in 2023 was approximately RMB 1,502.8 million, a decrease of 9.1% compared to 2022, despite a 4.1% increase in sales volume to 43.6 million tons[40] - The company's gross profit in 2023 was approximately RMB 1,629.3 million, a decrease of 40.0% compared to 2022, with the gross margin dropping from 24.5% to 20.7%[43] - The company's EBITDA in 2023 was RMB 1,476.5 million, a decrease of 49.4% compared to RMB 2,918.5 million in 2022[45] - Pre-tax loss of approximately RMB 629.8 million in 2023, compared to a profit of RMB 687.9 million in 2022[51] Asset and Liability Changes - Total assets increased to RMB 40,573,494 thousand in 2023 from RMB 32,343,592 thousand in 2022, a growth of 25.4%[2] - Current assets rose significantly to RMB 27,326,926 thousand in 2023 from RMB 16,874,102 thousand in 2022, an increase of 62%[2] - Total liabilities increased to RMB 24,787,427 thousand in 2023 from RMB 15,753,498 thousand in 2022, a rise of 57.3%[2] - Current liabilities grew to RMB 18,814,217 thousand in 2023 from RMB 13,521,730 thousand in 2022, an increase of 39.1%[2] - Total assets in the Central China segment increased to RMB 33,747,731 thousand in 2023 from RMB 25,588,318 thousand in 2022[16] - Total assets in the Northeast China segment increased to RMB 6,665,705 thousand in 2023 from RMB 6,581,467 thousand in 2022[16] - Total liabilities in the Central China segment increased to RMB 20,886,620 thousand in 2023 from RMB 12,660,769 thousand in 2022[16] - Total liabilities in the Northeast China segment increased to RMB 3,440,574 thousand in 2023 from RMB 2,604,290 thousand in 2022[16] - Trade receivables in 2023 increased to RMB 142.705 million from RMB 109.361 million in 2022, with a significant increase in receivables over 181 days[32] - Trade payables in 2023 increased to RMB 1,075.859 million from RMB 993.114 million in 2022, with a notable increase in payables over 1 year[34] - Trade and other receivables increased from RMB 9,240.2 million in 2022 to RMB 19,606.2 million in 2023, mainly due to an increase in bills receivable and prepayments to suppliers[52] - Cash and cash equivalents increased by RMB 187.0 million or 18.9% to RMB 1,174.8 million in 2023, driven by net cash flows from operating, investing, and financing activities[55] - Total borrowings and bonds increased by RMB 8,955.9 million or 93.1% to RMB 18,578.6 million in 2023, with short-term borrowings rising to RMB 13,345.3 million and long-term borrowings to RMB 5,233.3 million[56] - Asset-liability ratio increased to 61.1% in 2023 from 48.7% in 2022, reflecting a 12.4 percentage point increase due to reduced owner's equity and increased borrowings[58] - Net debt ratio surged to 79.3% in 2023 from 24.9% in 2022, a 54.4 percentage point increase, calculated as net debt divided by equity attributable to owners[60] Segment Performance - The Central China segment reported a loss of RMB 347,027 thousand in 2023, compared to a profit of RMB 845,737 thousand in 2022[14] - The Northeast China segment reported a loss of RMB 197,210 thousand in 2023, compared to a profit of RMB 89,226 thousand in 2022[14] Production and Sales Volume - Cement sales volume in 2023 decreased by 9.0% to 25.2 million tons, with an average price decrease of 21.8% to RMB 241.5 per ton[35] - Limestone aggregate sales volume in 2023 increased by 4.1% to 43.6 million tons, with an average price decrease of 12.6% to RMB 34.5 per ton[35] - Clinker sales volume in 2023 decreased by 1.4 million tons to 1.3 million tons compared to 2022[35] - The company's production capacity remained unchanged in 2023, with 28.4 million tons of clinker, 56.4 million tons of cement, and 30.2 million tons of limestone aggregate[35] Expenses and Costs - Financial expenses rose to RMB 1.15 billion in 2023 compared to RMB 1.03 billion in 2022[17][18] - The company's financial expenses in 2023 increased by 11.5% to RMB 1,152.1 million, mainly due to increased borrowing scale and interest expenses[49] - The company's administrative expenses in 2023 decreased by 5.1% to RMB 905.6 million, primarily due to cost-saving measures[47] - The company's other income in 2023 decreased by 25.8% to RMB 396.6 million, mainly due to reduced VAT refunds and other business-related income[46] - The company's other expenses in 2023 decreased by 36.4% to RMB 70.0 million, primarily due to reduced seasonal shutdown costs[48] - Current tax expenses for corporate income tax in China dropped significantly to RMB 12.03 million in 2023 from RMB 121.89 million in 2022[26] - The company's sales cost in 2023 was approximately RMB 6,259.5 million, a decrease of 25.0% compared to 2022, primarily due to lower coal and raw material procurement prices[42] Investments and Capital Expenditures - New property, plant, and equipment additions totaled RMB 394.17 million in 2023, a decrease from RMB 696.79 million in 2022[17][18] - Property, plant, and equipment decreased to RMB 9,279,029 thousand in 2023 from RMB 9,768,770 thousand in 2022, a decline of 5%[5] - Capital expenditures decreased to RMB 639.4 million in 2023 from RMB 936.6 million in 2022, primarily related to the construction of cement and aggregate production facilities[60] Government Subsidies and Tax Refunds - VAT refunds decreased to RMB 112.21 million in 2023 from RMB 173.39 million in 2022[20] - Government incentive subsidies remained stable at RMB 46.68 million in 2023, slightly down from RMB 47.60 million in 2022[20] Other Financial Metrics - Cash, deposits, and bank balances increased to RMB 5,118,386 thousand in 2023 from RMB 4,546,923 thousand in 2022, a growth of 12.6%[5] - Software service revenue more than doubled to RMB 24.62 million in 2023 from RMB 10.76 million in 2022[20] - Expected credit loss model impairment losses (net of reversal) increased to RMB 5.01 million in 2023 from RMB 1.24 million in 2022[22] - Interest income from bank deposits grew to RMB 97.42 million in 2023 from RMB 88.06 million in 2022[20] - Foreign exchange gains improved to RMB 17.94 million in 2023 from a loss of RMB 141.64 million in 2022[25] - Total depreciation and amortization in 2023 decreased to RMB 954.261 million from RMB 1,197.181 million in 2022[28] - Foreign exchange gain of RMB 17.9 million in 2023, compared to a loss of RMB 141.6 million in 2022, due to the depreciation of the USD against RMB[50] Corporate Governance and Operations - The company has not appointed a new CEO since the resignation of the former CEO on December 1, 2015, and has established an Executive Committee consisting of five executive directors to oversee daily operations[71] - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers and confirmed that all directors complied with the code during the year ended December 31, 2023[72] - The Audit Committee, composed of three independent non-executive directors, reviewed the company's accounting principles and practices, and the full-year results for the year ended December 31, 2023[73][74] - The company did not purchase, sell, or redeem any of its listed securities in 2023[74] - No final