天山股份(000877) - 2024 Q2 - 季度财报

Company Overview & Financial Summary This section provides a corporate profile and a summary of key financial data, highlighting a significant performance decline in H1 2024 Company Profile Tianshan Materials Co, Ltd (000877.SZ) changed its name to reflect its national presence and extended industry chain - In 2024, the company changed its name from "Xinjiang Tianshan Cement Co, Ltd" to "Tianshan Materials Co, Ltd", while its stock abbreviation "Tianshan Shares" and code "000877" remained unchanged[10][11] Key Financial Data & Indicators The company's performance sharply declined in H1 2024, with revenue down 25.72% and a significant net loss of ¥3.41 billion Key Accounting Data and Financial Indicators | Indicator | Current Period | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 39,699,366,083.32 | 53,443,149,245.54 | -25.72% | | Net Profit Attributable to Shareholders (Yuan) | -3,413,688,995.56 | 141,747,878.89 | -2,508.28% | | Net Profit Attributable to Shareholders (Non-recurring) (Yuan) | -3,686,395,432.31 | -409,662,452.71 | -799.86% | | Net Cash Flow from Operating Activities (Yuan) | 1,524,362,206.38 | 8,610,510,795.59 | -82.30% | | Basic Earnings Per Share (Yuan/Share) | -0.394 | 0.0164 | -2,502.44% | | Weighted Average Return on Equity | -4.14% | 0.17% | -4.31% | | Total Assets (Yuan) | 294,934,855,348.62 | 294,722,350,439.35 | 0.07% | | Net Assets Attributable to Shareholders (Yuan) | 79,993,132,711.32 | 84,147,177,984.63 | -4.94% | - During the reporting period, non-recurring gains and losses totaled ¥273 million, primarily from government subsidies (¥254 million) and trust management fees (¥60 million)[13] Management Discussion & Analysis This section analyzes the operating environment, core business performance, financial position, and key risks faced by the company Operating Environment & Business Overview The building materials industry faced severe challenges from a macroeconomic slowdown, leading to a significant decline in the company's sales and profitability - In H1 2024, the cement industry experienced declining demand and low prices, with national cement output down 10% YoY to its lowest level since 2011[15] - The company's main business includes cement, clinker, ready-mix concrete, and aggregates, with annual capacities of 320 million tons, 380 million cubic meters, and 230 million tons, respectively[21] H1 2024 Sales Volume | Product | H1 2024 Sales | YoY Change | | :--- | :--- | :--- | | Cement | 94.44 million tons | -11.68% | | Clinker | 11.59 million tons | -21.30% | | Ready-mix Concrete | 34.26 million m³ | +1.51% | | Aggregates | 59.38 million tons | -6.38% | Core Competitiveness The company's core strengths lie in its national layout, integrated industry chain, scale advantages, and technological innovation capabilities - Core competitiveness stems from scale, industry chain advantages, technological innovation, group synergies, and brand services[27] - The company's market presence across 25 provinces, autonomous regions, and municipalities provides a regional and integrated layout that mitigates risks from local demand fluctuations[27] Main Business Analysis Main business revenue fell 25.72% to ¥39.7 billion, with declining gross margins across all product lines and regions except for overseas operations Business Segment Performance | Business Segment | Revenue (¥ billion) | YoY Change | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | By Product | | | | | | Cement & Clinker | 25.21 | -30.98% | 8.82% | -5.64% | | Ready-mix Concrete | 10.79 | -17.20% | 9.83% | -0.81% | | Aggregates | 2.34 | -9.07% | 34.92% | -2.23% | | By Region | | | | | | Eastern Region | 14.38 | -12.78% | 11.04% | -4.47% | | Central & Southern Region | 7.49 | -26.82% | 4.35% | -7.32% | | Northern Region | 8.30 | -39.39% | 13.55% | -0.98% | | Western Region | 9.20 | -27.53% | 14.52% | -2.70% | | Overseas Region | 0.34 | -1.35% | 43.93% | +4.01% | Assets & Liabilities Analysis Total assets remained stable at ¥294.94 billion, while long-term borrowings increased, raising their proportion of total assets to 23.33% - Total assets remained stable, increasing slightly by 0.07% from the beginning of the year, with fixed assets being the largest component at 39.08%[31] - Long-term borrowings increased, with their ratio to total assets rising from 