Financial Performance - The company's operating revenue for Q1 2023 was RMB 6,628,435,263, representing a year-on-year increase of 1.49%[4] - The net profit attributable to shareholders for Q1 2023 was RMB 247,979,284, a decrease of 63.09% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 233,723,270, down 64.03% year-on-year[4] - The total operating cost for Q1 2023 was CNY 6,273,661,701, up 10.19% from CNY 5,694,474,985 in Q1 2022[16] - The company achieved a net profit attributable to the parent company of ¥51,566,017, down from ¥565,795,000 in Q1 2022, reflecting a decline of about 90.9%[17] - The diluted earnings per share for Q1 2023 was ¥0.12, compared to ¥0.32 in Q1 2022, representing a decrease of 62.5%[17] - The company’s total comprehensive income for Q1 2023 was ¥9,604,553, a significant drop from ¥599,511,660 in the same quarter last year[17] Cash Flow and Liquidity - The net cash flow from operating activities was RMB 331,923,337, showing a significant increase of 203.92% compared to the previous year[4] - In Q1 2023, the company reported a net cash flow from operating activities of ¥331,923,337, a significant improvement compared to a net outflow of ¥-319,399,790 in Q1 2022[18] - The net cash flow from investing activities was negative at ¥-1,121,597,464, slightly better than the previous year's outflow of ¥-1,196,160,379[19] - Cash and cash equivalents at the end of Q1 2023 totaled ¥6,882,809,533, down from ¥7,670,921,535 at the end of Q1 2022[19] - The company reported cash inflow from financing activities of ¥1,710,941,054, an increase from ¥1,114,629,873 in Q1 2022, marking a growth of approximately 53.5%[19] Assets and Liabilities - The total assets at the end of Q1 2023 were RMB 64,741,622,991, an increase of 0.78% from the end of the previous year[5] - The total assets as of March 31, 2023, amounted to CNY 64,741,622,991, compared to CNY 64,241,676,265 at the end of 2022[15] - The total liabilities as of March 31, 2023, were CNY 33,898,015,757, compared to CNY 33,403,495,804 at the end of 2022[15] - The company’s total equity increased slightly to CNY 30,843,607,234 from CNY 30,838,180,461 at the end of 2022[15] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 57,708[10] - The largest shareholder, Hong Kong Central Clearing Limited, held 35.04% of the shares, totaling 734,719,989 shares[10] Research and Development - Research and development expenses increased by 49.22%, driven by investments in environmental protection and new materials[7] - Research and development expenses in Q1 2023 were CNY 11,645,467, up from CNY 7,804,315 in Q1 2022, reflecting a 49.5% increase[16] Product Performance - The company reported a significant decrease in net profit due to a decline in both volume and price of its main product, cement[9] Acquisition - The company completed the acquisition of 59.58% equity in Oman Cement Company SAOG for approximately USD 193.1 million on April 5, 2023[13]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 華新水泥股份有限公司 HUAXIN CEMENT CO., LTD.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：6655） 二零二三年第一季度報告 本公告乃根據《香港聯合交易所有限公司證券上市規則》第13.09條和第13.10B條及《證券 及期貨條例》（香港法例第571章）第XIVA部刊發。 | --- | --- | |--------------------------------------------------------------------------------|-------| | | | | 根據中華人民共和國（「中國」）上海證券交易所的適用規則，華新水泥股份有限公司（ | | | 「本公司」或「公司」）及其附屬公司（與本公司合稱為「本集團」）由二零二三年一月 | | | 一日至二零二三年三月三十一日（「報告期」）第一季度報告（「季度報告」）將於二零 | | | 二 ...

