中国天瑞水泥(01252) - 2025 - 中期业绩

Group Financial Summary The group's financial performance for the six months ended June 30, 2025, shows significant profit growth, while its financial position remains stable with a slight decrease in total assets and liabilities Group Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,962,658 | 2,583,798 | 14.7% | | Gross Profit | 679,071 | 615,063 | 10.4% | | Profit | 72,257 | 25,889 | 179.1% | | Profit attributable to owners of the Company | 73,903 | 28,290 | 161.2% | | Basic earnings per share (RMB) | 0.03 | 0.01 | 160.0% | Group Financial Position Summary as of June 30, 2025, and December 31, 2024 | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 36,351,373 | 37,215,106 | -2.3% | | Current Assets | 25,294,884 | 25,884,057 | -2.3% | | Total Liabilities | 20,268,366 | 21,239,599 | -4.6% | | Current Liabilities | 17,404,656 | 18,925,006 | -8.0% | | Total Equity | 16,083,007 | 15,975,507 | +0.7% | | Equity attributable to owners of the Company | 15,846,134 | 15,736,988 | +0.7% | Interim Results This section provides a detailed overview of the company's financial performance and position for the interim period, highlighting key income statement and balance sheet figures Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's revenue increased by 14.7% to RMB 2.96 billion, with gross profit rising 10.4% to RMB 679 million, and profit for the period significantly growing 179.1% to RMB 72.26 million due to reduced expenses and improved other income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,962,658 | 2,583,798 | 14.7% | | Cost of Sales | (2,283,587) | (1,968,735) | 16.0% | | Gross Profit | 679,071 | 615,063 | 10.4% | | Other Income | 238,193 | 297,805 | -20.0% | | Share of (loss) profit of associates | (25,735) | (35,729) | 27.9% (Loss narrowed) | | Selling and Distribution Expenses | (58,540) | (115,900) | -49.5% | | Administrative Expenses | (344,471) | (361,321) | -4.7% | | Finance Costs | (377,785) | (384,361) | -1.7% | | Profit before tax | 90,018 | 30,881 | 191.5% | | Income Tax Expense | (17,761) | (4,992) | 255.8% | | Profit and total comprehensive income for the period | 72,257 | 25,889 | 179.1% | | Profit attributable to owners of the Company | 73,903 | 28,290 | 161.2% | | Basic earnings per share (RMB) | 0.03 | 0.01 | 160.0% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly decreased by 2.3% to RMB 36.35 billion, total liabilities decreased by 4.6% to RMB 20.27 billion, and net current assets increased by 13.4% to RMB 7.89 billion, indicating improved liquidity Condensed Consolidated Statement of Financial Position (As of June 30, 2025, and December 31, 2024) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | ASSETS | | | | | Subtotal of Non-current Assets | 11,056,489 | 11,331,049 | -2.4% | | Subtotal of Current Assets | 25,294,884 | 25,884,057 | -2.3% | | TOTAL ASSETS | 36,351,373 | 37,215,106 | -2.3% | | LIABILITIES | | | | | Subtotal of Current Liabilities | 17,404,656 | 18,925,006 | -8.0% | | Subtotal of Non-current Liabilities | 2,863,710 | 2,314,593 | 23.7% | | TOTAL LIABILITIES | 20,268,366 | 21,239,599 | -4.6% | | EQUITY | | | | | Equity attributable to owners of the Company | 15,846,134 | 15,736,988 | +0.7% | | Non-controlling interests | 236,873 | 238,519 | -0.7% | | TOTAL EQUITY | 16,083,007 | 15,975,507 | +0.7% | | Net Current Assets | 7,890,228 | 6,959,051 | +13.4% | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanatory notes to the condensed consolidated financial statements, covering general information, accounting policies, and specific financial line items General Information China Tianrui Group Cement Company Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily manufactures and sells cement, clinker, and limestone aggregates, controlled by Tianrui Group Company Limited - The Company was incorporated in the Cayman Islands on February 7, 2011, and listed on the Hong Kong Stock Exchange on December 23, 2011[8] - The Group's principal activities are the manufacture and sale of cement, clinker, and limestone aggregates[8] - The Company is controlled by Tianrui Group Company Limited, with Mr Li Liufa and Ms Li Fengluan as the ultimate controlling parties[8] Application of Revised International Financial Reporting Standards The condensed consolidated financial statements are prepared on a historical cost basis, applying revised International Financial Reporting Standards issued by the IASB, with no significant impact on the financial statements during the reporting period - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain properties and financial instruments measured at revalued amounts or fair value[10] - The revised International Financial Reporting Standards issued by the IASB were first applied in this interim period but had no significant impact on the condensed consolidated financial statements[10] Revenue For the six months ended June 30, 2025, the Group's total revenue was RMB 2.96 billion, a 14.7% year-on-year increase, with cement sales being the largest contributor, clinker sales showing significant growth, and limestone