dividend was recommended for the year ended December 31, 2023[74] - The annual results and annual report are available on the company's website and the Hong Kong Exchanges and Clearing Limited website[74] - The Board of Directors consists of the Chairman and Executive Director, four other Executive Directors, one Non-Executive Director, and three Independent Non-Executive Directors[76] Employee and Operational Costs - The company had 6,892 employees in 2023, down from 7,299 in 2022, with employee costs (including salaries) at RMB 562.3 million, slightly lower than RMB 564.7 million in 2022[66] Future Plans and Strategic Initiatives - The company plans to optimize ultra-low emissions and promote staggered production to maintain industry and corporate interests[69] - The company aims to extend its industrial chain by exploring new energy businesses such as wind, solar, and energy storage to seek new profit growth points[69] - The company has 19 A-level, B-level, and performance-leading enterprises, with 14 national or provincial green mines and 11 green factories, including 8 national-level green factories[70] - The company has 21 smart factories and 19 high-tech enterprises, with 9 subsidiaries passing the high-tech enterprise re-evaluation during the reporting period[70] - The company has successfully developed and upgraded key technologies such as ultra-low emissions, grate coolers, ammonia-free denitrification, and high-temperature fans[70] - The company's subsidiary, Weihui Tianrui Cement, was awarded the title of National Quality Benchmark Enterprise for its "12406" high-quality development model in key process quality control[70] - The company's general public budget expenditure for 2024 is planned at 28.5 trillion yuan, an increase of 1.1 trillion yuan compared to the previous year[68] - The company plans to issue 1 trillion yuan in ultra-long-term special government bonds in 2024 to fund major national strategic projects and key security capacity construction[68] - The company has identified 1,284 key construction projects in Henan Province for 2024, with a total investment of approximately 3.9 trillion yuan and an annual planned investment of about 1.1396 trillion yuan[68] - The company has determined 300 provincial key projects in Liaoning Province for 2024, with a total investment exceeding 1.4 trillion yuan and an annual planned investment of over 1.7 trillion yuan[68]

Financial Performance - For the first half of 2023, the company reported revenue of RMB 3,998.6 million, a decrease of approximately RMB 1,322.4 million or 24.9% compared to the same period in 2022[7] - The gross profit for the first half of 2023 was RMB 940.1 million, down 35.1% from RMB 1,449.0 million in the same period last year[6] - The net profit attributable to the owners of the company was RMB 150.5 million, a decrease of approximately RMB 306.0 million or 67.0% compared to RMB 456.5 million in the first half of 2022[6] - The company sold approximately 12.0 million tons of cement in the first half of 2023, a decrease of about 1.4 million tons or 10.5% from approximately 13.4 million tons in the same period last year[7] - The average selling price of cement was approximately RMB 256.1 per ton, a decrease of RMB 66.6 or 20.6% compared to the same period last year[7] - The company's clinker sales revenue recorded approximately RMB 188.5 million, a decrease of RMB 270.1 million or 58.9% from RMB 458.6 million in the same period of 2022[11] - The company's other income for the first half of 2023 was approximately RMB 258.1 million, a decrease of RMB 133.3 million or 34.1% from RMB 391.4 million in the same period of 2022[13] - The company's profit attributable to owners was approximately RMB 150.5 million, a decrease of RMB 306.0 million or 67.0% from RMB 456.5 million in the same period of 2022[19] - The company reported a net profit and total comprehensive income of RMB 448,690,000 for the six months ended June 30, 2023, compared to RMB 539,288,000 for the same period in 2022[49] Market Conditions - The cement market is characterized by weak demand, high inventory, and declining prices, with significant regional differences observed[10] - The decline in cement demand is primarily driven by reduced real estate investment and insufficient new construction projects[10] - National cement production decreased by 2.4% year-on-year, with a reduction of approximately 24 million tons[10] - In the first half of 2023, real estate development investment decreased by 7.9% year-on-year, with new construction area down by 24.3%[9] - The average cement price in East and Central South regions fell by approximately 10% to 15%, with prices ranging from RMB 430 to RMB 441 per ton[10] Assets and Liabilities - The total assets as of June 30, 2023, were RMB 32,826.8 million, an increase of 1.5% from RMB 32,343.6 million at the end of 2022[6] - The total liabilities increased by 2.1% to RMB 16,081.3 million from RMB 15,753.5 million at the end of 2022[6] - Trade and other receivables decreased from RMB 9,240.2 million as of December 31, 2022, to RMB 8,689.1 million as of June 30, 2023[20] - Inventory increased slightly from RMB 1,043.0 million as of December 31, 2022, to RMB 1,047.7 million as of June 30, 2023, remaining relatively stable[21] - Total borrowings and bonds increased from RMB 9,622.7 million as of December 31, 2022, to RMB 10,430.2 million as of June 30, 2023, an increase of approximately RMB 807.5 million[25] Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 668,330,000, a decrease from RMB 1,962,002,000 in the same period of 2022[51] - The company expects cash flow to be sufficient to meet ongoing business needs and plans to expand financing channels to improve capital structure[26] - The company incurred a net cash outflow from investing activities of RMB 1,384,099,000 for the six months ended June 30, 2023, compared to RMB 900,768,000 in the same period of 2022[51] - The company paid interest of RMB 409,254,000 during financing activities, a decrease from RMB 513,781,000 in the previous year[51] Employee and Operational Metrics - As of June 30, 2023, the company employed 7,081 staff, a decrease from 7,384 staff on June 30, 2022[29] - Employee costs, including salaries, were approximately RMB 272.1 million for the first half of 2023, compared to approximately RMB 269.1 million for the same period in 2022[29] - The company continues to implement cost management strategies across various operations to enhance efficiency and maintain market order[32] Strategic Initiatives - The company is focusing on strengthening cost management and adjusting market strategies to mitigate the impact of declining demand and prices in the cement industry[7] - The company plans to focus on market expansion and new product development to improve future performance[46] - The company is committed to a "green" and "intelligent" transformation to ensure sustainable development[32] Shareholder Information - The company has a total of 2,044,484,822 shares outstanding, representing 