Financial Performance - The company's operating revenue for 2022 was CNY 30,470,382,363, a decrease of 6.14% compared to CNY 32,464,083,379 in 2021[14]. - Net profit attributable to shareholders for 2022 was CNY 2,698,868,510, down 49.68% from CNY 5,363,525,692 in 2021[14]. - Basic earnings per share for 2022 were CNY 1.30, a decline of 49.61% from CNY 2.58 in 2021[16]. - The company's total assets increased by 22.25% to CNY 64,241,676,265 as of December 31, 2022, compared to CNY 52,549,618,050 in 2021[15]. - The net cash flow from operating activities for 2022 was CNY 4,567,694,220, a decrease of 39.86% from CNY 7,594,957,122 in 2021[14]. - The weighted average return on equity for 2022 was 10.03%, down 11.27 percentage points from 21.30% in 2021[16]. - Non-recurring gains and losses totaled CNY 120,234,058 for 2022, compared to CNY 58,647,574 in 2021[18]. - The company's net profit attributable to shareholders decreased by CNY 2,666,510,000 (–49.68%) compared to the previous year, influenced by declining sales volumes and rising energy costs[68]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.51 per share (including tax) for the 2022 fiscal year[3]. - The board proposed a cash dividend of RMB 0.51 per share for the year 2022, amounting to a total distribution of approximately RMB 1,068,424,438[41]. - The company’s cash dividend policy complies with the requirements of the articles of association and shareholder resolutions[169]. Governance and Compliance - The company reported a standard unqualified audit opinion from Ernst & Young Huaming[3]. - The board of directors confirmed the accuracy and completeness of the annual report's financial statements[3]. - The company maintains a strong governance structure, ensuring compliance with regulatory requirements[3]. - The company emphasizes strict adherence to corporate governance standards, ensuring independent operations of the board and supervisory committee, and compliance with relevant laws and regulations[141]. - The company has established a robust compliance and legal framework to support its operations and investor relations[123]. - The company has adopted the Corporate Governance Code and has complied with its principles and provisions throughout the reporting period[142]. Market and Operational Strategy - The company is focused on expanding its market presence and enhancing product offerings, including high-value products[9]. - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[19]. - The company aims to achieve a clinker capacity utilization rate of 30% above the benchmark level by 2025, as part of national energy efficiency and carbon reduction goals[20]. - The company is committed to a strategy of rational competition, integration optimization, and environmental transformation, focusing on vertical integration within the cement industry[25]. - The company is actively investing in low-carbon technologies and alternative energy sources to improve industry efficiency and sustainability[20]. Risks and Challenges - The company has detailed potential risks outlined in the report, particularly in the section discussing operational conditions[3]. - The company faces risks from rising production costs driven by geopolitical tensions, supply-demand imbalances, and stricter energy and environmental regulations[81]. - Domestic cement demand has significantly declined, with a notable drop in 2022 due to multiple factors, including a downturn in the real estate market and ongoing economic pressures[80]. Research and Development - The company's research and development expenses totaled RMB 113,199,061, representing 0.37% of operating revenue, with capitalized R&D accounting for 30.95% of the total[48]. - The company has established a new research and development center, with an annual budget of 50 million RMB dedicated to innovation in cement technology[118]. Employee and Executive Compensation - The total pre-tax remuneration payable to the company's directors, supervisors, and senior management at the end of the reporting period was 65.8572 million yuan[127]. - The actual total remuneration received by the company's directors, supervisors, and senior management during the reporting period was 65.8572 million yuan[128]. - The company has implemented a comprehensive compensation system to align employee remuneration with company performance[134]. Shareholder Structure - Holcim Limited holds a total of 869,235,668 shares in the company, representing 41.46% of the total equity[103]. - The largest shareholder, Holcim Limited, holds 451,333,201 A shares (21.53%) and 417,902,467 H shares (19.93%)[103]. - The company reported a significant shareholding concentration, with Holcim Limited and its subsidiaries controlling over 39% of the total shares[106]. Sustainability Initiatives - The company is committed to sustainable practices, including the use of alternative raw materials[6]. - The company emphasizes the importance of energy conservation and carbon reduction, with a target of achieving a heat value substitution rate of over 20% in 2023[79]. - The management team emphasized a focus on sustainability, with plans to reduce carbon emissions by 20% over the next five years[117]. International Expansion - The company has established a strategic layout in economically vibrant regions and is expanding its presence in countries along the Belt and Road Initiative[30]. - The company is actively pursuing international expansion as one of its four major development strategies, despite the complexities of the current global landscape[81]. Audit and Internal Controls - The company engaged Ernst & Young Huaming to audit the effectiveness of internal controls related to financial reporting, receiving a standard unqualified audit opinion[175]. - The audit committee assessed the company's risk management system and internal controls, confirming compliance with the requirements set by the China Securities Regulatory Commission[161].