aggregate sales decreasing Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Product Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cement Sales | 2,235,558 | 1,870,230 | 19.5% | | Clinker Sales | 219,606 | 104,771 | 109.6% | | Limestone Aggregate Sales | 507,494 | 608,797 | -16.6% | | Total | 2,962,658 | 2,583,798 | 14.7% | - Revenue is recognized when control over the goods is transferred to the customer, which is upon delivery of the goods[11] Segment Information The Group operates in two geographical segments: Central China and Northeast China; in the first half of 2025, Central China contributed the most revenue but saw a decline in segment profit, while Northeast China achieved significant growth in both revenue and segment profit, reversing its prior-year loss Analysis of Revenue and Results by Reportable Segment (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | Revenue Change (%) | 2025 Profit (RMB thousands) | 2024 Profit (RMB thousands) | Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Central China | 2,325,756 | 2,131,876 | 9.1% | 27,621 | 92,113 | -70.0% | | Northeast China | 636,902 | 451,922 | 40.9% | 31,903 | (47,710) | 166.9% (Turned loss into profit) | | Total | 2,962,658 | 2,583,798 | 14.7% | 59,524 | 44,403 | 34.1% | - Segment revenue is generated from sales to external customers, with no inter-segment sales[14] Other Income Other income for the first half of 2025 decreased by 20.0% year-on-year to RMB 238 million, primarily due to reduced government grants and other business income, despite an increase in interest income from suppliers Other Income (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | VAT Refund | 44,558 | 43,077 | 3.4% | | Government Grants and Subsidies | 29,503 | 74,462 | -60.4% | | Bank Deposit Interest | 20,344 | 36,206 | -43.8% | | Interest Income from Suppliers | 23,451 | — | New | | Other Business Income | 93,034 | 118,269 | -21.3% | | Total | 238,193 | 297,805 | -20.0% | Other Gains and Losses In the first half of 2025, the Group recorded net other gains of RMB 199 thousand, a significant improvement from a loss of RMB 3.41 million in the prior year, mainly driven by foreign exchange gains and gains on disposal of financial assets Other Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net foreign exchange gain/(loss) | 4,820 | (3,454) | | Net gain on disposal of property, plant and equipment | 538 | 40 | | Gain on disposal of financial assets at fair value through profit or loss | 2,941 | — | | Other losses | (8,100) | — | | Total | 199 | (3,414) | Finance Costs Finance costs for the first half of 2025 decreased by 1.7% year-on-year to RMB 378 million, primarily due to a significant reduction in interest on discounted bills with recourse, despite an increase in interest on bank and other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 353,229 | 294,637 | 19.9% | | Interest on discounted bills with recourse | 24,525 | 89,503 | -72.6% | | Interest on lease liabilities | 31 | 221 | -86.0% | | Total | 377,785 | 384,361 | -1.7% | Income Tax Expense Income tax expense for the first half of 2025 significantly increased by 255.8% to RMB 17.76 million, mainly due to higher PRC corporate income tax and withholding tax on subsidiaries, with some subsidiaries enjoying a preferential tax rate of 15% Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | PRC corporate income tax | 20,744 | 9,570 | 116.8% | | Over-provision in prior years | (2,830) | (2,510) | 12.7% | | Deferred tax | (153) | (2,068) | -92.6% | | Total | 17,761 | 4,992 | 255.8% | - Certain subsidiaries operating in the PRC are eligible for a preferential tax rate of 15% for a period of three years, commencing from the 2022 financial year[18] Profit and Total Comprehensive Income for the Period The profit and total comprehensive income for the period is calculated after deducting key expenses such as depreciation and amortization, depreciation included in cost of sales, labor and material costs, and staff costs, with total depreciation and amortization amounting to RMB 341 million, a 7.2% year-on-year decrease Profit and Total Comprehensive Income for the Period Deductions (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 292,646 | 326,856 | -10.5% | | Amortisation of right-of-use assets | 11,089 | 13,554 | -18.1% | | Amortisation of mining rights | 36,898 | 26,731 | 38.1% | | Total Depreciation and Amortisation | 340,633 | 367,141 | -7.2% | | Depreciation, labour and material costs recognised as cost of sales | 2,211,246 | 1,968,735 | 12.3% | | Staff costs (including retirement benefits) | 208,228 | 231,628 | -10.1% | Earnings Per Share For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company increased by 160.0% to RMB 0.03 from RMB 0.01 in the prior year, with no diluted earnings per share presented due to the absence of potential ordinary shares outstanding Earnings Per Share Calculation Data (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousands) | 73,903 | 28,290 | | Weighted average number of ordinary shares for basic EPS (thousands) | 2,952,782 | 2,938,282 | | Basic earnings