69.58% ownership by major shareholders[34] - Major shareholders include China Huarong Asset Management Co., Ltd. with 470,000,000 shares (16.00%) and China Export-Import Bank with 315,000,000 shares (10.72%)[36] - The ownership structure indicates that 51.25% and 48.75% of the company are owned by Shen Ying and Yu Qi, respectively[37] - The company has a significant concentration of ownership, with major shareholders controlling 69.58% of the total shares[36] Corporate Governance - The company’s board has adopted the corporate governance code as its own to regulate its corporate governance practices[44] - The company has not declared an interim dividend for the reporting period[42] - The company has not engaged in any significant investments, acquisitions, or disposals during the reporting period[29]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,998,558 thousand, a decrease of 24.9% compared to RMB 5,321,033 thousand in the same period of 2022[2] - Gross profit for the same period was RMB 940,131 thousand, down 35.1% from RMB 1,448,998 thousand year-on-year[2] - Profit attributable to owners of the company was RMB 150,521 thousand, representing a decline of 67.0% from RMB 456,536 thousand in the previous year[2] - Basic earnings per share decreased to RMB 0.05, down 67.0% from RMB 0.16 in the prior year[2] - The company reported a pre-tax profit of RMB 155,619 thousand, a significant decrease from RMB 610,023 thousand in the same period last year[4] - The group reported a net foreign exchange loss of RMB (23,301) thousand for the six months ended June 30, 2023, compared to a loss of RMB (101,907) thousand in 2022, indicating an improvement[18] - The group's gross profit for the first half of 2023 was approximately RMB 940.1 million, a decrease of RMB 508.9 million or 35.1% from approximately RMB 1,449.0 million in the same period of 2022[38] - The gross margin decreased to 23.5% in the first half of 2023 from 27.2% in the same period of 2022, primarily due to a greater decline in cement selling prices compared to the decrease in unit production costs[38] Revenue Breakdown - Cement sales amounted to RMB 3,077,482 thousand, down 29% from RMB 4,329,912 thousand in the previous year[14] - Clinker sales were RMB 188,509 thousand, a decline of 59% from RMB 458,644 thousand year-on-year[14] - Limestone aggregate sales increased to RMB 732,567 thousand, up 38% from RMB 532,477 thousand in the prior year[14] - Revenue from sales of limestone aggregates was approximately RMB 732.6 million, an increase of RMB 200.1 million or 37.6% compared to RMB 532.5 million in the same period of 2022[35] - The sales revenue from clinker was approximately RMB 188.5 million, a decrease of RMB 270.1 million or 58.9% compared to RMB 458.6 million in the same period of 2022[35] Assets and Liabilities - Total assets as of June 30, 2023, increased by 1.5% to RMB 32,826,801 thousand from RMB 32,343,592 thousand at the end of 2022[2] - Total liabilities rose to RMB 16,081,317 thousand, an increase of 2.1% from RMB 15,753,498 thousand at the end of 2022[2] - Current liabilities decreased by 8.4% to RMB 12,382,942 thousand from RMB 13,521,730 thousand at the end of 2022[2] - The company's net current assets improved to RMB 5,183,964 thousand, compared to RMB 3,352,372 thousand at the end of 2022[6] - Trade receivables as of June 30, 2023, amounted to RMB 241,881 thousand, an increase from RMB 159,599 thousand as of December 31, 2022[26] - Trade payables as of June 30, 2023, were RMB 853,148 thousand, down from RMB 993,114 thousand as of December 31, 2022[27] - Total borrowings and bonds amounted to approximately RMB 10,430.2 million as of June 30, 2023, an increase of approximately RMB 807.5 million from RMB 9,622.7 million as of December 31, 2022[50] Cost Management and Expenses - The company's sales and distribution expenses were approximately RMB 164.3 million, an increase of RMB 6.2 million or 3.9% compared to approximately RMB 158.1 million in the same period of 2022[40] - The financial expenses for the first half of 2023 were approximately RMB 409.3 million, a decrease of RMB 100.5 million or 19.7% from approximately RMB 509.8 million in the same period of 2022[42] - The group capitalized borrowing costs at an annual rate of 5.71% for the six months ended June 30, 2023, compared to 6.01% in the same period of 2022[19] - The total depreciation and amortization for the six months ended June 30, 2023, was RMB 432,459 thousand, a decrease from RMB 462,799 thousand in 2022[22] Market Conditions and Strategy - The national cement market showed signs of weakening demand, with a 2.4% decrease in total cement production compared to the previous year, amounting to a reduction of approximately 2.4 million tons[32] - The average price of cement in various regions showed significant declines, with the East China region experiencing a drop of RMB 49 to 76 per ton, representing a decrease of approximately 10% to 15%[33] - The overall profitability of the national cement industry is expected to decline by around 60% compared to the same period last year[33] - The company actively adjusted its market strategy and strengthened cost management to mitigate the impact of declining demand and prices in the cement industry[29] - The outlook for the second half of 2023 indicates a slight improvement in cement demand, supported by infrastructure investments and favorable real estate policies[63] Corporate Governance - The company has not appointed a new CEO since the resignation of the previous one in December 2015 and has established an executive committee to manage daily operations[66] - The company has adopted the corporate governance code and has ensured compliance with all relevant regulations during the reporting period[67] - The board of directors includes a mix of executive and independent non-executive members, ensuring a diverse governance structure[70] - The financial data for the interim results ending June 30, 2023, has been discussed and reviewed by the board's audit committee but has not been audited or reviewed by the company's auditors[69] - The board of directors did not recommend the declaration of an interim dividend for the reporting period[68] Investments and Future Plans - The company aims to expand its financing channels to improve its capital structure while ensuring sufficient cash flow for ongoing business needs[51] - The company is closely monitoring exchange rate fluctuations and plans to implement appropriate hedging measures as needed[59] - The company continues to focus on cost management across various operations, including mining, material procurement, and production processes, to enhance efficiency and reduce costs[65] - The company is committed to developing key projects and maintaining relationships with important clients while expanding into rural markets to enhance customer loyalty and create enterprise value[65] - No significant investments, acquisitions, or disposals occurred during the reporting period[57]

