Financial Performance - Total sales volume of cement and clinker increased by 4.3% to 9.54 million tons in the first half of 2023 compared to 9.15 million tons in the same period of 2022[4] - Revenue for the first half of 2023 was RMB 4,398.3 million, representing a 5.9% increase from RMB 4,152.3 million in the first half of 2022[4] - Gross profit decreased by 8.8% to RMB 1,234.2 million, with a gross margin of 28.1%, down from 32.6%[4] - EBITDA for the first half of 2023 was RMB 1,517.2 million, a decline of 10.2% from RMB 1,690.1 million in the previous year[4] - Net profit attributable to shareholders decreased by 19.1% to RMB 532.2 million, with basic earnings per share of RMB 0.098, down from RMB 0.121[4] - The overall profit stability in the first half of 2023 was attributed to cost control measures and efficiency improvements despite lower average selling prices in China[7] - The company reported a net profit of RMB 532,160,000 for the first half of 2023, a decrease from RMB 658,151,000 in the same period of 2022, representing a decline of approximately 19.1%[77] - The company reported a basic and diluted earnings per share of RMB 0.098, compared to RMB 0.121 in the previous year, a decline of about 18.9%[74] Sales and Market Trends - In the first half of 2023, the average selling price of cement in Shaanxi decreased by approximately 16.1% to RMB 303 per ton, compared to RMB 361 per ton in 2022[8] - Cement sales volume in Shaanxi slightly decreased by about 4.4% to approximately 6,530,000 tons, down from 6,830,000 tons in 2022[8] - In Xinjiang, cement sales volume decreased by 9.3% to approximately 880,000 tons, with an average selling price dropping to RMB 415 per ton from RMB 442 per ton in 2022[9] - In Guizhou, cement sales volume increased by approximately 35.9% to about 530,000 tons, with an average selling price of RMB 385 per ton, down from RMB 429 per ton in 2022[9] - The Mozambique plant's cement sales volume increased by 1.3% to approximately 740,000 tons, with an average selling price rising to RMB 638 per ton from RMB 509 per ton in 2022[10] - The Democratic Republic of the Congo's plant recorded an average selling price of RMB 1,509 per ton, with a sales volume of 39,000 tons, marking its first sales since the plant's launch[11] - In Ethiopia, the average selling price of cement was RMB 875 per ton, with a sales volume of 660,000 tons, achieving a capacity utilization rate of approximately 101%[12] - The company anticipates moderate demand growth in the second half of 2023, driven by several large infrastructure projects commencing[25] - The government is expected to maintain stable prices in the second half of 2023 due to stricter environmental policies limiting supply[25] Cost Management and Efficiency - The company continues to implement efficiency improvements and cost-saving measures to maintain profitability amid challenging market conditions[6] - The company is implementing cost reduction measures in 2023 to control sales costs and administrative expenses[31] - The average cost of coal decreased from approximately RMB 980 per ton in H1 2022 to RMB 975 per ton in H1 2023[36] - The company has installed waste heat recovery systems in 14 out of 20 production lines, reducing electricity consumption by approximately 30% and CO2 emissions by about 22,000 tons per million tons of cement produced[16] - The company has achieved a 60% reduction in nitrogen oxide (NOx) emissions per ton of clinker through the installation of De-NOx equipment across all plants in Shaanxi, Xinjiang, and Guizhou provinces[16] - The company has completed upgrades to meet new particulate matter emission standards across all plants, enhancing compliance with air pollution regulations in the cement industry[16] Assets and Liabilities - Total assets increased by 3.4% to RMB 31,266.0 million, while total liabilities rose by 9.2% to RMB 8,174.6 million[5] - The net debt-to-equity ratio increased to 60.1%, up from 55.9%[5] - The company's total liabilities increased to RMB 9,960,894 thousand from RMB 9,474,996 thousand, reflecting a rise of approximately 5.1%[76] - The company's net asset value rose to RMB 13,595,719 thousand from RMB 13,391,751 thousand, indicating an increase of about 1.5%[76] Employee and Governance - As of June 30, 2023, the company employed 8,780 full-time employees, an increase from 7,299 in the previous year[20] - Employee benefits expenses amounted to RMB 392,700,000 for the first half of 2023, compared to RMB 381,800,000 in the same period of 2022[20] - The company has established a Remuneration Committee to review the remuneration policies for directors and senior management[68] - The Nomination Committee is responsible for identifying and recommending candidates for the board[69] - The company is committed to maintaining high standards of corporate governance and transparency to maximize shareholder returns[65] Future Outlook and Strategy - The company aims to enhance its international development strategy and improve overseas project management mechanisms[24] - The focus on green and low-carbon sustainable development will drive increased investment in pollution reduction and energy-saving technologies[24] - The company plans to optimize its governance structure and enhance talent development strategies to support high-quality growth[24] - The company plans to start production at the new cement plant in Ethiopia with a capacity of 5,000,000 tons per year in Q1 2024[29] - A new cement production line in Uzbekistan is expected to produce 2,400,000 tons annually, also starting in Q1 2024[30] Shareholder Information - As of June 30, 2023, Zhang Jimin holds 1,756,469,900 shares, representing 32.29% of the company's issued share capital[49] - As of June 30, 2023, Anhui Conch Cement Co., Ltd. holds 1,584,849,970 shares, representing 29.14% of the company's issued share capital[52] - The total number of unexercised options under the post-IPO share option plan is 46,600,000 shares, which is approximately 0.86% of the company's issued share capital as of the mid-term report date[57] - The maximum number of shares that can be issued under the post-IPO share option plan is capped at 411,533,185 shares, equivalent to 10% of the issued share capital as of August 23, 2010[57] - The company aims to incentivize eligible participants through the post-IPO share option plan to enhance performance and retain talent[55] Compliance and Audit - The company’s financial statements for the six months ended June 30, 2023, were reviewed by Deloitte, confirming no significant issues were found[73] - The board confirmed compliance with all corporate governance code provisions as per the Hong Kong Stock Exchange Listing Rules for the six months ended June 30, 2023[65] - The Audit Committee has reviewed the unaudited consolidated interim results for the six months ended June 30, 2023[67]
西部水泥(02233) - 2023 - 中期财报