per share (RMB) | 0.03 | 0.01 | - Diluted earnings per share is not presented as there are no potential ordinary shares outstanding for the Company[20] Dividends During the interim period, the company neither paid, declared, nor proposed any dividends, nor recommended any dividends for this interim period - No dividends were paid, declared or proposed during the interim period[21] Trade and Other Receivables As of June 30, 2025, total trade receivables amounted to RMB 63.77 million, a significant 51.5% decrease from RMB 131 million as of December 31, 2024, primarily due to a substantial reduction in receivables aged over one year Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Within 90 days | 56,046 | 25,118 | 123.1% | | 91 to 180 days | 874 | 1,939 | -54.9% | | 181 to 365 days | 3,925 | 6,897 | -43.1% | | Over 1 year | 2,928 | 97,519 | -97.0% | | Total | 63,773 | 131,473 | -51.5% | Trade and Other Payables As of June 30, 2025, total trade payables amounted to RMB 1.25 billion, an 8.4% decrease from RMB 1.37 billion as of December 31, 2024, mainly attributable to a reduction in payables aged over one year Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 to 90 days | 774,993 | 781,632 | -0.8% | | 91 to 180 days | 114,482 | 99,716 | 14.8% | | 181 to 365 days | 111,913 | 115,238 | -2.9% | | Over 1 year | 252,754 | 372,081 | -32.1% | | Total | 1,254,142 | 1,368,667 | -8.4% | Management Discussion and Analysis This section provides an in-depth review of the Group's operational performance, financial results, and future outlook, including market conditions, strategic initiatives, and risk management Business Review In the first half of 2025, despite continued weak cement market demand due to real estate adjustments and infrastructure slowdown, the Group achieved a 14.7% year-on-year revenue increase to RMB 2.96 billion and a significant 161.2% growth in profit attributable to owners of the Company to RMB 73.9 million through active efficiency measures - In the first half of 2025, cement market demand continued its downward trend, though the decline narrowed, primarily impacted by deep adjustments in the real estate sector and a slowdown in infrastructure investment[24] Key Financial Performance for H1 2025 | Indicator | Amount (RMB millions) | Year-on-year Growth (%) | | :--- | :--- | :--- | | Revenue | 2,962.7 | 14.7% | | Profit attributable to owners of the Company | 73.9 | 161.2% | Operating Environment In the first half of 2025, China's economy maintained stable growth with a 5.3% GDP increase, while fixed asset investment (excluding rural households) grew by 2.8%, driven by infrastructure and manufacturing, but a significant decline in real estate investment and new housing starts pressured cement demand, partially offset by above-average economic growth in Henan and Liaoning provinces - In the first half of 2025, China's GDP grew by 5.3% year-on-year, with national fixed asset investment (excluding rural households) increasing by 2.8%, or 6.6% when excluding real estate development investment[26] - Real estate development investment decreased by 11.2%, new housing starts declined by 20.0%, and housing completions fell by 14.8%, negatively impacting demand for cement and related building materials[26][28] - Henan Province's GDP grew by 5.7% year-on-year, with fixed asset investment increasing by 5.1%; Liaoning Province's GDP grew by 4.7% year-on-year, both exceeding the national average and providing support for regional cement demand[27][28] Cement Industry In the first half of 2025, the cement industry experienced continued weak demand, with national cement output decreasing by 4.3%, and despite effective supply-demand regulation through staggered production in Q1, relaxed implementation in Q2 led to increased inventory, resulting in a "high-before-low" price trend but an overall industry turnaround to profit, estimated at RMB 15-16 billion, driven by falling coal prices and Q1 cement price recovery - In the first half of 2025, national cement output was 815 million tons, a year-on-year decrease of 4.3%, narrowing the decline by 5.7 percentage points compared to the same period last year[29] - Staggered production effectively regulated supply and demand in Q1, but relaxed implementation in Q2 led to a gradual increase in inventory to high levels[30] - The average transaction price in the national cement market increased by 5.4% year-on-year in the first half, with the Northeast region leading the country, averaging nearly RMB 100/ton higher than the national average and a 21% increase from the prior year[30] - The cement industry's total profit for the first half is estimated to reach RMB 15-16 billion, achieving a turnaround from a loss of RMB 1.1 billion in the prior year, primarily due to falling coal prices and a rebound in cement prices in Q1[31] - Increased exports of cement and clinker have become an effective way to alleviate supply-demand imbalances and counter "over-competition"[31] Financial Review The Group demonstrated strong financial performance in the first half of 2025, with significant growth