海螺材料科技(02560) - 2025 - 中期业绩

Executive Summary Financial Highlights The Group reported slightly decreased revenue but increased profit before tax for H1 2025, with stable net profit attributable to equity holders and no interim dividend declared Key Financial Data Comparison for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,081.30 | 1,103.39 | -2.00 | | Profit Before Tax | 73.38 | 70.81 | 3.63 | | Net Profit Attributable to Equity Holders of the Company | 52.36 | 52.65 | -0.55 | | Basic Earnings Per Share (RMB) | 0.09 | 0.12 | -25.00 | - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[4] Financial Statements Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue slightly decreased, while gross profit, profit before tax, and profit for the period saw modest increases, but net profit attributable to equity holders remained stable, and basic earnings per share declined Key Data from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,081,301 | 1,103,390 | | Cost of Sales | (868,572) | (894,278) | | Gross Profit | 212,729 | 209,112 | | Profit Before Tax | 73,383 | 70,811 | | Profit for the Period | 61,038 | 60,184 | | Net Profit Attributable to Equity Holders of the Company | 52,364 | 52,652 | | Basic Earnings Per Share (RMB) | 0.09 | 0.12 | Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period increased, primarily due to exchange differences from translating financial statements of overseas subsidiaries Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 61,038 | 60,184 | | Exchange Differences on Translation of Financial Statements of Overseas Subsidiaries | 54 | — | | Total Comprehensive Income for the Period | 61,092 | 60,184 | | Attributable to Equity Holders of the Company | 52,418 | 52,652 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets significantly increased, driven by a substantial rise in cash and cash equivalents, while non-current assets and liabilities remained stable Key Data from Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,290,711 | 1,272,460 | | Current Assets | 1,495,020 | 1,186,799 | | Current Liabilities | 1,087,058 | 1,103,936 | | Non-current Liabilities | 261,597 | 258,935 | | Net Assets | 1,437,076 | 1,096,388 | | Equity Attributable to Equity Holders of the Company | 1,318,244 | 990,630 | | Total Equity | 1,437,076 | 1,096,388 | - Cash and cash equivalents significantly increased from RMB 131,387 thousand as of December 31, 2024, to RMB 490,130 thousand as of June 30, 2025[8][9] Notes to Financial Statements General Information Anhui Conch Material Technology Co., Ltd., established in 2018 and listed on the HKEX main board on January 9, 2025, primarily engages in R&D, production, and sales of cement and concrete admixtures - The Company's H-shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 9, 2025[10] - The Group primarily engages in the research and development, production, and sale of cement admixtures, concrete admixtures, and their respective process intermediates[10] Basis of Preparation and Accounting Policies The interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, reviewed by the audit committee, with no significant impact from recent IAS 21 amendments - The interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting' issued by the International Accounting Standards Board[11] - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee[12] - The Group applied amendments to IAS 21, but these amendments did not have a significant impact on the Group's performance or financial position in the interim financial report[13] Basis of Preparation The interim financial report, approved by the Board and reviewed by the audit committee, is prepared under HKEX Listing Rules and IAS 34, involving management judgments and estimates - The interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting' issued by the International Accounting Standards Board[11] - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee[12] Changes in Accounting Policies The Group applied amendments to IAS 21, 'The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability,' during the period, which had no significant impact on financial performance or position - The Group applied the new and revised International Accounting Standards issued by the International Accounting Standards Board for this accounting period's interim financial report, specifically amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability'[13] - These standard amendments did not have a significant impact on how the Group's performance and financial position for current or prior periods are prepared or presented in the interim financial report[13] Revenue and Segment Reporting The Group's revenue primarily stems from cement and concrete admixtures, with cement admixture revenue decreasing and concrete admixture revenue increasing, mainly from mainland China, while overseas revenue grew significantly Revenue from Contracts with Customers by Major Product Category (For the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cement Admixtures and Process Intermediates | 550,864 | 618,373 | | Concrete Admixtures and Process Intermediates | 527,719 | 482,760 | | Others | 2,718 | 2,257 | | Total | 1,081,301 | 1,103,390 | - For the six months ended June 30, 2025, revenue from only one customer accounted for 10% or more of the Group's revenue, approximately RMB 289,199,700[15] Revenue from External Customers (By Geographical Location) | Geographical Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,067,547 | 1,103,075 | | Asia (excluding Mainland China) | 13,754 | 315 | | Total | 1,081,301 | 1,103,390 | Revenue Classification The Group's core business involves R&D, production, and sales of cement and concrete admixtures, with H1 2025 revenue of RMB 550,864 thousand from cement admixtures and RMB 527,719 thousand from concrete admixtures, and one customer contributing over 10% of total revenue - The Group's principal activities are the research and development, production, and sale of cement admixtures, concrete admixtures, and their