Financial Performance - The company's operating revenue for Q1 2025 was CNY 7,161,642,321, representing a 1.10% increase compared to CNY 7,083,601,678 in the same period last year[5] - Net profit attributable to shareholders increased by 31.80% to CNY 233,909,321 from CNY 177,469,351 year-on-year[5] - The net profit after deducting non-recurring gains and losses rose by 55.34% to CNY 235,658,045 compared to CNY 151,703,644 in the previous year[5] - Basic earnings per share increased by 25.32% to CNY 0.11 from CNY 0.09 year-on-year[5] - Net profit for Q1 2025 was ¥344,906,499, representing a 18.1% increase from ¥291,984,821 in Q1 2024[17] - The gross profit margin improved to approximately 26.5% in Q1 2025, compared to 24.5% in Q1 2024[17] - The company reported a basic earnings per share of ¥0.11 for Q1 2025, up from ¥0.09 in Q1 2024[19] Cash Flow and Investments - The net cash flow from operating activities was negative at CNY -106,157,590, a significant decrease of 199.22% from CNY 106,994,109 in the same period last year[5] - In Q1 2025, the net cash flow from operating activities was -106,157,590 RMB, compared to 106,994,109 RMB in Q1 2024, indicating a significant decline[21] - Total cash inflow from operating activities decreased to 6,144,847,905 RMB in Q1 2025 from 6,572,717,778 RMB in Q1 2024, a drop of approximately 6.5%[21] - The cash outflow from investing activities was 2,160,017,641 RMB in Q1 2025, up from 1,283,715,808 RMB in Q1 2024, representing an increase of about 68.2%[21] - The cash inflow from investment activities was significantly lower at 308,263,397 RMB in Q1 2025 compared to 1,014,759,132 RMB in Q1 2024, a decline of approximately 69.7%[21] - Cash outflow for purchasing fixed assets and other long-term assets was 641,517,062 RMB in Q1 2025, compared to 569,406,414 RMB in Q1 2024, an increase of about 12.6%[21] Assets and Liabilities - Total assets at the end of the reporting period were CNY 71,068,870,929, up 2.24% from CNY 69,512,689,187 at the end of the previous year[6] - Total liabilities rose to ¥36,152,798,036, an increase of 4.5% from ¥34,614,884,740 at the end of 2024[14] - The company's total assets increased to ¥71,068,870,929 as of March 31, 2025, up from ¥69,512,689,187 at the end of 2024[14] - Shareholders' equity attributable to shareholders increased by 0.63% to CNY 30,483,590,615 from CNY 30,291,427,176 at the end of the previous year[6] - The total equity attributable to shareholders increased to ¥30,483,590,615 from ¥30,291,427,176 at the end of 2024[14] Non-Recurring Items - Non-recurring gains and losses for the period totaled CNY -1,748,724, primarily due to various adjustments and government subsidies[7] - The company experienced a 31.80% increase in net profit attributable to shareholders due to higher profitability from subsidiaries with high shareholding ratios[8] - The significant decrease in operating cash flow was attributed to increased working capital investments, including receivables[8] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[18]

Financial Performance - Revenue for the first quarter reached RMB 7,161,642,321, representing a 1.10% increase compared to RMB 7,083,601,678 in the same period last year[6] - Net profit attributable to shareholders increased by 31.80% to RMB 233,909,321 from RMB 177,469,351 year-on-year[6] - Basic earnings per share rose by 25.32% to RMB 0.11, up from RMB 0.09 in the previous year[6] - Net profit for Q1 2025 was RMB 344,906,499, representing a 18.1% increase from RMB 291,984,821 in Q1 2024[15] - Operating profit for Q1 2025 was RMB 522,626,995, up 47.0% from RMB 355,565,938 in Q1 2024[15] - Total operating revenue for Q1 2025 reached RMB 7,161,642,321, a slight increase of 1.1% compared to RMB 7,083,601,678 in Q1 2024[15] - Total operating costs for Q1 2025 were RMB 6,656,695,494, a decrease of 1.7% from RMB 6,770,044,998 in Q1 2024[15] - The company’s total comprehensive income for Q1 2025 was RMB 246,248,319, down from RMB 375,752,767 in Q1 2024[15] Cash Flow and Assets - The net cash flow from operating activities showed a significant decline of 199.22%, resulting in a negative cash flow of RMB -106,157,590[6] - The company reported a net cash flow from operating activities of -RMB 106,157,590 in Q1 2025, compared to RMB 106,994,109 in Q1 2024[18] - Cash and cash equivalents at the end of Q1 2025 totaled RMB 5,454,580,595, down from RMB 5,881,347,510 at the end of Q1 2024[19] - The company's cash and cash equivalents decreased to RMB 6,303,644,500 from RMB 6,809,002,574, representing a decline of approximately 7.41%[13] - Current assets totaled RMB 15,874,920,557, slightly up from RMB 15,791,607,023, indicating a marginal increase of about 0.53%[13] - Total assets at the end of the reporting period were RMB 71,068,870,929, a 2.24% increase from RMB 69,512,689,187 at the end of the previous year[6] - The company’s total non-current assets reached RMB 55,193,950,372, an increase from RMB 53,721,082,164, reflecting a growth of about 2.74%[13] Shareholder Information - The company reported a total of 42,849 shareholders as of March 31, 2025, with 42,840 being A-share shareholders[9] - The top three shareholders hold a combined 73.31% of the shares, with Hong Kong Central Clearing Limited holding 35.34%[10] Liabilities and Equity - Total liabilities increased to RMB 36,152,798,036 from RMB 34,614,884,740, which is an increase of about 4.45%[14] - The company's long-term borrowings stood at RMB 9,786,214,543, up from RMB 9,598,770,711, reflecting an increase of approximately 1.95%[14] - The total equity attributable to shareholders increased to RMB 30,483,590,615 from RMB 30,291,427,176, indicating a growth of about 0.63%[14] Operational Efficiency and Strategy - The company plans to continue focusing on increasing profitability through enhanced operational efficiency and strategic investments[6] - Non-operating income included government subsidies amounting to RMB 30,597,736, contributing positively to the financial results[8] Inventory and Receivables - Accounts receivable rose significantly to RMB 3,752,968,534, up from RMB 2,969,799,883, marking an increase of around 26.36%[13] - The company's inventory remained stable at RMB 3,096,903,917, compared to RMB 3,057,769,490, showing a slight increase of around 1.28%[13] - The company reported a total of RMB 806,087,922 in contract liabilities, up from RMB 715,946,303, which is an increase of approximately 12.66%[14] Financial Expenses - The company incurred financial expenses of RMB 309,432,477 in Q1 2025, significantly higher than RMB 182,064,693 in Q1 2024[15] Management and Location - The board of directors includes executive directors Li Yeqing (CEO) and Liu Fengshan (Vice President) as well as non-executive directors and independent non-executive directors[23] - The company is based in Wuhan, Hubei Province, China[23]