in both revenue and profit attributable to owners of the Company, driven primarily by cement and clinker sales, particularly in the Northeast region, and enhanced overall profitability through stringent control over selling and distribution, administrative, and finance costs, despite a slight decrease in gross profit margin Revenue Total revenue for the first half of 2025 increased by 14.7% year-on-year to RMB 2.96 billion, with cement sales growing by 19.5%, clinker sales significantly increasing by 109.6%, and limestone aggregate sales decreasing by 16.6%, while the Northeast region's sales revenue grew by 40.9%, outperforming Central China Revenue Composition and Growth (For the six months ended June 30) | Product Category | 2025 Revenue (RMB millions) | 2024 Revenue (RMB millions) | Change (%) | Proportion of Total Revenue (2025) | | :--- | :--- | :--- | :--- | :--- | | Cement Sales | 2,235.6 | 1,870.2 | 19.5% | 75.5% | | Clinker Sales | 219.6 | 104.8 | 109.6% | 7.4% | | Limestone Aggregate Sales | 507.5 | 608.8 | -16.6% | 17.1% | | Total Revenue | 2,962.7 | 2,583.8 | 14.7% | 100% | Sales Revenue by Region (For the six months ended June 30) | Region | 2025 Revenue (RMB millions) | 2024 Revenue (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Central China | 2,325.8 | 2,131.9 | 9.1% | | Northeast China | 636.9 | 451.9 | 40.9% | Cost of Sales In the first half of 2025, the cost of sales increased by 16.0% year-on-year to RMB 2.28 billion, and despite the overall cost increase, per-ton costs for raw materials, coal, and electricity for cement and clinker decreased due to economies of scale and centralized procurement, with coal costs showing the most significant reduction - Cost of sales was approximately RMB 2.28 billion, an increase of 16.0% compared to the same period last year[34] Key Cost Changes per Ton of Cement and Clinker (RMB) | Cost Item | H1 2025 | H1 2024 | Change (RMB) | | :--- | :--- | :--- | :--- | | Raw Material Costs | 54.5 | 54.7 | -0.2 | | Coal Costs | 59.5 | 76.6 | -17.1 | | Electricity Costs | 25.7 | 27.6 | -1.9 | - Raw material, coal, and electricity costs accounted for 33.7%, 36.8%, and 15.9% of the cost of sales, respectively[34] Gross Profit, Gross Margin and Segment Profit In the first half of 2025, gross profit increased by 10.4% year-on-year to RMB 679 million, but the gross margin slightly decreased to 22.9%, with Central China's segment profit significantly declining by 70.0% due to reduced unit gross profit for cement, while Northeast China's segment profit turned from loss to profit, driven by increased unit gross profit Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit (RMB millions) | 679.1 | 615.1 | 10.4% | | Gross Margin | 22.9% | 23.8% | -0.9 percentage points | Segment Profit Change (For the six months ended June 30) | Region | 2025 Profit (RMB millions) | 2024 Profit (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Central China | 27.6 | 92.1 | -70.0% | | Northeast China | 31.9 | (47.7) | Turned loss into profit | Other Income Other income for the first half of 2025 decreased by 20.0% year-on-year to RMB 238 million, primarily due to reduced government subsidies and material sales income Other Income (For the six months ended June 30) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 238.2 | 297.8 | -20.0% | - The decrease was mainly due to reduced other government subsidies and material sales income[36] Selling and Distribution Expenses Selling and distribution expenses for the first half of 2025 significantly decreased by 49.5% to RMB 58.5 million, primarily attributable to reduced transportation costs Selling and Distribution Expenses (For the six months ended June 30) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 58.5 | 115.9 | -49.5% | - The decrease was mainly due to reduced transportation costs[37] Administrative Expenses Administrative expenses for the first half of 2025 decreased by 4.7% year-on-year to RMB 345 million, primarily due to reduced research and development expenses and cost savings Administrative Expenses (For the six months ended June 30) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 344.5 | 361.3 | -4.7% | - The decrease was mainly due to reduced research and development expenses and cost savings[38] Finance Costs Finance costs for the first half of 2025 decreased by 1.7% year-on-year to RMB 378 million, primarily due to lower discount rates on discounted bills with recourse and the repayment of some borrowings Finance Costs (For the six months ended June 30) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 377.8 | 384.4 | -1.7% | - The decrease was mainly due to lower discount rates on discounted bills with recourse and the repayment of some borrowings that had matured[39] Profit before tax Considering all factors, profit before tax for the first half of 2025 significantly increased by 191.5% to RMB 90 million Profit before tax (For the six months ended June 30) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit before tax | 90.0 | 30.9 | 191.5% | Income Tax Expense Income tax expense for the first half of 2025 