2025年上半年，全国水泥产量8.15亿吨，为2010年以来同期最低水平，同比下降4.3%，降幅较2024年同 期收窄5.7个百分点。但行业积极推动生态建设，水泥价格恢复性增长，叠加煤炭成本下降，行业盈利 持续修复，2025年上半年水泥行业利润总额人民币164亿元，较2024年同期实现扭亏为盈。(格隆汇) | 代码 | 名称 | 最新价 | 涨跌幅 ▽ | | --- | --- | --- | --- | | 03323 | 中国建材 | 5.790 | 8.43% | | 00695 | 东吴水泥 | 5.540 | 3.75% | | 00914 | 海螺水泥 | 24.560 | 2.68% | | 01252 | 中国天瑞水泥 | 0.485 | 2.11% | | 01313 | 华润建材科技 | 1.870 | 1.63% | | ૦୧୧૨૨ | 华新水泥 | 13.270 | 0.91% | 港股建材水泥股盘初走高，其中，中国建材绩后一度大涨超12%表现抢眼，东吴水泥涨近4%，海螺水 泥涨近3%，中国天瑞水泥涨超2%，华润建材科技、华新水泥跟涨。 消息上，中国建材发布截至2025年6月30日止 ...

Group 1 - China National Building Material (03323.HK) opened over 5% higher [1]

Group 1 - The core viewpoint of the article highlights that China National Building Material (03323) opened over 5% higher after reporting a turnaround in profitability, with a net profit of 1.36 billion RMB for the first half of 2025 [1] - The company's revenue for the six months ending June 30, 2025, was 83.28 billion RMB, reflecting a slight decrease of 0.2% year-on-year [1] - The earnings per share for the company stood at 0.172 RMB, indicating a recovery from previous losses [1] Group 2 - The national cement production in the first half of 2025 was 815 million tons, marking the lowest level for the same period since 2010, with a year-on-year decline of 4.3% [1] - The decline in cement production was less severe compared to the 5.7 percentage points drop from the same period in 2024 [1] - The cement industry is experiencing a recovery in profitability, with total profits reaching 16.4 billion RMB in the first half of 2025, marking a return to profitability compared to the same period in 2024 [1]

Group 1 - The core viewpoint of the article highlights that China National Building Material (03323) experienced a significant stock price increase of over 5% following the release of its interim results for the six months ending June 30, 2025 [1] - The company reported a revenue of RMB 83.28 billion, reflecting a slight year-on-year decline of 0.2% [1] - Shareholder profit reached RMB 1.36 billion, marking a turnaround from a loss to profit compared to the previous year [1] - Earnings per share were reported at RMB 0.172 [1] Group 2 - In the first half of 2025, the national cement production was 815 million tons, the lowest level for the same period since 2010, with a year-on-year decrease of 4.3%, although the decline was 5.7 percentage points less than in the same period of 2024 [1] - The industry is actively promoting ecological construction, leading to a recovery in cement prices, alongside a decrease in coal costs, which has contributed to ongoing profit recovery in the sector [1] - The total profit of the cement industry for the first half of 2025 was RMB 16.4 billion, indicating a return to profitability compared to the same period in 2024 [1]

Core Viewpoint - China National Building Material (03323.HK) reported a slight decline in revenue for the first half of 2025, but showed a significant turnaround in profit compared to the previous year [1] Financial Performance - The audited revenue for the first half of 2025 was approximately RMB 83.28 billion, a decrease of 0.2% compared to RMB 83.52 billion in the same period of 2024 [1] - The unaudited profit attributable to equity holders was approximately RMB 1.36 billion, contrasting with a loss of RMB 2.018 billion in the same period of 2024 [1] - Basic earnings per share were RMB 0.172, compared to a basic loss per share of RMB 0.239 in the same period of 2024 [1] Dividend Policy - The board of directors recommended not to declare an interim dividend for this period [1]

Core Points - China National Building Material (CNBM) reported its mid-year performance for 2025, showing a revenue of approximately RMB 83.28 billion, which represents a slight decline of 0.2% compared to the same period in 2024 [1] - The group's unaudited profit attributable to equity holders was approximately RMB 1.36 billion, a significant recovery from a loss of approximately RMB 2.018 billion in the same period of 2024 [1]

Group 1 - The core viewpoint of the article highlights that China National Building Material (03323) reported a slight decline in revenue but achieved a turnaround in profit for the first half of 2025 [1] Group 2 - The company's revenue for the six months ending June 30, 2025, was RMB 83.28 billion, a year-on-year decrease of 0.2% [1] - Shareholders' profit attributable to the company was RMB 1.36 billion, marking a return to profitability compared to the previous year [1] - Earnings per share stood at RMB 0.172 [1] Group 3 - National cement production in the first half of 2025 reached 815 million tons, the lowest level for the same period since 2010, with a year-on-year decline of 4.3%, although the decline was 5.7 percentage points less than in the same period of 2024 [1] - The industry is actively promoting ecological construction, leading to a recovery in cement prices, alongside a decrease in coal costs, which has contributed to ongoing profit recovery [1] - The total profit for the cement industry in the first half of 2025 was RMB 16.4 billion, representing a turnaround from losses compared to the same period in 2024 [1]

中 國 建 材 股 份 有 限 公 司 （股份代號：03323） 中期報告 僅供識別 本報告採用環保紙打印製造。 202 5 中期報 告 目 錄 中報速覽 .................................................................. 2 公司資料 .................................................................. 4 本集團股權架構 ............................................................... 7 財務數據摘要 ................................................................... 8 業務數據摘要 ................................................................... 9 管理層討論與分析 ...................................................... ...

