Financial Performance - Revenue for the reporting period reached RMB 7,083,601,678, representing a year-on-year increase of 6.87%[4] - Net profit for the period was RMB 291,984,821, reflecting a year-on-year increase of 3.28%[4] - Net profit attributable to shareholders decreased by 28.43% to RMB 177,469,351[4] - The net profit excluding non-recurring gains and losses decreased by 35.09% due to declining performance from some wholly-owned subsidiaries[6] - Total operating revenue for Q1 2024 reached RMB 7,083,601,678, an increase of 6.85% compared to RMB 6,628,435,263 in Q1 2023[14] - Net profit attributable to shareholders of the parent company was RMB 177,469,351, a decrease of 28.36% from RMB 247,979,284 in the same period last year[14] - Operating profit for Q1 2024 was RMB 355,565,938, a decrease of 5.1% compared to RMB 374,673,438 in Q1 2023[14] - The total comprehensive income for Q1 2024 was RMB 375,752,767, compared to RMB 9,604,553 in the same period last year[14] - The company reported a basic earnings per share of RMB 0.09, down from RMB 0.12 in Q1 2023[15] Cash Flow and Assets - Cash flow from operating activities decreased significantly by 67.77% to RMB 106,994,109[4] - Cash flow from operating activities generated a net amount of RMB 106,994,109, down from RMB 331,923,337 in Q1 2023[16] - Cash flow from investing activities resulted in a net outflow of RMB 268,956,676, compared to a net outflow of RMB 1,121,597,464 in the previous year[17] - Cash flow from financing activities generated a net inflow of RMB 678,111,238, down from RMB 1,084,213,674 in Q1 2023[18] - Cash and cash equivalents rose to RMB 6,332,848,244 from RMB 5,849,465,351, marking an increase of approximately 8.25%[12] - The cash and cash equivalents at the end of Q1 2024 amounted to RMB 5,881,347,510, a decrease from RMB 6,882,809,533 at the end of Q1 2023[19] - Current assets increased to RMB 15,731,204,056 from RMB 15,219,588,022, representing a growth of about 3.36%[12] - Total assets at the end of the reporting period were RMB 69,240,660,681, a slight increase of 0.64% from the previous year[4] - As of March 31, 2024, the total assets of the company amounted to RMB 69,240,660,681, an increase from RMB 68,800,268,263 as of December 31, 2023, reflecting a growth of approximately 0.64%[12] Shareholder and Equity Information - The total number of shareholders as of March 31, 2024, was 49,123, including 49,115 A-share shareholders[7] - Equity attributable to shareholders increased by 0.80% to RMB 29,164,435,662[4] - The company's total equity as of March 31, 2024, was RMB 33,366,961,566, slightly up from RMB 33,294,882,442, indicating a growth of approximately 0.22%[13] - The company's total liabilities to equity ratio as of March 31, 2024, was approximately 1.08, indicating a stable leverage position[13] Governance and Corporate Structure - The company adhered to the principles and provisions of the Corporate Governance Code as outlined in Appendix C1 of the Listing Rules during the reporting period[21] - The board of directors includes executive directors Mr. Li Yeqing (CEO) and Mr. Liu Fengshan (Vice President), along with non-executive and independent non-executive directors[21] - The board is chaired by Mr. Xu Yongmo, ensuring compliance with governance standards[21] - The company continues to maintain a structured governance framework to enhance transparency and accountability[21] - The board composition reflects a balance of executive and non-executive members, promoting diverse perspectives[21] - The governance practices are aligned with the expectations of the Hong Kong Stock Exchange[21] - The company emphasizes the importance of corporate governance in its operational strategy[21] - The announcement serves as a formal declaration of the company's commitment to governance principles[21] - The board's commitment to governance is crucial for stakeholder confidence and long-term sustainability[21] Asset and Liability Changes - Total liabilities increased to RMB 35,873,699,115 from RMB 35,505,385,821, which is an increase of about 1.04%[13] - Long-term borrowings rose to RMB 9,410,026,488 from RMB 8,623,019,715, an increase of approximately 9.12%[13] - The company's inventory increased to RMB 3,597,246,539 from RMB 3,462,938,165, reflecting a growth of about 3.87%[12] - The company's accounts receivable increased to RMB 3,032,437,003 from RMB 2,259,496,157, representing a significant growth of about 34.2%[12] - The company's goodwill increased to RMB 794,289,719 from RMB 769,271,896, reflecting a growth of approximately 3.25%[12] - The weighted average return on equity decreased by 0.29 percentage points to 0.61%[4]

Financial Performance - The company's operating revenue for Q1 2024 was RMB 7,083,601,678, representing a year-on-year increase of 6.87%[4] - Net profit for the period was RMB 291,984,821, reflecting a year-on-year increase of 3.28%[4] - Net profit attributable to shareholders of the listed company decreased by 28.43% to RMB 177,469,351[4] - Basic earnings per share were RMB 0.09, down 25.00% compared to the same period last year[4] - Operating profit for Q1 2024 was ¥355,565,938, a decrease of 5.1% from ¥374,673,438 in Q1 2023[14] - Net profit for Q1 2024 was ¥291,984,821, representing an increase of 3.5% compared to ¥282,721,516 in Q1 2023[14] - The total comprehensive income for Q1 2024 was ¥375,752,767, a substantial increase from ¥9,604,553 in Q1 2023[15] Assets and Liabilities - Total assets at the end of the reporting period were RMB 69,240,660,681, an increase of 0.64% from the end of the previous year[5] - The company's total assets as of March 31, 2024, amounted to ¥69,240,660,681, up from ¥68,800,268,263 at the end of 2023[13] - Current assets increased to ¥15,731,204,056 from ¥15,219,588,022, reflecting a growth of 3.36%[13] - Total liabilities rose to ¥35,873,699,115, compared to ¥35,505,385,821 at the end of 2023, indicating an increase of 1.04%[13] Cash Flow - The net cash flow from operating activities decreased significantly by 67.77% to RMB 106,994,109[4] - In Q1 2024, the company reported a net cash flow from operating activities of ¥106,994,109, a decrease of 67.8% compared to ¥331,923,337 in Q1 2023[16] - Total cash inflow from operating activities was ¥6,572,717,778, up 3.1% from ¥6,376,645,458 in the same period last year[16] - The company experienced a net cash outflow from investing activities of ¥268,956,676, an improvement from a net outflow of ¥1,121,597,464 in Q1 2023[16] - Cash inflow from financing activities totaled ¥1,364,000,000, a decrease of 20.2% compared to ¥1,710,941,054 in Q1 2023[16] - The net increase in cash and cash equivalents for Q1 2024 was ¥511,231,525, compared to an increase of ¥266,787,755 in Q1 2023[17] - The ending balance of cash and cash equivalents was ¥5,881,347,510, down from ¥6,882,809,533 at the end of Q1 2023[17] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 49,123[8] Research and Development - Research and development expenses for Q1 2024 were ¥33,984,891, significantly higher than ¥11,645,467 in Q1 2023, marking an increase of 191.5%[14] Non-Recurring Items - The company reported non-recurring gains and losses totaling RMB 25,765,707 for the period[6] - The decline in net profit attributable to shareholders was primarily due to the poor performance of some wholly-owned subsidiaries and increased revenue share from joint ventures[7] Sales and Purchases - Cash received from sales of goods and services was ¥6,247,674,304, an increase of 1.3% from ¥6,169,998,853 in Q1 2023[16] - The company paid ¥4,424,342,047 for purchases of goods and services, reflecting an increase of 2.8% from ¥4,303,963,154 in the previous year[16] - The company received ¥812,076,500 from investment recoveries, down from ¥1,231,088,671 in Q1 2023[16] - The company’s cash outflow for acquiring fixed assets was ¥569,406,415, significantly lower than ¥1,126,739,268 in Q1 2023[16]

Financial Performance - In 2023, the company achieved a net profit of CNY 2,482,299,167 and a net profit attributable to shareholders of CNY 2,762,116,715, representing a 2.34% increase compared to the previous year[3]. - The total operating revenue for 2023 was CNY 33,757,087,272, marking a 10.79% increase from CNY 30,470,382,363 in 2022[15]. - The net cash flow from operating activities increased by 36.51% to CNY 6,235,555,071 compared to CNY 4,567,694,220 in 2022[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 9.95% to CNY 2,322,113,737 from CNY 2,578,634,452 in 2022[15]. - The company reported a total profit for the year of 4.33 billion RMB, with a net profit attributable to shareholders of 2.76 billion RMB, reflecting increases of 8.48% and 2.34% respectively compared to the previous year[43]. Earnings and Dividends - The basic earnings per share for 2023 were CNY 1.33, a 2.31% increase from CNY 1.30 in 2022[16]. - The diluted earnings per share rose to CNY 1.32, reflecting a 3.13% increase from CNY 1.28 in the previous year[16]. - The company plans to distribute a cash dividend of CNY 0.53 per share based on the total share capital of 2,078,995,649 shares as of the end of 2023[3]. Assets and Liabilities - The company's total assets as of the end of 2023 were CNY 68,800,268,263, a 7.1% increase from CNY 64,241,676,265 at the end of 2022[15]. - The net assets attributable to shareholders increased by 5.42% to CNY 28,932,949,847 compared to CNY 27,446,305,028 at the end of 2022[15]. - The company's total liabilities reached CNY 35.51 billion in 2023, up from CNY 33.40 billion in 2022, marking an increase of around 6.31%[199]. Production and Sales - Aggregate sales volume increased by 100% to 13.137 million tons year-on-year[24]. - Concrete sales volume grew by 66% to 2.727 million cubic meters year-on-year[24]. - The company's operating revenue from overseas markets was 5.439 billion RMB, reflecting a 30% year-on-year growth[24]. - The company sold 13.14 million tons of aggregates, a significant increase of 100% year-on-year, and concrete sales reached 2.73 million cubic meters, up by 66%[43]. Capacity and Expansion - Aggregate production capacity reached 277 million tons per year, up 32% year-on-year[24]. - Concrete production capacity increased by 77% to 122 million cubic meters per year[24]. - The company successfully acquired 64.66% of Oman Cement Company SAOG and 100% of Natal Portland Cement Company (Pty) Ltd., expanding its overseas business to the Middle East and Southern Africa, with an effective overseas cement grinding capacity of 20.91 million tons per year by the end of 2023[25]. Research and Development - The company’s research and development expenses surged by 285.22% to 301.1 million RMB, indicating a strong focus on innovation[44]. - The company holds 77 invention patents and 130 utility model patents as of the end of 2023, showcasing its strong innovation capabilities[36]. - Research and development investments increased by 30%, focusing on innovative cement technologies[81]. Environmental and Sustainability Efforts - The company is committed to digital transformation, successfully implementing low-carbon manufacturing systems in 8 domestic plants and establishing a digital framework in overseas facilities[25]. - The company achieved a total alternative fuel usage of 4.37 million tons, an increase of 500,000 tons compared to the previous year, with a group-wide calorific value substitution rate reaching 20%, up by 6 percentage points from 2022[25]. - The company aims to reduce carbon emissions by 20% over the next five years through new technologies[81]. - The company reported a significant reduction in SO2 emissions across various plants, with values consistently below regulatory