significantly increased by 255.8% to RMB 17.8 million, primarily due to withholding tax on subsidiaries Income Tax Expense (For the six months ended June 30) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 17.8 | 5.0 | 255.8% | - The increase was mainly due to withholding tax on subsidiaries[41] Profit attributable to owners of the Company and Net Profit Margin In the first half of 2025, profit attributable to owners of the Company significantly increased by 161.2% to RMB 73.9 million, with the net profit margin improving by 1.4 percentage points to 2.5% Profit attributable to owners of the Company and Net Profit Margin (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB millions) | 73.9 | 28.3 | 161.2% | | Net Profit Margin | 2.5% | 1.1% | +1.4 percentage points | Financial and Liquidity Position As of June 30, 2025, the Group's financial and liquidity position remained stable, with reduced total borrowings, improved current and quick ratios, and decreased debt-to-asset and net gearing ratios, indicating lower financial leverage, while cash and bank balances decreased due to operating, investing, and financing activities Trade and Other Receivables As of June 30, 2025, trade and other receivables amounted to RMB 20.52 billion, remaining largely stable compared to December 31, 2024 Trade and Other Receivables (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 20,523.1 | | December 31, 2024 | 20,764.4 | Inventories As of June 30, 2025, inventories increased to RMB 1.28 billion, primarily due to an increase in raw materials and finished products in stock Inventories (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 1,280.9 | | December 31, 2024 | 675.7 | | Change | +89.6% | Amounts Due from Associates As of June 30, 2025, amounts due from associates totaled RMB 241 million, primarily comprising prepayments for clinker purchases and shareholder loans Amounts Due from Associates (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 241.4 | | December 31, 2024 | 217.3 | | Change | +11.1% | - The amounts represent prepayments for clinker purchased under the clinker supply framework agreement and shareholder loans due from Xin'an Zhonglian Wanji Cement Co, Ltd, an associate[45] Cash and Cash Equivalents As of June 30, 2025, cash and bank balances decreased to RMB 468 million, primarily influenced by cash inflows from operating activities offset by cash outflows from investing and financing activities Cash and Bank Balances (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 467.7 | | December 31, 2024 | 915.1 | | Change | -48.9% | Trade and Other Payables As of June 30, 2025, trade and other payables amounted to RMB 5.50 billion, remaining largely stable compared to December 31, 2024 Trade and Other Payables (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 5,502.1 | | December 31, 2024 | 5,570.9 | Borrowings As of June 30, 2025, the Group's total borrowings and bonds decreased by approximately RMB 1.04 billion to RMB 12.76 billion, with a reduction in borrowings due within one year and an increase in borrowings due after one year, indicating an optimized debt structure Borrowings and Bonds (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 12,759.0 | | December 31, 2024 | 13,799.0 | | Change | -7.5% | Borrowing Maturity Structure Change (RMB millions) | Maturity | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Borrowings due within one year | 10,584.2 | 12,115.7 | -12.6% | | Borrowings due after one year | 2,174.7 | 1,683.3 | +29.2% | Principal Sources of Liquidity The Group's primary sources of liquidity are cash generated from operations and bank and other borrowings, which are expected to continue funding working capital, production facility expansion, capital expenditures, and debt repayment, with the company planning to broaden financing channels to improve its capital structure - The principal sources of liquidity are cash generated from operations and bank and other borrowings[49] - Expected cash flows are sufficient to meet ongoing business needs, and the Group will broaden financing channels to improve its capital structure[49] Debt-to-Asset Ratio, Current Ratio, Quick Ratio, Equity Ratio As of June 30, 2025, the debt-to-asset ratio decreased by 1.3 percentage points to 55.8%, while the current and quick ratios both improved, increasing by 6.3% and 3.6% respectively, the equity ratio remained largely stable, and the net gearing ratio decreased by 7.2 percentage points to 60.0%, indicating reduced financial leverage Key Financial Ratios Change | Ratio | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Debt-to-Asset Ratio | 55.8% | 57.1% | -1.3 percentage points | | Current Ratio | 1.5 | 1.4 | +6.3% | | Quick Ratio | 1.4 | 1.3 | +3.6% | | Equity Ratio | 1.3 | 1.3 | Largely stable | | Net Gearing Ratio | 60.0% | 67.2% | -7.2 percentage points | - The change in the debt-to-asset ratio was due to a decrease in borrowings[50] Placing of Existing Shares and Subscription of New Shares In January 2025, the company completed a share placing and subscription, with net proceeds of approximately