Group 1 - The core viewpoint of the article highlights that China National Building Material (03323) reported a slight decline in revenue but achieved a turnaround in profit for the first half of 2025 [1] - The company's revenue for the six months ending June 30, 2025, was RMB 83.28 billion, representing a year-on-year decrease of 0.2% [1] - The net profit attributable to shareholders was RMB 1.36 billion, marking a return to profitability compared to the previous year [1] - Earnings per share stood at RMB 0.172 [1] Group 2 - National cement production in China reached 815 million tons in the first half of 2025, the lowest level for the same period since 2010, with a year-on-year decline of 4.3% [1] - The decline in cement production was less severe than the 5.7 percentage point drop observed in the same period of 2024 [1] - The industry is actively promoting ecological construction, leading to a recovery in cement prices and a decrease in coal costs, which contributed to ongoing profit recovery [1] - The total profit for the cement industry in the first half of 2025 was RMB 16.4 billion, indicating a return to profitability compared to the same period in 2024 [1]

[Interim Results Highlights and Financial Overview](index=1&type=section&id=Interim%20Results%20Highlights%20and%20Financial%20Overview) [Performance Summary](index=1&type=section&id=Performance%20Summary) The Group's H1 2025 revenue slightly decreased by 0.2% YoY, but it achieved profitability with a significant increase in profit attributable to equity holders and positive basic earnings per share. The Board recommended no interim dividend Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 83,280 | 83,470 | -0.2% | | Profit/(Loss) Attributable to Equity Holders | 1,360 | (2,018) | Turned loss into profit | | Basic Earnings/(Loss) Per Share | 0.172 RMB | (0.239) RMB | Turned loss into profit | - The Board recommended no interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statement) In H1 2025, the Group's revenue slightly decreased, but effective control over cost of sales, administrative expenses, and finance costs, coupled with significant growth in investment and other income and share of results of associates, led to a substantial increase in profit for the period and a return to profitability Condensed Consolidated Income Statement (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 83,279,904 | 83,470,594 | -0.23% | | Cost of Sales | (67,299,968) | (70,217,099) | 4.16% (Decrease) | | Gross Profit | 15,979,936 | 13,253,495 | 20.57% (Growth) | | Investment and Other Income, Net | 2,053,943 | 1,183,823 | 73.50% (Growth) | | Administrative Expenses | (8,934,012) | (9,913,658) | 9.88% (Decrease) | | Finance Costs, Net | (2,286,152) | (2,441,944) | 6.38% (Decrease) | | Share of Results of Associates | 680,218 | 340,979 | 99.49% (Growth) | | Profit/(Loss) for the Period | 3,964,811 | (292,353) | Turned loss into profit | | Profit/(Loss) Attributable to Equity Holders of the Company | 1,360,196 | (2,017,616) | Turned loss into profit | | Basic Earnings/(Loss) Per Share | 0.172 | (0.239) | Turned loss into profit | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2025, the Group's total comprehensive income for the period significantly increased, primarily due to a substantial improvement in profit for the period and a shift from exchange loss to gain Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 3,964,811 | (292,353) | Turned loss into profit | | Exchange Differences | 85,489 | (63,817) | From loss to profit | | Total Comprehensive Income/(Expense) for the Period | 4,050,790 | (327,342) | Turned loss into profit | | Total Comprehensive Income/(Expense) Attributable to Equity Holders of the Company | 1,384,674 | (2,049,671) | Turned loss into profit | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities both increased, but net assets slightly decreased. Non-current assets maintained stable growth, while inventories and trade and other receivables within current assets significantly rose. Borrowings in current liabilities substantially increased, leading to an expanded net current liabilities Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-current Assets | 352,332,350 | 349,967,814 | 0.68% (Growth) | | Total Current Assets | 153,407,898 | 144,039,462 | 6.50% (Growth) | | Inventories | 21,566,677 | 16,951,294 | 27.22% (Growth) | | Trade and Other Receivables (Current) | 95,270,468 | 87,592,581 | 8.76% (Growth) | | **Liabilities** | | | | | Total Current Liabilities | 201,713,875 | 181,463,328 | 11.16% (Growth) | | Borrowings - repayable within one year | 102,530,326 | 82,128,645 | 24.84% (Growth) | | Net Current Liabilities | (48,305,977) | (37,423,866) | 29.08% (Expanded) | | Total Non-current Liabilities | 111,249,434 | 118,016,063 | -5.65% (Decrease) | | **Equity** | | | | | Net Assets | 192,776,939 | 194,527,885 | -0.90% (Decrease) | | Equity Attributable to Equity Holders of the Company | 100,170,879 | 103,121,124 | -2.86% (Decrease) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company was established in China in 2005 and listed in Hong Kong in 2006, primarily engaged in the production and sale of basic building materials, new materials, and the provision of engineering technical services. The condensed consolidated financial statements are prepared in accordance with the HKEX Listing Rules and IAS 34, with the first-time application of IAS 21 amendments having no significant impact - The company's principal activities are the operation, production, and sale of basic building materials and new materials, and the provision of engineering technical services[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) - The