亚洲水泥(中国)(00743) - 2025 - 中期业绩

Corporate Information This section provides basic corporate information for Asia Cement (China) Holdings Corporation, including its board and key personnel Corporate Information This chapter provides basic corporate information for Asia Cement (China) Holdings Corporation, including its key personnel and professional advisors - The company's Chairman is Mr Hsu, Hsu-Tung, and the Chief Executive Officer is Mr Chang, Chen-Kuen[8] - The company's auditor is Deloitte Touche Tohmatsu[12] Financial Highlights The company achieved a turnaround to profitability for the six months ended June 30, 2025, despite a revenue decline Financial Highlights The company turned from a loss to a profit in H1 2025, driven by a significant gross margin improvement despite lower revenue Semi-Annual Performance Overview | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 2,496 million | RMB 2,689 million | -7.2% | | Gross Profit | RMB 411 million | RMB 133 million | +209% | | Profit (Loss) for the period | RMB 117 million | (RMB 411) million | Turnaround | | Profit (Loss) attributable to owners | RMB 114 million | (RMB 405) million | Turnaround | | Gross Profit Margin | 16% | 5% | +11 p.p. | | Basic Earnings (Loss) Per Share | RMB 0.073 | (RMB 0.258) | Turnaround | Key Financial Ratios | Indicator | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 3.59 | 4.77 | Decreased | | Quick Ratio | 3.35 | 4.53 | Decreased | | Gearing Ratio | 0.13 | 0.14 | Slightly Decreased | Condensed Consolidated Financial Statements This section presents the Group's interim financial statements, including income, financial position, equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's profit for the period turned positive to RMB 117 million, driven by a significant reduction in cost of sales Core Data from the H1 2025 Income Statement | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 2,496,296 | 2,689,407 | | Cost of sales | (2,085,056) | (2,556,427) | | Gross Profit | 411,240 | 132,980 | | Profit (loss) before tax | 169,915 | (223,643) | | Profit (loss) for the period | 116,972 | (411,205) | | Profit (loss) attributable to owners | 114,418 | (404,853) | | Basic earnings (loss) per share | RMB 0.073 | (RMB 0.258) | Condensed Consolidated Statement of Financial Position The Group's total assets remained stable at RMB 19.63 billion, with a notable shift from cash to time deposits Key Balance Sheet Items | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Total Assets | 19,628,972 | 19,677,550 | | Non-current Assets | 11,686,695 | 8,891,959 | | Current Assets | 7,942,277 | 10,785,591 | | Total Liabilities | 2,632,005 | 2,797,555 | | Current Liabilities | 2,212,351 | 2,263,184 | | Non-current Liabilities | 419,654 | 534,371 | | Net Assets | 16,996,967 | 16,879,995 | | Total Equity | 16,996,967 | 16,879,995 | - Bank balances and cash decreased from RMB 8.88 billion to RMB 1.56 billion, while time deposits with original maturity over three months increased by RMB 7.50 billion, indicating a shift in cash management strategy[17] Condensed Consolidated Statement of Changes in Equity Total equity increased to RMB 17.00 billion, primarily due to the profit generated during the period - Equity attributable to owners of the Company increased from RMB 16.52 billion at the beginning of 2025 to RMB 16.63 billion, mainly driven by the profit of RMB 114 million for the period[20] Condensed Consolidated Statement of Cash Flows Net cash from operating activities increased significantly, while cash used in investing activities decreased sharply Cash Flow Summary | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash from operating activities | 319,885 | 145,761 | | Net cash used in investing activities | (29,523) | (2,756,723) | | Net cash used in financing activities | (20,764) | (833,231) | | Net increase (decrease) in cash | 269,598 | (3,444,193) | | Cash at beginning of period | 1,294,559 | 5,718,017 | | Cash at end of period | 1,564,157 | 2,273,824 | Notes to the Condensed Consolidated Financial Statements The notes detail accounting policies, revenue composition, and segment information, with no interim dividend declared 3. Revenue Total revenue in H1 2025 was RMB 2.50 billion, with cement products accounting for 97.7% of the total Revenue Breakdown | Product Category | H1 2025 Revenue (RMB'000) | H1 2024 Revenue (RMB'000) | | :--- | :--- | :--- | | Sales of cement products and related products | 2,438,060 | 2,621,481 | | Sales of concrete | 58,236 | 67,926 | | Total | 2,496,296 | 2,689,407 | 4. Segment Information The cement business segment was the key driver of the Group's turnaround, while the concrete business remained loss-making Segment Results | Business Segment | H1 2025 Segment Results (RMB'000) | H1 2024 Segment Results (RMB'000) | | :--- | :--- | :--- | | Cement business | 221,884 | (203,521) | | Concrete business | (17,089) | (14,924) | | Total | 204,795 | (218,445) | 9. Dividends The Board of Directors did not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for 2025 (H1 2024: Nil)[48][49] Management Discussion and Analysis This section reviews the Group's business performance, financial position, and future outlook amid challenging market conditions Business and Financial Review The Group achieved a turnaround despite a sluggish market by improving cement selling prices and reducing coal costs - Market Environment: In H1 2025, real estate development investment decreased by 11.2% year-on-year, leading to continued weak demand in the national cement market, with national cement output falling by 4.3%[75][76] - Performance Attribution: Despite lower sales volume, the company improved its average cement selling price through industry coordination and benefited from lower coal costs, boosting its gross margin from 5% to 16% and achieving a turnaround[77][78][84] Sales Analysis by Region | Region | H1 2025 Revenue (RMB'000) | H1 2024 Revenue (RMB'000) | | :--- | :--- | :--- | | Southeast region | 1,406,488 | 1,604,298 | | Central China region | 368,955 | 282,491 | | Southwest region | 720,853 | 802,618 | | Total | 2,496,296 | 2,689,407 | Financial Resources and Liquidity The Group maintained a healthy financial position with a low gearing ratio of 13% as of June 30, 2025 - As of June 30, 2025, the Group held RMB 1.56 billion in cash and cash equivalents, along with RMB 7.50 billion in time deposits with original maturity over three months[95][98] - The Group's gearing ratio (total liabilities to total assets) decreased from 14% at the end of 2024 to 13% as of June 30, 2025[96][98] Prospects Management anticipates continued market challenges but expects performance to improve through supply-side discipline and cost control - Market Expectation: The downward trend in overall cement demand is expected to continue, with industry profitability dependent on supply-side improvements and corporate self-discipline[121][123] - Industry Policy: The China Cement Association's push to curb excessive competition by requiring production according to filed capacity is expected to reduce supply and rationalize the market[121][123] - Company Strategy: The Group will adhere to its high-efficiency and high-quality strategy, continue cost reduction efforts, and strengthen industry communication, expecting further performance improvement in H2[122][123] Other Information This section covers shareholder interests and corporate governance practices during the reporting period Disclosure of Interests This section discloses the interests of directors and substantial shareholders, with Asia Cement being the controlling shareholder Substantial Shareholders' Interests | Name of shareholder | Capacity | Number of shares held | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Asia Cement | Beneficial owner & controlled corporation | 1,144,862,000 | 73.07% | | Far Eastern New Century Corporation | Beneficial owner & controlled corporation | 1,144,862,000 | 73.07% | Corporate Governance The company complied with the Corporate Governance Code and its Audit Committee reviewed the interim financial statements - The company has complied with all provisions of the Corporate Governance Code for the six months ended June 30, 2025[135][141] - The Audit Committee has reviewed the interim financial statements and considers their preparation to be in compliance with accounting standards and adequately disclosed[137][142]