Financial Performance - The company's operating revenue for 2024 reached CNY 34.22 billion, a 1.36% increase compared to CNY 33.76 billion in 2023[16]. - Net profit attributable to shareholders decreased by 12.52% to CNY 2.42 billion in 2024 from CNY 2.76 billion in 2023[16]. - The basic earnings per share (EPS) for 2024 was CNY 1.16, down 12.78% from CNY 1.33 in 2023[18]. - The net cash flow from operating activities for 2024 was CNY 5.98 billion, a decrease of 4.14% compared to CNY 6.24 billion in 2023[16]. - The total assets as of December 31, 2024, were CNY 69.51 billion, reflecting a 1.11% increase from CNY 68.75 billion in 2023[16]. - The company's operating profit for the current period is CNY 4,223,787,895, a decrease of 2.93% compared to the same period last year[94]. - The total profit decreased by CNY 4,111,907,292, down 4.95% year-on-year, while net profit attributable to shareholders decreased by 12.52% to CNY 2,416,280,487[94]. - The company reported a net profit of 1.93 billion RMB for 2024, with a proposed cash dividend of 0.46 RMB per share, totaling approximately 960 million RMB[54][56]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.46 per share (including tax) for the 2024 fiscal year[5]. - The company’s cash dividend distribution plan for 2023 was approved, distributing 0.53 RMB per share, totaling approximately 1.10 billion RMB[52]. - The total number of registered shareholders decreased from 52,723 to 51,386 between December 31, 2024, and February 28, 2025[152]. - The company’s major shareholders include Hong Kong Central Clearing Limited with 35.34% and HOLCHIN B.V. with 21.71% of shares[150]. - Holcim Limited holds a total of 869,235,668 shares, representing 41.81% of the company's equity[153]. - The largest shareholder, Holcim Limited, has a 33.57% stake in A shares and a 56.88% stake in H shares[153]. - The company’s share structure remained unchanged during the reporting period[149]. Operational Efficiency and Market Position - The company plans to enhance its operational efficiency in response to the ongoing challenges in the cement market, including stricter regulations on production capacity[27]. - The revenue from the cement business accounts for 55% of the company's total operating income, indicating its dominant position among all business segments[31]. - The company ranks fourth globally in clinker production capacity and sixth in domestic clinker production capacity, with overseas clinker production ranking third nationally as of the end of 2024[28]. - The company has established a comprehensive technical innovation system, holding 99 invention patents and 121 utility model patents as of the end of 2024[39]. - The company operates in 17 provinces and municipalities in China and has expanded its business to 16 countries overseas, demonstrating significant market expansion[30]. - The company achieved a brand value of 104.57 billion RMB, ranking 79th in "China's 500 Most Valuable Brands" and 162nd in "Asia's 500 Strongest Brands"[41]. Risk Management and Compliance - The company has detailed potential risks described in the report, particularly in the section discussing operational conditions[5]. - The company emphasizes the importance of investor awareness regarding investment risks related to forward-looking statements[5]. - The company is committed to enhancing risk control, compliance management, and integrity standards to strengthen its development safety net[122]. - The company faces risks from declining domestic cement demand, rising production costs, and international market uncertainties[120][121]. Strategic Initiatives and Future Outlook - The company plans to achieve a total revenue of 37.1 billion yuan in 2025, with sales targets of approximately 5.7 million tons of cement and clinker, 17 million tons of aggregates, and 3 million cubic meters of concrete[115]. - The company is committed to advancing its four strategic initiatives, including overseas multi-business development and digital AI-driven transformation[113]. - The company anticipates a narrowing decline in domestic demand for building materials in 2025, supported by government policies aimed at stabilizing the real estate market[109]. - The company is actively pursuing various risk hedging strategies to reduce regional economic and foreign exchange risk exposure[123]. Research and Development - Research and development expenses totaled RMB 240.9 million, accounting for 0.70% of operating revenue[64]. - The company successfully completed acquisitions to increase cement capacity in Nigeria to 10.6 million tons per year and aggregate capacity in Brazil to 8.8 million tons per year[76]. - The company has successfully developed and commercialized ultra-high-performance concrete products, particularly in four major engineering fields[39]. - Research and development investments increased by 18%, focusing on sustainable building materials[172]. Employee and Management Information - The total number of employees in the group as of December 31, 2024, is 20,174, including 1,207 from the parent company and 18,967 from major subsidiaries[185]. - The total remuneration for the management team amounted to 2,829.51 million yuan during the reporting period[164]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to 67.71 million yuan[180]. - The company has established a talent management mechanism to enhance its competitive edge in talent acquisition and retention[123]. Acquisitions and Investments - The company signed a share acquisition agreement to acquire 100% of Caricement B.V. for $56.044 million, with potential adjustments based on impairment clauses[137]. - The company completed the acquisition of 100% of ITATUBA PARTICIPAÇÕES LTDA and 40% of EMBU S.A. for an initial consideration of $176.9 million[141]. - The total amount of guarantees provided by the company to subsidiaries reached RMB 1.165 billion during the reporting period, with a total guarantee amount of RMB 11.263 billion, accounting for 32.28% of the company's net assets[144].

Financial Performance - In 2024, the company achieved a net profit of CNY 1,928,498,891, with a consolidated net profit attributable to shareholders of CNY 2,416,280,487[6]. - The company's operating revenue for 2024 was CNY 34,217,347,727, representing a year-on-year increase of 1.36% compared to CNY 33,757,087,272 in 2023[21]. - The net profit attributable to shareholders decreased by 12.52% from CNY 2,762,116,715 in 2023 to CNY 2,416,280,487 in 2024[21]. - The basic earnings per share for 2024 was CNY 1.16, down 12.78% from CNY 1.33 in 2023[22]. - The company's total assets as of the end of 2024 were CNY 69,512,689,187, a 1.11% increase from CNY 68,747,865,736 in 2023[21]. - The net cash flow from operating activities for 2024 was CNY 5,977,317,233, a decrease of 4.14% from CNY 6,235,555,071 in 2023[21]. - The company's net assets attributable to shareholders increased by 4.7% to CNY 30,291,427,176 at the end of 2024[21]. - The weighted average return on equity for 2024 was 8.16%, down from 9.82% in 2023[22]. Sales and Market Performance - Aggregate sales volume of aggregates reached 143.23 million tons, up 9% year-on-year[32]. - Concrete sales volume increased to 31.81 million cubic meters, reflecting a 17% year-on-year growth[32]. - In 2024, the company achieved total sales of cement and clinker of 60.27 million tons, a year-on-year decline of 3%[61]. - The company reported a total revenue of RMB 34.217 billion, an increase of 1.36% compared to the previous year[61]. - The company's aggregate sales reached 143.23 million tons, representing a year-on-year growth of 9%[61]. - The sales volume of ready-mixed concrete was 31.81 million cubic meters, reflecting a year-on-year increase of 17%[61]. International Expansion - The company signed contracts for cement and aggregate projects in Nigeria and Brazil, accelerating international expansion[32]. - The company has established a cement production network across nine provinces in China and has operational and under-construction capacity exceeding 25 million tons overseas, solidifying its presence in Africa[47]. - The company’s overseas cement production capacity exceeded 25 million tons by the end of 2024[33]. Environmental Initiatives - The company was recognized with multiple awards for its green initiatives, including being named a national "Green Factory" in 2024[34]. - The company achieved a heat value substitution rate of 21.66%, an increase of 1.66 percentage points from 2023[32]. - The total amount of alternative fuels used reached 4.41 million tons, an increase of 50,000 tons year-on-year[33]. - The company has accumulated the ecological use of nearly 25 million tons of waste-derived alternative fuels by the end of 2024[53]. - The company reduced carbon emissions by 4,160,305 tons during the reporting period[163]. - The carbon emission intensity of domestic kiln factories decreased by 1.32 kg compared to the same period last year[163]. Corporate Governance and Management - The company has implemented measures to ensure the independence of its operations from its controlling shareholders[106]. - The company has proposed to reappoint Ernst & Young as its auditor for the 2024 fiscal year[109]. - The company is focused on enhancing its corporate