first-time application of the amendments to IAS 21 "Lack of Exchangeability" had no significant impact on the financial position and performance for the current interim period[14](index=14&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group is divided into five operating segments: Cement, Ready-Mixed Concrete, New Materials, Engineering Technical Services, and Others. Segment performance is disclosed using profit before interest, tax, depreciation, and amortization (EBITDA), which management believes better assesses each segment's operations [Segment Performance H1 2025](index=9&type=section&id=Segment%20Performance%20H1%202025) External Sales Revenue and Adjusted EBITDA by Segment for H1 2025 | Segment | External Sales Revenue (RMB thousand) | Adjusted EBITDA (RMB thousand) | | :--- | :--- | :--- | | Cement | 26,470,904 | 6,114,992 | | Ready-Mixed Concrete | 10,470,899 | 699,716 | | New Materials | 26,683,265 | 5,567,788 | | Engineering Technical Services | 17,364,316 | 2,003,782 | | Others | 2,290,520 | 126,220 | | **Total** | **83,279,904** | **14,512,498** | [Segment Assets and Liabilities H1 2025](index=10&type=section&id=Segment%20Assets%20and%20Liabilities%20H1%202025) Segment Assets and Liabilities as of June 30, 2025 | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Cement | 232,098,324 | 140,048,814 | | Ready-Mixed Concrete | 48,307,476 | 22,606,396 | | New Materials | 92,484,222 | 41,018,258 | | Engineering Technical Services | 41,836,622 | 34,173,177 | | Others | 7,773,842 | 6,914,836 | | **Total** | **422,500,486** | **244,761,481** | [Segment Performance H1 2024](index=11&type=section&id=Segment%20Performance%20H1%202024) External Sales Revenue and Adjusted EBITDA/(Loss) by Segment for H1 2024 | Segment | External Sales Revenue (RMB thousand) | Adjusted EBITDA/(Loss) (RMB thousand) | | :--- | :--- | :--- | | Cement | 29,486,704 | 3,287,340 | | Ready-Mixed Concrete | 10,954,853 | 322,816 | | New Materials | 23,374,031 | 4,852,614 | | Engineering Technical Services | 16,125,785 | 1,850,736 | | Others | 3,529,221 | (414,564) | | **Total** | **83,470,594** | **9,898,942** | [Segment Assets and Liabilities FYE 2024](index=12&type=section&id=Segment%20Assets%20and%20Liabilities%20FYE%202024) Segment Assets and Liabilities as of December 31, 2024 | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Cement | 229,610,948 | 138,759,882 | | Ready-Mixed Concrete | 47,754,612 | 20,392,785 | | New Materials | 85,134,943 | 38,200,200 | | Engineering Technical Services | 40,249,872 | 32,461,196 | | Others | 7,252,692 | 7,196,107 | | **Total** | **410,003,067** | **237,010,170** | [Reconciliation of Profit Before Income Tax](index=13&type=section&id=Reconciliation%20of%20Profit%20Before%20Income%20Tax) Reconciliation of Profit Before Income Tax (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Segment Profit (EBITDA) | 14,512,498 | 9,898,942 | 46.61% (Growth) | | Operating Profit | 6,736,897 | 2,435,151 | 176.65% (Growth) | | Profit Before Income Tax | 5,125,453 | 327,196 | 1466.67% (Growth) | - The Group's five operating segments for the period are Cement, Ready-Mixed Concrete, New Materials, Engineering Technical Services, and Others[15](index=15&type=chunk) - Segment performance is disclosed as profit/(loss) before interest, tax, depreciation, and amortization[16](index=16&type=chunk) - Demand for cement products is typically higher in the second half of the year than in the first half, resulting in generally lower operating revenue and performance for the Group in the first half[16](index=16&type=chunk) [Investment and Other Income, Net](index=14&type=section&id=Investment%20and%20Other%20Income,%20Net) In H1 2025, the Group's net investment and other income significantly increased by 73.5%, primarily driven by higher government grants (especially VAT refunds), gains from disposal of subsidiaries and associates' interests, and a shift from fair value decrease to increase for financial assets at fair value through profit or loss Investment and Other Income, Net (For the six months ended June 30) | Income Source (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Government Grants (Total) | 997,004 | 1,083,999 | -8.02% (Decrease) | | - VAT Refunds | 359,073 | 254,781 | 40.93% (Growth) | | Gain/(Loss) on Disposal of Subsidiaries, Net | 16,425 | (3,748) | From loss to profit | | Gain on Partial Disposal of Interests in Associates | 51,987 | – | New | | Net Fair Value Increase/(Decrease) of Financial Assets at FVTPL | 104,954 | (580,717) | From decrease to increase | | **Total** | **2,053,943** | **1,183,823** | **73.50% (Growth)** | - Government grants primarily include VAT refunds (to encourage comprehensive utilization of natural resources) and local government subsidies (to encourage development and contribution to the local economy)[27](index=27&type=chunk) [Finance Costs, Net](index=15&type=section&id=Finance%20Costs,%20Net) In H1 2025, the Group's net finance costs decreased by 6.38% YoY, mainly due to lower interest expenses on bank borrowings and bonds, and a decrease in interest income from bank deposits Finance Costs, Net (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Expense (Total) | 2,594,920 | 2,824,836 | -8.00% (Decrease) | | - Interest on Bank Borrowings | 1,877,673 | 2,037,573 | -7.85% (Decrease) | | - Interest on Bonds and Other Borrowings | 812,321 | 891,546 | -8.89% (Decrease) | | Interest Income (Total) | (308,768) | (382,892) | -19.49% (Decrease) | | - Interest on Bank Deposits | (203,624) | (301,237) | -32.39% (Decrease) | | **Finance Costs, Net** | **2,286,152** | **2,441,944** | **-6.38% (Decrease)** | [Components