respective process intermediates[14] Revenue from Contracts with Customers by Major Product Category (For the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cement Admixtures and Process Intermediates | 550,864 | 618,373 | | Concrete Admixtures and Process Intermediates | 527,719 | 482,760 | | Others | 2,718 | 2,257 | Segment Reporting Management identifies only one operating segment, the admixture products business, with most revenue and non-current assets in mainland China, but significant growth in Asia (excluding mainland China) - Management considers there to be only one operating segment in accordance with the requirements of IFRS 8 Operating Segments[16] Revenue from External Customers (By Geographical Location) | Geographical Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,067,547 | 1,103,075 | | Asia (excluding Mainland China) | 13,754 | 315 | Specified Non-current Assets (By Geographical Location) | Geographical Location | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,243,585 | 1,231,330 | | Asia (excluding Mainland China) | 14,476 | 13,061 | Components of Profit Before Tax Profit before tax was influenced by reduced finance costs due to lower loan interest rates, slightly increased staff costs, decreased R&D costs due to project cycles, and a significant increase in impairment losses on trade receivables Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on loans and other borrowings | 11,064 | 13,386 | | Interest on lease liabilities | 228 | 268 | | Total | 11,292 | 13,654 | Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 98,039 | 97,307 | | Contributions to defined contribution plans | 9,492 | 9,730 | | Total | 107,531 | 107,037 | Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 795,531 | 807,867 | | Depreciation of property, plant and equipment | 30,118 | 31,659 | | Depreciation of right-of-use assets | 4,323 | 3,593 | | Amortisation of intangible assets | 1,011 | 1,264 | | Provision for impairment losses on trade receivables | 13,999 | 2,029 | Finance Costs For the period, the Group's finance costs decreased to RMB 11,292 thousand from RMB 13,654 thousand in the prior period, primarily comprising interest on loans and other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on loans and other borrowings | 11,064 | 13,386 | | Interest on lease liabilities | 228 | 268 | | Total | 11,292 | 13,654 | Staff Costs For the period, the Group's total staff costs slightly increased to RMB 107,531 thousand, mainly consisting of salaries, wages, other benefits, and contributions to defined contribution plans Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 98,039 | 97,307 | | Contributions to defined contribution plans | 9,492 | 9,730 | | Total | 107,531 | 107,037 | - Employees of the Group's PRC subsidiaries are required to participate in defined contribution retirement schemes managed and operated by local municipal governments[21] Other Items Other items include cost of inventories, depreciation, amortisation, and a significant increase in impairment losses on trade receivables to RMB 13,999 thousand from RMB 2,029 thousand in the prior period Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 795,531 | 807,867 | | Depreciation of property, plant and equipment | 30,118 | 31,659 | | Depreciation of right-of-use assets | 4,323 | 3,593 | | Amortisation of intangible assets | 1,011 | 1,264 | | Provision for impairment losses on trade receivables | 13,999 | 2,029 | Income Tax Income tax provision is primarily based on a 25% statutory rate for PRC subsidiaries, with some high-tech enterprises enjoying a 15% preferential rate, while certain western region subsidiaries are now taxed at 25% from 2024, and R&D expenses qualify for an additional 100% deduction Income Tax in Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: Provision for the period | 21,011 | 18,138 | | Current tax: Over-provision in prior years | (3,825) | (1,762) | | Deferred tax: Origination and reversal of temporary differences | (4,841) | (3,615) | | Deferred tax: Impact of tax rate change on deferred tax balance at January 1 | — | (2,134) | | Total | 12,345 | 10,627 | - PRC income tax provision is calculated at the statutory rate of 25% on the assessable profits of the Company's PRC subsidiaries, except for Linyi Conch New Material Technology Co., Ltd., which is recognized as a 'High-tech Enterprise' and enjoys a preferential income tax rate of 15%[25] - Certain subsidiaries operating in eligible industries in western regions are subject to PRC income tax at a rate of 25% from January 1, 2024, due to changes in the new catalogue of encouraged industries issued by the National Development and Reform Commission[25] Earnings Per Share For the six months ended June 30, 2025, basic earnings per share decreased to RMB 0.09 from RMB 0.12, primarily due to an increase in the weighted average number of ordinary shares following the H-share listing, with diluted earnings per share remaining the same as basic earnings per share Basic Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company for the period (RMB thousand) | 52,364 | 52,652 | | Weighted average number of ordinary shares (thousand shares) | 579,894 | 434,920 | | Basic Earnings Per Share (RMB) | 0.09 | 0.12 | - The Company successfully listed on the Main Board of the Stock Exchange on January 9, 2025, issuing 144,974,000 H-shares, which led to an increase in the weighted average number of ordinary shares[27] - As of June 30, 2024 and 2025, the Company had no outstanding potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[29] Basic Earnings Per Share Basic earnings per share decreased from RMB 0.12 to RMB 0.09, calculated based on profit attributable to ordinary equity holders and a significantly increased weighted average number of ordinary shares due to the H-share listing - Basic earnings per share are calculated based on the profit attributable to ordinary equity holders of the Company for the year of RMB 52,364,000 (2024: RMB 52,652,000) and the weighted average number of ordinary shares