Financial Performance - In 2022, the company achieved a net profit of CNY 2,238,002,243, with a consolidated net profit attributable to shareholders of CNY 2,698,868,510, representing a decrease of 49.68% compared to 2021[2][15]. - The company's operating revenue for 2022 was CNY 30,470,382,363, down 6.14% from CNY 32,464,083,379 in 2021[15]. - Basic earnings per share decreased by 49.61% to CNY 1.30 in 2022 compared to CNY 2.58 in 2021[16]. - The weighted average return on equity dropped by 11.27 percentage points to 10.03% in 2022 from 21.30% in 2021[16]. - The total profit amounted to 3.99 billion yuan, while the net profit attributable to shareholders was 2.70 billion yuan, reflecting declines of 45.91% and 49.68% respectively[44]. - The net cash flow from operating activities decreased by 39.86% to CNY 4,567,694,220 in 2022 from CNY 7,594,957,122 in 2021[15]. Assets and Liabilities - The total assets of the company increased by 22.25% to CNY 64,241,676,265 at the end of 2022, compared to CNY 52,549,618,050 at the end of 2021[15]. - The total liabilities increased to ¥33.40 billion in 2022, up from ¥23.17 billion in 2021, reflecting a growth of around 44.3%[197]. - The debt-to-asset ratio increased from 44.1% in 2021 to 52.0% in 2022, reflecting a 7.9% rise[185]. - The company's cash and cash equivalents decreased to ¥7.04 billion in 2022 from ¥8.84 billion in 2021, a reduction of about 20.2%[196]. Operational Highlights - The company utilized 3.87 million tons of alternative fuels in 2022, achieving a domestic thermal substitution rate of 15.9%[23]. - The company successfully reduced its accident rate from 0.44 in 2021 to 0.37 in 2022, reflecting improved safety management[22]. - The company's aggregate production capacity has reached 210 million tons per year, significantly enhancing its competitive strength in the aggregate business[25]. - The concrete production capacity has reached 6.875 million cubic meters, with over 30 leasing, construction, and acquisition projects completed throughout the year[25]. Strategic Initiatives - The company aims to enhance its integrated transformation and overseas development strategies amid challenges in the construction materials industry[21]. - The company plans to continue its focus on green low-carbon development through technological upgrades and the use of alternative raw materials[23]. - The company is actively expanding its non-cement business, which accounted for 32.4% of total revenue, indicating a steady growth trajectory[30]. - The company plans to achieve a heat value substitution rate of over 20% in 2023 through increased use of alternative fuels[73]. Governance and Compliance - The company has successfully transitioned to the Hong Kong Stock Exchange, enhancing its governance structure to align with international standards[26]. - The company adheres to modern corporate governance standards, ensuring compliance with relevant laws and regulations[77]. - The company did not receive any penalties from securities regulatory authorities in the past three years[93]. - The company has not faced any delisting risk or bankruptcy reorganization during the reporting period[143]. Environmental and Social Responsibility - The company is committed to a green low-carbon development strategy, focusing on safety and environmental protection, which will require significant investment[75]. - The company invested a total of 16.89 million yuan in public welfare and charity activities during the year[139]. - The company has 11 factories recognized as national-level green factories as part of its "Beautiful Factory" initiative[135]. - The company strictly adhered to environmental regulations and did not experience any significant environmental incidents during the reporting period[131]. Future Outlook - The company plans to sell approximately 57 million tons of cement and clinker, 130 million tons of aggregates, and 25 million cubic meters of concrete in 2023, with total revenue expected to reach 35 billion yuan[72]. - The cement industry is expected to see stable demand in 2023, with a potential phase of rebound compared to 2022, as the negative impact from the real estate sector is expected to decrease significantly[69]. - The company provided a positive outlook for 2023, projecting a revenue growth of 12% to 15% based on current market trends and user acquisition strategies[86]. - The company aims to achieve carbon neutrality by 2030, with an investment of 300 million in sustainable practices over the next five years[86].