limits[124]. Strategic Initiatives - The company will continue to implement its four strategic initiatives, focusing on integrated development, overseas expansion, new building materials, and digital innovation[66]. - The company is actively developing new low-carbon building materials, including ultra-high-performance concrete and new wall materials, to provide green solutions for construction[32]. - The company is exploring potential mergers and acquisitions to strengthen its market position and enhance operational efficiency[124]. Governance and Compliance - The company’s governance structure complies with the requirements of modern enterprise systems and relevant regulations, with no significant discrepancies noted[74]. - The company has established a comprehensive compensation system to motivate employees and align their performance with company goals[106]. - The company reported no significant risks identified by the supervisory board during the reporting period[103].

Financial Performance - For the fiscal year ending December 31, 2023, the company's operating revenue was approximately RMB 33.76 billion, an increase of 10.79% compared to 2022[2]. - The net profit attributable to shareholders for 2023 was approximately RMB 2.76 billion, reflecting a growth of 2.34% year-on-year[5]. - Basic earnings per share for 2023 were RMB 1.33, up by 2.31% from RMB 1.30 in 2022[5]. - The overall gross profit margin for the company was 26.71%, an increase of 0.49 percentage points year-on-year[21]. - Operating profit increased by 8.18% year-on-year, with total profit rising by 8.48%[26]. - Total revenue for 2023 reached RMB 33,757,087,272, an increase of 10.5% compared to RMB 30,470,382,363 in 2022[45]. - The cost of goods sold for 2023 was RMB 24,741,414,727, up from RMB 22,481,901,607 in 2022, reflecting a cost increase of 10.1%[65]. - The revenue from cement sales in 2023 was RMB 18,331,734,881, a decrease of 2.6% from RMB 18,829,682,529 in 2022[66]. Cash Flow and Financial Position - The net cash flow from operating activities increased by 36.51% to RMB 6.24 billion in 2023, compared to RMB 4.57 billion in 2022[5]. - The net cash flow from operating activities increased to RMB 6,235,555,071 in 2023, up 36.6% from RMB 4,567,694,220 in 2022[47]. - The net cash outflow from investing activities decreased by 1.929 billion RMB, a reduction of 23.02% year-on-year, mainly due to decreased expenditures on asset purchases and construction projects[29]. - The net cash flow from financing activities decreased by 2.724 billion RMB, a decline of 153.72% compared to the previous year, primarily due to increased repayments of maturing loans[29]. - Interest-bearing liabilities increased by 16.99% year-on-year, reaching 16.957 billion RMB at the end of the reporting period, mainly due to the addition of long-term loans and corporate bonds[30]. - The debt-to-asset ratio improved slightly, decreasing by 0.39 percentage points to 51.60%[30]. - The company’s total asset forecast for 2024 is approximately 73.7 billion yuan, with a projected debt-to-asset ratio of around 51%[37]. Shareholder Information - The number of registered shareholders decreased from 54,007 as of December 31, 2023, to 49,549 by February 29, 2024[7]. - Holcim Limited remains the controlling shareholder and actual controller of the company as of December 31, 2023[10]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[12]. Operational Highlights - Aggregate sales volume increased by 100% to 131.37 million tons, while concrete sales volume rose by 66% to 27.27 million cubic meters[17]. - The company achieved an overseas production capacity of 20.91 million tons per year, a 69% increase year-on-year, contributing RMB 5.44 billion in revenue, up 30%[17]. - The company added 6.7 million tons of aggregate production capacity, bringing total capacity to 27.7 million tons per year[18]. - The company successfully acquired 64.66% of Oman Cement Company and 100% of Natal Portland Cement Company, expanding its overseas operations[18]. - The company expanded its scale in concrete operations, leading to a 63.42% increase in accounts receivable year-on-year[28]. Cost and Expense Management - Cement production costs decreased by 10.29% year-on-year, with domestic cement costs down 12.79%[18]. - Significant increases in costs were noted, with raw material costs for cement rising by 20.9% and labor costs for concrete increasing by 87.5%[24]. - Financial expenses rose by 52.35% year-on-year, primarily due to increased interest payments[25]. Future Outlook - The domestic demand for building materials is expected to remain weak in 2024, with challenges in the real estate market and infrastructure investments continuing to be a focus for economic stability[33]. - 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[35]. - The company aims to accelerate its transformation towards green, intelligent, and international development, focusing on integrated development, overseas expansion, and new building materials business in 2024[36]. - For 2024, the company plans to sell approximately 63 million tons of cement and clinker, 15.6 million tons of aggregates, and 30.52 million cubic meters of concrete, with projected total revenue reaching 37.1 billion yuan[37]. - The company aims for capital expenditures of about 6.9 billion yuan in 2024, focusing on capacity expansion in aggregates, concrete, and overseas cement production[37]. Risk Management - The company is committed to enhancing compliance and risk management to mitigate potential business risks and improve operational efficiency[38]. - The company faces risks from declining domestic cement demand and rising production costs due to various external factors[39]. - The company will implement various risk hedging strategies to reduce exposure to regional economic and foreign exchange risks[40].