of Profit Before Income Tax](index=15&type=section&id=Components%20of%20Profit%20Before%20Income%20Tax) In H1 2025, the Group's total depreciation and amortization increased, while inventories expensed and staff costs decreased. Notably, a net exchange gain replaced last year's net loss Items Deducted From/(Credited To) Profit Before Income Tax (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Depreciation and Amortization | 7,927,275 | 7,606,958 | 4.21% (Growth) | | Inventories Expensed | 54,405,964 | 62,516,797 | -13.06% (Decrease) | | Staff Costs | 10,312,502 | 10,585,358 | -2.58% (Decrease) | | Net Exchange (Gain)/Loss | (155,628) | 240,395 | From loss to profit | - There was no goodwill impairment loss in H1 2025, compared to RMB4,685 thousand in H1 2024[29](index=29&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) In H1 2025, the Group's income tax expense significantly increased YoY, primarily due to higher current income tax expense, despite a decrease in deferred income tax credit. Management assessed no top-up tax is payable under Pillar Two rules Income Tax Expense (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Current Income Tax Expense | 1,266,671 | 946,009 | 33.89% (Growth) | | Deferred Income Tax Credit | (106,029) | (326,460) | -67.59% (Decrease) | | **Income Tax Expense** | **1,160,642** | **619,549** | **87.34% (Growth)** | - China income tax is calculated at **25%**, with some subsidiaries enjoying a **15%** preferential tax rate or exemptions[30](index=30&type=chunk) - The Group's management believes that the estimated effective tax rate in all jurisdictions where it operates is above **15%**, thus no top-up tax is required under Pillar Two rules[30](index=30&type=chunk) [Dividends](index=16&type=section&id=Dividends) In H1 2025, the company declared and paid a final dividend of **RMB0.158 per share**, totaling approximately **RMB1,199.70 million**, a decrease from the prior year. The Board recommended no interim dividend Dividends (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Final Dividend Declared (Per Share) | RMB0.158 | RMB0.229 | -30.99% (Decrease) | | Final Dividend Declared (Total) | RMB1,199,697 thousand | RMB1,931,562 thousand | -37.89% (Decrease) | - The Board recommended no interim dividend for the six months ended June 30, 2025[33](index=33&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings/(Loss)%20Per%20Share) In H1 2025, basic earnings per share attributable to equity holders of the company were **RMB0.172**, turning a loss into profit, compared to a basic loss per share of **RMB0.239** in the prior period Earnings/(Loss) Per Share - Basic and Diluted (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 1,360,196 | (2,017,616) | Turned loss into profit | | Basic Earnings/(Loss) Per Share (RMB) | 0.172 | (0.239) | Turned loss into profit | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 7,918,560 | 8,434,771 | -6.00% (Decrease) | - The Group had no potentially dilutive ordinary shares outstanding during both periods, thus no adjustments were made in calculating diluted earnings/(loss) per share[34](index=34&type=chunk) [Trade and Other Receivables](index=17&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables increased to **RMB97,805 million**, primarily driven by growth in trade receivables and contract assets. The aging analysis of trade receivables shows increases in amounts due within two months and over two to three years Trade and Other Receivables (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Receivables (Net of Allowance for Credit Losses) | 54,992,702 | 47,530,229 | 15.70% (Growth) | | Bills Receivable | 9,075,160 | 11,671,177 | -22.24% (Decrease) | | Contract Assets | 10,410,209 | 8,764,769 | 18.77% (Growth) | | Other Receivables, Deposits and Prepayments | 23,327,168 | 22,831,448 | 2.17% (Growth) | | **Total** | **97,805,239** | **90,797,623** | **7.72% (Growth)** | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging of Trade Receivables (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 2 months | 13,919,002 | 6,519,099 | 113.52% (Growth) | | Over 2 months but within 1 year | 21,527,982 | 21,822,297 | -1.35% (Decrease) | | 1 to 2 years | 10,840,698 | 11,534,849 | -6.02% (Decrease) | | 2 to 3 years | 5,350,561 | 4,631,271 | 15.53% (Growth) | | Over 3 years | 3,354,459 | 3,022,713 | 10.98% (Growth) | - The Group generally grants credit periods of 60 to 180 days to trade customers, while customers in the engineering technical services segment typically have credit periods ranging from 1 to 2 years[35](index=35&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables slightly decreased, mainly due to reductions in bills payable and other payables, offset by increases in trade payables and contract liabilities Trade and Other Payables (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 47,328,206 | 46,360,344 | 2.09% (Growth) | | Bills Payable | 12,085,803 | 13,181,420 | -8.31% (Decrease) | | Contract Liabilities | 11,131,738 | 10,597,139 | 5.04% (Growth) | | Other Payables | 19,813,966 | 21,240,934 | -6.72% (Decrease) | | **Total** | **90,359,713** | **91,379,837** | **-1.12% (Decrease)** | - Credit periods for purchased products and services from suppliers range from 30 to 365 days, and bills payable have an aging within six months[38](index=38&type=chunk) [Business Operations Analysis](index=19&type=section&id=Business%20Operations%20Analysis) [Summary of Key Business Data](index=19&type=section&id=Summary%20of%20Key%20Business%20Data) The Group's segments showed mixed performance in H1 2025. Basic building materials generally saw lower sales volumes but recovering average