Production Capacity and Facilities - The company's clinker production lines all adopt advanced NSP technology and are equipped with waste heat recovery power generation technology, effectively saving electricity costs and reducing pollution[5] - The Zhengzhou Xingyang clinker production line, with a daily production capacity of over 12,000 tons, is among the world's leading levels and has been operating stably since its commissioning in 2009[5] - The company has upgraded multiple production and management processes to "unmanned operation," with several enterprises upgraded to smart factories and the construction of a smart mine in Zhengzhou Xingyang underway[5] - The company possesses abundant limestone resources and mixed material supplies in its main operating regions, including Henan, Anhui, and Liaoning provinces, with each clinker production line supported by a dedicated limestone mine[5] - The company has a total annual production capacity of 28.4 million tons of clinker and 56.4 million tons of cement as of December 31, 2022[12] - In the Henan region (including Anhui), the cement production capacity is 37.3 million tons and clinker production capacity is 20.0 million tons[12] - In the Liaoning region (including Tianjin), the cement production capacity is 19.1 million tons and clinker production capacity is 8.4 million tons[12] - The company owns 13 aggregate production lines with a total capacity of 30.2 million tons as of December 31, 2022[12] - The company holds a 40% direct equity stake in a joint venture operating 2 new dry-process clinker production lines with an annual capacity of 3.1 million tons[12] - The company's attributable production capacity is approximately 29.6 million tons of clinker and 56.4 million tons of cement as of December 31, 2022[12] - The company's production facilities are strategically located along major highways and railway lines in Henan, Liaoning, Tianjin, and Anhui[12] - The company's production facilities are concentrated in the central and northeastern regions of China, including Henan, Anhui, Liaoning, and Tianjin[12] - The company's production facilities are strategically positioned at the intersection of limestone resources, terminal markets, and transportation hubs[12] - The company's aggregate production capacity increased from 20.2 million tons in 2021 to 30.2 million tons in 2022[12] Environmental and Sustainability Initiatives - The company is one of the first three Chinese cement companies admitted as a member of the World Business Council for Sustainable Development's Cement Sustainability Initiative (CSI)[6] - The company has invested in waste heat recovery power generation facilities, dust recovery facilities, ultra-low nitrogen oxide emission transformation facilities, and waste rock and urban waste recycling facilities, demonstrating its commitment to environmental protection and sustainable development[6] - The company has been awarded green mine, green factory, and clean factory certifications for several of its plants[6] - The company is actively involved in the "carbon neutrality" initiative and peak production policies to maintain and improve the industry landscape[38] - The company has implemented measures to reduce emissions, conserve resources, and improve occupational safety and health, which are expected to enhance revenue, brand image, and operational efficiency[100] Financial Performance - Revenue decreased by 13.1% to RMB 11,055.4 million in 2022 compared to RMB 12,716.8 million in 2021[14] - Gross profit declined by 16.1% to RMB 2,713.8 million in 2022 from RMB 3,233.8 million in 2021[14] - Net profit attributable to the company's owners dropped by 62.6% to RMB 448.7 million in 2022 from RMB 1,200.6 million in 2021[14] - Cement sales volume decreased by 22.3% to 27.7 million tons in 2022 compared to 35.7 million tons in 2021[16] - Aggregate sales volume increased by 109.1% to 41.9 million tons in 2022 from 20.0 million tons in 2021[16] - Clinker sales volume rose by 92.9% to 2.7 million tons in 2022 compared to 1.4 million tons in 2021[16] - Total assets decreased by 1.0% to RMB 32,343.6 million in 2022 from RMB 32,658.2 million in 2021[15] - Total liabilities declined by 5.0% to RMB 15,753.5 million in 2022 from RMB 16,590.0 million in 2021[15] - Total equity increased by 3.2% to RMB 16,590.1 million in 2022 from RMB 16,068.3 million in 2021[15] - The cement industry's profit for the full year is expected to be around 68 billion yuan, a decrease of over 100 billion yuan compared to 2021, representing a year-on-year decline of approximately 60%[20] - The company's revenue from cement sales in 2022 was approximately 8,552.7 million yuan, a decrease of 2,853.0 million yuan or 25.0% compared to 2021[21] - Cement sales volume decreased by 8.0 million tons to approximately 27.7 million tons in 2022, a decline of 22.3% compared to 2021[21] - Revenue from clinker sales in 2022 was approximately 849.8 million yuan, an increase of 424.5 million yuan or 99.8% compared to 2021, driven by both increased sales volume and price[21] - Revenue from aggregate sales in 2022 was approximately 1,653.0 million yuan, an increase of 767.2 million yuan or 86.6% compared to 2021, primarily due to increased sales volume[21] - Aggregate sales volume increased by 21.9 million tons to approximately 41.9 million tons in 2022, a growth of 109.1% compared to 2021[21] - The company's total revenue in 2022 was approximately 11,055.4 million yuan, a decrease of 1,661.4 million yuan or 13.1% compared to 2021[21] - Sales cost in 2022 was approximately 8,341.6 million yuan, a decrease of 1,141.4 million yuan or 12.0% compared to 2021, mainly due to reduced cement sales volume[22] - Raw materials, coal, and electricity costs accounted for approximately 28.4%, 44.4%, and 11.9% of the cement and clinker sales costs in 2022, respectively[22] - The cost per ton of cement and clinker for raw materials, coal, and electricity in 2022 was approximately 70.5 yuan, 110.3 yuan, and 29.6 yuan, respectively, with raw material costs decreasing by 10.7 yuan and coal and electricity costs increasing by 11.4 yuan and 2.3 yuan compared to 2021[22] - Gross profit decreased by RMB 520.0 million or 16.1% to RMB 2,713.8 million in 2022, with gross margin dropping from 25.4% to 24.5% due to lower cement prices and higher per-ton costs[23] - Segment profit in the Central China region fell by RMB 329.8 million or 28.1% to RMB 845.7 million, while the Northeast region's segment profit dropped by RMB 286.5 million or 76.2% to RMB 89.2 million, both due to lower cement sales and unit gross profit[23] - Other income increased slightly by RMB 12.6 million or 2.4% to RMB 534.5 million, with VAT refunds decreasing but other business income rising[24] - Selling and distribution expenses decreased by RMB 175.7 million or 42.2% to RMB 240.6 million, mainly due to reduced transportation and packaging costs from lower cement sales[25] - Administrative expenses increased by RMB 37.3 million or 4.1% to RMB 954.3 million, primarily due to higher land compensation