Financial Performance - The company's operating revenue for Q3 2023 was RMB 8,333,304,379, representing a year-on-year increase of 12.29%[4] - The net profit attributable to shareholders for Q3 2023 was RMB 681,763,299, reflecting a year-on-year increase of 6.89%[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 653,068,339, up 9.72% year-on-year[4] - The basic earnings per share for Q3 2023 was RMB 0.32, an increase of 6.67% compared to the same period last year[4] - The diluted earnings per share for Q3 2023 was RMB 0.33, showing a 10.00% increase year-on-year[4] - Total operating revenue for the first three quarters of 2023 reached CNY 24.16 billion, a 10.1% increase from CNY 21.81 billion in the same period of 2022[16] - Net profit attributable to shareholders of the parent company was CNY 1.87 billion, down 15.7% from CNY 2.22 billion year-on-year[16] - The company’s total profit for the first three quarters was CNY 2.88 billion, down 6.1% from CNY 3.07 billion in the same period of 2022[16] Assets and Liabilities - The total assets at the end of the reporting period were RMB 66,458,811,594, an increase of 3.45% compared to the end of the previous year[5] - The company's total liabilities as of September 30, 2023, were 33,899,923,043 CNY, compared to 33,403,495,804 CNY at the end of 2022[15] - The company's total assets reached 66,458,811,594 CNY as of September 30, 2023, up from 64,241,676,265 CNY at the end of 2022[15] - As of September 30, 2023, total current assets amounted to 15,285,708,438 CNY, an increase from 14,450,298,165 CNY as of December 31, 2022[14] - The company's retained earnings as of September 30, 2023, were 23,815,499,599 CNY, compared to 23,009,600,343 CNY at the end of 2022[15] Cash Flow - The net cash flow from operating activities for the year-to-date was RMB 3,502,921,498, reflecting a significant increase of 39.52%[4][8] - Cash flow from operating activities generated a net amount of CNY 3.50 billion, up from CNY 2.51 billion in the same period last year, representing a 39.4% increase[18] - The company reported a net decrease in cash and cash equivalents of CNY 1.03 billion for the period, compared to a decrease of CNY 1.76 billion in the previous year[19] - The company's cash and cash equivalents decreased to 6,634,006,591 CNY from 7,038,341,792 CNY year-over-year[14] - Cash inflow from investment activities was CNY 2.78 billion, down from CNY 4.05 billion in the previous year, indicating a 31.5% decrease[18] Shareholder Information - The company reported a total of 50,682 common shareholders at the end of the reporting period[9] - The company completed the cancellation of 17,604,206 A shares at a price of 0 CNY per share due to unmet performance targets from the 2020-2022 employee stock ownership plan[11] - The first phase of the 2023-2025 employee stock ownership plan was completed on September 27, 2023, with a total of 2,917,577 A shares purchased, representing 0.1403% of the company's total share capital[11] Investments and Acquisitions - The company signed an agreement to acquire 100% equity of Natal Portland Cement Company (Pty) Ltd. for a total consideration of 231.6 million USD, with the transaction progressing as planned[12] - The company plans to publicly issue corporate bonds with a total face value of up to 3 billion CNY, with the process currently underway[12] Research and Development - Research and development expenses increased significantly to CNY 166.21 million, compared to CNY 59.08 million in the previous year, reflecting a 181.5% increase[16] Financial Ratios - The weighted average return on net assets for Q3 2023 was 2.50%, a decrease of 1.39 percentage points compared to the previous year[5] - The company's financial expenses increased to CNY 460.93 million, compared to CNY 317.70 million in the previous year, marking a 45% increase[16] - Total assets impairment losses were reported at CNY 2.94 million, a decrease from CNY 14.62 million in the previous year[16]

Financial Performance - Operating revenue for the third quarter reached RMB 8,333,304,379, representing a year-on-year increase of 12.29%[4] - Net profit attributable to shareholders was RMB 681,763,299, reflecting a year-on-year increase of 6.89%[4] - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 653,068,339, up 9.72% year-on-year[4] - Total revenue for the first three quarters of 2023 reached CNY 24.16 billion, an increase of 10.2% compared to CNY 21.81 billion in the same period of 2022[14] - Operating profit for the first three quarters of 2023 was CNY 2.91 billion, a decrease of 6.0% from CNY 3.09 billion in the same period of 2022[14] - Net profit attributable to shareholders for the first three quarters of 2023 was CNY 1.87 billion, down 15.7% from CNY 2.22 billion in the same period of 2022[14] - Total