outstanding[26] Weighted Average Number of Ordinary Shares (thousand shares) | Date | 2025 (thousand shares) | 2024 (thousand shares) | | :--- | :--- | :--- | | Ordinary shares outstanding at January 1 | 434,920 | 434,920 | | Effect of ordinary shares issued | 144,974 | — | | Weighted average number of ordinary shares at June 30 | 579,894 | 434,920 | Diluted Earnings Per Share For the six months ended June 30, 2025, diluted earnings per share remained consistent with basic earnings per share, as the Company had no outstanding potential dilutive ordinary shares - As of June 30, 2024 and 2025, the Company had no outstanding potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[29] Asset Details During the period, the Group's property, plant and equipment increased, while right-of-use assets and intangible assets remained stable; trade receivables decreased overall but impairment provisions significantly rose, and cash and cash equivalents substantially increased due to IPO proceeds - For the six months ended June 30, 2025, the Group added RMB 24,522,082 in property, plant and equipment[30] Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (third parties + related parties) | 591,625 | 587,878 | | Less: Provision for doubtful debts | (58,982) | (44,983) | | Bills receivable at amortised cost | 218,657 | 259,169 | | Bills receivable at fair value through other comprehensive income | 20,766 | 64,653 | | Other receivables from third parties | 44,413 | 47,162 | | Other receivables from related parties | 320 | 14 | | Current portion of trade and other receivables | 816,799 | 913,893 | Inventories (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 49,773 | 56,633 | | Finished goods | 138,318 | 44,886 | | Total | 188,091 | 101,519 | Property, Plant and Equipment, Right-of-Use Assets and Intangible Assets During the period, the Group added RMB 24,522,082 in property, plant and equipment with no disposals, while right-of-use assets and intangible assets (including software, pollutant emission permits, and non-patented technologies) remained unchanged - For the six months ended June 30, 2025, the Group added RMB 24,522,082 in property, plant and equipment items, with no asset disposals[30] - For the six months ended June 30, 2025, there was no increase or decrease in right-of-use assets[31] - Intangible assets include software, pollutant emission permits, and non-patented technologies; for the six months ended June 30, 2025, there was no increase or decrease in intangible assets[32] Trade and Other Receivables As of June 30, 2025, total trade and other receivables decreased to RMB 849,932 thousand from RMB 922,427 thousand at year-end, with a significant increase in provision for doubtful debts from RMB 44,983 thousand to RMB 58,982 thousand, and current trade receivables remaining the largest portion Total Trade and Other Receivables (Current and Non-current) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current portion of trade and other receivables | 816,799 | 913,893 | | Non-current portion of trade and other receivables | 33,133 | 8,534 | | Total | 849,932 | 922,427 | Ageing Analysis of Trade Receivables (Net of Loss Allowance) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 378,718 | 399,530 | | Overdue 1 to 6 months | 106,105 | 90,950 | | Overdue 7 to 9 months | 28,713 | 50,725 | | Overdue 10 to 12 months | 19,107 | 1,690 | | Total | 532,643 | 542,895 | Inventories As of June 30, 2025, total inventories significantly increased to RMB 188,091 thousand from RMB 101,519 thousand at year-end, primarily driven by a rise in finished goods inventories from RMB 44,886 thousand to RMB 138,318 thousand Inventories Composition (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 49,773 | 56,633 | | Finished goods | 138,318 | 44,886 | | Total | 188,091 | 101,519 | Cash and Cash Equivalents As of June 30, 2025, the Group's cash and cash equivalents significantly increased to RMB 490,130 thousand from RMB 131,387 thousand at year-end, mainly reflecting growth in bank balances and cash on hand Cash and Cash Equivalents (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank balances and cash on hand | 490,130 | 131,387 | | Total | 490,130 | 131,387 | Liability Details At the end of the reporting period, the Group's total loans and borrowings slightly increased, primarily due within one year, while total trade and other payables decreased, with most due within one year Loans and Borrowings (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 731,133 | 720,212 | | Non-current | 202,777 | 198,491 | | Total | 933,910 | 918,703 | Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables (third parties + related parties) | 219,071 | 211,554 | | Other payables and accrued expenses | 300,770 | 341,121 | | Other payables to related parties | 247 | 3,159 | | Total | 301,017 | 344,280 | Loans and Borrowings As of June 30, 2025, the Group's total loans and borrowings amounted to RMB 933,910 thousand, with RMB 731,133 thousand due within one year, and all bank loans being unsecured Loans and Borrowings Repayment Schedule (As of June 30) | Repayment Period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 731,133 | 720,212 | | After one year but within two years | 69,286 | 75,000 | | After two years but within five years | 133,491 | 123,491 | | Total | 933,910 | 918,703 | - At the end of the reporting period, all bank loans were unsecured[35] Trade and Other Payables As of June 30, 2025, total trade and other payables decreased to RMB 301,017 thousand from RMB 344,280 thousand at year-end, with trade payables at RMB 219,071 thousand, all due within one year, unsecured, interest-free, and repayable on demand Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 219,071 | 211,554 | | Other payables and accrued expenses | 300,770 | 341,121 | | Other payables to related parties | 247 | 3,159 | | Total | 301,017 | 344,280 | - At the end of the reporting period, all payables were due within one year, unsecured, interest-free, and repayable on demand[36] Share