Sales Volume and Revenue - Total cement and clinker sales volume increased by 6.2% to 20.5 million tons in 2023[2] - Cement sales volume rose by 7.0% to 19.8 million tons in 2023[2] - Aggregate sales volume decreased by 12.2% to 4.05 million tons in 2023[2] - Commercial concrete sales volume grew by 9.8% to 1.91 million cubic meters in 2023[2] - Revenue increased by 6.3% to RMB 9,020.9 million in 2023[2] - Revenue from cement and related products sales increased to 8,710,845 thousand RMB in 2023, up from 8,153,177 thousand RMB in 2022[20] - Revenue from construction and installation services decreased significantly to 14,370 thousand RMB in 2023 from 93,882 thousand RMB in 2022[20] - Sales of plastic bags dropped to 32,474 thousand RMB in 2023 from 54,665 thousand RMB in 2022[20] - Revenue from trading cement-related raw materials rose to 46,115 thousand RMB in 2023 from 17,220 thousand RMB in 2022[20] - Sales of gypsum generated 45,522 thousand RMB in 2023, with no revenue reported in 2022[20] - Other revenues slightly increased to 171,575 thousand RMB in 2023 from 170,191 thousand RMB in 2022[20] - Total revenue for 2023 reached 9,020,901 thousand RMB, up from 8,489,135 thousand RMB in 2022[20] - Revenue increased by 6.3% from RMB 8,489,100,000 in 2022 to RMB 9,020,900,000 in 2023[101] - Cement sales volume increased by 7.0% from 18,500,000 tons in 2022 to 19,800,000 tons in 2023[101] - Average cement price slightly increased from RMB 358 per ton in 2022 to RMB 360 per ton in 2023[101] Profit and Loss - Gross profit rose by 12.8% to RMB 2,460.0 million in 2023[2] - EBITDA decreased by 7.2% to RMB 2,948.6 million in 2023[2] - Net profit attributable to owners of the company dropped by 65.3% to RMB 421.3 million in 2023[2] - Pre-tax profit for the year was RMB 954,309 thousand, after adjustments for various items including goodwill impairment loss of RMB 69,587 thousand and losses from the disposal of a subsidiary of RMB 255,651 thousand[25] - The company recorded a net loss of RMB 277,668 thousand in 2023, primarily due to goodwill impairment losses of RMB 69,587 thousand and foreign exchange gains of RMB 45,601 thousand[40] - Net profit attributable to the company's owners decreased to RMB 421.3 million in 2023 from RMB 1,214.7 million in 2022[113] - Gross profit increased by RMB 278.2 million or 12.8% to RMB 2.46 billion, with gross margin rising from 25.7% to 27.3%[104] - Other income decreased by 69.0% to RMB 142.7 million, primarily due to a reduction in government subsidies by RMB 308.6 million or 88.2%[105] - Administrative expenses increased by 31.7% to RMB 796.4 million, driven by higher costs related to African business development[106] - Sales and marketing expenses rose by 76.1% to RMB 132.4 million, mainly due to increased expenses for property sales and new African business activities[106] - Other expenses increased by RMB 135.5 million to RMB 200.4 million, largely due to higher business development activities and an administrative penalty of RMB 119.6 million[107] - Other losses increased by RMB 225.2 million to RMB 277.7 million, driven by impairment losses on receivables and goodwill, and gains from the sale of a joint venture[108] - Expected credit loss impairment decreased by RMB 50.4 million to RMB 18.5 million, with a reversal of impairment of RMB 3.8 million[109] - Interest income decreased by RMB 80.7 million to RMB 88.2 million, primarily due to a decline in loan business and reduced interest from joint ventures[110] - Financing costs decreased by RMB 108.8 million or 26.1% to RMB 307.8 million, mainly due to increased capitalized interest on construction projects[111] - Income tax expenses increased by RMB 99.4 million to RMB 268.6 million in 2023, compared to RMB 169.2 million in 2022[112] Assets and Liabilities - Total assets increased by 8.8% to RMB 32,902.9 million in 2023[3] - Net debt rose by 14.3% to RMB 8,556.1 million in 2023[3] - Property, plant, and equipment increased to RMB 20,809,466 thousand from RMB 18,195,355 thousand, reflecting a growth of 14.4%[10] - Cash and cash equivalents decreased to RMB 922,662 thousand from RMB 1,424,275 thousand, a decline of 35.2%[10] - Total assets minus current liabilities rose to RMB 23,093,195 thousand from RMB 20,764,257 thousand, indicating an 11.2% increase[11] - Non-current liabilities increased to RMB 8,925,245 thousand from RMB 7,372,506 thousand, a growth of 21.1%[11] - Total equity grew to RMB 14,167,950 thousand from RMB 13,391,751 thousand, reflecting a 5.8% increase[11] - Trade and other receivables and prepayments increased to RMB 3,175,323 thousand from RMB 2,990,695 thousand, a 6.2% rise[10] - Borrowings under current liabilities rose to RMB 3,632,813 thousand from RMB 3,156,533 thousand, a 15.1% increase[11] - Deferred tax assets decreased to RMB 165,980 thousand from RMB 190,639 thousand, a decline of 12.9%[10] - Total assets increased by 8.8% to RMB 32,902.9 million in 2023, while total equity increased by 5.8% to RMB 14,168.0 million[114] - Net debt increased to RMB 8,556.1 million in 2023 from RMB 7,487.1 million in 2022[114] - Net gearing ratio (net debt divided by equity) increased to 60.4% in 2023 from 55.9% in 2022[115] - Capital expenditures totaled RMB 3,986.1 million in 2023, primarily for maintenance, upgrades, and new production facilities in Ethiopia, the Democratic Republic of Congo, and Uzbekistan[116] - The company's total pledged assets as collateral for trade finance and bank loans amounted to RMB 6,473.5 million at the end