Market Overview - The cement sector experienced a decline of 0.71% on September 10, with Conch Cement leading the drop [1] - The Shanghai Composite Index closed at 3812.22, up 0.13%, while the Shenzhen Component Index closed at 12557.68, up 0.38% [1] Individual Stock Performance - Notable gainers in the cement sector included: - Huanzi House with a closing price of 3.69, up 3.07% [1] - Guotong Co. with a closing price of 13.19, up 2.57% [1] - Xizang Tianlu with a closing price of 13.42, up 2.36% [1] - Major decliners included: - Conch Cement with a closing price of 24.08, down 1.75% [2] - Shangfeng Cement with a closing price of 8.67, down 1.70% [2] - Sichuan Jinding with a closing price of 9.89, down 1.59% [2] Trading Volume and Capital Flow - The cement sector saw a net outflow of 79.45 million yuan from institutional investors, while retail investors contributed a net inflow of 53.35 million yuan [2] - The trading volume for the cement sector was significant, with Conch Cement alone accounting for a transaction amount of 567 million yuan [2] Capital Flow Analysis - Key capital flow insights include: - Xizang Tianlu had a net outflow of 30.84 million yuan from institutional investors [3] - West Construction saw a net inflow of 10.07 million yuan from institutional investors [3] - Huanzi House experienced a net inflow of 5.84 million yuan from institutional investors [3]

2025半年度報告 (A 股 : 600585 H 股 : 00914) Anhui Conch Cement Company Limited 半年度報告 Anhui Conch Cement Company Limited (A Share: 600585 H Share: 00914) 2025 INTERIM REPORT 重要提示 一、 本公司董事會及董事、高級管理人員保證本報告內容的真實、準確、完整，不存在虛假記載、 誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 安徽海螺水泥股份有限公司 Interim Report 2025 二、 公司全體董事出席第十屆董事會第二次會議。 重要提示 安徽海螺水泥股份有限公司 半年度報告2025 1 三、 本半年度報告未經審計。 四、 本公司負責人楊軍先生、主管會計工作負責人虞水先生及會計機構負責人凡展先生聲明：保證 本報告中財務報告的真實、準確、完整。 五、 經本公司第十屆董事會第二次會議審議的2025年度中期利潤分配方案為：每股派發現金紅利 0.24元人民幣（含稅），不實施公積金轉增股本。 六、 前瞻性陳述的風險聲明：本半年度報告涉及的未來經營發展規劃等前 ...

Core Insights - The cement sector experienced a slight increase of 0.12% on September 9, with Conch Cement leading the gains [1] - The Shanghai Composite Index closed at 3807.29, down 0.51%, while the Shenzhen Component Index closed at 12510.6, down 1.23% [1] Cement Sector Performance - Conch Cement (600585) closed at 24.51, up 1.62% with a trading volume of 431,300 shares and a transaction value of 1.05 billion [1] - Other notable performers included: - Ta Pai Group (002233) at 9.14, up 1.33% [1] - Jinyou Group (601992) at 1.63, up 1.24% [1] - Fujian Cement (600802) at 5.41, up 0.74% [1] - Conversely, Wan Nian Qing (000789) closed at 5.92, down 0.17% [1] - The overall trading volume and transaction values for the cement sector were significant, indicating active market participation [1] Capital Flow Analysis - The cement sector saw a net outflow of 316 million from institutional investors, while retail investors contributed a net inflow of 350 million [2] - The detailed capital flow for specific stocks showed: - Huaxin Cement (600801) had a net outflow of 15.14 million from institutional investors [3] - Jinyou Group (601992) experienced a net inflow of 7.93 million from institutional investors [3] - Wan Nian Qing (000789) had a net inflow of 6.82 million from institutional investors [3]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a total revenue of 41.3 billion yuan in H1 2025, a year-on-year decrease of 9%, while the net profit attributable to shareholders increased by 31% to 4.37 billion yuan [1] - In Q2 2025, the company experienced a significant recovery in profit margins, achieving a revenue of 22.2 billion yuan, down 8% year-on-year, and a net profit of 2.56 billion yuan, up 40% year-on-year and 41% quarter-on-quarter [2] - The company’s sales volume remained stable, with a total net sales volume of 13 million tons in H1 2025, a slight decrease of 0.1% year-on-year, and a main business revenue of 34.8 billion yuan, an increase of 2% year-on-year [2] - The report highlights the steady expansion of the company's industrial chain, including successful project signings and overseas acquisitions that enhance market competitiveness [3] - The outlook for the cement industry in the second half of 2025 is positive, driven by government initiatives to accelerate infrastructure projects and optimize market competition [3] Financial Summary - The projected revenues for 2025 to 2027 are 95.4 billion yuan, 98.6 billion yuan, and 101.9 billion yuan, reflecting year-on-year growth of 5%, 3%, and 3% respectively [4] - The net profit attributable to shareholders is expected to be 9.5 billion yuan, 10.6 billion yuan, and 11.6 billion yuan for the years 2025 to 2027, indicating year-on-year growth of 24%, 11%, and 10% respectively [4] - The report provides a detailed financial forecast, including earnings per share projected at 1.80 yuan, 2.00 yuan, and 2.19 yuan for 2025 to 2027 [5]