governance structure in compliance with relevant regulations[106]. - The company has a structured approach to executive compensation, ensuring alignment with performance metrics and shareholder interests[119]. - The company appointed several new executives, including a new vice president starting from May 2024, indicating a strategic shift in management[115]. Future Outlook and Strategic Plans - The company anticipates a rebound in cement prices in 2024, which will improve overall industry profitability[87]. - For 2025, the company expects total revenue to reach 37.1 billion yuan, with planned sales of 5.7 million tons of cement and clinker, and 1.7 million tons of aggregates[92]. - The company plans capital expenditures of approximately 13.3 billion yuan in 2025, focusing on aggregate and overseas cement capacity[92]. - The company aims to enhance operational efficiency and reduce costs through various strategies, including optimizing industrial indicators and improving fuel cost strategies[96]. Research and Development - The company holds 99 invention patents and 121 utility model patents, showcasing its strong innovation capabilities[55]. - The total R&D investment accounted for 0.70% of the company's revenue[72]. - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[111]. Financial Management - The company has implemented a cash-centric business model to control credit risk, achieving its annual accounts receivable control targets without any overdue incidents[36]. - The company reported a total investment in public fund products of CNY 1,060,000,000, with a redemption amount of CNY 1,030,000,000[182]. - The company has not proposed any capital reserve fund conversion into share capital for the fiscal year 2023[138]. Shareholder Information - The total number of ordinary shareholders increased from 51,386 to 52,723 during the reporting period[191]. - The top ten shareholders hold a total of 1,588,000,000 shares, representing 77.34% of the total shares[193]. - The largest unrestricted shareholder, Hong Kong Central Clearing Limited, holds 734,719,919 shares[194]. Compliance and Legal Matters - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating a clean compliance record[122]. - The company is involved in a significant arbitration case with Moncement, with a claim amount of approximately 77.07 million USD[172].

Financial Performance - For the fiscal year ending December 31, 2024, the company's operating revenue was approximately RMB 34.22 billion, an increase of 1.36% compared to RMB 33.76 billion in 2023[4]. - The net profit attributable to shareholders for 2024 was approximately RMB 2.42 billion, a decrease of 12.52% from RMB 2.76 billion in 2023[4]. - Basic earnings per share for 2024 were RMB 1.16, down 12.78% from RMB 1.33 in 2023[4]. - The company's net cash flow from operating activities for 2024 was RMB 5.98 billion, a decrease of 4.14% compared to RMB 6.24 billion in 2023[8]. - The weighted average return on equity for 2024 was 8.16%, down from 9.82% in 2023, representing a decrease of 1.66 percentage points[8]. - The company achieved a total operating revenue of RMB 34.22 billion, an increase of RMB 460 million year-on-year, with a decrease in cement and clinker sales by 1.64 million tons (2.6%) and an increase in concrete sales by 4.54 million cubic meters (17%)[30]. - The company reported a gross profit margin of 24.69%, a decrease of 2.02 percentage points compared to the previous year[30]. - Net profit attributable to shareholders decreased by 12.52% year-on-year, amounting to RMB 2.42 billion[37]. - The company achieved a net profit of CNY 1,928,498,891 for the fiscal year 2024, with a consolidated net profit attributable to shareholders of CNY 2,416,280,487[70]. - The company reported a decrease in clinker sales to RMB 760,340,715 in 2024, down 19.7% from RMB 947,002,919 in 2023[115]. Shareholder Information - The number of registered shareholders decreased from 52,723 as of December 31, 2024, to 51,386 as of February 28, 2025[9]. - Holcim Limited remains the controlling shareholder and actual controller of the company as of December 31, 2024[13]. - The company plans to distribute a cash dividend of CNY 0.46 per share based on a total share capital of 2,078,995,649 shares[70]. Operational Highlights - Overseas production capacity exceeded 22.5 million tons per year, reflecting an 8% year-on-year growth[23]. - The aggregate sales volume of aggregates reached 143.23 million tons, up 9% year-on-year[26]. - The company signed contracts for cement projects in Nigeria and aggregate projects in Brazil, accelerating international expansion[26]. - The company launched the first ultra-high-performance concrete product with a compressive strength exceeding 600 MPa in China[27]. - The company utilized 4.41 million tons of alternative fuels, an increase of 50,000 tons year-on-year[27]. - The company’s organizational structure was optimized into three segments: business operations, business management, and business support[27]. Cost and Expense Management - Operating costs increased by RMB 1.03 billion year-on-year, primarily due to the rise in concrete and aggregate sales, which contributed to a cost increase of RMB 971 million[31]. - The company maintained a cash-centric business model, achieving a 31.44% increase in accounts receivable to RMB 2.97 billion due to the expansion of concrete business[38]. - The company reported a decrease in sales expenses by 1.26% to RMB 1.50 billion, while management expenses increased by 3.34% to RMB 1.88 billion[35]. - The company implemented a comprehensive procurement strategy, achieving a six-month consecutive decline in raw material costs per ton of cement[29]. Cash Flow and Investments - The net cash flow from operating activities for the current period is RMB 5,977,317,233, a decrease of 4.14% compared to the same period last year[40]. - The net cash outflow from investing activities decreased by 43.10% to RMB -3,672,026,564, primarily due to reduced acquisition expenditures[40]. - The net cash outflow from financing activities increased by 54.69% to RMB -1,472,260,983, mainly due to the repayment of maturing corporate bonds[41]. Debt and Liabilities - Interest-bearing liabilities increased by 6.87% to RMB 18,122,243,730, attributed to the increase in long-term borrowings related to projects[43]. - The debt-to-asset ratio improved, decreasing by 1.74 percentage points to 49.80%[43]. - Total liabilities decreased to CNY 34,614,884,740 from CNY 35,432,552,822 year-over-year[74]. Future Outlook - The outlook for 2025 indicates a narrowing decline in domestic construction material demand, supported by government policies aimed at stabilizing the real estate market[50]. - The global economic growth is projected to stabilize at 3.2% in 2025, with certain regions expected to achieve over 5% growth[52]. - For 2025, the company projects total revenue to reach 37.1 billion yuan, with planned sales of approximately 5.7 million tons of cement and clinker[56]. - The company plans capital expenditures of about 13.3 billion yuan in 2025, focusing on aggregate, overseas cement capacity, and alternative fuel construction[57]. Risk Management - The company faces risks from declining domestic cement demand and severe overcapacity, which may lead to performance declines[63]. - Increased production costs due to various factors, including energy market uncertainties and compliance with carbon reduction targets, pose a risk to the company[64]. - The company is actively implementing various risk hedging strategies to mitigate regional economic and foreign exchange risks[68]. Environmental and Social Responsibility - The company achieved a carbon emission intensity of 583.26 kg, a reduction of 2.61 kg year-on-year[24]. - The company is committed to green and low-carbon development, increasing investments in safety and environmental protection measures[67]. - The company received multiple awards, including the "National May Day Labor Award" and recognition as a "Low Carbon Standardization Work Station" in the cement industry[29].