Capital, Reserves and Dividends The Company approved and paid a final dividend of RMB 0.17 per share for the previous fiscal year, totaling RMB 98,582 thousand, in June 2025, but the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - Pursuant to the resolution passed at the annual general meeting on May 20, 2025, a final dividend of RMB 0.17 per ordinary share for the previous fiscal year, totaling RMB 98,582 thousand (approximately HKD 106,455 thousand), was approved[38] - The relevant dividend was fully paid in June 2025[38] - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[38] Business Review and Management Discussion Overall Review In H1 2025, China's economy grew steadily with 5.3% GDP increase, supported by fiscal and monetary policies boosting infrastructure and high-performance concrete demand, despite real estate downturns, while environmental policies drive industry upgrades - In the first half of 2025, China's economy maintained overall stable operation, with Gross Domestic Product (GDP) increasing by 5.3% year-on-year[39] - National fixed asset investment increased by 2.8% year-on-year, driving demand for high-performance concrete and cement, directly promoting the use of special concrete admixtures and high-end cement admixtures[39] - Affected by the continuous downturn in the domestic real estate industry, both new housing starts and construction area experienced varying degrees of decline, posing certain constraints on the admixture market demand[39] Performance Review During the reporting period, the Group achieved RMB 1,081.30 million in revenue by focusing on R&D, expanding market share, optimizing domestic layout, accelerating overseas market development, and exploring fine chemical fields, adhering to a 'stabilize existing business, expand new business' strategy - The Group adheres to the strategic principle of 'stabilizing existing business and expanding new business,' leveraging its integrated industrial chain advantages to continuously deepen market development for cement, concrete, and related intermediate products, optimizing its domestic layout in key markets such as Xinjiang, Beijing-Tianjin-Hebei, and accelerating overseas layout and market construction[40] - During the reporting period, the Group achieved operating revenue of RMB 1,081.30 million[40] Cement Admixtures and Process Intermediates Business As a major supplier in the domestic cement admixture market, the Group focuses on increasing penetration and repurchase rates with over 300 cement producers, while actively managing procurement and sales strategies for process intermediates based on raw material prices - As a major supplier in the domestic cement admixture and process intermediate market, the Group provides excellent products and corresponding technical support to numerous cement production enterprises in the cement admixture business segment[41] - The Group has established direct supply relationships with over 300 renowned cement production enterprises, including Anhui Conch Cement Company Limited, Taiwan Cement Corporation, and Gansu Shangfeng Cement Co., Ltd[41] - In the cement admixture process intermediate business segment, the Group closely monitors price trends of upstream raw materials, propylene oxide and ethanolamine, to reasonably adjust procurement and sales strategies[41] Concrete Admixtures and Process Intermediates Business Leveraging its full industrial chain advantage from polyether monomer to concrete admixture, the Group successfully expanded external market share, with polycarboxylate superplasticizer mother liquor revenue growing by 123% and finished concrete admixture revenue by 27%, offering one-stop solutions - The Group successfully expanded its external market share by leveraging its full industrial chain advantage from polyether monomer to polycarboxylate superplasticizer mother liquor and finished concrete admixtures[42] - Polycarboxylate superplasticizer mother liquor primarily serves large-scale engineering projects and concrete admixture production enterprises, with product revenue increasing by 123% year-on-year[42] - Finished concrete admixtures are directly supplied to concrete production enterprises, with product revenue increasing by 27% year-on-year[42] Overseas Expansion The Group actively pursues a 'going global' strategy, expanding export trade to 29 countries and regions to absorb domestic capacity, and establishing overseas companies in Uzbekistan and Indonesia to enhance its Asia-Pacific strategic layout - The Group adheres to the 'going global' development strategy, on one hand continuously expanding overseas export trade business to absorb domestic production capacity, successfully achieving product exports to 29 countries and regions[43] - Following the commencement of operations of its first overseas company, Tashkent Conch New Material Technology Foreign Enterprise Limited Liability Company, PT. Conch Material Technology Indonesia was successfully registered, further enhancing the Group's strategic layout in the Asia-Pacific region[43] Financial Performance Analysis During the period, the Group's revenue decreased by 2.00%, but profit before tax and profit for the period increased by 3.63% and 1.42% respectively, with stable net profit attributable to equity holders; gross margin improved, other net income significantly grew, administrative expenses increased, R&D expenses decreased, and finance costs reduced Financial Performance Comparison (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,081,301 | 1,103,390 | -2.00 | | Profit Before Tax | 73,383 | 70,811 | 3.63 | | Profit for the Period | 61,038 | 60,184 | 1.42 | | Net Profit Attributable to Equity Holders of the Company | 52,364 | 52,652 | -0.55 | - The gross profit margin for admixtures and process intermediates increased year-on-year to 19.56%, primarily due to the provision of more high-margin differentiated products and enhanced cost control, including reduced raw material procurement prices[47] - Other net income amounted to RMB 17.84 