fees[26] - Other expenses rose by RMB 5.0 million or 4.7% to RMB 110.1 million, mainly due to seasonal production stoppages[27] - Finance costs increased by RMB 31.9 million or 3.2% to RMB 1,033.4 million, driven by higher interest on other financial liabilities[28] - Foreign exchange loss of RMB 141.6 million was recorded, compared to a gain of RMB 88.4 million in 2021, due to USD-denominated loans and RMB depreciation[28] - Profit before tax decreased by RMB 765.2 million or 52.7% to RMB 687.9 million, while net profit attributable to owners dropped by RMB 751.9 million or 62.6% to RMB 448.7 million[28] - Cash and cash equivalents decreased by RMB 1,322.8 million or 57.2% to RMB 987.8 million, mainly due to lower operating cash flow compared to investment and financing activities[28] - The company's total borrowings and bonds (including corporate bonds) amounted to approximately RMB 9,622.7 million as of December 31, 2022, a decrease of RMB 1,042.0 million or 9.8% compared to RMB 10,664.7 million in 2021[29] - The company's current ratio was approximately 1.2 as of December 31, 2022, consistent with 1.3 in 2021, while the quick ratio remained at 1.2, unchanged from 2021[29] - The company's asset-liability ratio decreased to 48.7% as of December 31, 2022, down 2.1 percentage points from 50.8% in 2021, primarily due to an increase in owner's equity[29] - The company's net debt ratio was approximately 24.9% as of December 31, 2022, nearly unchanged from 24.8% in 2021[29] - Capital expenditures for the year ended December 31, 2022, were approximately RMB 936.6 million, compared to RMB 547.8 million in 2021, primarily related to the construction of cement and aggregate production facilities[29] - The company's equity ratio decreased to 0.9 as of December 31, 2022, down 8.0% from approximately 1.0 in 2021[29] - The company provided financial guarantees to related parties amounting to approximately RMB 1,632.0 million as of December 31, 2022, with actual usage of approximately RMB 802.8 million[32] - The company had 7,299 employees as of December 31, 2022, with employee costs (including salaries) of approximately RMB 564.7 million, slightly down from RMB 567.4 million in 2021[37] - The company's assets pledged as collateral for bank borrowings amounted to approximately RMB 4,585.1 million as of December 31, 2022, up from RMB 4,259.1 million in 2021[30] - The company did not engage in any significant investments, acquisitions, or disposals during the year ended December 31, 2022[33] - The company's recommended annual caps for credit services for the years ending December 31, 2020, 2021, and 2022 are RMB 3 billion each year[93] - The company's deposits with Tianrui Finance, including accrued interest, did not exceed RMB 1.2 billion annually from 2020 to 2022[89] - Tianrui Finance provided credit financing services to the company's cement group, with a total amount not exceeding RMB 3 billion annually from 2020 to 2022[90] - The company and Tianrui Group entered into a mutual guarantee framework agreement in 2019, with the company's guarantee limit set at RMB 3 billion annually from 2020 to 2022[84] - The company's wholly-owned subsidiary, Tianrui Cement Group Limited, had a maximum daily deposit amount of RMB 893.4 million with Tianrui Finance as of December 31, 2022[94] - Tianrui Finance provided Tianrui Cement with an unsecured loan with a maximum daily balance of RMB 1,450.0 million for credit services as of December 31, 2022[94] - The company's top five customers accounted for less than 30% of the group's total sales for the fiscal year ended December 31, 2022[99] - The company's top five suppliers accounted for less than 30% of the group's total purchases for the fiscal year ended December 31, 2022[99] - The company ranks among the top 10 global clinker production capacity companies and top 20 global cement production capacity companies, and has been recognized as a "Century Craftsman" and a leading manufacturing enterprise in Henan Province[100] - The company faces risks from the global economic slowdown, which may reduce demand for cement and clinker in the Chinese market[102] - The company plans to adopt a cautious approach to capacity expansion and focus on improving operational efficiency in response to potential reduced demand[102] - The company's total equity increased from RMB 14,822,898 thousand in 2021 to RMB 16,590,094 thousand in 2022, reflecting a growth of approximately 11.9%[158] - Net profit attributable to the company's owners decreased from RMB 1,200,590 thousand in 2021 to RMB 448,690 thousand in 2022, a decline of approximately 62.6%[158] - The statutory reserve increased from RMB 1,494,538 thousand in 2021 to RMB 1,662,050 thousand in 2022, showing a growth of approximately 11.2%[158] - The company's operating cash flow from activities decreased from RMB 2,730,409 thousand in 2021 to RMB 1,937,924 thousand in 2022, a decline of approximately 29.0%[161] - The company's profit before tax decreased from RMB 1,453,103 thousand in 2021 to RMB 687,886 thousand in 2022, a decline of approximately 52.7%[161] - The company's depreciation of property, plant, and equipment increased slightly from RMB 1,054,862 thousand in 2021 to RMB 1,057,329 thousand in 2022[161] - The company's financial expenses increased from RMB 1,001,454 thousand in 2021 to RMB 1,033,388 thousand in 2022, reflecting a growth of approximately 3.2%[161] - The company's inventory increased by RMB 192,241 thousand in 2022 compared to a decrease of RMB 190,049 thousand in 2021[161] - The company's trade and other receivables increased by RMB 193,640 thousand in 2022 compared to an increase of RMB 40,896 thousand in 2021[161] - The company's trade and other payables decreased by RMB 660,032 thousand in 2022 compared to a decrease of RMB 543,378 thousand in 2021[161] - Investment activities resulted in a net cash outflow of RMB 897.392 million, compared to RMB 1.184 billion in the previous year[162] - The company received RMB 94.445 million in interest income, slightly up from RMB 92.746 million in 2021[162] - Property, plant, and equipment expenditures increased significantly to RMB 851.29 million from RMB 295.898 million in 2021[162] - New borrowings amounted to RMB 8.758 billion, up from RMB 7.684 billion in the previous year[162] - Repayment of borrowings increased to RMB 8.666 billion from RMB 6.187 billion in 2021[162] - Cash and cash equivalents decreased by RMB 1.323 billion, ending the year at RMB 987.797 million[162] - The company applied revised International Financial Reporting Standards (IFRS) effective from January 1, 2022, with no material impact on financial statements[165] - The company has not early adopted new and revised IFRS standards that are issued but not yet effective, including IFRS 17 on insurance contracts[166] - The company's primary business is the manufacture and sale of cement, clinker, and limestone aggregates[163] - The company's registered office is in the Cayman Islands, with its principal place of business in