Financial Performance - For the six months ended June 30, 2024, revenue was RMB 2,689,407, a decrease of 34.5% compared to RMB 4,105,099 for the same period in 2023[9]. - Gross profit for the period was RMB 132,980, resulting in a gross profit margin of 5%, down from 16% in the previous year[9]. - The company reported a loss attributable to owners of RMB 404,853, compared to a profit of RMB 195,784 in the same period last year[9]. - The company incurred a loss before tax of RMB 223,643,000 compared to a profit of RMB 394,977,000 in the previous year, reflecting a negative swing of approximately 156.6%[12]. - The profit for the period attributable to the owners of the Company was a loss of RMB 404,853,000 for the six months ended June 30, 2024, compared to a profit of RMB 195,784,000 in the same period of 2023[41]. - For the six months ended June 30, 2024, the Group reported a net loss of RMB 411,205,000, a decrease of RMB 611,522,000 from a net profit of RMB 200,317,000 for the same period in 2023[73]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 19,311,003, a decrease from RMB 20,282,899 as of December 31, 2023[10]. - Total assets less current liabilities stood at RMB 17,330,070,000 as of June 30, 2024, down from RMB 18,065,333,000 at the end of 2023[16]. - The company’s net assets were reported at RMB 16,731,355,000, down from RMB 17,206,801,000 at the end of 2023, reflecting a decrease of about 2.8%[16]. - The Group's borrowings as of June 30, 2024, totaled RMB 973,000,000, a decrease from RMB 1,773,000,000 at the end of 2023[76]. - The Group reported a significant increase in trade and other payables, totaling RMB 982,946,000 as of June 30, 2024, compared to RMB 825,163,000 as of December 31, 2023[51]. Cash Flow - For the six months ended June 30, 2024, the net cash from operating activities was RMB 145,761, a significant decrease from RMB 803,936 in the same period of 2023[20]. - Cash and cash equivalents at the end of the period were RMB 8,612,854, a decrease from RMB 8,812,619 at the end of June 2023[20]. - The company reported a net decrease in cash and cash equivalents of RMB 643,695, compared to a decrease of RMB 87,829 in the prior year[20]. Market Conditions - The company is focusing on market expansion and new product development to improve future performance[6]. - Management anticipates a challenging market environment but remains committed to strategic initiatives to enhance operational efficiency[6]. - The total cement production in China decreased by 10% year-on-year to 850 million tonnes from January to June 2024[63]. - The real estate market continued to decline, impacting cement demand significantly in key urban markets[65]. - The decline in cement demand was exacerbated by extreme weather events and a slowdown in infrastructure investment growth[65]. Segment Performance - The cement business generated revenue of RMB 2,621,481, while the concrete business contributed RMB 67,926, indicating a decline in both segments compared to the previous year[25]. - The segment result for the cement business was a loss of RMB 203,521, and for the concrete business, a loss of RMB 14,924, leading to a total segment loss of RMB 218,445[27]. Expenses - Distribution and selling expenses decreased by 27% to RMB 163,167,000 from RMB 223,006,000 in 2023, due to lower transportation fees and handling charges[71]. - Administrative costs decreased by 10% to RMB 149,274,000 from RMB 165,969,000, mainly due to reduced employee compensation and benefits[71]. - The depreciation and amortization expense for the six months ended June 30, 2024, was RMB 387,040,000, down from RMB 419,769,000 in the same period of 2023, reflecting a decrease of approximately 8%[37]. Shareholder Information - As of June 30, 2024, Asia Cement holds a beneficial interest of approximately 67.73% in the Company, with an additional corporate interest of 5.34%, totaling 73.07% of the issued share capital[97]. - The total number of ordinary shares held by substantial shareholders includes 1,061,209,202 shares (67.73%) held by Asia Cement and 83,652,798 shares (5.34%) controlled by corporations, indicating significant ownership concentration[97]. - The Company did not recommend any dividend for the six months ended June 30, 2024, consistent with the previous year where no dividend was paid[107]. Corporate Governance - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and found compliance with applicable accounting standards[108]. - The Company has complied with all code provisions set out in the Corporate Governance Code during the six months ended June 30, 2024[109]. - The Nomination Committee is responsible for reviewing the structure and composition of the Board, currently comprising non-executive Directors[101].
亚洲水泥(中国)(00743) - 2024 - 中期财报