of 2023, up from RMB 4,195.2 million in 2022[73] - The company's total pledged bank deposits increased to RMB 1,008.7 million in 2023 from RMB 561.3 million in 2022[73] - The company's property, plant, and equipment pledged as collateral increased to RMB 4,726.5 million in 2023 from RMB 3,380.4 million in 2022[73] Market and Segment Performance - China market external sales revenue was RMB 6,250,867 thousand, while overseas market external sales revenue was RMB 2,770,034 thousand, totaling RMB 9,020,901 thousand[25] - China market segment profit was RMB 355,025 thousand, and overseas market segment profit was RMB 1,014,779 thousand, totaling RMB 1,369,804 thousand[25] - Depreciation and amortization for property, plant, and equipment in the China market was RMB 964,477 thousand, and in the overseas market was RMB 305,400 thousand, totaling RMB 1,269,877 thousand[30] - Interest income for the China market was RMB 82,556 thousand, and for the overseas market was RMB 5,633 thousand, totaling RMB 88,189 thousand[30] - Financing costs for the China market were RMB 201,888 thousand, and for the overseas market were RMB 105,951 thousand, totaling RMB 307,839 thousand[30] - The company restructured its internal reporting framework, changing the basis of segment reporting from operational location to market location[22] - The company's segment reporting is based on the China market and overseas market, in accordance with IFRS 8[23] - The company's segment profit excludes items such as fair value changes of equity instruments, goodwill impairment losses, and central administrative expenses[27] - The company does not present segment assets and liabilities as the highest operational decision-maker does not regularly review this information for resource allocation and performance evaluation[28] - Total revenue for 2023 reached RMB 9,020,901 thousand, compared to RMB 8,489,135 thousand in 2022, with significant growth in the African market from RMB 1,130,732 thousand to RMB 2,710,740 thousand[34] - Depreciation and amortization expenses for property, plant, and equipment amounted to RMB 1,225,683 thousand, with the majority (RMB 1,005,777 thousand) attributed to the Chinese market[32] - Non-current assets in Africa increased to RMB 12,298,744 thousand in 2023, up from RMB 9,494,177 thousand in 2022, reflecting the company's expansion in the region[36] - The company's sales volume in Mozambique increased by 4.9% in 2023 compared to 2022, while sales in the Democratic Republic of Congo and Ethiopia contributed approximately 1.53 million tons of cement[74] - The company's average selling price in China declined in 2023 due to a decrease in cement demand, particularly in Shaanxi, Guizhou, and Xinjiang[74] - Cement sales in Shaanxi decreased by 4.1% to approximately 14.1 million tons in 2023, with the average price dropping by 17.5% to RMB 269 per ton[78] - In Xinjiang, cement sales increased by 20.3% to approximately 1.96 million tons in 2023, with the average price slightly decreasing to RMB 415 per ton[79] - In Guizhou Province, cement sales increased by 15.4% to approximately 1.05 million tons in 2023, with the average price dropping to RMB 369 per ton[79] - In Mozambique, cement and clinker sales increased by 4.9% to 1.49 million tons in 2023, with the average price rising to RMB 663 per ton[80] - The Great Lake plant in the Democratic Republic of Congo has a daily production capacity of 3,500 tons of clinker and an annual cement production capacity of 1,500,000 tons, with an expected start of production in December 2022[81] - The Great Lake plant achieved an average selling price of RMB 1,272 per ton and sold 167,000 tons of cement in 2023, with a capacity utilization rate of 11%[81] - The Ethiopia plant, acquired in 2022, has an annual production capacity of 1,300,000 tons and achieved an average selling price of RMB 872 per ton and sales of 1,360,000 tons in 2023, with a capacity utilization rate of 104%[82] Environmental and Sustainability Initiatives - The company installed waste heat recovery systems in 13 out of 19 production lines, reducing electricity consumption by 30% and CO2 emissions by 22,000 tons per million tons of cement[83] - The company reduced NOx emissions by 60% per ton of clinker in its plants in Shaanxi, Xinjiang, and Guizhou provinces through the installation of De-NOx equipment[83] - The company's Fuping plant has a municipal waste treatment facility with an annual capacity of 100,000 tons, operational since March 2016[84] - The company's Mianxian plant has a solid waste treatment facility with an annual capacity of 16,500 tons, operational since October 2017[84] - The company's Moyu plant has a solid waste treatment facility with an annual capacity of 80,000 tons, operational since August 2022[84] - The company developed an "Environmental Protection Regulations Standards Checklist" and conducted environmental inspections and training for leadership[85] - The company's safety and environment department conducted quarterly checks on self-monitoring reports, pollutant discharge permits, and environmental management accounts[85] - The company has renovated all Chinese factories into eco-friendly "garden-style" factories and is further developing them to comply with environmental policies[86] - The green limestone mining project, including land reclamation and mine greening, has commenced construction to adhere to environmental regulations[86] - The company is upgrading its facilities to meet new NOx and particulate emission