million, an increase of 60.59% year-on-year, mainly due to increased bank deposit interest income from the global offering proceeds and higher government subsidies for some subsidiaries[47] Revenue Analysis by Business Segment Cement admixtures and process intermediates revenue decreased by 10.92% to RMB 550.86 million due to lower raw material prices, while concrete admixtures and process intermediates revenue increased by 9.31% to RMB 527.72 million, driven by active business expansion and significant sales volume growth Revenue Comparison by Business Segment (For the six months ended June 30) | Item | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change in Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cement Admixtures and Process Intermediates | 550,864 | 50.95 | 618,373 | 56.05 | -10.92 | | Concrete Admixtures and Process Intermediates | 527,719 | 48.80 | 482,760 | 43.75 | 9.31 | | Others | 2,718 | 0.25 | 2,257 | 0.20 | 20.43 | | Total | 1,081,301 | 100.00 | 1,103,390 | 100.00 | -2.00 | - Revenue from concrete admixtures and process intermediates increased by 9.31%, primarily due to active expansion of concrete admixture-related businesses, with concrete admixture sales volume increasing by 35% year-on-year and polycarboxylate superplasticizer mother liquor sales volume increasing by 127% year-on-year[45] Geographical Revenue and Asset Analysis The Group's revenue is predominantly from mainland China, but external customer revenue from Asia (excluding mainland China) significantly increased from RMB 315 thousand in H1 2024 to RMB 13,754 thousand in H1 2025, with specified non-current assets also showing slight growth in Asia (excluding mainland China) Revenue from External Customers (By Geographical Location) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,067,547 | 1,103,075 | | Asia (excluding Mainland China) | 13,754 | 315 | | Total | 1,081,301 | 1,103,390 | Specified Non-current Assets (By Geographical Location) | Region | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,243,585 | 1,231,330 | | Asia (excluding Mainland China) | 14,476 | 13,061 | | Total | 1,258,061 | 1,244,391 | Gross Profit and Gross Margin Analysis During the period, the Group's gross profit increased by 1.73% to RMB 212.73 million, with the gross margin for admixtures and process intermediates rising due to high-margin differentiated products and improved cost control, including lower raw material procurement prices Gross Profit and Gross Margin Comparison (For the six months ended June 30) | Item | 2025 (RMB thousand) | Gross Margin (%) | 2024 (RMB thousand) | Gross Margin (%) | Change in Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Admixtures and Process Intermediates | 210,992 | 19.56 | 208,229 | 18.91 | 1.33 | | Others | 1,737 | 63.91 | 883 | 39.12 | 96.72 | | Total | 212,729 | 19.67 | 209,112 | 18.95 | 1.73 | - The gross profit margin for admixtures and process intermediates increased, mainly due to the Group providing more high-margin differentiated products, coupled with strengthened cost control and optimized material procurement, leading to a decrease in some raw material procurement prices[47] Other Net Income Analysis During the period, the Group's other net income increased by 60.59% to RMB 17.84 million, primarily due to higher bank deposit interest income from the Hong Kong public and international offering proceeds and increased government subsidies for certain subsidiaries - The Group's other net income amounted to RMB 17.84 million, an increase of RMB 6.73 million or 60.59% compared to the same period last year[47] - This was mainly due to increased bank deposit interest income from the Company's Hong Kong public offering and international offering ('Global Offering') proceeds, and increased government subsidies for some subsidiaries during the reporting period[47] Distribution Costs Analysis During the reporting period, the Group's distribution costs remained largely stable at RMB 27.74 million compared to the same period last year - The Group's distribution costs amounted to RMB 27.74 million, remaining largely stable compared to the same period last year[47] Administrative Expenses Analysis During the period, the Group's administrative expenses increased by 5.53% to RMB 81.29 million, mainly due to higher staff remuneration from personnel structure adjustments and increased routine consulting fees after the H-share listing - The Group's administrative expenses amounted to RMB 81.29 million, an increase of RMB 4.26 million or 5.53% compared to the same period last year[47] - This was mainly due to increased staff remuneration included in administrative expenses resulting from personnel structure adjustments, and increased routine consulting fees after the Company's H-shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 9, 2025[47] Research and Development Expenses Analysis During the period, the Group's R&D costs decreased by 22.15% to RMB 22.86 million, primarily due to the cyclical nature of R&D projects, with key projects largely industrialized and new projects in early stages requiring less investment - The Group's research and development costs amounted to RMB 22.86 million, a year-on-year decrease of 22.15%[48] - This was mainly due to the cyclical nature of R&D projects, as the Group's important scientific research projects such as solid water reducers, viscosity-reducing water reducers, and early-strength water reducers have largely achieved industrialization goals, and some new R&D projects are in the early research stage, requiring less investment[48] Finance Costs Analysis During the period, the Group's finance costs decreased by 17.30% to RMB 11.29 million, primarily due to lower loan interest rates - The Group's finance costs amounted to RMB 11.29 million, a year-on-year decrease of RMB 2.36 million or 17.30%[49] - This was mainly due to the impact of lower loan interest rates[49] Asset and Liability Position Analysis At the end of the reporting period, the Group's total assets and equity attributable to