selling prices, while new materials exhibited diversification with significant growth in sales volume and average selling prices for some products. Engineering services revenue maintained stable growth [Basic Building Materials Segment](index=19&type=section&id=Basic%20Building%20Materials%20Segment) Key Business Data for Basic Building Materials Segment (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Total Cement Clinker Sales Volume (thousand tons) | 97,779 | 113,844 | -14.1% | | Average Selling Price of Cement Clinker (RMB/ton) | 249.8 | 241.1 | 3.6% | | Ready-Mixed Concrete Sales Volume (thousand cubic meters) | 35,133 | 35,205 | -0.2% | | Average Selling Price of Ready-Mixed Concrete (RMB/cubic meter) | 298.2 | 312.0 | -4.4% | | Aggregates Sales Volume (thousand tons) | 62,965 | 64,224 | -2.0% | | Average Selling Price of Aggregates (RMB/ton) | 36.3 | 36.7 | -1.1% | [New Materials Segment](index=20&type=section&id=New%20Materials%20Segment) Key Business Data for New Materials Segment (For the six months ended June 30) | Product | H1 2025 Sales Volume | H1 2024 Sales Volume | Sales Volume Growth Rate | H1 2025 Average Selling Price | H1 2024 Average Selling Price | Price Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Glass Fiber (thousand tons) | 2,032 | 2,010 | 1.1% | 4,547 RMB | 4,048 RMB | 12.3% | | Gypsum Board (million sq.m.) | 1,156.3 | 1,168.1 | -1.0% | 5.61 RMB | 6.12 RMB | -8.3% | | Wind Turbine Blades (MW) | 15,260 | 7,520 | 102.9% | 340,777 RMB | 377,563 RMB | -9.7% | | Coatings (thousand tons) | 719.29 | 446.22 | 61.2% | 3,491 RMB | 3,996 RMB | -12.6% | | Waterproofing Membranes (million sq.m.) | 126.8 | 117.1 | 8.3% | 13.57 RMB | 14.60 RMB | -7.1% | | Lithium Battery Separators (million sq.m.) | 1,299.7 | 814.4 | 59.6% | 0.71 RMB | 0.93 RMB | -23.7% | | Carbon Fiber (thousand tons) | 10.43 | 6.90 | 51.2% | 86,890 RMB | 104,130 RMB | -16.6% | [Engineering Services Revenue](index=21&type=section&id=Engineering%20Services%20Revenue) Engineering Services Revenue (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | | Engineering Services Revenue | 21,305.9 | 20,573.3 | 3.6% | [Overview of H1 2025](index=21&type=section&id=Overview%20of%20H1%202025) In H1 2025, the Group faced a complex international environment and domestic structural adjustment pressures, yet China's economy showed stable improvement with new growth drivers emerging. The Group actively responded to challenges through strategies like reform and innovation, lean management, and collaborative cooperation, achieving new progress across all business segments, particularly in green and low-carbon transformation and high-end product development [Development Environment](index=21&type=section&id=Development%20Environment) - In the first half, domestic GDP increased by **5.3%** YoY, fixed asset investment grew by **2.8%** YoY, with infrastructure investment showing a stable **4.6%** increase, while real estate development investment decreased by **11.2%** YoY[43](index=43&type=chunk) - Artificial intelligence is leading a new round of technological revolution and industrial transformation, bringing new development opportunities and challenges for the company's sustainable development[43](index=43&type=chunk) [Group's Response Strategy](index=22&type=section&id=Group's%20Response%20Strategy) - The Group continues to expand new growth, optimize existing assets, manage variables, and improve quality, focusing on reform and innovation, lean management, collaborative cooperation, open sharing, integration and optimization, and Party building leadership[44](index=44&type=chunk) [Basic Building Materials Segment Operations](index=22&type=section&id=Basic%20Building%20Materials%20Segment%20Operations) - National cement output was **815 million tons**, the lowest for the same period since 2010, representing a **4.3%** YoY decrease[45](index=45&type=chunk) - In H1 2025, the cement industry's total profit was **RMB16.4 billion**, turning a loss into profit compared to H1 2024[45](index=45&type=chunk) - In the first half, cement clinker costs decreased by **7.4%** YoY, and gross profit margins for both cement clinker and ready-mixed concrete achieved YoY growth, significantly restoring profitability in the basic building materials business[46](index=46&type=chunk) - Actively promoting "Cement+" business, establishing **5** special cement production bases, and advancing Chizhou and Zongyang aggregate projects[46](index=46&type=chunk) - The Tunisia project completed delivery, and Ningxia Building Materials was selected as the sole cement enterprise in the first batch of national carbon footprint label certification pilot units[46](index=46&type=chunk) [New Materials Segment Operations](index=23&type=section&id=New%20Materials%20Segment%20Operations) [Glass Fiber](index=23&type=section&id=Glass%20Fiber) - Glass fiber business achieved both volume and price increases in the first half, with gross profit margin increasing by **11.1 percentage points** YoY[47](index=47&type=chunk) - The second line of Jiujiang intelligent manufacturing base and the first line of Taiyuan base commenced production, while the electronic-grade glass fiber and supporting projects at Huai'an zero-carbon intelligent manufacturing base and the second line of Taiyuan base officially started construction[47](index=47&type=chunk) - Low-expansion fiber cloth broke foreign monopoly, becoming the only domestic and second global supplier capable of mass-producing low-expansion coefficient fiber cloth products[47](index=47&type=chunk) [Gypsum Board](index=24&type=section&id=Gypsum%20Board) - Gypsum board's home decoration board sales volume significantly