Financial Performance - Revenue for Q3 2024 reached ¥8,481,719,094, an increase of 1.78% compared to the same period last year[2] - Net profit attributable to shareholders decreased by 40.17% to ¥407,874,433 in Q3 2024[2] - The net profit after deducting non-recurring gains and losses was ¥383,066,355, down 41.34% year-on-year[2] - EBITDA for the year-to-date period was ¥5.586 billion, a decline of 9.04% compared to the previous year[4] - The net profit attributable to the parent company for the first three quarters of 2024 is CNY 1,138,427,807, a decrease from CNY 1,874,323,694 in the same period of 2023, representing a decline of approximately 39.3%[13] - Total operating revenue for the first three quarters of 2024 is CNY 24,719,092,748, an increase of 2.3% compared to CNY 24,164,876,879 in the same period of 2023[13] - Total operating costs increased to CNY 22,746,306,525, up 6.5% from CNY 21,351,174,063 in the first three quarters of 2023[13] - The company's operating profit for the first three quarters of 2024 is CNY 2,113,231,271, down from CNY 2,909,709,095 in the same period of 2023, reflecting a decrease of approximately 27.3%[13] - The total comprehensive income for the first three quarters of 2024 is CNY 1,543,394,712, down from CNY 2,153,463,903 in the same period of 2023[14] - Basic earnings per share for the first three quarters of 2024 is CNY 0.55, compared to CNY 0.90 in the same period of 2023[14] Assets and Liabilities - Total assets at the end of the reporting period were ¥68,830,895,971, reflecting a slight increase of 0.04% from the end of the previous year[3] - Current assets totaled RMB 15.09 billion, down from RMB 15.22 billion at the end of 2023, with cash and cash equivalents at RMB 5.52 billion[11] - Accounts receivable increased significantly to RMB 3.56 billion from RMB 2.26 billion, indicating a growth of approximately 57%[11] - Total liabilities stood at RMB 35.46 billion, a marginal decrease from RMB 35.51 billion at the end of 2023[12] - The company's equity attributable to shareholders was RMB 28.92 billion, slightly down from RMB 28.93 billion at the end of 2023[12] Cash Flow - The company reported a net cash flow from operating activities of ¥3,381,818,805, down 3.46% compared to the same period last year[2] - The net cash flow from operating activities for the first three quarters of 2024 is CNY 3,381,818,805, a decrease from CNY 3,502,921,498 in the same period of 2023[15] - The company reported a net cash outflow from investing activities of CNY 1,748,072,245 for the first three quarters of 2024, compared to a net outflow of CNY 2,767,490,621 in the same period of 2023[15] - The net cash flow from financing activities for the first three quarters of 2024 is CNY -1,843,090,185, slightly improved from CNY -1,862,927,893 in the same period of 2023[15] - The cash and cash equivalents at the end of the third quarter of 2024 amount to CNY 5,083,527,232, a decrease from CNY 5,587,057,061 at the end of the same period in 2023[16] Shareholder Information - The company has 46,297 common shareholders as of the end of the reporting period[7] - The first phase of the employee stock ownership plan unlocked 802,646 shares, representing 0.0386% of the total share capital[10] - The second phase of the employee stock ownership plan involved the purchase of 3,290,225 shares, accounting for 0.1583% of the total share capital[10] Other Financial Metrics - The weighted average return on net assets was 1.42%, a decrease of 2.83 percentage points year-on-year[3] - The decline in net profit was primarily attributed to the drop in domestic cement prices[6] - Non-recurring gains totaled ¥24,808,078 for the current period, with government subsidies contributing ¥22,432,866[5] - The company issued RMB 11 billion in corporate bonds with a maturity of 5 years and a coupon rate of 2.49%[9] - The company reported a decrease in short-term borrowings to RMB 516.57 million from RMB 644.33 million[12] - Inventory decreased to RMB 3.25 billion from RMB 3.46 billion, reflecting a reduction of approximately 6%[11]

[Definitions](index=3&type=section&id=I.%20Definitions) Provides definitions of key terms used throughout the report [Company Information](index=3&type=section&id=II.%20Company%20Information) Presents fundamental details about the company's registration and contact information [Management Discussion and Analysis](index=5&type=section&id=III.%20Management%20Discussion%20and%20Analysis) Analyzes the company's operational performance, financial condition, and future outlook [Industry Trends and Main Business](index=5&type=section&id=Report%20Period%20Industry%20Trends%20and%20Main%20Business%20Overview) In H1 2024, the domestic cement industry faced severe challenges from declining real estate investment, with national cement output hitting a new low since H1 2011; despite this, Huaxin Cement diversified into concrete, aggregates, and environmental services across 17 domestic provinces and 16 overseas countries, with non-cement businesses becoming significant profit contributors even as cement still dominated revenue at **53%** H1 2024 Macroeconomic and Industry Data | Indicator | Value | YoY Change | | :--- | :--- | :--- | | Gross Domestic Product (GDP) | - | +5.0% | | National Fixed Asset Investment | 24.54 trillion yuan | +3.9% | | Infrastructure Investment | - | +5.4% | | Real Estate Development Investment | - | -10.1% | | National Cumulative Cement Output | 8.5 million tons | -10.76% | - The company has evolved into a global, integrated building materials group with a full industry chain, encompassing cement, concrete, aggregates, environmental protection, equipment manufacturing and engineering, and new building materials[11](index=11&type=chunk) Company's Main Production Capacity as of June 30, 2024 | Business Segment | Annual Capacity/Processing Capacity | | :--- | :--- | | Cement Capacity | 127 million tons | | Commercial Concrete | 52,184 cubic meters/hour | | Aggregates | 280 million tons | | Waste Disposal | 16.87 million tons | - As of the end of the reporting period, cement business revenue accounted for **53%** of the company's total operating revenue, remaining dominant, but non-cement businesses have become significant profit contributors[11](index=11&type=chunk) [Analysis of Core Competencies](index=5&type=section&id=Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company maintained strong comprehensive competitiveness by continuously strengthening its core advantages in scale, industrial chain integration, green development, technological innovation, brand, product quality, strategic layout, intelligent management, and management team - The company continuously strengthened and enhanced eight core competitive advantages: scale and industrial chain, green and low-carbon development, technological innovation, brand, product quality, strategic layout, intelligent management, and management team[12](index=12&type=chunk) [Overview of Operating Performance](index=6&type=section&id=Overview%20of%20Operating%20Performance%20During%20the%20Reporting%20Period) In H1 2024, despite domestic cement market challenges, the company achieved **2.56%** revenue growth to **16.237 billion yuan** driven by strong overseas, aggregates, and concrete businesses, effectively offsetting a **38.74%** decline in net profit due to domestic cement price and volume drops H1 2024 Key Performance Indicators | Indicator | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 16.237 billion yuan | +2.56% | | Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) | 3.698 billion yuan | -1.88% | | Net Profit Attributable to Parent Company | 731 million yuan | -38.74% | H1 2024 Major Product Sales Volume | Product | Sales Volume | YoY Change | | :--- | :--- | :--- | | Cement and Commercial Clinker (Total) | 28.4844 million tons | -4.9% | | - Of which: Overseas Cement and Clinker | 7.5976 million tons | +47.0% | | Aggregates | 71.5261 million tons | +41.60% | | Concrete | 14.7005 million cubic meters | +34.25% | H1 2024 Operating Revenue by Business Segment | Business Segment | Revenue (RMB) | YoY Change | | :--- | :--- | :--- | | Cement Business (Total) | 8.666 billion yuan | -11.25% | | - Of which: Domestic Cement | 5.106 billion yuan | -31.57% | | - Of which: Overseas Cement | 3.578 billion yuan | +55.41% | | Aggregates Business | 2.962 billion yuan | +36.96% | | Concrete Business | 3.943 billion yuan | +24.21% | - The company continued to advance its overseas business development, with new construction or upgrade projects in Mozambique, Malawi, Zambia, South Africa, and Zimbabwe, expected to add approximately **3 million tons/year** of clinker capacity and **2.7 million tons/year** of cement grinding capacity[14](index=14&type=chunk) - The company adhered to green and low-carbon development, cumulatively using **2.2 million tons** of alternative fuels in the first half, achieving a thermal substitution rate of **21.5%** and reducing carbon dioxide emissions by **1.2 million tons**[14](index=14&type=chunk) [Analysis of Key Operating Performance](index=7&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's financial expenses increased significantly due to exchange losses, while net cash outflow from investing activities improved due to reduced M&A and construction expenditures, and accounts receivable grew with concrete business expansion [Analysis of Income Statement and Cash Flow Statement](index=7&type=section&id=Analysis%20of%20Changes%20in%20Key%20Items%20of%20Income%20Statement%20and%20Cash%20Flow%20Statement) During the reporting period, financial expenses significantly increased by **63.09%** due to higher exchange losses, while net cash outflow from investing activities narrowed by **46.95%** due to reduced M&A and construction expenditures, and financing cash outflow also narrowed by **47.27%** from decreased debt repayments Changes in Key Items of Income Statement and Cash Flow Statement | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,237,373,654 | 15,831,572,500 | 2.56 | | Financial Expenses | 399,954,782 | 245,237,036 | 63.09 | | Net Cash Flow from Operating Activities | 1,730,584,063 | 2,127,167,281 | -18.64 | | Net Cash Flow from Investing Activities | -1,178,576,055 | -2,221,519,537 | 46.95 | | Net Cash Flow from Financing Activities | -1,083,480,073 | -2,054,800,997 | 47.27 | - The change in financial expenses was primarily due to increased exchange losses[15](index=15&type=chunk) - The change in net cash flow from investing activities was primarily due to reduced expenditures on corporate acquisitions and construction projects[16](index=16&type=chunk) [Assets and Liabilities](index=7&type=section&id=Assets%20and%20Liabilities) As of the reporting period end, accounts receivable increased by **40.97%** due to expanded concrete business, while employee compensation and taxes payable decreased, and long-term payables surged by **178.38%** due to increased mining rights transfer fees Changes in Key Items of Balance Sheet | Item | Current Period End (yuan) | Change from Prior Year End (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Accounts Receivable | 3,185,256,332 | 40.97 | Expanded concrete business | | Employee Compensation Payable | 139,927,592 | -55.21 | Payment of prior year performance bonuses | | Taxes Payable | 409,223,155 | -42.04 | Lower profitability, reduced income tax payable | | Other Payables | 1,421,829,979 | 41.54 | H-share dividends to be paid after distribution | | Long-term Payables | 920,951,115 | 178.38 | Increased mining rights transfer fees | [Other Financial Notes](index=8&type=section&id=Other%20Notes) As of the reporting period end, the group's capital structure, liquidity, and financial resources remained stable, with the asset-liability ratio slightly increasing to **52.2%**, and capital expenditures of approximately **1.44 billion yuan** primarily for overseas expansion and energy-saving upgrades - The group's asset-liability ratio increased from **51.6%** at the beginning of the year to **52.2%** at the end of the reporting period[19](index=19&type=chunk) Bank Loan Maturity Analysis (as of June 30, 2024) | Maturity | Amount (RMB) | | :--- | :--- | | Within 1 year | 3,592,702,902 | | 1 to 2 years | 3,256,340,280 | | 2 to 5 years | 4,663,064,870 | | Over 5 years | 670,752,151 | | **Total** | **12,182,860,203** | - Capital expenditures in H1 2024 were approximately **1.44 billion yuan**, primarily for overseas production line construction and energy-saving upgrades[23](index=23&type=chunk) [Outlook for H2 2024](index=9&type=section&id=Outlook%20for%20H2%202024) For H2 2024, the company anticipates seasonal recovery in cement demand driven by infrastructure policies but expects overall annual demand decline and overcapacity to persist, thus implementing four new strategies to stabilize domestic performance and expand overseas - In H2, with the issuance of ultra-long-term special treasury bonds and the advancement of the 'Three Major Projects,' infrastructure investment is expected to maintain growth, and cement demand may see a seasonal rebound, though the full-year demand trend is still projected to decline[25](index=25&type=chunk) - The company set its long-term strategic goal to become a global leading multinational building materials enterprise and will implement four new strategies: - Overseas multi-business development strategy - Domestic integrated synergy strategy - Carbon reduction and value-added innovation strategy - Digital AI-driven strategy[25](index=25&type=chunk) [Significant Matters](index=10&type=section&id=IV.%20Significant%20Matters) Details major corporate events, including guarantees, litigation, and share-related activities [Significant Guarantees and Other Matters](index=10&type=section&id=Significant%20Guarantees%20Performed%20and%20Outstanding%20During%20the%20Reporting%20Period) During the reporting period, the company had no significant related-party transactions or new major litigation, with outstanding guarantees to subsidiaries totaling **10.534 billion yuan**, representing **31.94%** of net assets - As of the end of the reporting period, the company's total guarantee balance to its subsidiaries was **10,533,738,439 yuan**, accounting for **31.94%** of the company's net assets[27](index=27&type=chunk) - During the reporting period, the company had no new significant litigation or arbitration matters, nor did it repurchase, sell, or redeem any of its listed securities[27](index=27&type=chunk) [Share Changes and Shareholder Information](index=11&type=section&id=V.%20Share%20Changes%20and%20Shareholder%20Information) Outlines changes in share capital and provides an overview of the company's shareholder structure [Shareholder Information](index=11&type=section&id=Shareholder%20Information) As of June 30, 2024, the company's share capital structure remained unchanged with **42,076** shareholders, and Holcim Ltd, through its controlled entities, held a total of **41.81%** equity interest - As of June 30, 2024, the company had a total of **42,076** shareholders, including **42,067** A-share shareholders and **9** H-share shareholders[28](index=28&type=chunk) Top Ten Shareholders' Holdings (as of June 30, 2024) | Shareholder Name | Share Class | Number of Shares Held | Percentage (%) | | :--- | :--- | :--- | :--- | | Hong Kong Securities Clearing Company Nominees Limited | H-share | 734,719,919 | 35.34 | | HOLCHIN B.V. | A-share | 451,333,201 | 21.71 | | Huaxin Cement Group Co., Ltd. | A-share | 338,060,739 | 16.26 | | Hong Kong Securities Clearing Company Limited | A-share | 29,245,175 | 1.41 | - To the best knowledge of the Directors, major shareholder Holcim Ltd, through its controlled entities, collectively held **869,235,668** A-shares and H-shares, accounting for **41.81%** of the total share capital[31](index=31&type=chunk) [Directors, Supervisors, and Senior Management](index=14&type=section&id=VI.