standards and is promoting green mining projects[100] Financial and Operational Costs - Sales cost increased by 4.0% from RMB 6,307,300,000 in 2022 to RMB 6,560,100,000 in 2023[102] - Coal cost decreased by 15.5% from RMB 1,039 per ton in 2022 to RMB 878 per ton in 2023[102] - Total raw material cost increased by 17.8% despite only a 7.0% increase in cement sales volume[103] - Employee total cost increased by 18.9% due to increased production capacity[103] - Employee costs rose to RMB 933,081 thousand in 2023, up from RMB 776,562 thousand in 2022, with salaries and allowances making up the majority at RMB 865,719 thousand[46] - The company's R&D costs recognized as expenses decreased to RMB 335,335 thousand in 2023 from RMB 380,304 thousand in 2022, indicating a shift in R&D expenditure allocation[46] - Administrative penalty provisions increased substantially to RMB 119,616 thousand in 2023 from RMB 29,778 thousand in 2022, reflecting higher regulatory compliance costs[46] - The company's inventory cost recognized as expenses increased to RMB 5,871,954 thousand in 2023 from RMB 5,620,777 thousand in 2022, indicating higher production or procurement costs[46] - The company employed 8,297 full-time employees in 2023, up from 7,736 in 2022[117] - Employee benefits expenses increased to RMB 933.1 million in 2023 from RMB 776.6 million in 2022[117] Future Plans and Strategies - The company plans to gradually reduce capital allocation and scale down its financing lease business[87] - In 2024, infrastructure investment is expected to continue supporting cement demand, while real estate investment remains low but may improve due to policy adjustments[89] - The company will focus on international development, risk control, and cost reduction strategies in 2024[90] - The company plans to accelerate smart factory construction and improve intelligent manufacturing levels[91] - The company will strengthen talent development and optimize its workforce structure to support sustainable growth[91] - The company expects stable prices in 2024 due to limited supply caused by stricter environmental policies in Shaanxi[92] - Multiple large infrastructure projects in Shaanxi, including intercity railways and highways, are expected to commence in 2024[92] - The company anticipates stable performance in southern Shaanxi due to reasonable infrastructure projects and orderly supply[92] - In Xinjiang, the company expects stable market conditions with increased demand from ongoing infrastructure projects, including a 2,000,000-ton capacity plant in southern Xinjiang[93] - The company forecasts improved average selling prices and profit margins in 2024 due to a shift in production strategy towards higher-value specialty cement[93] - In Mozambique, the company plans to focus on cement and clinker sales in the central and northern regions, as well as exports to South Africa, Zimbabwe, and Madagascar in 2024[94] - The company expects strong demand in the Democratic Republic of Congo, with its Great Lakes plant aiming to capture the market through stable quality and competitive pricing[94] - Ethiopia's strong cement demand is driven by major projects in Addis Ababa, Amhara, and Oromia regions, with expected increases in both sales volume and average selling prices[95] - The company is constructing a new 10,000-ton per day clinker production line in Ethiopia, with an annual cement production capacity of 5,000,000 tons, expected to start operations in Q2 2024[96] - The Ethiopia project has received government support, including preferential income tax, land provision, and mining resources, positioning the company for long-term market expansion[96] - The company is constructing a new cement production line in Uzbekistan with a daily capacity of 6,000 tons of clinker, expected to start production in Q2 2024[98] - The company plans to implement cost control measures in 2024 to manage sales costs and administrative expenses[99] Corporate Governance and Compliance - The company applied new and revised International Financial Reporting Standards (IFRS) effective from January 1, 2023, with no significant impact on financial performance[12] - The company has not yet applied the temporary exception for the second pillar tax rules due to the absence of relevant legislation in its operating jurisdictions[13] - The company adopted revised International Financial Reporting Standards (IFRS) for the first time in the current year, with no significant impact on financial performance[16] - The company is evaluating the potential impact of the revised IAS 21 on its financial position and overseas operations, effective from January 1, 2025[19] - Revenue recognition for construction and installation services is based on the progress of service completion, while other revenues are recognized upon transfer of control to customers[21] - The company's financial assets and liabilities are primarily denominated in RMB, with some long-term payables and preferred notes in USD, and intercompany balances in non-convertible currencies such as Metical and Ethiopian Birr, exposing the company to significant foreign exchange risk[119] - The company has not established a foreign currency hedging policy but will continue to monitor and consider hedging foreign exchange risks as needed[119] - The company's credit risk primarily arises from trade receivables and loans, with measures in place to mitigate risks through credit assessments and regular reviews of receivables[120]
西部水泥(02233) - 2023 - 年度业绩