21.15% to 23.33%, an increase of 2.18 percentage points[31] - As of the period end, ¥10.01 billion in assets were restricted, mainly consisting of cash for deposits and pledged fixed assets, intangible assets, and accounts receivable financing[34] Investment Analysis Investment activities continued but at a reduced scale, with a focus on major projects, strategic acquisitions, and debt financing - The investment amount for the reporting period was ¥6.01 billion, a decrease of 32.82% year-over-year[35] - The company is advancing the "Chizhou CNBM New Materials Co, Ltd Annual 40 Million Ton Aggregate Production Base Project" with a total investment of approximately ¥10.61 billion, which is still under construction[35][40] - Two major equity investments were completed: the acquisition of 100% of Xinjiang Bohai Cement for ¥994 million and the establishment of Xinjiang Tianfeng Investment Co, Ltd with a ¥210 million investment (70% stake)[38] - In H1 2024, the company raised ¥3 billion by issuing two tranches of technology innovation corporate bonds, all of which was used to repay subsidiary debts[42][43] Risks and Countermeasures The company faces risks from macroeconomic slowdown, carbon policies, and international operations, which it plans to mitigate through strategic initiatives - The company faces three core risks: 1 Demand fluctuation risk due to macroeconomic slowdown, especially the deep adjustment of the real estate market 2 Risk of increased environmental investment and accelerated inclusion in the national carbon trading market under "dual carbon" policies 3 Uncertainties in international operations, including political, economic, legal, and exchange rate risks[52][53][55] - Countermeasures include adhering to the "price-cost-profit" principle to promote price recovery, developing "Cement+" businesses (such as special cements) and international expansion to seek new growth, reducing costs through technological innovation and centralized procurement, and establishing a comprehensive dual-carbon planning and management system[53][54][56][57] Corporate Governance This section details changes in directors and senior management, dividend policy, and employee incentive plans during the reporting period Changes and Incentives for Directors, Supervisors, and Senior Management The company experienced board and management changes, decided against a semi-annual dividend, and continued its employee pension plan - During the reporting period, the company appointed Zhang Hua as Vice President, and independent director Zhan Lei resigned upon completing his six-year term, with Kong Weiping elected as the new independent director[60] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the first half of 2024[61] - As an employee incentive, the company implements an enterprise annuity plan, with ¥98.97 million accrued during this reporting period[62] Environmental & Social Responsibility (ESG) This section outlines the company's performance and initiatives in environmental protection and social responsibility Environmental Protection The company, a key polluter, faced several environmental penalties but invested ¥520 million in protection and advanced its carbon reduction projects - The company and its subsidiaries are classified as key pollutant-discharging units, holding 311 valid pollutant discharge permits and 269 fixed pollution source discharge registration receipts as of the period end[63][65][66] - During the reporting period, the company received 4 administrative penalties for environmental issues, with total fines of approximately ¥0.99 million, mainly related to dust control and excessive pollutant emissions[98] - In H1 2024, the company's environmental protection investment reached ¥520 million, and it paid ¥66.87 million in environmental taxes[96] - The company has made progress in carbon reduction, with Qingzhou Sinoma Cement commissioning the world's largest full-oxy combustion carbon capture demonstration line in the cement industry, capable of capturing 200,000 tons of CO₂ annually[100] Social Responsibility The company fulfilled its social duties through a 50.26% dividend payout ratio, employee development programs, and significant charitable contributions - The company values shareholder returns, implementing a dividend in May 2024 of ¥1.14 per 10 shares (tax