%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Provides information on the company's governance structure, including personnel changes and employee details [Changes in Directors, Supervisors, and Senior Management](index=14&type=section&id=Changes%20in%20Information%20of%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20During%20the%20Reporting%20Period) On May 21, 2024, the company completed the re-election of its Board of Directors and Supervisory Committee, with Mr. Xu Yongmo elected as Chairman and Mr. Li Yeqing appointed as President, while some Vice Presidents and Supervisors ceased their roles due to the re-election - On May 21, 2024, the company completed the re-election of its Board of Directors and Supervisory Committee, with Mr. Xu Yongmo elected as the new Chairman of the Board and Mr. Li Yeqing appointed as the company's President[35](index=35&type=chunk) [Employee Information](index=15&type=section&id=Employee%20Information) As of June 30, 2024, the group employed **20,576** staff globally, implementing a performance-linked compensation system and diverse training programs to enhance capabilities and support overseas expansion - As of June 30, 2024, the Group had a total of **20,576** employees on duty (including overseas)[42](index=42&type=chunk) [Equity Incentive Plans](index=15&type=section&id=Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company's '2020-2022 Stock Ownership Plan' second lock-up period expired in May 2024, while the first phase of the '2023-2025 Stock Ownership Plan' failed to meet performance targets, leading to the disposal of unvested shares, and the second phase is approved but not yet implemented - The second lock-up period of the company's 2020–2022 Core Employee Stock Ownership Plan expired on May 26, 2024[44](index=44&type=chunk) - The first phase (2023) of the company's 2023–2025 Core Employee Stock Ownership Plan failed to meet performance assessment targets, and some unvested shares were recovered and disposed of by the Stock Ownership Plan Management Committee[50](index=50&type=chunk) - The second phase (2024) of the company's 2023–2025 Core Employee Stock Ownership Plan has been approved by the Board of Directors, but as of the end of the reporting period, the purchase of shares and grant of awards had not yet been completed[53](index=53&type=chunk) [Other Information](index=19&type=section&id=VII.%20Other%20Information) Covers additional disclosures such as dividend policies and significant events occurring after the reporting period [Interim Dividends and Post-Balance Sheet Events](index=19&type=section&id=Interim%20Dividends%20and%20Post-Balance%20Sheet%20Events) The Board resolved not to declare an interim dividend for 2024, and post-reporting, the company successfully issued **1.1 billion yuan** in technology innovation corporate bonds on August 14, 2024, to repay maturing debt - The Board resolved not to declare an interim dividend for 2024, nor to implement a capital increase from capital reserves[56](index=56&type=chunk) - Post-balance sheet event: On August 14, 2024, the company completed the issuance of **1.1 billion yuan** in 5-year technology innovation corporate bonds with a coupon rate of **2.49%**, with proceeds used to repay maturing bonds[56](index=56&type=chunk) [Financial Report (Unaudited)](index=20&type=section&id=VIII.%20Financial%20Report%20%28Unaudited%29) Presents the company's unaudited consolidated financial statements, including balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=20&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2024, the company's total assets were **68.975 billion yuan**, total liabilities **35.993 billion yuan**, and total shareholders' equity **32.983 billion yuan**, with the asset-liability ratio slightly increasing to **52.2%** Key Items of Consolidated Balance Sheet (as of June 30, 2024) | Item | Amount (RMB) | | :--- | :--- | | **Total Assets** | **68,975,448,352** | | Total Current Assets | 14,892,060,709 | | Total Non-current Assets | 54,083,387,643 | | **Total Liabilities** | **35,992,702,978** | | Total Current Liabilities | 18,900,379,507 | | Total Non-current Liabilities | 17,092,323,471 | | **Total Shareholders' Equity** | **32,982,745,374** | | Equity Attributable to Parent Company Shareholders | 28,687,519,804 | [Consolidated Income Statement](index=26&type=section&id=Consolidated%20Income%20Statement) In H1 2024, total operating revenue grew **2.56%** to **16.237 billion yuan**, but operating profit decreased **22.78%** to **1.359 billion yuan**, resulting in a **38.74%** decline in net profit attributable to parent company shareholders to **731 million yuan** Key Items of Consolidated Income Statement (H1 2024) | Item | H1 2024 (yuan) | H1 2023 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 16,237,373,654 | 15,831,572,500 | | Operating Profit | 1,359,412,532 | 1,760,441,304 | | Total Profit | 1,343,287,311 | 1,738,266,841 | | Net Profit | 1,021,686,381 | 1,349,942,719 | | Net Profit Attributable to Parent Company Shareholders | 730,553,374 | 1,192,560,395 | | Basic EPS (yuan/share) | 0.35 | 0.58 | [Consolidated Cash Flow Statement](index=30&type=section&id=Consolidated%20Cash%20Flow%20Statement) In H1 2024, net cash flow from operating activities was **1.731 billion yuan**, a **18.64%** decrease, while net cash outflows from investing and financing activities significantly narrowed by **46.95%** and **47.27%** respectively, with cash and cash equivalents at period-end totaling **4.824 billion yuan** Consolidated Cash Flow Statement Summary (H1 2024) | Item | H1 2024 (yuan) | H1 2023 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,730,584,063 | 2,127,167,281 | | Net Cash Flow from Investing Activities | -1,178,576,055 | -2,221,519,537 | | Net Cash Flow from Financing Activities | -1,083,480,073 | -2,054,800,997 | | Net Increase in Cash and Cash Equivalents | -546,065,554 | -2,073,146,359 | | Cash and Cash Equivalents at Period End | 4,824,050,431 | 4,542,875,419 | [Notes to Financial Statements](index=37&type=section&id=Notes%20to%20Financial%20Statements) The notes provide essential background and detailed information for understanding the financial statements, covering the company's basic situation, basis of preparation, significant accounting policies, estimates, and detailed explanations of major consolidated financial statement items