HK$47 million fully utilized to repay debt (HK$42.2 million) and for general working capital (HK$4.8 million) - The total proceeds from the subscription were approximately HK$47.9 million, with net proceeds of approximately HK$47.0 million[53] - The net proceeds were fully utilized, with HK$42.2 million used for debt repayment and HK$4.8 million for general working capital[53] Capital Expenditure and Capital Commitments In the first half of 2025, capital expenditure was approximately RMB 109 million, a 31.1% year-on-year decrease, and as of June 30, 2025, capital commitments amounted to approximately RMB 309 million, primarily related to the construction of production facilities and machinery purchases for the cement and aggregate businesses, funded by cash from operations and borrowings Capital Expenditure and Capital Commitments (RMB millions) | Indicator | H1 2025 / June 30 | H1 2024 / Dec 31 | Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 109.2 | 158.5 | -31.1% | | Capital Commitments | 308.6 | 345.0 | -10.6% | - Capital expenditure and capital commitments are mainly related to the construction of production facilities for cement and aggregate businesses, and the purchase of machinery, office equipment, investments in construction in progress, and mining rights[54] Pledged Assets As of June 30, 2025, the carrying value of assets pledged by the Group to secure bank borrowings was approximately RMB 3.69 billion, a decrease from December 31, 2024 Carrying Value of Pledged Assets (RMB millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | 3,692.9 | | December 31, 2024 | 3,993.1 | | Change | -7.5% | Financial Guarantees As of June 30, 2025, the Group's approved financial guarantee limit to related parties was approximately RMB 1.54 billion, with an actual utilized amount of approximately RMB 1.44 billion, an increase from December 31, 2024 Financial Guarantees Provided to Related Parties (RMB millions) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Approved Guarantee Limit | 1,540.0 | 1,200.0 | 28.3% | | Actual Utilized Amount | 1,439.5 | 1,099.5 | 30.9% | Significant Investments, Acquisitions or Disposals During the reporting period, the Group was not involved in any significant investment, acquisition, or disposal activities - During the reporting period, the Group was not involved in any significant investments, acquisitions or disposals[57] Significant Legal Proceedings During the reporting period, the Group was not involved in any significant legal proceedings or arbitration, nor were there any outstanding or potential significant legal proceedings or claims - During the reporting period, the Group was not involved in any significant legal proceedings or arbitration[58] Material Events After the Reporting Period There have been no material events affecting the Group since the end of the reporting period - There have been no material events affecting the Group since the end of the reporting period[59] Market Risks The Group faces exchange rate, interest rate, and liquidity risks, which management closely monitors and manages through hedging measures or optimization of borrowing portfolios when necessary Exchange Rate Risk The Group's operations are primarily denominated in RMB, but certain bank balances and borrowings are denominated in HKD or USD, creating exchange rate fluctuation risk; the company currently has no foreign currency hedging policy but will closely monitor and take appropriate hedging measures as needed - The Group's operations are primarily denominated in RMB, but certain bank balances and borrowings are denominated in HKD or USD, creating exchange rate fluctuation risk[60] - There is currently no foreign currency hedging policy, but management will closely monitor exchange rate fluctuation risks in real-time and take appropriate hedging measures when necessary[60] Interest Rate Risk The Group is exposed to interest rate risk arising from long-term and short-term borrowings, which it manages by regularly reviewing its borrowing portfolio, maintaining variable-rate borrowings to mitigate fair value interest rate risk, and utilizing a mix of fixed and floating rate instruments - The Group is exposed to interest rate risk arising from long-term and short-term borrowings[61] - Interest rate risk is managed by regularly reviewing the borrowing portfolio, maintaining variable-rate borrowings to mitigate fair value interest rate risk, and utilizing a mix of fixed and floating rate instruments[61] Liquidity Risk The Group has established a liquidity risk management system to manage liquidity risk by monitoring cash and cash equivalents levels and ensuring compliance with loan covenants - The Group has established an appropriate liquidity risk management system for short-term, medium-term, and long-term funding and liquidity management needs[62] - Liquidity risk is managed by monitoring and maintaining appropriate levels of cash and cash equivalents, overseeing the utilization of bank borrowings, and ensuring compliance with loan covenants[62] Employees and Remuneration Policy As of June 30, 