comprehensive income for the period was CNY 2,153,463,903, a decrease from CNY 3,006,116,925 in the previous year[15] - Basic and diluted earnings per share were both CNY 0.90, down from CNY 1.07 in the previous year[15] - The basic earnings per share for the reporting period was RMB 0.32, reflecting a year-on-year increase of 6.67%[4] Cash Flow and Assets - The net cash flow from operating activities for the year-to-date period was RMB 3,502,921,498, showing a significant increase of 39.52%[6] - Net cash flow from operating activities increased to CNY 3,502,921,498, compared to CNY 2,510,671,236 in the same period last year, reflecting a growth of approximately 39.4%[16] - Cash inflow from operating activities totaled CNY 22,429,996,418, up from CNY 21,168,062,273, indicating a year-over-year increase of about 5.96%[16] - Cash outflow from investing activities decreased significantly to CNY 5,546,671,789 from CNY 9,722,910,982, showing a reduction of approximately 43.5%[16] - Net cash flow from financing activities was negative at CNY -1,862,927,893, compared to a positive CNY 1,242,686,954 in the previous year[16] - Cash and cash equivalents at the end of the period were CNY 5,587,057,061, a decrease from CNY 6,786,368,122 in the previous year[16] - The company’s cash and cash equivalents decreased to CNY 6.63 billion from CNY 7.04 billion, a decline of 5.8%[12] Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 66,458,811,594, an increase of 3.45% compared to the end of the previous year[4] - Total assets as of September 30, 2023, amounted to CNY 66.46 billion, up from CNY 64.24 billion at the end of 2022, representing a growth of 3.5%[13] - Current assets totaled CNY 15.29 billion as of September 30, 2023, compared to CNY 14.45 billion at the end of 2022, indicating an increase of 5.8%[12] - Long-term borrowings rose to CNY 8.59 billion, an increase of 18.0% from CNY 7.28 billion at the end of 2022[13] - The company reported a decrease in total liabilities to CNY 33.90 billion as of September 30, 2023, compared to CNY 33.40 billion at the end of 2022, a reduction of 1.5%[13] Shareholder Information - The number of shareholders as of September 30, 2023, totaled 50,682, including 50,675 A-share shareholders and 7 H-share registered shareholders[7] - The company completed the cancellation of 17,604,206 A shares that were not vested due to performance targets not being met, at a repurchase price of 0 CNY per share on August 28, 2023[10] - The first phase of the 2023-2025 core employee stock ownership plan was approved, with a total of 2,917,577 A shares purchased, representing 0.1403% of the company's total share capital[10] Investments and Acquisitions - The company signed an agreement to acquire 100% equity of Natal Portland Cement Company (Pty) Ltd. for a total consideration of 231.6 million USD, subject to adjustments based on post-closing financial statements[11] - The company received approval to publicly issue bonds with a total face value of up to 3 billion CNY, and the process is progressing as planned[11] Research and Development - Research and development expenses increased significantly to CNY 166.21 million, compared to CNY 59.08 million in the same period of 2022, reflecting a growth of 181.5%[14]

Employee Stock Ownership Plan - Huaxin Cement's core employee stock ownership plan for 2020-2022 includes a total of 12,843,037 shares granted to other core employees[2]. - The grant price for shares under the employee stock ownership plan ranges from RMB 20.14 to RMB 26.88, with the fair value on the grant date estimated at RMB 24.85[2][3]. - The employee stock ownership plan was approved on September 25, 2020, and has a duration of 72 months from the first grant month[5]. - The maximum number of shares that any core employee can receive under the plan is capped at 345,193 shares[4]. - The company emphasizes the importance of the employee stock ownership plan in aligning employee interests with company performance[5]. Executive Shareholding - As of December 31, 2022, the total number of shares held by the executive directors and supervisors is 4,612,776 shares, with 811,749 shares expired during the year[2]. - The total shares held by the executive director Li Yeqing as of December 31, 2022, is 1,488,095 shares, with no shares expired during the year[2]. - The company reported no new grants during the year for several executives, maintaining their total shares held[2]. Stock Price Information - The stock price on the grant date for the plan on May 29, 2020, was RMB 25.14, while on February 10, 2021, it was RMB 19.56, and on May 6, 2022, it was RMB 22.30[3]. Reporting and Disclosure - The company has not made any changes to the information disclosed in the 2022 annual report aside from the supplementary details provided[5].