equity holders significantly increased, while the asset-liability ratio decreased, driven by a substantial rise in current assets due to IPO proceeds, with non-current assets and liabilities remaining stable Asset and Liability Position Comparison (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change from Year-end (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,290,711 | 1,272,460 | 1.43 | | Current Assets | 1,495,020 | 1,186,799 | 25.97 | | Non-current Liabilities | 261,597 | 258,935 | 1.03 | | Current Liabilities | 1,087,058 | 1,103,936 | -1.53 | | Net Current Assets | 407,962 | 82,863 | 392.33 | | Equity Attributable to Equity Holders of the Company | 1,318,244 | 990,630 | 33.07 | | Total Assets | 2,785,731 | 2,459,259 | 13.28 | | Total Liabilities | 1,348,655 | 1,362,871 | -1.04 | - The Group's asset-liability ratio (calculated as total liabilities divided by total assets at the end of the reporting period) was 48.41%, a decrease of 7.01 percentage points from the end of the previous year[50] Non-current and Current Assets Analysis At the end of the reporting period, the Group's non-current assets remained largely stable at RMB 1,290.71 million, while current assets increased by 25.97% to RMB 1,495.02 million, primarily due to proceeds from the Company's successful listing - The Group's non-current assets amounted to RMB 1,290.71 million, remaining largely stable compared to the end of the previous year[51] - The Group's current assets amounted to RMB 1,495.02 million, an increase of 25.97% compared to the end of the previous year, mainly due to the Company's successful listing and receipt of proceeds[51] Non-current and Current Liabilities Analysis At the end of the reporting period, the Group's non-current liabilities stood at RMB 261.60 million and current liabilities at RMB 1,087.06 million, both remaining largely stable compared to the end of the previous year - The Group's non-current liabilities amounted to RMB 261.60 million, remaining largely stable compared to the end of the previous year[52] - The Group's current liabilities amounted to RMB 1,087.06 million, remaining largely stable compared to the end of the previous year[52] Equity Attributable to Equity Holders of the Company Analysis At the end of the reporting period, equity attributable to equity holders of the Company increased by 33.07% to RMB 1,318.24 million, primarily due to increased share capital and capital reserves from the Company's listing and sustained profitability - Equity attributable to equity holders of the Company amounted to RMB 1,318.24 million, an increase of 33.07% compared to the end of the previous year[53] - This was mainly due to (1) the Company's successful listing, leading to an increase in share capital and capital reserves; and (2) the Company's sustained profitability, increasing equity holders' equity[53] Liquidity and Capital Resources During the period, the Group effectively managed funds by optimizing financing structure and reducing loan interest rates, resulting in a significant increase in cash and cash equivalents to RMB 490.13 million, substantial growth in net cash from operating activities, reduced net cash used in investing activities, and a large increase in net cash from financing activities due to IPO proceeds - At the end of the reporting period, the Group's cash and cash equivalents amounted to RMB 490.13 million, primarily in HKD and RMB[54] Cash Flow Comparison (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 79,182 | 30,614 | | Net cash used in investing activities | (19,065) | (42,860) | | Net cash from / (used in) financing activities | 298,626 | (10,342) | | Net increase / (decrease) in cash and cash equivalents | 358,743 | (22,588) | | Cash and cash equivalents at end of period | 490,130 | 143,515 | - Net cash from financing activities amounted to RMB 298.63 million, a year-on-year increase of RMB 308.97 million, primarily due to proceeds from the listing[59] Loans and Borrowings Status At the end of the reporting period, the Group's loans and borrowings balance increased by RMB 15.21 million to RMB 933.91 million, mainly due to new long-term borrowings by Huludao Haizhong New Material Technology Co., Ltd. for production and construction, with all loans denominated in RMB and bearing fixed interest rates Bank Loans Payable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 731,133 | 720,212 | | After one year but within two years | 69,286 | 75,000 | | After two years but within five years | 133,491 | 123,491 | | Total | 933,910 | 918,703 | - The Group's loans and borrowings balance amounted to RMB 933.91 million, an increase of RMB 15.21 million compared to the end of the previous year, mainly due to new long-term borrowings by Huludao Haizhong New Material Technology Co., Ltd., a subsidiary of the Company, for production and construction needs[56] - At the end of the reporting period, the Group's loans and borrowings were all denominated in RMB and bore fixed interest rates[57] Cash Flow Analysis During the period, net cash from operating activities significantly increased by RMB 48.57 million to RMB 79.18 million due to enhanced accounts receivable management, net cash used in investing activities decreased by RMB 23.80 million to RMB 19.07 million due to maturity of wealth management funds, and net cash from financing activities substantially rose by RMB 308.97 million to RMB 298.63 million, primarily from IPO proceeds - Net cash from operating activities amounted to RMB 79.18 million, an increase of RMB 48.57 million compared to the same period last year, mainly due to the Group strengthening accounts receivable management and accelerating the collection of overdue payments, leading to increased operating cash inflows compared to the same period last year[59] - Net cash used in investing activities amounted to RMB 19.07 million, a decrease of RMB 23.80 million compared to the same period last year, mainly due to the maturity of wealth management funds during the reporting period[59] - Net cash from