included), representing a 50.26% payout ratio of net profit attributable to the parent company; cumulative dividends since listing are approximately ¥8.7 billion[102] - The company actively fulfilled its social responsibilities, with total donations of ¥29.02 million in H1 2024 and an investment of ¥4.2 million for poverty alleviation and rural revitalization[104][106] Important Matters This section covers the status of commitments, major related-party transactions, significant contracts, and other key corporate actions Commitment Performance The controlling shareholder requested an extension to resolve competition issues, while performance commitments from a 2021 asset restructuring were fulfilled - The controlling shareholder, China National Building Material Co, Ltd, and the actual controller, China National Building Material Group, have postponed their commitment to resolve the issue of inter-industry competition[108][109] - The performance commitment and impairment test compensation plan for the 2021 major asset restructuring have been fully implemented, with the relevant parties completing share buybacks and cash compensation[109][110] Major Related-Party Transactions The company engaged in substantial transactions with related parties, including ¥10.78 billion in purchases and ¥22.85 billion in borrowings from its controlling shareholder Related-Party Transactions | Related Party | Transaction Type | Transaction Content | Amount (¥ million) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | | China National Building Material Group Co, Ltd and its affiliates | Purchase of goods, receipt of services | Purchase of goods, receipt of services | 10,781.36 | 32.15% | | China National Building Material Group Co, Ltd and its affiliates | Sale of goods, provision of services | Sale of goods, provision of services | 374.49 | 0.94% | - The company has significant related-party borrowings with its controlling shareholder and actual controller; as of the period end, the outstanding loan balance from the controlling shareholder, China National Building Material Co, Ltd, was ¥22.85 billion, and from the actual controller, China National Building Material Group, was ¥122 million[123] - The company has substantial deposit and loan transactions with the related party, China National Building Material Group Finance Co, Ltd; as of the period end, the deposit balance was ¥6.57 billion and the loan balance was ¥4.85 billion[125] Major Contracts and Guarantees The company manages two cement firms under trust agreements and provided guarantees for subsidiaries totaling ¥7.44 billion, or 9.31% of its net assets - The company manages 100% equity of North Cement Co, Ltd and Gansu Qilianshan Cement Co, Ltd under trust, with a fixed annual management fee of ¥120 million for Qilianshan Cement[134][135] - As of the end of the reporting period, the company's total outstanding external guarantees (all for subsidiaries) amounted to ¥7.44 billion, representing 9.31% of the company's net assets[139] Other Major Matters The company terminated a planned ¥9.27 billion convertible bond issuance and a major acquisition, potentially impacting future financing and expansion - The company has terminated its planned issuance of convertible corporate bonds to unspecified investors, which aimed to raise up to ¥9.27 billion, and has withdrawn the application documents[145][146] - The company has terminated the major related-party transaction involving the acquisition of a controlling stake in the cement business of Ningxia Building Materials Group Co, Ltd[130] Share Capital Changes & Shareholder Information This section provides details on the company's shareholder structure, which is highly concentrated with its controlling shareholder holding 84.52% Shareholder Information As of the period end, the company had 85,441 shareholders, with a highly concentrated ownership structure dominated by institutional investors Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | :--- | | China National Building Material Co, Ltd | State-owned legal person | 84.52% | 7,322,283,976 | | Bank of Communications Financial Asset Investment Co, Ltd | State-owned legal person | 1.87% | 161,858,201 | | Anhui Conch Cement Co, Ltd | State-owned legal person | 0.86% | 74,074,074 | | Jiangxi Wannianqing Cement Co, Ltd | State-owned legal person | 0.56% | 