2025, the Group had 5,346 employees, with staff costs of approximately RMB 208 million, and continues to implement its employee salary policy, bonus, and training programs Employee and Remuneration Information | Indicator | June 30, 2025 / H1 | June 30, 2024 / H1 | | :--- | :--- | :--- | | Number of Employees | 5,346 | 5,469 | | Staff Costs (RMB millions) | 208.2 | 231.6 | - The Group continues to implement its employee salary policy, bonus, and training programs[63] Outlook Looking ahead, the Group benefits from favorable national policies, including promoting a unified national market, addressing low-price disorderly competition, eliminating outdated capacity, and expanding domestic demand and infrastructure investment, while regional economic development and major project investments in Henan and Liaoning provinces also present opportunities; the cement industry is expected to improve profitability through strict implementation of staggered production and industry self-discipline, and the Group will implement national policies, strengthen refined management, promote green energy, and deepen customer service to enhance market competitiveness Favorable Policies Central policies emphasize advancing the construction of a unified national market, addressing low-price disorderly competition, promoting the orderly exit of outdated capacity, and introducing stable growth plans for ten key industries, while the government work report targets around 5% GDP growth, active macroeconomic policies, expanded domestic demand, and technological innovation, with the Ministry of Transport's new rural road improvement plan projecting 300,000 km of new/reconstructed rural roads, 300,000 km of restorative maintenance, and 9,000 bridge renovations by 2027, all contributing to cement demand - The Central Financial and Economic Affairs Commission emphasized deepening the construction of a unified national market, lawfully regulating low-price disorderly competition among enterprises, guiding enterprises to improve product quality, and promoting the orderly exit of outdated capacity[64] - The Ministry of Industry and Information Technology will introduce stable growth plans for ten key industries, including steel, non-ferrous metals, petrochemicals, and building materials, to promote structural adjustment, optimize supply, and eliminate outdated capacity[64] - The Ministry of Transport, Ministry of Finance, and Ministry of Natural Resources jointly issued the "New Round of Rural Road Improvement Action Plan," planning to complete 300,000 kilometers of new/reconstructed rural roads, implement 300,000 kilometers of restorative maintenance, and renovate 9,000 old and dangerous bridges by 2027[66] Regional Opportunities Both Henan and Liaoning provinces have introduced policies to promote sustained economic improvement, with Henan strengthening major project-driven growth, targeting over RMB 210 billion in physical investment for "Double Hundred Projects" and over RMB 1 trillion for provincial key projects in 2025, alongside measures to reduce enterprise costs and enhance efficiency, while Liaoning will accelerate construction of 11,500 ongoing projects, expedite preliminary work for 3,100 planned new projects, and reserve a batch of major projects, all providing strong support for regional cement demand - Henan Province issued "Several Policy Measures to Promote Sustained Economic Improvement in the Second Half of 2025," strengthening major project-driven growth, with "Double Hundred Projects" and provincial key projects targeted to complete over RMB 210 billion and RMB 1 trillion in physical investment, respectively, in 2025[67] - Henan Province issued "Notice on Issuing Several Policy Measures to Support Enterprises in Reducing Costs and Increasing Efficiency," aiming to reduce enterprise costs in R&D, transformation and upgrading, human resources, capital, energy consumption, logistics, land use, and import/export operations[68] - Liaoning Province will accelerate the construction of 11,500 ongoing projects, expedite preliminary work for 3,100 planned new projects, and accelerate the construction of major projects such as Dalian New Airport, Taizi River Pumped Storage, and Changhai Bridge[68] Industry Prospects The China Cement Association's "Opinions on Further Promoting High-Quality Development of the Cement Industry to Counter 'Involution' and Ensure 'Stable Growth'" calls for member enterprises to unify actual and registered capacities, rigidly implement staggered production, promote cross-regional coordinated staggered production, and strengthen "dual control" of capacity, with expectations that active production according to registered capacity could quickly raise capacity utilization from 53% to around 70%, leading to sustained improvement in industry profitability - The China Cement Association issued "Opinions on Further Promoting High-Quality Development of the Cement Industry to Counter 'Involution' and Ensure 'Stable Growth'," requiring member enterprises to unify actual capacity with registered capacity, promote rigid implementation