Ruzhou City, Henan Province, China[163] - The company will recognize deferred tax assets and liabilities related to the right-of-use assets and lease liabilities, with deferred tax assets of RMB 1,380,000 and deferred tax liabilities of RMB 1,435,000 as of December 31, 2022[168] - The right-of-use assets and lease liabilities had book values of RMB 9,568,000 and RMB 9,197,000 respectively as of December 31, 2022[168] - The company prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and considers information material if it could reasonably influence the decisions of primary users[169] - The consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value at initial recognition and subsequent reporting dates[170] - Fair value is determined based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date[171] - The company classifies fair value measurements into three levels based on the observability of inputs: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[171] - The company consolidates entities over which it has control, defined as the power to govern financial and operating policies, exposure to variable returns, and the ability to affect returns through its power[172] - Business combinations are accounted for using the acquisition method, with consideration transferred measured at fair value, which includes the fair value of assets transferred, liabilities assumed, and equity interests issued[173] - The identifiable assets and liabilities acquired in business combinations after January 1, 2022, are recognized at their fair value, with exceptions for deferred tax assets or liabilities, employee benefit-related assets or liabilities, and liabilities related to share-based payment arrangements[174] - Goodwill is measured as the excess of the sum of the consideration transferred, any non-controlling interests, and the fair value of previously held equity interests over the net identifiable assets and liabilities acquired at the acquisition date[175] - Goodwill is allocated to cash-generating

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 11,055,439 thousand, a decrease of 13.1% compared to RMB 12,716,775 thousand in 2021[2] - Gross profit for the same period was RMB 2,713,844 thousand, down 16.1% from RMB 3,233,825 thousand in the previous year[2] - Net profit attributable to the owners of the company was RMB 448,690 thousand, reflecting a significant decline of 62.6% from RMB 1,200,590 thousand in 2021[2] - Basic earnings per share decreased to RMB 0.15, down 62.6% from RMB 0.41 in the prior year[2] - The profit before tax for the year was RMB 687,886,000, compared to RMB 1,453,103,000 in 2021, indicating a decrease of approximately 53%[14] - The total profit and comprehensive income for the year ended December 31, 2022, was RMB 448,690,000, a decrease from RMB 1,200,590,000 in 2021, representing a decline of approximately 62.7%[25] - The company's gross profit for 2022 was approximately RMB 2,713.8 million, a decrease of RMB 520.0 million or 16.1%, with the gross margin declining from about 25.4% in 2021 to approximately 24.5% in 2022[40] - The company's profit before tax was approximately RMB 687.9 million, a decrease of RMB 765.2 million or about 52.7% compared to the previous year[47] - The profit attributable to the company's owners for the year ended December 31, 2022, was approximately RMB 448.7 million, a decrease of RMB 751.9 million or about 62.6% compared to approximately RMB 1,200.6 million for the year ended December 31, 2021[49] Revenue Breakdown - Cement sales contributed RMB 8,552,711,000, down from RMB 11,405,703,000 in the previous year, reflecting a significant decline[12] - Revenue from cement sales was approximately RMB 8,552.7 million, down RMB 2,853.0 million or 25.0%, with cement sales volume decreasing from approximately 35.7 million tons in 2021 to about 27.7 million tons in 2022, a reduction of 22.3%[38] - Revenue from clinker sales increased by RMB 424.5 million or 99.8% to approximately RMB 849.8 million, driven by higher sales volume and prices[38] - Revenue from aggregate sales was approximately RMB 1,653.0 million, an increase of RMB 767.2 million or 86.6%, with sales volume rising from about 20.0 million tons in 2021 to approximately 41.9 million tons in 2022, an increase of 109.1%[38] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 32,343,592 thousand, a slight decrease of 1.0% from RMB 32,658,235 thousand in 2021[2] - Total liabilities decreased by 5.0% to RMB 15,753,498 thousand from RMB 16,589,957 thousand in the previous year[2] - Total equity increased by 3.2% to RMB 16,590,094 thousand compared to RMB 16,068,278 thousand in 2021[2] - Current assets were RMB 16,874,102 thousand, showing a minor decrease of 0.3% from RMB 16,925,766 thousand in the prior year[2] - Trade receivables decreased to RMB 159,599,000 in 2022 from RMB 234,797,000 in 2021, reflecting a decline of approximately 32%[27] - The total amount of trade and other receivables was RMB 10,160,857,000 in 2022, compared to RMB 9,168,650,000 in 2021, showing an increase of approximately 10.8%[27] - Inventory rose from approximately RMB 850.7 million as of December 31, 2021, to approximately RMB 1,043.0 million as of December 31, 2022, mainly due to an increase in inventory quantity[52] - Cash and cash equivalents decreased by RMB 1,322.8 million or 57.2% to approximately RMB 987.8 million as of December 31, 2022, from approximately RMB 2,310.6 million as of December 31, 2021[53] - Total borrowings and bonds amounted to approximately RMB 9,622.7 million as of December 31, 2022, a decrease of approximately RMB 1,042.0 million or 9.8% from approximately RMB 10,664.7 million in 2021[54] - The debt-to-asset ratio was approximately 48.7% as of December 31, 2022, a decrease of 2.1 percentage points from approximately 50.8% as of December 31, 2021[56] Expenses and Costs - The financial expenses for the year ended December 31, 2022, totaled RMB 1,033,388 thousand, an increase of 3.2% from RMB 1,001,454 thousand in 2021[22] - The company reported a decrease in value-added tax refunds from RMB 269,384 thousand in 2021 to RMB 173,390 thousand in 2022, a decline of 35.6%[19] - The company's administrative expenses not allocated to segments amounted to RMB 164,663,000, compared to RMB 203,379,000 in the previous year, indicating a reduction in overhead costs[14] - Selling and distribution expenses decreased by RMB 175.7 million or 42.2% to approximately RMB 240.6 million, primarily due to reduced transportation and packaging costs from lower cement sales[42] - The company's finance costs increased by RMB 31.9 million or 3.2% to approximately RMB 1,033.4 million, mainly due to increased interest on other financial liabilities[45] - The total depreciation and amortization for the year was RMB 1,197,181,000, slightly up from RMB 1,188,599,000 in the previous year[25] - The group’s research and development costs recognized as expenses amounted to RMB 444,345,000 in 2022, down from RMB 462,611,000 in 2021[25] - The group’s capitalized