Financial Performance - The company's operating revenue for the first half of 2024 was CNY 16,237,373,654, representing a 2.56% increase compared to CNY 15,831,572,500 in the same period last year[15]. - Net profit attributable to shareholders decreased by 38.74% to CNY 730,553,374 from CNY 1,192,560,395 year-on-year[15]. - The net cash flow from operating activities was CNY 1,730,584,063, down 18.64% from CNY 2,127,167,281 in the previous year[15]. - The company's EBITDA for the reporting period was CNY 3,698,000,000, a decline of 1.88% year-on-year[15]. - Basic earnings per share decreased by 39.66% to CNY 0.35 from CNY 0.58 in the same period last year[16]. - The weighted average return on net assets fell to 2.49%, down 1.75 percentage points from 4.24% in the previous year[16]. - The company reported a net profit of CNY 316,453,435 from Huaxin Cement (Wuxue) Co., Ltd., with operating revenue of CNY 1,184,482,565[40]. - The total profit for the first half of 2024 was CNY 1,343,287,311, down from CNY 1,738,266,841 in the same period of 2023, a decrease of 22.73%[109]. - The company’s total comprehensive income for the first half of 2024 was CNY 1,107,518,927, compared to CNY 730,796,704 in the same period of 2023, reflecting a significant increase[113]. Asset and Liability Management - Total assets increased slightly by 0.25% to CNY 68,975,448,352 compared to CNY 68,800,268,263 at the end of the previous year[15]. - The net assets attributable to shareholders decreased by 0.85% to CNY 28,687,519,804 from CNY 28,932,949,847 at the end of the previous year[15]. - The total liabilities increased to CNY 35,992,702,978, up from CNY 35,505,385,821, reflecting a growth of approximately 1.37%[106]. - The company's interest-bearing debt increased from 5.517 billion RMB at the beginning of the reporting period to 6.237 billion RMB at the end, reflecting a year-on-year change of 13.05%[94]. - The current ratio decreased to 0.79 from 0.80, while the quick ratio fell to 0.58 from 0.60, indicating a slight decline in liquidity[102]. - The asset-liability ratio increased to 52.2%, up by 0.6 percentage points compared to the previous year[102]. Market and Operational Insights - The domestic cement market saw a 10.76% year-on-year decline in production, totaling 850 million tons, marking the lowest level since 2011[19]. - As of June 30, 2024, the company's cement production capacity reached 127 million tons per year, with cement sales accounting for 53% of total revenue[20]. - Cement and clinker sales volume was 28.48 million tons, down 4.9% year-on-year, while overseas sales increased by 47.0% to 7.60 million tons[28]. - The company’s cement business revenue was CNY 8.67 billion, down 11.25% year-on-year, with domestic revenue declining by 31.57%[28]. - The company operates in 17 provinces in China and 16 countries overseas, with a total of over 300 subsidiaries[20]. Environmental and Sustainability Efforts - The company is actively expanding its low-carbon product offerings, including ultra-high-performance concrete and new wall materials[23]. - The company utilized 2.20 million tons of alternative fuels, achieving a thermal substitution rate of 21.5% and reducing CO2 emissions by 1.20 million tons[30]. - The company is committed to promoting low-carbon cement products and optimizing production processes to reduce carbon emissions[60]. - The company strictly adhered to environmental regulations, with no penalties for exceeding pollutant discharge limits during the reporting period[51]. - The company conducted internal environmental audits to enhance pollution prevention measures and compliance with environmental laws[59]. Financial Strategy and Shareholder Engagement - The company did not distribute profits or increase capital reserves during the reporting period[3]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period[47]. - Major shareholders include Hong Kong Central Clearing Limited with 734,719,919 shares and Holchin B.V. with 451,333,201 shares, indicating strong institutional support[76]. - The management team, including the CEO, increased their shareholdings, with the CEO acquiring an additional 156,800 shares during the reporting period[78]. - The company has not engaged in any share buyback activities during the reporting period, maintaining its current capital structure[76]. Risk Management - The company has outlined potential risks in its management discussion and analysis section, advising investors to be cautious[4]. - The company faces risks from declining domestic cement demand and overcapacity, which may lead to performance declines[41]. - The company plans to enhance its competitive strength through supply-side structural reforms and green low-carbon development initiatives[42]. Research and Development - Research and development expenses increased to CNY 70,954,352, compared to CNY 58,342,983 in the previous year, marking a growth of 21.83%[109]. - The company is actively pursuing market expansion strategies, although specific new product launches were not detailed in the report[76]. Financial Reporting and Compliance - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the financial position and operating results as of June 30, 2024[124]. - The company has sufficient operating funds to cover operational needs and repay due debts, supporting the appropriateness of preparing financial statements on a going concern basis[122]. - Significant judgments and estimates are made in preparing financial statements, affecting the reported amounts of income, expenses, assets, and liabilities[185].

Financial Performance - For the six months ending June 30, 2024, the group's unaudited revenue was RMB 16,237 million, an increase of 2.56% compared to RMB 15,832 million in the same period of 2023[2] - The group's unaudited EBITDA for the same period was RMB 3,698 million, a decrease of 1.88% from RMB 3,769 million in the prior year[2] - The profit attributable to equity holders for the six months was RMB 731 million, down 38.74% from RMB 1,192 million in the same period last year, with basic earnings per share of RMB 0.35[2] - The net profit for the first half of 2024 was RMB 1,022 million, down from RMB 1,350 million in the same period of 2023[5] - The company reported a decrease in total comprehensive income to RMB 1,188 million from RMB 1,456 million in the same period last year[5] - The total profit for the first half of 2024 is $1,343,287,311, a decrease from $1,738,266,841 in the same period of 2023, representing a decline of approximately 22.7%[17] - The weighted average return on equity for the company is 2.49%, with basic and diluted earnings per share both at $0.35 for the first half of 2024[18] - The net profit attributable to shareholders was CNY 731 million, a year-on-year decrease of 38.74%[29] Revenue and Sales - For the first half of 2024, the company's total revenue reached RMB 16,237,373,654, an increase from RMB 15,831,572,500 in the same period of 2023, representing a growth of approximately 2.56%[9] - Cement sales accounted for RMB 8,367,925,294 in the first half of 2024, down from RMB 9,191,200,494 in the same period of 2023, reflecting a decline of approximately 8.97%[10] - The company’s cement business revenue was CNY 8.666 billion, down 11.25% year-on-year, with domestic revenue declining by 31.57%[29] - Cement and clinker sales volume was 28.4844 million tons, down 4.9% year-on-year, while overseas sales increased by 47.0% to 7.5976 million tons[29] Costs and Expenses - Total operating costs for the first half of 2024 were RMB 14,939 million, with operating costs specifically at RMB 12,397 million, compared to RMB 14,092 million in the same period of 2023[4] - The cost of revenue for the first half of 2024 was RMB 12,396,833,893, compared to RMB 11,971,182,161 in the first half of 2023, indicating an increase of about 3.55%[9] - Financial expenses for the first half of 2024 totaled RMB 399,954,782, significantly higher than RMB 245,237,036 in the same period of 2023, marking an increase of approximately 62.93%[15] - The average selling price of cement decreased by CNY 21.76 per ton to CNY 304.24 per ton, while the cost fell by CNY 10.39 per ton to CNY 241.24 per ton[30] Assets and Liabilities - The total assets as of June 30, 2024, amounted to RMB 68,975 million, slightly up from RMB 68,800 million at the end of 2023[6] - The company's total liabilities as of June 30, 2024, amounted to RMB 35,992,702,978, an increase from RMB 35,505,385,821 as of December 31, 2023[7] - The total equity attributable to shareholders was RMB 28,687,519,804 as of June 30, 2024, down from RMB 28,932,949,847 at the end of 2023, a decrease of about 0.85%[7] - The total