Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,583,798 thousand, a decrease of 35.4% compared to RMB 3,998,558 thousand in 2023[2]. - Gross profit for the same period was RMB 615,063 thousand, down 34.6% from RMB 940,131 thousand[2]. - Profit attributable to owners of the company was RMB 28,290 thousand, representing an 81.2% decline from RMB 150,521 thousand in the previous year[2]. - Basic earnings per share decreased to RMB 0.01 from RMB 0.05, reflecting an 81.2% drop[2]. - The company reported a pre-tax profit of RMB 30,881 thousand, significantly lower than RMB 155,619 thousand in the previous year[4]. - The company's profit before tax was approximately RMB 30.9 million, a decrease of RMB 124.7 million or about 80.2% compared to the same period in 2023[74]. - The net profit attributable to the company's owners was approximately RMB 28.3 million, a decrease of RMB 122.2 million or 81.2% year-on-year, with a net profit margin of 1.1%, down 2.7 percentage points from the same period in 2023[76]. Revenue Breakdown - Cement sales amounted to RMB 1,870,230 thousand, down 39.1% from RMB 3,077,482 thousand in the previous year[27]. - Revenue from cement sales was approximately RMB 1,870.2 million, down 39.2% from RMB 3,077.5 million year-on-year, with cement sales volume decreasing from approximately 12.0 million tons to 8.2 million tons, a decline of 31.4%[64]. - Revenue from limestone aggregate sales was approximately RMB 608.8 million, a decrease of RMB 123.8 million or 16.9% compared to RMB 732.6 million in the same period of 2023[64]. - The company's clinker sales revenue was approximately RMB 104.8 million, down 44.4% from RMB 188.5 million year-on-year, primarily due to a decrease in both sales volume and price[65]. Asset and Liability Overview - Total assets as of June 30, 2024, were RMB 37,423,201 thousand, a decrease of 7.8% from RMB 40,573,494 thousand at the end of 2023[2]. - Total liabilities decreased by 12.8% to RMB 21,611,245 thousand from RMB 24,787,427 thousand[2]. - Current assets were RMB 24,587,873 thousand, down 10.0% from RMB 27,326,926 thousand[2]. - As of June 30, 2024, the company's debt-to-asset ratio was 57.7%, a decrease of 3.4 percentage points from 61.1% at the end of 2023, primarily due to reduced borrowings[87]. - The company's cash and cash equivalents decreased from RMB 1,174.8 million at the end of 2023 to RMB 600.1 million as of June 30, 2024, mainly due to cash outflows from operating activities[82]. - Trade and other receivables decreased from RMB 19,606.2 million at the end of 2023 to RMB 17,572.3 million as of June 30, 2024, primarily due to reduced advances for raw material purchases[79]. - As of June 30, 2024, the net debt ratio decreased to 63.3%, down 16.0 percentage points from 79.3% on December 31, 2023[89]. Cost and Expenses - In the first half of 2024, the company's sales cost was approximately RMB 1,968.7 million, a decrease of RMB 1,089.7 million or 35.6% compared to the same period in 2023, primarily due to a decline in cement sales and lower procurement prices for raw coal and some materials[67]. - The gross profit for the first half of 2024 was approximately RMB 615.1 million, a decrease of RMB 325.1 million or 34.6% year-on-year, with a gross margin of 23.8%, remaining stable compared to the same period in 2023[68]. - Selling and distribution expenses decreased by RMB 48.4 million or 29.4% to approximately RMB 115.9 million in the first half of 2024, primarily due to reduced transportation costs[71]. - Administrative expenses were approximately RMB 361.3 million, a decrease of RMB 85.4 million or 19.1% compared to the same period in 2023, mainly due to reduced R&D expenses and cost-saving measures[72]. Market and Economic Conditions - The overall cement production in China for the first half of 2024 was 850 million tons, a decline of 10% compared to the previous year[61]. - The national GDP growth for the first half of 2024 was 5%, with fixed asset investment increasing by 3.9%, indicating a mixed economic environment affecting the construction materials sector[56]. - The domestic cement market demand remains weak, with a strong desire among companies to improve prices and profits in the second half of the year[108]. - The marginal improvement in cement demand is anticipated in the second half of the year due to the acceleration of special bonds and reconstruction needs in disaster-affected areas[106]. Strategic Initiatives - The company aims to reduce raw coal procurement costs through centralized purchasing and improve limestone mining management to lower costs[109]. - The company plans to respond to the industry's "anti-involution" initiative by maintaining staggered production to uphold market order[111]. - The focus on quality management is emphasized, with adherence to new industry standards to produce high-quality products[111]. - The company is committed to developing new cement products and enhancing its supply chain, including aggregates and prefabricated construction materials[111]. - The implementation of the new cement standard GB 175–2023 from June 1, 2024, is expected to improve industry supply-demand relationships by eliminating low-quality cement products[102]. Governance and Management - The company is actively seeking a new CEO following the resignation of the previous CEO in December 2015[113]. - The company has not declared an interim dividend for the reporting period ending June 30, 2023[116]. - The board of directors has reviewed the interim results for the six months ending June 30, 2023, which have not been audited[118]. - The company's shares have been suspended from trading since April 10, 2024, pending further notice[119].
中国天瑞水泥(01252) - 2024 - 中期业绩