employee benefits expenses decreased to RMB 376,418,000 in 2022 from RMB 363,497,000 in 2021, reflecting a slight increase of about 3.3%[25] Market and Industry Trends - The national cement production in 2022 was 2.13 billion tons, a decline of 10.5% year-on-year, marking the lowest production level since 2012[35] - The average market price of cement in 2022 was RMB 466 per ton, down 4.2% year-on-year, while the manufacturing costs increased significantly due to rising coal prices[36] - The cement industry is expected to see a profit of around RMB 68 billion in 2022, a decrease of over RMB 100 billion or approximately 60% compared to 2021[36] - The company anticipates that the overall cement industry will benefit from policies promoting "carbon neutrality" and environmental control, leading to an optimized supply-demand relationship[67] Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming fiscal year[7] - The company is focused on expanding its industry chain into areas such as mining integration, new materials, and photovoltaic energy[67] - The company has integrated new technologies and smart manufacturing solutions, receiving awards such as the Outstanding Application Award for Smart Manufacturing Solutions in the process industry[68] - The company is actively developing photovoltaic power generation projects in response to national "carbon neutrality" and new energy policies[68] - The company has been recognized with 13 national or provincial-level green mines and 9 green factories, enhancing its commitment to ecological restoration and green production[68] Corporate Governance - The company has maintained a high level of corporate governance, adhering to the corporate governance code and ensuring accountability to shareholders[69] - The company did not propose a final dividend for the year ending December 31, 2022[74] - The company has not engaged in the purchase, sale, or redemption of its listed securities during the year ending December 31, 2022[73]

Financial Performance - For the first half of 2022, the company's revenue was RMB 5,321.0 million, a decrease of approximately RMB 411.8 million or 7.2% compared to the same period in 2021[11]. - Gross profit for the first half of 2022 was RMB 1,448.998 million, down 17.4% from RMB 1,753.881 million in the same period last year[9]. - Net profit attributable to the company's owners was RMB 456.536 million, a decline of approximately RMB 295.1 million or 39.3% year-on-year[9]. - The company sold approximately 13.4 million tons of cement, a decrease of about 4.1 million tons or 23.4% compared to approximately 17.5 million tons in the same period of 2021[11]. - The average selling price of cement increased to RMB 322.7 per ton, an increase of RMB 32.3 or 11.1% year-on-year[11]. - The company's revenue for the first half of 2022 was approximately RMB 4,340.8 million, a decrease of RMB 67.8 million or 1.5% compared to RMB 4,408.6 million in the same period last year[16]. - The company's gross profit for the first half of 2022 was approximately RMB 1,449.0 million, down RMB 304.9 million or 17.4% from RMB 1,753.9 million in the previous year[18]. - The gross margin decreased to 27.2% in the first half of 2022 from 30.6% in the same period last year, primarily due to rising unit costs of cement[18]. - The profit attributable to the owners of the company for the first half of 2022 was approximately RMB 456.5 million, a decrease of RMB 295.1 million or 39.3% compared to RMB 751.6 million in the same period of 2021, with a net profit margin of 8.6%, down 4.5 percentage points year-on-year[27]. - The company reported a profit attributable to owners of RMB 456,536,000, down from RMB 751,571,000 in the same period last year[91]. Assets and Liabilities - The company recorded a total asset value of RMB 33,003.220 million as of June 30, 2022, reflecting a 1.1% increase from RMB 32,658.235 million at the end of 2021[9]. - The company's total liabilities decreased by 0.9% to RMB 16,439.190 million from RMB 16,589.957 million at the end of 2021[9]. - Trade and other receivables decreased from RMB 8,351.3 million as of December 31, 2021, to RMB 8,106.8 million as of June 30, 2022, mainly due to the collection of cash from matured receivables[28]. - Inventory increased from RMB 850.7 million as of December 31, 2021, to RMB 1,283.9 million as of June 30, 2022, primarily due to an increase in both quantity and unit cost[29]. - As of June 30, 2022, the company's total borrowings and bonds amounted to approximately RMB 10,265.8 million, a decrease of about RMB 398.9 million from RMB 10,664.7 million as of December 31, 2021[34]. - The company's debt-to-asset ratio as of June 30, 2022, was 49.8%, down 1.0 percentage point from 50.8% as of December 31, 2021, due to an increase in equity[36]. - The net debt-to-equity ratio as of June 30, 2022, was 16.3%, a decrease of 8.5 percentage points from 24.8% as of December 31, 2021[37]. - The company had pledged assets with a book value of approximately RMB 5,441.9 million as of June 30, 2022, compared to RMB 4,259.1 million as of December 31, 2021[40]. Operational Highlights - The company has a clinker production capacity of 28.4 million tons and a cement production capacity of 56.4 million tons[11]. - The company sold approximately 1.4 million tons of clinker, an increase of 0.7 million tons compared to 0.7 million tons in the same period of 2021[11]. - In the first half of 2022, China's cement production reached 977 million tons, a year-on-year decrease of 15% compared to a 14.1% increase in the same period last year[14]. - The average national cement price in the first half of 2022 was RMB 499 per ton, down 10.6% from the end of last year, primarily due to weak macroeconomic conditions and reduced demand from the real estate sector[14]. Expenses and Income - Other income for the first half of 2022 was approximately RMB 391.4 million, an increase of RMB 56.0 million or 16.7% compared to RMB 335.4 million in the same period last year[19]. - The company's sales and distribution expenses were approximately RMB 158.1 million, a decrease of RMB 42.3 million or 21.1% from RMB 200.4 million in the previous year[20]. - Administrative expenses increased to approximately RMB 462.7 million, up RMB 37.5 million or 8.8% from RMB 425.2 million in the same period last year[21]. - The company recorded a foreign exchange loss of RMB 102 million in the reporting period, compared to a gain of RMB 21 million in the same period last year[24]. - For the first half of 2022, the company's profit before tax was approximately RMB 610.0 million, a decrease of about RMB 377.8 million or 38.2% compared to RMB 987.8 million in the same period of 2021[25]. - The income tax expense for the first half of 2022 was approximately RMB 114.3 million, down RMB 78.5 million or 40.7% from RMB 192.8 million in the same period of 2021, primarily due to the decrease in profit before tax[26]. Shareholder Information - As of June 30, 2022, the total shares held by Yu Kuo amounted to 2,044,484,822, representing 