non-current liabilities reached RMB 17,092,323,471 as of June 30, 2024, up from RMB 16,571,170,755 at the end of 2023, representing an increase of approximately 3.15%[7] Cash Flow and Receivables - Cash and cash equivalents decreased to RMB 5,257 million from RMB 5,849 million at the end of 2023[6] - Accounts receivable as of June 30, 2024, total $3,185,256,332, an increase from $2,259,496,157 as of December 31, 2023, reflecting a growth of approximately 41%[19] - The allowance for bad debts increased to $262,665,491 as of June 30, 2024, compared to $235,701,561 at the end of 2023, marking an increase of about 11.4%[23] - The company has written off accounts receivable amounting to $3,085,320 during the current period[24] Strategic Focus and Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[2] - The company anticipates continued challenges in revenue generation due to market conditions, impacting future earnings guidance[17] - The company is focusing on improving its collection processes to manage accounts receivable more effectively[19] - The company plans to enhance its overseas business, with new production lines in Mozambique and Malawi expected to add a total of approximately 3 million tons of clinker capacity per year[31] - The company anticipates a seasonal recovery in cement demand in the second half of 2024, although overall demand is expected to decline for the year[33] - The company aims to become a leading multinational building materials enterprise, focusing on overseas multi-business development and digital AI-driven strategies[33] Governance and Compliance - The audit committee has been established to oversee the financial reporting process, risk management, and internal control systems[36] - The company adhered to the principles and code provisions of the Corporate Governance Code during the reporting period[37] - The company did not engage in any significant litigation or arbitration matters during the reporting period[34] - No significant events affecting the group occurred from the end of the reporting period until the announcement date[38]

Financial Performance - The company's operating revenue for 2023 was RMB 33,757,087,272, representing a 10.79% increase compared to RMB 30,470,382,363 in 2022[15]. - Net profit attributable to shareholders for 2023 was RMB 2,762,116,715, a 2.34% increase from RMB 2,698,868,510 in 2022[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 9.95% to RMB 2,322,113,737 from RMB 2,578,634,452 in 2022[15]. - The net cash flow from operating activities increased by 36.51% to RMB 6,235,555,071 compared to RMB 4,567,694,220 in 2022[15]. - As of December 31, 2023, the net assets attributable to shareholders were RMB 28,932,949,847, a 5.42% increase from RMB 27,446,305,028 at the end of 2022[15]. - Total assets as of December 31, 2023, reached RMB 68,800,268,263, reflecting a 7.10% increase from RMB 64,241,676,265 in 2022[15]. - Basic earnings per share for 2023 was CNY 1.33, a 2.31% increase compared to CNY 1.30 in 2022[17]. - Diluted earnings per share for 2023 was CNY 1.32, reflecting a 3.13% increase from CNY 1.28 in 2022[17]. - The weighted average return on equity for 2023 was 9.82%, down from 10.03% in 2022, a decrease of 0.21 percentage points[17]. - The total profit for 2023 was CNY 4,326 million, up from CNY 3,988 million in 2022, indicating a growth of 8.5%[197]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.53 per share (including tax) for the 2023 fiscal year[5]. - The board proposed a cash dividend of 0.53 RMB per share for the 2023 fiscal year, pending approval at the annual general meeting[41]. - As of December 31, 2023, the total number of registered shareholders was 54,007, which decreased to 49,549 by February 29, 2024[107]. - The top three shareholders hold significant stakes: Hong Kong Central Clearing Limited at 35.34%, Holchin B.V. at 21.71%, and Huaxin Group Limited at 16.26%[108]. - Holcim Limited remains the controlling shareholder with a total stake of 41.81% across A and H shares as of December 31, 2023[113]. Operational Highlights - The company continues to focus on developing high-value-added products and expanding its market presence[15]. - The company has established a matrix organizational structure combining regional management, business operations, and functional management to enhance operational efficiency[24]. - The company has cumulatively used nearly 20 million tons of waste-derived alternative fuels, achieving a thermal substitution rate of 23% across all domestic kiln lines by the end of 2023[27]. - The company has developed a comprehensive technical innovation system, holding 77 invention patents and 130 utility model patents as of the end of 2023[28]. - The company has expanded its business to cover 17 provinces and municipalities in China and 16 countries overseas, with over 300 subsidiaries[23]. Market and Industry Context - The cement industry faced a 5% decline in total cement production in 2023, amounting to 2.023 billion tons[21]. - The cement clinker capacity utilization rate for 2023 was estimated at 59%, a decrease of 7 percentage points from 2022[21]. - The company is focusing on high-quality development and carbon emission control in response to national policies aimed at reducing energy consumption and emissions[21]. - The company anticipates ongoing challenges due to a decline in domestic cement demand and severe overcapacity, which may lead to increased market competition and pressure on cement prices[81]. Risk Management and Compliance - The company has detailed potential risks in its report, which investors are advised to review[5]. - The company is implementing multiple risk hedging strategies to reduce exposure to regional economic and foreign exchange risks[82]. - The company has established a cash dividend policy that complies with its articles of association and shareholder resolutions, ensuring clarity in dividend standards and decision-making processes[179]. - The company has established procedures for identifying, assessing, and managing significant risks, including a system for internal monitoring of sensitive information[183]. Research and Development - The total R&D investment reached 324,894,605 CNY, accounting for 0.96% of operating revenue, with capitalized R&D making up 7.3% of the total[49]. - Research and development expenses surged by 285.22% to CNY 301.1 million, up from CNY 78.2 million year-on-year[58]. - The company is investing $30 million in R&D for new technologies aimed at improving production efficiency[123]. Leadership and Governance - The company has a strong leadership team with significant experience in the cement industry and related sectors[126]. - The company has established a Nomination Committee in accordance with corporate governance codes and regulatory requirements, responsible for recommending new directors and evaluating the independence of non-executive directors[167]. - The company’s board of directors confirmed their responsibility for the financial reports for the year ending December 31, 2023, ensuring compliance with applicable accounting policies[178]. - The company has mechanisms in place to ensure the board receives independent opinions and insights[162]. Future Outlook - The company plans to sell approximately 63 million tons of cement and clinker, 156 million tons of aggregates, and 30.52 million cubic meters of concrete in 2024, with total revenue expected to reach ¥37.1 billion[79]. - The company aims to enhance its green and low-carbon development strategy, focusing on digital transformation and international expansion[77]. - The global cement demand, excluding China, is projected to increase by 2.4% in 2024, driven by growth in India, the Middle East, and Africa[76].