Financial Performance - For the year ended December 31, 2022, the company's operating revenue was approximately RMB 30.47 billion, a decrease of 6.14% compared to 2021[2] - The net profit attributable to shareholders for 2022 was approximately RMB 2.70 billion, down 49.68% from the previous year[5] - Basic earnings per share for 2022 were RMB 1.30, a decline of 49.61% compared to 2021[5] - The weighted average return on equity decreased to 10.03% in 2022, down 11.27 percentage points from 2021[6] - The net cash flow from operating activities for 2022 was RMB 4.57 billion, a decrease of 39.86% compared to 2021[6] - The company's operating profit decreased by 45.96% to CNY 4,022,570,540 compared to CNY 7,444,360,170 in the same period last year[25] - The net profit attributable to shareholders decreased by 49.68% to CNY 2,698,868,510 from CNY 5,363,525,692 year-on-year[25] - Financial expenses increased by 169.29% to CNY 458,488,171, primarily due to increased exchange losses and interest expenses[24] - The company's total interest-bearing debt increased by 46.02% to CNY 14,494,878,839 from CNY 9,926,870,636 year-on-year[29] - The current ratio fell by 31.5% to 0.87, indicating a decline in liquidity[29] - The total assets-liabilities ratio increased by 7.90 percentage points to 52.00%[29] Revenue Breakdown - In 2022, the company's total revenue was CNY 30.47 billion, a decrease of 6.14% year-on-year[20] - The cement segment generated revenue of CNY 18.83 billion, down 21.76% from the previous year, with a gross margin of 25.94%, a decrease of 7.89 percentage points[20] - The concrete segment saw revenue increase by 61.64% to CNY 5.13 billion, with a gross margin of 15.81%, down 2.99 percentage points[20] - Aggregate revenue reached CNY 3.06 billion, up 49.25% year-on-year, with a gross margin of 55.27%, down 10.35 percentage points[20] - Overseas operations generated revenue of CNY 4.19 billion, a 62.3% increase year-on-year, with EBITDA exceeding CNY 1.4 billion, up 40%[18] - Revenue from the Chinese market was CNY 26,279,374,714 in 2022, down 12.0% from CNY 29,881,187,845 in 2021[65] Shareholder Information - As of December 31, 2022, the total number of registered shareholders was 63,357, which decreased to 53,154 by February 28, 2023[7] - The top shareholder, Hong Kong Central Clearing Limited, held 734,719,989 shares, representing 35.04% of the total shares[8] - Holcim Limited remains the controlling shareholder and actual controller of the company as of December 31, 2022[10] - The company plans to distribute a cash dividend of RMB 0.51 per share, totaling RMB 1,068,424,438, based on a total share capital of 2,096,599,855 shares[38] Investment and Capital Expenditure - The company plans to sell approximately 57 million tons of cement and clinker, 130 million tons of aggregates, and 25 million cubic meters of concrete in 2023, with expected revenue of 35 billion RMB[34] - The company will invest about 11 billion RMB in capital expenditures in 2023, focusing on capacity construction for aggregates and concrete, as well as environmental and new materials business expansion[34] - The company is in the process of issuing corporate bonds not exceeding RMB 3 billion to professional institutional investors[37] - The company has signed an agreement to acquire a 59.58% stake in Oman Cement Company for approximately USD 193.1 million, subject to adjustments[37] Operational Efficiency and Innovation - The company implemented 356 digitalization projects, achieving a 90% operational rate for the HIAC system across six factories[19] - The company is focusing on technological innovation to create highly automated "unmanned factories" to improve operational efficiency and reduce production costs[36] - The company completed nearly 40 solid waste incineration and pre-treatment projects to enhance energy efficiency and carbon reduction[17] - The company has accelerated the development of ultra-high-strength concrete and grinding aids, achieving industry-leading performance levels[17] Risk Management and Compliance - The company emphasizes the importance of safety and environmental compliance, conducting annual health and safety audits to ensure clean and civilized production standards[34] - The company will continue to enhance compliance monitoring to mitigate potential business risks and ensure 100% product quality compliance[34] - The company recognizes the risk of declining domestic cement demand and severe overcapacity, which may negatively impact performance due to ongoing economic pressures[35] - The company aims to enhance its competitive strength and risk resistance by adhering to national policies on supply-side structural reform and carbon reduction[36] Future Outlook - The company anticipates a stable cement demand in 2023, with a potential rebound due to supportive infrastructure policies and reduced downward pressure from the real estate sector[31] - The company will focus on energy efficiency and carbon reduction as key measures for supply-side reform in the cement industry[32] - The company aims to achieve a combined heat value substitution rate of over 20% for alternative fuels in 2023[34]