increased YoY, and cost-saving initiatives led to a **6.2%** YoY decrease in unit cost[50](index=50&type=chunk) - Tanzania and Uzbekistan production bases continued to achieve significant YoY growth in operating revenue and profit[50](index=50&type=chunk) - The **40 million sq.m./year** gypsum board production line in Thailand has entered trial production, and the **40 million sq.m./year** paper-faced gypsum board production line project in Bosnia and Herzegovina is progressing orderly[50](index=50&type=chunk) [Wind Turbine Blades](index=24&type=section&id=Wind%20Turbine%20Blades) - Wind turbine blade business unit cost decreased by **10.7%** YoY[49](index=49&type=chunk) - All **4** production lines at the Brazil base are operational, and the Uzbekistan project is steadily progressing[52](index=52&type=chunk) - The first domestic **220m+** diameter recyclable wind turbine blade developed in cooperation has been installed, and the trial production and development of **16MW** floating unit SI122F blades have been completed, achieving a major breakthrough in deep and far-sea wind power[52](index=52&type=chunk) [Other New Materials Businesses](index=25&type=section&id=Other%20New%20Materials%20Businesses) - Coatings business steadily advanced management integration, with Carpoly's integration progressing well and Zhejiang Daqiao's integration proceeding orderly[52](index=52&type=chunk) - Waterproofing membranes business expanded its layout in civil construction products and repair services, achieving counter-trend growth in operating revenue and profit[52](index=52&type=chunk) - The first overseas project for lithium battery separators, the Hungary base, is steadily progressing, with **5μm** ultra-thin base film achieving mass supply, and ultra-thin high-strength **4μm/3μm** products forming a technical reserve[52](index=52&type=chunk) - Hydrogen energy cylinder business continues to maintain its industry-leading position, with hydrogen storage cylinder market share and vehicle announcement numbers remaining first in the industry[52](index=52&type=chunk) - Carbon fiber business collaborated with leading clients to develop new energy applications, with the Lianyungang **30,000-ton** carbon fiber project progressing orderly, achieving green transformation of the high-performance carbon fiber industry[52](index=52&type=chunk) [Engineering Technical Services Segment Operations](index=26&type=section&id=Engineering%20Technical%20Services%20Segment%20Operations) - Successfully secured **13** overseas cement whole-line projects in the first half, maintaining the world's largest market share in cement engineering services for **17** consecutive years[53](index=53&type=chunk) - Overseas equipment business revenue accounted for **51%**, and non-equipment industry revenue accounted for **37%**[53](index=53&type=chunk) - Formed a "smart factory + digital mine + expert system" full-scenario solution, with **71** cement operation and maintenance service production lines and **312** mine operation and maintenance service projects currently in execution[53](index=53&type=chunk) - New overseas contracts increased by **19%** YoY, and overseas revenue increased by **25%** YoY[53](index=53&type=chunk) [Strategic Development and Corporate Governance](index=27&type=section&id=Strategic%20Development%20and%20Corporate%20Governance) [Deepening Reforms and Technological Innovation](index=27&type=section&id=Deepening%20Reforms%20and%20Technological%20Innovation) The Group comprehensively advanced supervisory board reform, optimized mixed-ownership enterprise governance, and strengthened market value management by repurchasing and canceling H-shares and increasing China Jushi's stake, enhancing shareholder value. Concurrently, innovation and industrial chains deeply integrated, with several new material projects selected for SASAC's "Top 100 Projects," and breakthroughs achieved in green technologies - Completed the tender offer repurchase and cancellation of **840 million** of the company's circulating H-shares, with a total consideration of **HKD3.392 billion**, representing approximately **9.98%** of the company's total share capital before cancellation[54](index=54&type=chunk) - Increased stake in China Jushi by **89.91 million shares** for **RMB1 billion**, raising the shareholding ratio to **29.22%**[54](index=54&type=chunk) - Special glass fiber for AI and carbon fiber and composite materials for large aircraft projects were selected for SASAC's "Top 100 Projects" in strategic emerging industries[55](index=55&type=chunk) - The world's first large-scale coal gangue suspension hot activation calcination process production line was successfully ignited[55](index=55&type=chunk) [Digital Transformation](index=27&type=section&id=Digital%20Transformation) The Group systematically advanced digital transformation, successfully launching **74** systems, bridging the "last mile" for AI implementation in industrial scenarios, optimizing the entire cement production chain, and reducing average cost per ton by **RMB2.03**. **31** smart cement factories, **72** intelligent new material production lines, and **18** digital mines have been built - "One Cloud" smoothly launched **74** systems and completed demand research for overseas institutions on the global "One Network"[56](index=56&type=chunk) - The basic building materials large model has achieved data value-added in over **140** cement production scenarios, reducing average cost per ton by **RMB2.03** in accepted factories[57](index=57&type=chunk) - A total of **31** smart cement factories, **72** intelligent new material production lines, and **18** digital mines