financing activities amounted to RMB 298.63 million, a year-on-year increase of RMB 308.97 million, primarily due to proceeds from the listing[59] Treasury Management Policy The Company maintains a prudent financial management approach for its treasury policy, closely monitoring liquidity to ensure the capital structure of assets, liabilities, and other commitments aligns with funding requirements - The Company continues to adopt a prudent financial management approach for its treasury policy[60] - The Board will closely monitor the liquidity position to ensure that the liquidity structure of the Company's assets, liabilities, and other commitments meets funding requirements from time to time[60] Foreign Exchange Risk and Exchange Rate Risk The Group's functional currency is RMB, with most assets and transactions denominated in RMB and domestic business expenses primarily paid in RMB, thus posing no significant foreign exchange risk, and no financial instruments were used to hedge foreign exchange risk during the period - The Group's functional currency is RMB, and most of the Group's assets and transactions are denominated in RMB, with domestic business expenditures primarily paid in RMB, thus there is no significant foreign exchange risk[61] - During the reporting period, the Group did not use financial instruments to hedge any foreign exchange risk[62] Capital Commitments and Contingent Liabilities At the end of the reporting period, the Group had undisclosed capital commitments not provided for in the consolidated financial statements and no significant contingent liabilities - At the end of the reporting period, the Group's capital commitments not provided for in the consolidated financial statements were as follows: June 30, 2025 (RMB thousand) December 31, 2024 (RMB thousand)[64] - At the end of the reporting period, the Group had no significant contingent liabilities[65] Pledge of Assets At the end of the reporting period, the Group had no pledge of assets - At the end of the reporting period, the Group had no pledge of assets[66] Material Investments and Future Plans During the reporting period, the Group made no material investments, and as of the announcement date, had no other material investment or capital asset future plans beyond those disclosed in the prospectus's 'Future Plans and Use of Proceeds' section - During the reporting period, the Group made no material investments[67] - Except for those disclosed in the section 'Future Plans and Use of Proceeds' of the Company's prospectus dated December 31, 2024 ('Prospectus'), as of the date of this announcement, the Group has no other material investments and future plans for capital assets[68] Material Acquisitions and Disposals During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures[69] Employees and Remuneration Policy The Group prioritizes human resource management, implementing diversified incentive measures and an excess profit-sharing mechanism, with 871 employees at period-end and total remuneration of approximately RMB 107.53 million, determined by qualifications, experience, performance, and market conditions, including participation in social insurance plans - The Group highly values the construction and development of its human resource management system, consistently adhering to a talent-strengthening enterprise strategy, guided by value creation, actively exploring diversified incentive measures, and implementing an excess profit-sharing mechanism[70] - At the end of the reporting period, the Group had 871 employees (December 31, 2024: 876 employees)[70] - During the reporting period, the total employee remuneration (including directors' remuneration) was approximately RMB 107.53 million (2024: RMB 107.04 million)[70] H-share Listing and Use of Proceeds The Company's H-shares listed on the HKEX main board on January 9, 2025, raising HKD 395.9 million net from a global offering of 144,974,000 H-shares at HKD 3.0 per share, with HKD 40.0 million utilized by period-end for capacity optimization, loan repayment, and general working capital, and the remaining HKD 355.9 million to be used as per the prospectus - On January 9, 2025, the Company's H-shares were listed on the Main Board of the Stock Exchange, with a global offering of 144,974,000 H-shares, including 43,493,000 H-shares for the Hong Kong Public Offering and 101,481,000 H-shares for the International Offering[71] Use of Net Proceeds from Global Offering and Utilisation Status | Use of Net Proceeds | Percentage of Net Proceeds | Net Proceeds from Global Offering (HKD million) | Utilised from Listing Date to End of Reporting Period (HKD million) | Remaining Amount as of End of Reporting Period (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Optimise production capacity and expand geographical coverage | 35.0% | 138.5 | 17.0 | 121.5 | | Implement marketing plans | 10.0% | 39.6 | 0.0 | 39.6 | | Further invest resources in R&D plans | 15.0% | 59.4 | 0.0 | 59.4 | | Repay part of bank loans | 15.0% | 59.4 | 20.0 | 39.4 | | Acquire companies or establish joint ventures | 15.0% | 59.4 | 0.0 | 59.4 | | General working capital | 10.0% | 39.6 | 3.0 | 36.6 | | Total | 100.0% | 395.9 | 40.0 | 355.9 | - There has been no change to the proposed use of net proceeds as previously disclosed in the prospectus, and the Group will use the remaining net proceeds for the matters set out in the prospectus[74] Outlook As 2025 concludes the '14th Five-Year Plan,' China's economy will maintain stable growth, with supportive fiscal and monetary policies, urban renewal, and infrastructure investment driving demand; the Group will strategically enhance domestic market presence, accelerate overseas expansion into Southeast Asia, North Africa, and South America, and innovate technology to extend into high-value-added fields - As 2025 marks the final year of the '14th Five-Year Plan,' economic development will continue to adhere to the overall principle of 'seeking progress while maintaining stability,' laying a solid foundation for