48,091,895 | | ABC Financial Asset Investment Co, Ltd | State-owned legal person | 0.54% | 46,685,382 | | Hong Kong Securities Clearing Company Ltd | Overseas legal person | 0.50% | 43,119,550 | | Hebei Jinyu Dingxin Cement Co, Ltd | Domestic non-state-owned legal person | 0.43% | 37,037,037 | | Zhejiang Jianfeng Group Co, Ltd | Domestic non-state-owned legal person | 0.42% | 36,068,921 | | Beijing Huachen Century Investment Co, Ltd | Domestic non-state-owned legal person | 0.35% | 30,057,434 | | Wuhu Cinda Deleverage Investment Management Partnership | Domestic non-state-owned legal person | 0.34% | 29,629,629 | Bond-Related Information This section details the company's outstanding bonds and debt instruments, totaling ¥8.4 billion, with all issues maintaining stable credit ratings Corporate Bonds and Non-financial Enterprise Debt Financing Instruments As of the period end, the company and its subsidiaries had ¥8.4 billion in outstanding bonds and debt instruments, including ¥4 billion issued in H1 2024 Outstanding Bonds and Debt Instruments | Bond Name | Issue Date | Maturity Date | Outstanding Balance (¥ million) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | Corporate Bonds | | | | | | 22 Tianshan 01 | 2022-09-21 | 2025-09-22 | 2,000 | 2.68% | | 24 Tianshan K1 | 2024-04-22 | 2027-04-24 | 2,000 | 2.38% | | 24 Tiancai K3 | 2024-06-03 | 2029-06-05 | 1,000 | 2.44% | | 21 Nanfang 02 | 2021-04-08 | 2026-04-09 | 800 | 3.92% | | 21 Nanfang 05 | 2021-08-06 | 2024-08-09 | 800 | 3.07% | | 21 Nanfang 06 | 2021-08-06 | 2026-08-09 | 1,500 | 3.43% | | 23 Nanfang 01 | 2023-11-22 | 2026-11-23 | 500 | 2.95% | | 21 Xinan 02 | 2021-04-21 | 2026-04-22 | 600 | 3.94% | | Non-financial Enterprise Debt Financing Instruments | | | | | | 21 Xinan Cement MTN001 | 2021-08-19 | 2024-08-23 | 500 | 3.14% | | 23 Xinan Cement SCP003 | 2023-10-20 | 2024-07-19 | 500 | 2.52% | | 24 Xinan Cement MTN001 | 2024-05-30 | 2027-06-03 | 1,000 | 2.30% | Financial Report This section presents the consolidated financial statements, including the balance sheet, income statement, and cash flow statement for the period Consolidated Balance Sheet As of June 30, 2024, total assets were ¥294.94 billion, with a debt-to-asset ratio of 67.16% and a 4.94% decrease in equity due to current period losses Consolidated Balance Sheet Summary | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 65,424,599,583.38 | 65,894,439,296.16 | | Total Non-current Assets | 229,510,255,765.24 | 228,827,911,143.19 | | Total Assets | 294,934,855,348.62 | 294,722,350,439.35 | | Total Current Liabilities | 110,353,827,313.54 | 116,677,484,942.01 | | Total Non-current Liabilities | 87,731,746,562.67 | 77,502,883,045.77 | | Total Liabilities | 198,085,573,876.21 | 194,180,367,987.78 | | Total Equity Attributable to Parent Company | 79,993,132,711.32 | 84,147,177,984.63 | | Total Equity | 96,849,281,472.41 | 100,541,982,451.57 | Consolidated Income Statement In H1 2024, the company's revenue was ¥39.7 billion, a 25.72% decrease, resulting in a net loss attributable to parent company shareholders of ¥3.41 billion Consolidated Income Statement Summary | Item | H1 2024 (Yuan) | H1 2023 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 39,699,366,083.32 | 53,443,149,245.54 | | Total Operating Costs | 43,345,051,778.94 | 53,717,444,409.45 | | Of which: Operating Costs | 35,178,275,456.54 | 45,380,093,633.91 | | Operating Profit (Loss shown with "-") | -3,559,386,222.57 | 404,898,747.74 | | Total Profit (Total loss shown with "-") | -3,589,608,818.72 | 472,251,043.29 | | Net Profit (Net loss shown with "-") | -3,727,758,546.39 | 63,595,025.35 | | Net Profit Attributable to Parent Company Shareholders | -3,413,688,995.56 | 141,747,878.89 | Consolidated Cash Flow Statement Net cash from operating activities plummeted 82.30% to ¥1.52 billion, while net cash from financing activities increased, resulting in a net cash decrease of ¥1.13 billion Consolidated Cash Flow Statement Summary | Item | H1 2024 (Yuan) | H1 2023 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,524,362,206.38 | 8,610,510,795.59 | | Net Cash Flow from Investing Activities | -5,005,571,927.74 | -4,393,071,421.65 | | Net Cash Flow from Financing Activities | 2,349,774,089.22 | 1,465,593,706.36 | | Net Increase in Cash and Cash Equivalents | -1,128,637,688.86 | 5,679,528,501.37 |