Economic Performance - In the first half of 2022, China's GDP grew by 2.5% year-on-year, with a 0.4% increase in the second quarter[10]. - National fixed asset investment (excluding rural households) reached CNY 27.14 trillion, a year-on-year increase of 6.1%[10]. - The cumulative cement production in China for the first half of 2022 was 977 million tons, a decrease of 15.0% year-on-year, marking an 11-year low[10]. Company Overview - The company operates nearly 290 subsidiaries across 14 provinces in China and eight countries overseas[11]. - The company is recognized as one of China's top 500 manufacturing enterprises and one of the Fortune China 500 companies[11]. - The company has a cement production capacity of 118 million tons per year, including joint ventures[11]. - The company has a concrete production capacity of 60.1 million cubic meters per year[11]. - The company has a waste disposal capacity of 12.36 million tons per year, including projects that have received environmental approval but are not yet operational[11]. Financial Performance - The company's operating revenue for the reporting period was CNY 14.39 billion, a decline of 2.41% compared to the previous year[14]. - Net profit attributable to shareholders was CNY 1.59 billion, down 34.92% year-on-year[13]. - The cement business generated operating revenue of CNY 10.28 billion, a year-on-year decrease of 13.8%, while non-cement business revenue increased by 45.8% to CNY 3.95 billion[13]. - The company reported a significant increase in aggregate production, reaching 36.60 million tons, a year-on-year growth of 83%[13]. - The average fuel cost per ton increased by CNY 47, or 21.9%, leading to a decrease in gross profit per ton for cement to CNY 89[13]. Cash Flow and Investments - The net cash flow from operating activities decreased by 44.72% to CNY 1.27 billion due to declining cement sales and rising costs[15]. - The company invested approximately RMB 3.65 billion in capital projects during the reporting period, with sufficient self-funding and ongoing cash inflows to meet capital needs[23]. - The company plans to expand its production capacity with new projects in Nepal and Tanzania, and has added 13 new concrete projects in various provinces[13]. Assets and Liabilities - The total assets at the end of the reporting period amounted to RMB 26.896 billion, with a debt ratio increasing from 44.1% at the beginning of the year to 47.8%[19]. - Accounts receivable increased by 39.81% to RMB 1.337 billion, primarily due to the expansion of concrete business operations[17]. - Construction in progress rose by 38.38% to RMB 5.811 billion, driven by increased investments in aggregate and concrete projects[18]. - Long-term receivables increased by 213.75% to RMB 112.745 million, mainly due to increased turnover funds from local governments[18]. - Other payables increased by 119.60% to RMB 1.661 billion, attributed to unpaid dividend distributions at the end of the reporting period[18]. Shareholder Information - As of June 30, 2022, the total number of registered shareholders is 63,731, with 63,728 holding A-shares and 3 holding H-shares[29]. - The largest shareholder, Hong Kong Central Clearing Limited, holds 35.04% of H-shares, while Holcim B.V. holds 21.53% of A-shares[30]. - Holcim Ltd has a total stake of 41.46% in the company, combining both A and H shares[32]. Corporate Governance - The company has complied with all applicable principles and rules of the Corporate Governance Code since its H-share listing on March 28, 2022[43]. - The audit committee has reviewed the interim results for the six months ending June 30, 2022[42]. - The board of directors decided not to declare an interim dividend for the first half of 2022[43]. Research and Development - Research and development expenses rose significantly to CNY 45,693,691, compared to CNY 23,001,179 in the same period last year, reflecting a 98.5% increase[50]. - The company plans to continue focusing on R&D and market expansion strategies to enhance future growth prospects[50]. Employee Information - As of June 30, 2022, the company had a total of 19,451 employees, including overseas staff[41]. - The company adopted a comprehensive compensation system to align employee remuneration with organizational goals[41]. - The company has implemented various training programs to enhance employee skills and leadership capabilities[41]. Financial Reporting - The financial statements were approved by the board of directors on August 24, 2022, ensuring compliance with regulatory requirements[67]. - The financial report reflects the company's financial position and operating results as of June 30, 2022, in accordance with the requirements of accounting standards[74]. - The company adheres to the accounting standards issued by the Ministry of Finance and complies with relevant disclosure requirements under the Hong Kong Companies Ordinance and the Listing Rules[69]. Accounting Policies - The company recognizes goodwill as an asset in business combinations when the acquisition cost exceeds the fair value of identifiable net assets acquired[74]. - The company has established specific accounting policies and estimates based on its operational characteristics, including methods for bad debt provisions and asset depreciation[74]. - The company recognizes employee benefits liabilities for retirement and severance benefits, which are accounted for in the current profit or loss[23]. Taxation - The company’s subsidiaries in the western development regions benefit from a reduced corporate income tax rate of 15% from 2021 to 2030[160]. - The company’s subsidiary in Cambodia has been in a tax-exempt period from 2013 to 2021 according to local tax laws[160]. - The company’s subsidiaries engaged in environmental engineering projects enjoy a tax exemption for the first three years and a 50% reduction for the next three years[160]. Financial Assets and Liabilities - Financial assets are recognized when the group becomes a party to the financial instrument contract, with regular purchases or sales recognized on the transaction date[79]. - The company manages financial assets with the objective of collecting contractual cash flows, which includes cash, receivables, and long-term receivables[80]. - Financial liabilities are classified based on the contractual terms and economic substance, not just legal form, at initial recognition[92]. Inventory and Receivables - The inventory balance as of June 30, 2022, is RMB 3,983,760,089, with a provision for inventory impairment of RMB 103,098,375[191]. - The total accounts receivable at the end of the period is RMB 1,546,687,230, an increase from RMB 1,120,810,092 at the beginning of the period, representing a growth of approximately 38%[169]. - The provision for bad debts totals RMB 209,246,897, which is an increase of RMB 45,016,957 from the beginning balance of RMB 164,229,940[177].