Economic Overview - In the first half of 2023, China's GDP grew by 5.5%, with fixed asset investment increasing by 3.8% to CNY 24.31 trillion, while infrastructure investment rose by 7.2%[12]. - The cement production in China reached 953 million tons, the lowest level in 12 years, leading to intensified competition and a decline in cement prices to a five-year low[12]. Company Performance - As of June 30, 2023, the company's cement production capacity was 12.2 million tons per year, with cement business revenue accounting for 62% of total operating income[13]. - Non-cement business revenue contributed 38% to total operating income, with a net profit contribution of 56% from this segment, indicating its growing importance[13]. - The company achieved cement and clinker sales of 29.95 million tons, a year-on-year increase of 2.13%[15]. - The company's revenue for the first half of 2023 reached RMB 15.83 billion, representing a year-on-year growth of 10.02%[17]. - The net profit attributable to shareholders for the same period was RMB 1.19 billion, a decrease of 24.85% year-on-year[15]. - The company’s domestic cement revenue declined by 12.41% to RMB 7.46 billion, while overseas cement revenue increased by 30.57% to RMB 2.30 billion[15]. - The company’s EBITDA contribution from non-cement businesses exceeded 50%, becoming a key support for stable performance[15]. Financial Position - The total equity of the group at the end of the reporting period was RMB 32.062 billion, with equity attributable to the parent company amounting to RMB 27.719 billion[20]. - The total liabilities of the group were RMB 33.500 billion, with interest-bearing liabilities at RMB 14.530 billion, resulting in a debt-to-asset ratio decrease from 52.0% at the beginning of the year to 51.1% at the end of the reporting period[21]. - The group invested approximately RMB 1.819 billion in capital projects during the first half of 2023, with sufficient self-funding and ongoing operating cash inflows to meet capital project funding needs[24]. - The company reported no interim dividend for the first half of 2023, nor any capital reserve conversion into share capital[45]. Market Expansion - The company operates over 300 subsidiaries, covering 16 provinces in China and 14 countries overseas, reflecting its extensive market expansion[13]. - The company completed the acquisition of a 59.58% stake in Oman Cement Company, adding 4.4 million tons/year of cement grinding capacity[16]. - The company expanded its concrete business by adding 28 new projects, increasing annual capacity by 2.12 million cubic meters[16]. Cash Flow and Expenses - The net cash flow from operating activities increased by 67.89% year-on-year to RMB 2.13 billion[18]. - The company's financial expenses increased by 48.78% year-on-year, primarily due to higher interest expenses[17]. - Cash and cash equivalents decreased to RMB 5,552,644,820 from RMB 7,038,341,792, reflecting a decline of approximately 21%[47]. - The company reported a significant increase in other receivables, rising to RMB 5,547,576,218 from RMB 4,853,948,075, an increase of 14.26%[49]. Shareholder Information - The total number of registered shareholders as of June 30, 2023, was 63,229, with 63,226 being A-share shareholders[30]. - The top ten shareholders hold significant stakes, with Hong Kong Central Clearing holding 734,719,989 H shares, representing 35.04%[31]. - Holcim B.V. owns 451,333,201 A shares, accounting for 21.53% of the total shares[31]. Strategic Focus - The company continues to implement strategies for integrated development, environmental transformation, and expansion into new building materials[13]. - In the second half of 2023, the company anticipates a seasonal recovery in cement demand, although the industry will continue to face severe overcapacity and intensified competition[26]. - The company plans to stabilize prices and increase efficiency in its domestic cement business, while also focusing on cost reduction and risk control in its concrete business[26]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the true and complete financial status as of June 30, 2023[71]. - The group recognizes foreign currency transactions at the spot exchange rate on the transaction date, impacting the financial statements through translation differences[77]. - The company evaluates contracts to determine if they contain leases, recognizing right-of-use assets and lease liabilities for leases beyond 12 months[126]. Taxation and Incentives - The corporate income tax rate for subsidiaries in the western development regions is reduced to 15% from 2021 to 2030[145]. - The group enjoys a VAT refund policy with a rebate rate of 70% for certain subsidiaries under the resource comprehensive utilization products and services[147]. - The corporate income tax rate for Huaxin Cement (Henan Xinyang) Co., Ltd. has been reduced to 15% from 25% following its high-tech enterprise certification[143]. Inventory and Receivables - The total inventory as of June 30, 2023, is RMB 3,805,641,532, an increase from RMB 3,517,821,387 at the beginning of the period, reflecting a growth of approximately 8.2%[181]. - The accounts receivable at the end of the period totaled RMB 2,168,543,120, an increase of 57% from RMB 1,382,631,200 at the beginning of the period[155]. - The provision for bad debts increased to RMB 228,631,721, up from RMB 177,857,087, reflecting a rise of 28%[165]. Fixed Assets and Investments - Fixed assets increased to RMB 26,332,148,241 from RMB 22,713,408,318, indicating a growth of approximately 15.5%[190]. - The total fixed assets at the end of the period amounted to RMB 48,577,192,953, an increase from RMB 41,320,856,587 at the beginning of the period, reflecting a growth of approximately 17.5%[193]. - The company reported a total of RMB 7,351,662,552 in new fixed asset additions during the period, with major contributions from construction transfers and business acquisitions[193].