69.58% of the company's equity[54]. - China Tianrui Group Cement Co., Ltd. has a significant shareholder structure, with major shareholders controlling 69.58% of the shares[54]. - China Huarong Asset Management Co., Ltd. holds 470,000,000 shares, which is 16.00% of the total equity[54]. - The major shareholders include Best Ego Limited with 300,000,000 shares (10.21%) and China Cinda Asset Management Co., Ltd. with 260,000,000 shares (8.85%)[56]. Corporate Governance - The company continues to maintain high standards of corporate governance and has not appointed a new CEO since December 1, 2015, while an executive committee manages daily operations[63]. - The company has not entered into any arrangements that would allow directors to benefit from purchasing shares or bonds of the company during the six months ending June 30, 2022[56]. - No significant contracts were disclosed that would give directors a substantial interest related to the company's business during the reporting period[59]. - The company has not filed any interest disclosure forms during the six months ending June 30, 2022[55]. Future Outlook - The group anticipates that cement demand will remain stable or see slight growth in the second half of 2022, despite weak new construction in the real estate sector[45]. - The group plans to actively align with national policies to expand investment and stabilize the economy, enhancing operational efficiency and market order[48]. - The group aims to increase industry concentration and optimize market layout while integrating mining resources for future development[48]. - The group is committed to transitioning towards "green" and "intelligent" development to enhance its core competitiveness[48].

Company Overview - China Tianrui Group Cement Company Limited is one of the 12 national key supported large cement groups in China, designated for merger and restructuring in the cement industry, receiving government support in project approvals and credit approvals[8]. - The company has established a strong market presence in Henan and Liaoning provinces, with additional involvement in Tianjin and Anhui, creating three core regional markets[8]. - The company has a robust resource reserve with rich limestone resources in its main operating areas, ensuring a stable supply for its production lines[8]. - The company has successfully participated in major infrastructure projects in China, including high-speed rail and water diversion projects, due to its adherence to international management standards and product quality certifications[8]. Production and Technology - As of December 31, 2021, all clinker production lines utilize advanced NSP technology and are equipped with waste heat recovery power generation technology, significantly reducing electricity costs and pollution[8]. - The company has a daily production capacity of over 12,000 tons at its Zhengzhou Xinyang clinker production line, which is recognized as world-leading[8]. - The company has invested in advanced environmental protection technologies, including waste heat recovery and low nitrogen oxide emission facilities, contributing to sustainable development[9]. - The company has implemented intelligent upgrades across various production and management processes, with several factories upgraded to smart factories[8]. Financial Performance - The total revenue for the year ended December 31, 2021, was RMB 12,716,775, representing a 4.5% increase from RMB 12,170,754 in 2020[20]. - Gross profit decreased by 23.0% to RMB 3,233,825 from RMB 4,197,961 in the previous year[20]. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell by 22.8% to RMB 3,643,156 compared to RMB 4,719,579 in 2020[20]. - Net profit attributable to the owners of the company was RMB 1,200,590, down 35.5% from RMB 1,860,580 in 2020[20]. - Basic earnings per share decreased by 35.5% to RMB 0.41 from RMB 0.63 in the previous year[20]. Assets and Liabilities - Total assets increased slightly by 0.7% to RMB 32,658,235 from RMB 32,439,501 in 2020[21]. - Total liabilities decreased by 5.8% to RMB 16,589,957 from RMB 17,616,603 in the previous year[21]. - Total equity increased by 8.4% to RMB 16,068,278 from RMB 14,822,898 in 2020[21]. - The company's financial expenses for the year ended December 31, 2021, were approximately RMB 1,001.5 million, a decrease of RMB 179.6 million or 15.2% compared to approximately RMB 1,181.1 million in 2020[30]. Market and Sales - In 2021, the company's cement sales volume was approximately 35.7 million tons, a decrease of about 0.1 million tons or 0.4% compared to 2020[22]. - The average price of cement increased to approximately RMB 319.8 per ton, up RMB 14.4 per ton or 4.7% from the same period in 2020[22]. - Aggregate sales volume reached approximately 20.0 million tons, an increase of about 6.8 million tons or 52.2% compared to 2020[22]. - Revenue from cement sales was approximately RMB 11,405.7 million, an increase of RMB 465.6 million or 4.3% from 2020[27]. Strategic Initiatives - The company is committed to enhancing its competitiveness and sustainable development capabilities, aiming for better performance in the future[9]. - The company plans to continue implementing environmental protection policies and pursue green development, including the establishment of green factories and mines[48]. - The company aims to enhance digital transformation and improve production efficiency through the development of smart factories[48]. - The company is expanding its market presence, targeting new regions in Southeast Asia, aiming for a 25% market share by 2025[51]. Governance and Management - The board of directors consists of eight members, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[136]. - The company emphasizes the importance of internal controls and transparency in its corporate governance practices[132]. - The management team includes experienced professionals with significant backgrounds in the cement industry and finance[59][60]. - The company has appointed independent non-executive directors with diverse expertise in finance and law[56][58]. Corporate Social Responsibility - The company actively participates in environmental and social responsibility initiatives, including waste disposal projects capable of processing 350,000 tons of solid and hazardous waste annually[127]. - The company donated over RMB 20 million in cash and materials for post-disaster reconstruction efforts following severe flooding in regions like Zhengzhou and Xinxiang[127]. Future Outlook - The outlook for cement demand in 2022 is expected to remain stable, supported by government policies promoting infrastructure investment and real estate market recovery[48]. - The company acknowledges the risk of a global economic slowdown potentially leading to decreased demand for cement and clinker in the Chinese market[130]. - The company plans to adopt a cautious approach to capacity expansion and will focus on improving operational efficiency due to the anticipated decrease in demand[130].