Group 1 - The stock price of Conch Cement increased by 2.03% on September 9, reaching 24.61 CNY per share, with a trading volume of 677 million CNY and a turnover rate of 0.70%, resulting in a total market capitalization of 130.416 billion CNY [1] - Year-to-date, Conch Cement's stock price has risen by 6.68%, with a 1.86% increase over the last five trading days, a 1.36% increase over the last 20 days, and a 14.31% increase over the last 60 days [1] - As of June 30, 2025, Conch Cement reported a revenue of 41.292 billion CNY, a year-on-year decrease of 9.38%, while the net profit attributable to shareholders increased by 31.34% to 4.368 billion CNY [2] Group 2 - Conch Cement has distributed a total of 82.718 billion CNY in dividends since its A-share listing, with 16.656 billion CNY distributed in the last three years [3] - As of June 30, 2025, the number of shareholders of Conch Cement increased to 224,100, a rise of 7.12% compared to the previous period [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 193 million shares, and several ETFs, indicating a diversified institutional holding [3]

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [4][6]. Core Views - The company's profitability has improved on a quarter-on-quarter basis, driven by rising prices and declining fuel costs. The upcoming construction peak in September is expected to enhance market supply-demand dynamics, potentially leading to seasonal price increases in cement [4][6]. - The report forecasts the company's net profit attributable to shareholders for 2025-2027 to be 102 billion, 111 billion, and 117 billion CNY respectively [4]. Financial Performance Summary - In H1 2025, the company achieved revenue of 413 billion CNY, a year-on-year decrease of 9%, while net profit attributable to shareholders increased by 31% to 44 billion CNY [1]. - The cement and clinker business generated approximately 307 billion CNY in revenue, with a slight year-on-year increase of 1%. The average selling price per ton improved by 4 CNY to 244 CNY [2]. - The gross margin for the cement and clinker business rose to 28.7%, an increase of 6.9 percentage points year-on-year, with a per ton gross profit of 70 CNY, up by 18 CNY [2]. - The aggregate and ready-mixed concrete business saw revenues of approximately 21 billion CNY and 15 billion CNY respectively, with the latter showing a year-on-year increase of 29% [3]. Capacity and Production Summary - The company added 3.5 million tons of aggregate capacity in H1 2025, bringing total capacity to 167 million tons [3]. - The ready-mixed concrete business expanded its capacity by 5.25 million cubic meters, totaling 57.15 million cubic meters by the end of H1 2025 [3]. Profitability Metrics - The report estimates that the per ton net profit excluding non-recurring items was approximately 33 CNY in H1 2025, with a significant improvement in profitability metrics observed in Q2 2025 [3]. - The overall gross margin for the company is projected to improve, with EBITDA margins expected to rise from 14.0% in 2023 to 23.5% by 2027 [12].

Group 1 - Shenzhen Conch Green New Building Materials Co., Ltd. has been established with a registered capital of 30 million RMB [1] - The legal representative of the company is Li Guiqin [1] - The company's business scope includes sales of cement products, building materials, and non-metallic minerals and products [1] Group 2 - The company is jointly held by Conch Cement and its subsidiary Zhuhai Haizhong Trading Co., Ltd. [1]

Group 1 - Shenzhen Conch Green New Building Materials Co., Ltd. has been established with a registered capital of 30 million yuan [1] - The company's business scope includes sales of cement products, building materials, non-metallic minerals and products, and building decoration materials [1] - The company is jointly held by Conch Cement (600585) and others [1]

Summary of Conference Call on Conch Cement Industry Overview - The cement industry demand is nearing its bottom, with expectations of a narrowing decline over the next two to three years due to stable new construction in real estate, increased infrastructure, and rural self-built housing, leading to stable demand [2][4] - The cement industry has a significant overcapacity, with actual capacity around 2.2 billion tons against a designed capacity of 1.8 billion tons, resulting in a serious supply-demand imbalance [5] - Supply-side reforms are anticipated, with potential capacity reduction to around 1.6 billion tons, which could increase the capacity utilization rate from 50% to nearly 70%, significantly improving industry profitability [5][6] Financial Projections - The cement industry's profitability is expected to improve, with projected profits of approximately 24 billion yuan in 2024, over 30 billion yuan in 2025, and potentially reaching 40 billion to 50 billion yuan in the following years [2][6] - Conch Cement, as a leading enterprise, is expected to benefit significantly from these trends, with its profitability and profit contributions likely to increase [6] Carbon Trading Policy Impact - The gradual removal of free carbon quotas in the cement industry by 2027 will require companies to purchase carbon credits, favoring those with superior carbon emission control and ongoing technological upgrades, such as Conch Cement [7] Conch Cement's Competitive Advantages - Conch Cement has a low-cost advantage through its "T-shaped strategy," focusing on the Yangtze River region, with core production capacity concentrated in Anhui, achieving over 20% market share in East China and approximately 35% in the Yangtze River Delta [2][10] - The company maintains cost advantages in raw materials, fuel, depreciation, and labor, with costs per ton lower than industry leaders by about 30 yuan, and profits per ton exceeding industry levels by 20-30 yuan [11] Dividend Policy and Market Outlook - Conch Cement commits to maintaining a dividend payout ratio of over 50% for the next three years, with potential for this ratio to exceed 50% due to improved profitability and strong cash flow [3][15] - The stock price is expected to have further upside potential, with market capitalization projected to reach around 150 billion yuan [3][16] International Expansion - Conch Cement has established a presence in Central Asia and Southeast Asia, with plans to expand into Africa, currently holding nearly 30 million tons of overseas capacity, ranking first among Chinese enterprises [14] Conclusion - The cement industry is poised for gradual recovery, with Conch Cement positioned to leverage its competitive advantages and improve profitability, supported by favorable market conditions and strategic initiatives.

Group 1 - The company, Conch Cement (600585), announced plans to hold a semi-annual performance briefing on September 12, 2025 [1]