industry recovery and growth[75] - Policy-wise, directions for urban development and the real estate industry have been clarified, with a series of policy signals creating a cumulative effect, and demand in the real estate industry is expected to be significantly boosted in the second half of 2025[75] - The Group will deeply analyze domestic and international industry market development trends, precisely capture policy dividends, and based on the domestic market, focus on strengthening market development in key central cities and core regions with more solid demand foundations and stronger growth momentum, such as Beijing-Tianjin-Hebei, Xinjiang, Sichuan-Chongqing, Yangtze River Delta, Tibet, and South China[76][77] - The Group will accelerate the strategic deployment of overseas markets, promote in-depth business development in Indonesia and the Middle East markets, pre-emptively lay out the Southeast Asian market, improve the Asia-Pacific sales network, continue to conduct overseas trade, and strive to open up emerging international markets such as North Africa and South America, effectively releasing domestic production capacity[76][77] - Adhering to the concept of technological innovation, the Group will continuously optimize the performance of existing products, increase investment in customized product R&D, and promote the extension of the Company's industrial chain towards high-value-added fields[76][77] Other Information Interim Dividend The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[78] Material Changes in Business There have been no material changes in the Company's business since the publication of the latest annual report for the year ended December 31, 2024 - There have been no material changes in the Company's business since the publication of the latest annual report for the year ended December 31, 2024[79] Corporate Governance The Company is committed to high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules since its H-share listing on January 9, 2025 - The Company is committed to achieving high standards of corporate governance to ensure shareholders' interests, enhance corporate value, and accountability[80] - From the listing date up to the end of this reporting period, the Company has complied with the principles and all applicable code provisions set out in Part 2 of the Corporate Governance Code[80] Standard Securities Dealing Code The Company adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the HKEX Listing Rules, and all directors and supervisors have complied with it since the H-share listing date up to the end of the reporting period - The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by the Company's directors and supervisors[81] - Following specific enquiries made to all directors and supervisors, the Company confirmed that all directors and supervisors have complied with the required standards set out in the Standard Code from the listing date up to the end of this reporting period[82] Dealings in Listed Securities From the H-share listing date on January 9, 2025, up to the end of the reporting period, neither the Company nor its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held at period-end - From the listing date up to the end of this reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[83] - At the end of the reporting period, the Company held no treasury shares[83] Audit Committee The Audit Committee, comprising four independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025, and found no disagreement with the accounting treatments adopted by the Company - The Audit Committee is composed of four independent non-executive directors, namely Ms. Xu Xu (Chairperson of the Audit Committee), Mr. Li Jiang, Mr. Chen Jiemiao, and Ms. Zeng Xiangfei[84] - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and had no disagreement with the accounting treatments adopted by the Company[84] Material Events After Reporting Period After the reporting period, the Company's extraordinary general meeting on July 30, 2025, approved the re-election of the second session of the Board of Directors and Supervisory Committee for a three-year term, with no other material events affecting the Group disclosed since the end of the reporting period - The Company's shareholders approved the re-election of the directors of the second session of the Board of Directors and the supervisors of the Supervisory Committee for a three-year term, commencing from July 30, 2025, at the extraordinary general meeting held on July 30, 2025[85] - Except for those disclosed in this announcement, there have been no other material events affecting the Group that require disclosure from the end of the reporting period up to the date of this announcement[85] Publication of Report This results announcement will be published on the Company's and HKEX websites, and the interim report containing all information required by the Listing Rules will be published and dispatched to shareholders in due course - This results announcement will be published on the Company's website (www.conchmst.com) and the HKEX website (www.hkexnews.hk)[86](index=86&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be published on the HKEX and Company websites in due course and dispatched to shareholders (as required)[86] Board Composition As of the announcement date, the Board comprises Mr. Ding Feng (Chairman and Non-executive Director), Mr. Chen Feng and Mr. Bai Lin (Executive Directors), Mr. Feng Fangbo, Mr. Zhao Hongyi, Mr. Jin Feng, and Mr. Fan Haibin (Non-executive Directors), and Mr. Li Jiang, Mr. Chen Jiemiao, Ms. Xu Xu, and Ms. Zeng Xiangfei (Independent Non-executive Directors) - As of the date of this announcement, the Board comprises Mr. Ding Feng (Chairman and Non-executive Director); Mr. Chen Feng and Mr. Bai Lin (Executive Directors); Mr. Feng Fangbo, Mr. Zhao Hongyi, Mr. Jin Feng, and Mr. Fan Haibin (Non-executive Directors); and Mr. Li Jiang, Mr. Chen Jiemiao, Ms. Xu Xu, and Ms. Zeng Xiangfei (Independent Non-executive Directors)[88]