of staggered production, and cross-regional coordinated staggered production[69] - If enterprises actively organize production according to registered daily and annual capacities, the supply side is expected to see substantial reductions, capacity utilization is likely to increase from 53% to around 70%, and industry profitability is expected to continue to improve rapidly[69] Key Initiatives of the Group The Group will implement national "anti-involution" policies, enforce staggered production controls, promote energy saving, carbon reduction, and cleaner production, while also strengthening refined management across all operational segments, advancing the implementation of wind, solar, and storage projects, promoting green energy, continuously upgrading intelligence, and deepening customer service to build the Tianrui brand image - Implement national "anti-involution" policies, enforce staggered production controls in the cement industry, and promote energy saving, carbon reduction, ultra-low emissions, and cleaner production measures[70] - Strengthen refined management across all operational segments, advance the implementation of wind, solar, and storage projects, promote green energy and alternative raw material applications, and continuously drive intelligent upgrades[70] - Adhere to quality as the foundation, customer demand as the orientation, and reputation as the support, deepen customer service, and build the Tianrui brand image[70] Corporate Governance and Other Information This section details the company's commitment to high standards of corporate governance, compliance with regulatory codes, and other important disclosures regarding its board, securities, and financial review processes Corporate Governance The Company is committed to maintaining high standards of corporate governance and complies with the HKEX Corporate Governance Code; during the reporting period, the company temporarily failed to fully comply with the code due to insufficient independent non-executive directors and non-compliant audit and remuneration committee compositions, but regained full compliance on August 27, 2025, with the appointment of Mr Jiang Senlin as an independent non-executive director - The Company is committed to maintaining a high level of corporate governance and has adopted the code provisions of the HKEX Corporate Governance Code[71] - The Company previously failed to comply with Listing Rules 3.10(1), 3.10A, 3.11, 3.21, 3.23, 3.25, and 3.27 due to an insufficient number of independent non-executive directors and non-compliant compositions of the Audit Committee and Remuneration Committee[72] - On August 27, 2025, Mr Jiang Senlin was appointed as an independent non-executive director and a member of both the Audit Committee and Remuneration Committee, bringing the Company back into full compliance with all relevant Listing Rules[73] - The Company has not appointed a new Chief Executive Officer since the resignation of the former CEO, but the Board has established an Executive Committee to oversee daily operations, ensuring that power is not concentrated in one individual[71] Directors' Compliance with the Model Code The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities dealings, and all directors have confirmed compliance with this code during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' dealings in securities[74] - Following specific enquiries made to the Directors, they have all confirmed compliance with the required standards set out in the Model Code during the reporting period[74] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities[75] Interim Dividends The Company's directors do not recommend the declaration of an interim dividend for the reporting period - The Company's directors do not recommend the declaration of an interim dividend for the reporting period (June 30, 2024: nil)[76] Review of Financial Information The Company's Board Audit Committee has discussed and reviewed the interim results for the six months ended June 30, 2025, with management, but the condensed consolidated financial statements have not been audited or reviewed by the company's auditors - The Company's Board Audit Committee has discussed and reviewed the Group's interim results for the six months ended June 30, 2025, with the Company's management[77] - The financial information in the condensed consolidated financial statements for the interim results has not been audited or reviewed by the Company's auditors[77] Board of Directors As of the announcement date, the Board of Directors comprises Executive Directors Ms Li Fengluan, Mr Ding Jifeng, Mr Li Jiangming, and Mr Jin Mingjie; Chairman and Non-executive Director Mr Li Liufa; and Independent Non-executive Directors Mr Kong Xiangzhong, Mr Mak Tin Sang, and Mr Jiang Senlin - The Board of Directors includes Executive Directors Ms Li Fengluan, Mr Ding Jifeng, Mr Li Jiangming, and Mr Jin Mingjie[78] - The Chairman and Non-executive Director is Mr Li Liufa[78] - The Independent Non-executive Directors are Mr Kong Xiangzhong, Mr Mak Tin Sang, and Mr Jiang Senlin[78]