have been built[58](index=58&type=chunk) [Green and Low-Carbon Transformation](index=28&type=section&id=Green%20and%20Low-Carbon%20Transformation) The Group comprehensively deepened green production, with a significant increase in the proportion of ultra-low emission and alternative fuel cement production lines, substantial growth in fuel substitution rates and green electricity usage, and continuous decline in energy consumption and emission indicators. Concurrently, it accelerated the implementation of dual carbon goals, with the second phase of Huai'an Zero-Carbon Intelligent Manufacturing Base commencing construction and the Qingzhou Zhonglian CCUS project selected for the national demonstration list - Ultra-low emission cement production lines accounted for **36.59%**, an increase of **14.49 percentage points** from the end of 2024[59](index=59&type=chunk) - Alternative fuel cement production lines accounted for **45%**, an increase of **12 percentage points** from the end of 2024; cement fuel substitution rate reached **5.88%**, an increase of **1.97 percentage points** from the end of 2024[59](index=59&type=chunk) - "PV+" installed capacity increased by **40.36 MW**, with cumulative installed capacity reaching **707.88 MW**, and green electricity usage increased by **359%** YoY[59](index=59&type=chunk) - Comprehensive energy consumption per ton of cement clinker decreased by **3.04%** YoY, and emissions of carbon dioxide, nitrogen oxides, sulfur dioxide, and dust decreased by **4.18%**, **7.34%**, **1.72%**, and **0.9%** YoY, respectively[59](index=59&type=chunk) - The second phase of the electronic-grade glass fiber and supporting projects at Huai'an Zero-Carbon Intelligent Manufacturing Base commenced construction; the Qingzhou Zhonglian CCUS project was selected for the national green and low-carbon advanced technology demonstration list[60](index=60&type=chunk) [Outlook for H2 2025](index=29&type=section&id=Outlook%20for%20H2%202025) The Group anticipates continued economic uncertainty in H2, but sees opportunities in emerging market infrastructure demand, new material applications, and green low-carbon transformation. Focusing on becoming a world-class materials enterprise, the Group will prioritize stable operations, optimized layout, deepened reforms, and value management to consolidate performance recovery, accelerate industrial transformation, and implement its internationalization strategy - Internationally, emerging market infrastructure demand continues to grow, new material application scenarios are expanding, and green and low-carbon transformation is in a critical window period[61](index=61&type=chunk) - Domestically, the foundation for China's economic recovery is strengthening, with overall stable and improving economic performance[61](index=61&type=chunk) - The Group will anchor its annual targets, focusing on accelerating the construction of a world-class materials enterprise, and continue to prioritize stable operations, optimized layout, deepened reforms, and value management[61](index=61&type=chunk) - Accelerate the optimization and upgrading of basic building materials, with cement business focusing on improving profitability, ready-mixed concrete business accelerating layout in key regions, and aggregates business emphasizing improved input-output ratio[61](index=61&type=chunk) - Strategic emerging industries will comprehensively utilize new investments, mergers and acquisitions, industrial funds, and strategic cooperation to improve tiered layout, focus on key products, and accelerate the construction of industrial clusters[61](index=61&type=chunk) [Major Transactions](index=30&type=section&id=Major%20Transactions) In the Group's acquisition of Carpoly shares, Carpoly's actual net profit for FY2024 did not meet the performance target, and the difference of **RMB77,336,936.31** will be deducted as performance compensation from the remaining share acquisition price - Carpoly's actual net profit for FY2024 was **RMB335,663,063.69**, falling short of the promised net profit of **RMB413 million**[63](index=63&type=chunk) - The difference of **RMB77,336,936.31** will be deducted as performance compensation from the remaining share acquisition price that BNBM should pay to the original shareholders for FY2024[63](index=63&type=chunk) [Share Buyback](index=31&type=section&id=Share%20Buyback) For the six months ended June 30, 2025, the company repurchased a total of **841,749,304 H-shares** through a conditional cash offer, at a total cost of **HKD3,392,249,695**, which were canceled on March 12, 2025. This action aims to demonstrate confidence in long-term prospects, improve trading liquidity, and optimize shareholder structure H-Share Buyback Details | Buyback Completion Date | Number of H-Shares Repurchased | Price Paid Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | | March 12, 2025 | 841,749,304 | 4.03 | 3,392,249,695 | - All repurchased shares were canceled on March 12, 2025, representing approximately **9.98%** of the company's total share capital before cancellation and approximately **18.47%** of the issued H-shares[65](index=65&type=chunk) - The Board believes that the share buyback demonstrates the company's confidence in its long-term prospects and intrinsic value, and can improve trading liquidity and update the shareholder structure[65](index=65&type=chunk) [Corporate Governance Code and Board Committees](index=31&type=section&id=Corporate%20Governance%20Code%20and%20Board%20Committees) The company complied with most provisions of the Corporate Governance Code during the reporting period, with exceptions regarding directors' rotation. The Board