Financial Performance - Total sales volume of cement and clinker decreased by 8.3% to 8.75 million tons in the first half of 2024 compared to 9.54 million tons in the same period of 2023[4]. - Revenue for the first half of 2024 was RMB 3,701.8 million, down 15.8% from RMB 4,398.3 million in the first half of 2023[4]. - Gross profit decreased by 20.2% to RMB 985.1 million, compared to RMB 1,234.2 million in the previous year[4]. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first half of 2024 was RMB 1,283.9 million, a decline of 15.4% from RMB 1,517.2 million in the same period last year[4]. - Net profit attributable to the owners of the company fell by 27.3% to RMB 386.9 million, down from RMB 532.2 million in the first half of 2023[4]. - The company reported a revenue decrease of 15.8% from RMB 4,398,300,000 in H1 2023 to RMB 3,701,800,000 in H1 2024[31]. - Cement sales volume declined by 9.9% from approximately 9,140,000 tons in H1 2023 to about 8,250,000 tons in H1 2024[31]. - Gross profit fell by RMB 249,100,000 or 20.2% to RMB 985,100,000 in H1 2024, with the gross margin decreasing from 28.1% to 26.6%[34]. - The company reported a net profit for the six months ended June 30, 2024, of RMB 386,882,000, a decrease from RMB 532,160,000 for the same period in 2023, representing a decline of approximately 27.3%[108]. Sales and Market Trends - The average selling price of cement in Shaanxi, Guizhou, and Xinjiang provinces decreased due to a decline in demand[6]. - In the first half of 2024, the sales volume in Shaanxi decreased by approximately 8.9% to about 5,950,000 tons, with an average selling price dropping by around 19.5% to RMB 244 per ton[8]. - In Xinjiang, the sales volume fell by about 11.4% to approximately 780,000 tons, with an average selling price decreasing to about RMB 409 per ton[9]. - In Guizhou, the sales volume decreased by approximately 32.1% to about 360,000 tons, while the average selling price rose to about RMB 404 per ton[9]. - The Mozambique plant's sales volume slightly declined by 2.7% to approximately 720,000 tons, with the average selling price increasing to about RMB 681 per ton[10]. - The Congo plant recorded an average selling price of approximately RMB 1,049 per ton, with sales volume reaching 334,000 tons[11]. - In Ethiopia, cement sales volume decreased by 36.4% to approximately 420,000 tons for the six months ended June 30, 2024, compared to 660,000 tons for the same period in 2023[12]. - The average selling price of cement in Ethiopia was approximately RMB 842 per ton for the six months ended June 30, 2024, down from RMB 875 per ton for the same period in 2023[12]. Production and Capacity - The total production capacity reached 34.3 million tons, including 21 new suspension preheater cement production lines[6]. - The company's production capacity utilization rate in Shaanxi was approximately 55%, down from 60% in the same period of 2023[8]. - The company is set to launch a new cement production line in Ethiopia with a capacity of 5,000,000 tons per year, expected to commence operations in Q3 2024[26]. - In Uzbekistan, a new production line with a capacity of 2,500,000 tons per year is scheduled to start in May 2024, capitalizing on the country's growing cement demand[27]. Cost Management and Efficiency - The company continues to implement efficiency improvements and cost reduction measures to mitigate the impact of declining cement demand[6]. - The average cost of coal decreased by approximately 13.4% to about RMB 760 per ton in H1 2024, contributing to lower production costs[33]. - The company plans to implement multiple cost reduction measures in 2024, aiming to control sales costs and administrative expenses[28]. - The overall profit remained stable in the first half of 2024, attributed to effective cost control measures implemented by the company[7]. Assets and Liabilities - Total assets increased by 9.3% to RMB 35,953.5 million as of June 30, 2024, compared to RMB 32,902.9 million at the end of 2023[4]. - The company maintained a stable cash flow with a net debt of RMB 8,896.3 million, an increase of 3.6% from RMB 8,556.1 million[4]. - The debt-to-equity ratio was 60.1% as of June 30, 2024, slightly down from 60.4% as of December 31, 2023[46]. - The company’s total liabilities increased to RMB 11,456,189 thousand from RMB 9,809,655 thousand, reflecting a rise of 16.7%[81]. - The company’s equity attributable to owners increased to RMB 12,715,749 thousand from RMB 12,283,445 thousand, a growth of 3.5%[81]. Future Outlook - In 2024, the company anticipates a moderate increase in demand in the second half, driven by new large-scale infrastructure projects starting in 2024[23]. - The company expects stable prices in 2024 due to stringent environmental policies limiting supply[23]. - The company projects that sales volume and average prices in Mozambique will increase, with a focus on cement and clinker sales in central and overseas markets[25]. - The company anticipates that the real estate market adjustments will continue to impact cement demand, but it will actively support reasonable financing needs in the sector[21]. Environmental and Social Responsibility - The company continues to implement strict environmental policies, including intermittent production halts during off-peak seasons to balance supply and demand[8]. - The group has installed waste heat recovery systems in 15 out of 21 production lines, which help reduce electricity consumption by approximately 30%[16]. - The group has reduced CO2 emissions by approximately 22,000 tons per million tons of cement produced due to the implementation of energy-saving measures[16]. - The company made charitable donations totaling RMB 3,100,000 for the six months ended June 30, 2024, including support for underprivileged students and funding for educational, sports, and cultural activities[19]. Corporate Governance and Shareholder Information - The company is committed to maintaining high standards of corporate governance and has complied with all code provisions of the corporate governance code during the reporting period[69]. - The company aims to enhance transparency and accountability to shareholders through effective board leadership and internal controls[69]. - The company has not yet established a foreign currency hedging policy but will continue to monitor foreign exchange risks[49]. - Major shareholders holding 5% or more of the company's issued share capital will be listed in accordance with regulatory requirements[55].
西部水泥(02233) - 2024 - 中期财报