Financial Performance - The company's operating revenue for the first half of 2023 was RMB 15,831,572,500, representing a 10.02% increase compared to RMB 14,389,448,963 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2023 was RMB 1,192,560,395, a decrease of 24.85% from RMB 1,586,839,657 in the previous year[17]. - Basic earnings per share for the first half of 2023 were RMB 0.58, down 24.68% from RMB 0.77 in the same period last year[18]. - The weighted average return on equity decreased to 4.24%, down 1.51 percentage points from 5.75% in the previous year[18]. - The company's revenue for the first half of 2023 was 15.83 billion RMB, representing a year-on-year growth of 10.02%[31]. - The net profit attributable to shareholders was 1.19 billion RMB, a year-on-year decrease of 24.85%[28]. - The company's net profit after deducting non-recurring gains and losses for the first half of 2023 was ¥1,170,459,422, a decrease of 23.8% compared to ¥1,536,019,187 in the same period last year[92]. - The total comprehensive income for the first half of 2023 was CNY 730,796,704, a decrease of 32.8% compared to CNY 1,088,769,166 in the first half of 2022[101]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 67.89% to RMB 2,127,167,281, compared to RMB 1,267,008,618 in the same period last year[17]. - The company's cash flow from operating activities showed a decrease in cash inflow, totaling ¥2,374,112,013, down from ¥3,087,937,940 in the previous year[104]. - Cash and cash equivalents decreased to ¥5,552,644,820 from ¥7,038,341,792, showing a significant reduction in liquidity[93]. - The company maintained a loan repayment rate of 100% during the reporting period[92]. - The company reported a significant increase in sales revenue from operating activities to CNY 14,420,847,563, compared to CNY 13,666,422,401 in the first half of 2022[102]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 65,562,488,903, reflecting a 2.06% increase from RMB 64,241,676,265 at the end of the previous year[17]. - The total liabilities increased to ¥33,500,219,995 from ¥33,403,495,804, indicating a rise in financial obligations[94]. - The asset-liability ratio improved slightly to 51.10% from 52.00%, a change of -0.9%[92]. - The company's total equity increased to ¥32,062,268,908 from ¥30,838,180,461, reflecting a growth in shareholder value[94]. Market and Production - The cement production in China reached 953 million tons in the first half of 2023, marking the lowest level in nearly 12 years[22]. - The company's cement production capacity is 12.2 million tons per year, with cement business revenue accounting for 62% of total revenue[23]. - Non-cement businesses contributed 48% to total revenue and 56% to net profit attributable to shareholders, indicating a significant role in overall profitability[23]. - In the first half of 2023, the company achieved cement and clinker sales of 29.95 million tons, a year-on-year increase of 2.13%[28]. - Aggregate sales reached 50.51 million tons, a significant year-on-year increase of 103.30%[28]. Environmental Initiatives - The company is committed to environmental protection, adhering to relevant laws and continuously implementing clean production[51]. - The company reported SO2 emissions of 68.90 tons, NOx emissions of 393.82 tons, and particulate matter emissions of 22.63 tons from its Yangxin plant[52]. - The company aims to reduce its environmental impact while achieving economic and social benefits[51]. - The company achieved a heat substitution rate of 19.75% by using 2.21 million tons of alternative fuels during the reporting period, resulting in a reduction of 122,500 tons of CO2 emissions[68]. - The company is focused on integrating ecological protection and low-carbon development into its long-term strategic goals[51]. Strategic Developments - The company completed the acquisition of a 59.58% stake in Oman Cement Company SAOG, enhancing its competitive strength[29]. - The company is in the process of acquiring 100% of Natal Portland Cement Company (Pty) Ltd. for a total consideration of 231.6 million USD, with the transaction progressing as planned[78]. - The company plans to enhance its competitive strength through energy consumption control and carbon emission reduction initiatives[42]. - The company is exploring potential acquisitions to enhance its market position and operational capabilities[54]. Shareholder and Governance - The company did not distribute profits or increase capital reserves during this reporting period[5]. - The company approved the core employee stock ownership plan for 2020-2022 and plans to repurchase and cancel part of the stocks[48]. - The total number of ordinary shareholders as of the end of the reporting period is 63,229[80]. - The largest shareholder, Hong Kong Central Clearing Limited, holds 35.04% of the shares, totaling 734,719,989 shares[81]. Risk Factors - The company faces risks from declining domestic cement demand and severe overcapacity, which may lead to increased market competition and pressure on cement prices[41]. - The company has outlined potential risks in the report, which investors should be aware of[6]. - The company will implement measures to manage foreign exchange risks by optimizing global foreign exchange reserves and using foreign exchange derivatives[42].

Financial Performance - For the six months ended June 30, 2023, the group's unaudited revenue was RMB 15,832 million, an increase of 10.02% compared to RMB 14,389 million for the same period in 2022[2] - The unaudited profit attributable to equity holders for the same period was RMB 1,193 million, a decrease of 24.85% from RMB 1,586 million in 2022[2] - Basic earnings per share for the first half of 2023 were RMB 0.58, down from RMB 0.77 in the same period of 2022[5] - The group's operating profit for the first half of 2023 was RMB 1,760 million, down from RMB 2,202 million in the same period of 2022[4] - The net profit for the first half of 2023 was RMB 1,350 million, compared to RMB 1,683 million in the same period of 2022[5] - Other comprehensive income after tax for the first half of 2023 was RMB 106 million, down from RMB 199 million in 2022[5] - The total comprehensive income for the first half of 2023 was RMB 1,456 million, compared to RMB 1,882 million in the same period of 2022[5] - The total income tax expense for the first half of 2023 was CNY 388,324,122, down 19.7% from CNY 483,159,383 in the same period of 2022[14] Operating Costs and Expenses - Total operating costs for the first half of 2023 were RMB 14,091 million, compared to RMB 12,268 million in the same period of 2022[4] - Financial expenses for the first half of 2023 totaled CNY 245,237,036, an increase of 48.7% compared to CNY 164,831,907 in the same period of 2022[13] - The cost of goods sold for the first half of 2023 was RMB 11,971,182,161, compared to RMB 10,357,040,560 in the first half of 2022, indicating an increase of about 15.5%[9] - Research and development expenses increased to RMB 58 million in the first half of 2023 from RMB 46 million in 2022, reflecting a growth of 27.8%[4] Assets and Liabilities - The company's total assets as of June 30, 2023, amounted to RMB 65,562,488,903, an increase from RMB 64,241,676,265 at the end of 2022[7] - The total liabilities increased slightly to RMB 33,500,219,995 as of June 30, 2023, compared to RMB 33,403,495,804 at the end of 2022[7] - The equity attributable to shareholders reached RMB 27,718,775,757, up from RMB 27,446,305,028 at the end of 2022, reflecting a growth of approximately 1%[7] - The company reported a significant increase in long-term borrowings, which stood at RMB 7,224,034,426 as of June 30, 2023, compared to RMB 7,282,088,824 at the end of 2022[7] - The non-current liabilities totaled RMB 17,019,408,935, an increase from RMB 16,778,611,504 at the end of 2022, indicating a rise in long-term financial obligations[7] Accounts Receivable and Financing - The company’s receivables financing decreased to RMB 440,987,622 from RMB 527,248,935 year-over-year, showing a reduction of approximately 16.4%[6] - Accounts receivable as of June 30, 2023, amounted to CNY 2,168,543,120, an increase of 57.0% from CNY 1,382,631,200 at the end of 2022[17] - The provision for bad debts increased to CNY 228,631,721 as of June 30, 2023, compared to CNY 177,857,087 at the end of 2022, reflecting a rise of 28.5%[23] - The company reported a total of CNY 1,781,603,416 in accounts receivable within 6 months as of June 30, 2023, compared to CNY 1,130,096,842 at the end of 2022, indicating a growth of 57.5%[17] - The provision for bad debts for accounts receivable categorized by aging shows that 96% of the total accounts receivable are covered by provisions as of June 30, 2023[18] Revenue and Sales Performance - Cement sales contributed RMB 9,191,200,494 to the total revenue in the first half of 2023, while concrete sales generated RMB 3,174,092,206, showing significant contributions from these segments[10] - In the first half of 2023, the company achieved cement and clinker sales of 29.95 million tons, a year-on-year increase of 2.13%[28] - The company's operating revenue for the first half of 2023 was 15.83 billion yuan, a year-on-year increase of 10.02%[28] - The company’s cement business generated operating revenue of 9.76 billion yuan, a year-on-year decline of 5.04%[29] - The overseas cement business saw an operating revenue increase of 30.57% to 2.302 billion yuan[29] Strategic Developments - The company completed the acquisition of a 59.58% stake in Oman Cement Company SAOG, enhancing its cement grinding capacity by 4.4 million tons per year[29] - The company plans to stabilize prices and increase efficiency in its domestic cement business while enhancing profitability in its aggregate and concrete businesses[31] - The company is actively advancing digitalization projects to support overseas development and integrated transformation strategies[30] - The company expects seasonal recovery in cement demand in the second half of 2023, despite ongoing industry challenges such as overcapacity and intensified competition[31] - The company signed an agreement to acquire 100% of Natal Portland Cement Company (Pty) Ltd. for $231.6 million, with the transaction currently progressing as planned[33] Corporate Governance and Compliance - The company has established an audit committee responsible for reviewing and supervising the financial reporting process and risk management[36] - The company adhered to the corporate governance code as outlined in the Hong Kong Stock Exchange Listing Rules during the reporting period[37] - All directors and supervisors confirmed compliance with the standard code for securities trading during the reporting period[37] - There were no significant lawsuits or arbitration matters involving the company or its subsidiaries during the reporting period[33] Future Outlook - The revenue amount corresponding to the performance obligations that have been signed but not yet fulfilled at the end of the reporting period is CNY 748,180,890, which is expected to be recognized in 2023[12] - The company expects to recognize a significant portion of its revenue from contracts signed in the current year, indicating a positive outlook for 2023[12] - The company received approval from the China Securities Regulatory Commission for a bond issuance registration of up to 3 billion yuan, which is currently progressing as planned[32] - The company plans to repurchase and cancel 17,604,206 A shares at a price of 0 yuan per share due to unmet performance targets[32]