has established specialized committees, including Strategic Decision, Nomination, Remuneration and Assessment, Audit, and ESG, each performing its duties to ensure effective corporate governance [Board Member Changes](index=31&type=section&id=Board%20Member%20Changes) - The current Board was elected on November 19, 2021, and was due for rotation on November 19, 2024, but due to the implementation of the H-share buyback offer, some directors have not yet rotated[67](index=67&type=chunk) - Several directors, including Mr. Fu Jinguang, Mr. Liu Yan, Mr. Peng Shou, Mr. Xiao Jiaxiang, Ms. Fan Xiaoyan, Mr. Chang Zhangli, and Mr. Li Xinhua, resigned due to work adjustments or retirement[68](index=68&type=chunk) - New directors, including Mr. Liu Yan, Mr. Wei Rushan, Mr. Chen Shaolong, and Ms. Miao Xiaoling, joined the Board[68](index=68&type=chunk) [Strategic Decision Committee](index=32&type=section&id=Strategic%20Decision%20Committee) - The Strategic Decision Committee comprises **three** directors, including **two** executive directors and **one** independent non-executive director[69](index=69&type=chunk) - Responsible for researching and reviewing the company's operating objectives and long-term development strategies, business and organizational development plans, major investment and financing proposals, and other significant matters affecting the company's development[69](index=69&type=chunk) - During the reporting period, it reviewed proposals such as the company's 2025 investment plan, budget, debt financing instrument issuance plan, and credit facility application plan[69](index=69&type=chunk) [Nomination Committee](index=33&type=section&id=Nomination%20Committee) - The Nomination Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[70](index=70&type=chunk) - Responsible for formulating the selection procedures and criteria for the company's directors, senior management, and committee members, and reviewing the Board diversity policy[70](index=70&type=chunk) - Board members comply with the diversity policy in terms of gender, age, cultural and educational background, professional experience, and skills, including **two** female members[71](index=71&type=chunk) [Remuneration and Assessment Committee](index=33&type=section&id=Remuneration%20and%20Assessment%20Committee) - The Remuneration and Assessment Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[72](index=72&type=chunk) - Responsible for recommending and reviewing the specific remuneration and performance of the company's directors and senior management in accordance with policies set by the Board[72](index=72&type=chunk) - During the reporting period, it reviewed proposals regarding the performance and remuneration of the company's senior management for 2024[72](index=72&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) - The Audit Committee comprises **three** independent non-executive directors, one of whom possesses appropriate professional qualifications[73](index=73&type=chunk) - Responsible for monitoring the company's external auditors and their work, the company's financial reporting process, internal control systems, risk management, and internal control work[73](index=73&type=chunk) - During the reporting period, it reviewed proposals such as the appointment of auditors for 2025 and the 2025 interim results report[73](index=73&type=chunk) [Environmental, Social and Governance Committee](index=34&type=section&id=Environmental,%20Social%20and%20Governance%20Committee) - The Environmental, Social and Governance Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[74](index=74&type=chunk) - Responsible for researching and formulating the company's overall ESG management objectives, strategies, and policies, and regularly assessing the adequacy and effectiveness of the company's ESG framework[74](index=74&type=chunk) - During the reporting period, it reviewed the proposal regarding the company's 2024 ESG report and discussed ESG development trends[74](index=74&type=chunk) [Standard Code and Subsequent Events](index=34&type=section&id=Standard%20Code%20and%20Subsequent%20Events) The company has adopted a code for directors' securities transactions no less stringent than the Model Code and confirmed compliance by all directors and supervisors during the reporting period. As of the announcement date, the Group has no material subsequent events requiring disclosure - The company has adopted a code for directors' securities transactions no less stringent than the Model Code and confirmed compliance by all directors and supervisors during the reporting period[75](index=75&type=chunk) - As of the date of this announcement, the Group has no material subsequent events requiring disclosure for the reporting period[76](index=76&type=chunk) [Definitions](index=35&type=section&id=Definitions) [Glossary of Terms](index=35&type=section&id=Glossary%20of%20Terms) This section provides definitions for key terms and abbreviations used in the report, including company names, business concepts, financial terminology, and regulatory bodies, to ensure clear understanding of the report's content - Provides definitions for key terms such as "China National Building Material," "Board," "Carpoly," "Cement+," "Code," "China Jushi," "Qingzhou Zhonglian," "the Company," "Directors," "Domestic Shares," "the Group," "H Shares," "Listing Rules," "Lean Management," "Model Code," "Ningxia Building Materials," "Parent Company," "Parent Company Group," "PRC" or "China Government," "Reporting Period," "RMB," "SFO," "Shares," "Shareholders," "Stock Exchange," "Supervisor," and "Supervisory Committee"[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk)