华新水泥(600801) - 2025 Q2 - 季度财报

Important Notice The board, supervisory board, and senior management guarantee report truthfulness; report is unaudited, no profit distribution, and no related party fund occupation or illegal guarantees - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[3] - This semi-annual report is unaudited[5] - No profit distribution or capital reserve conversion to share capital will be made in this reporting period[6] - The company has no non-operating occupation of funds by controlling shareholders and other related parties, nor external guarantees provided in violation of decision-making procedures[8] Section I Definitions This section defines key terms, reporting period, financial indicators, product terms, exchanges, and currency units for consistent understanding - The reporting period refers to January 1, 2025, to June 30, 2025[13] - EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization[13] - A-shares refer to ordinary shares of the company with a par value of RMB 1 per share listed on the Shanghai Stock Exchange, and H-shares refer to foreign shares listed on the Hong Kong Stock Exchange[13] Section II Company Profile and Key Financial Indicators This section provides company basic information, contact details, stock overview, and key financial data including revenue, profit, EPS, and non-recurring items I. Company Information The company's Chinese name is Huaxin Cement Co., Ltd., abbreviated as Huaxin Cement, with Li Yeqing as legal representative - Company Chinese Name: Huaxin Cement Co., Ltd., Chinese Abbreviation: Huaxin Cement[15] - Company Legal Representative: Li Yeqing[15] II. Contact Person and Contact Information Board Secretary Ye Jiaxing and Securities Representative Wang Xiaoqiong share contact details and email investor@huaxincem.com - Board Secretary: Ye Jiaxing; Securities Affairs Representative: Wang Xiaoqiong[16] - Contact Address: Building B, Huaxin Building, No. 426 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan, Hubei Province[16] - Email: investor@huaxincem.com[16] III. Brief Introduction to Changes in Basic Information Company's registered address is Huangshi, office in Wuhan, and website is www.huaxincem.com - Company Registered Address: No. 600 Daqi Avenue East, Huangshi City, Hubei Province[17] - Company Office Address: Building B, Huaxin Building, No. 426 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan, Hubei Province[17] - Company Website: www.huaxincem.com**[17](index=17&type=chunk) IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations Information is disclosed in China Securities Journal and www.sse.com.cn, with reports stored at the Board Secretary's Office - Information Disclosure Newspaper: China Securities Journal; Website Address: www.sse.com.cn**[18](index=18&type=chunk) - Semi-annual Report Storage Locations: Board Secretary's Office and Securities Department[18] V. Company Stock Overview Company's A-shares are listed on SSE (600801) and H-shares on HKEX (06655) Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-shares | SSE | Huaxin Cement | 600801 | | H-shares | HKEX | Huaxin Cement | 06655 | VII. Company's Main Accounting Data and Financial Indicators Operating revenue slightly decreased, but total profit and net profit significantly grew, with improved EPS and ROE, partly due to non-recurring gains (I) Main Accounting Data Operating revenue decreased by 1.17%, while total profit and net profit attributable to shareholders increased by over 50% Main Accounting Data | Main Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,046,640,187 | 16,237,373,654 | -1.17 | | Total Profit | 2,024,928,214 | 1,343,287,311 | 50.74 | | Net Profit Attributable to Shareholders of Listed Company | 1,103,484,806 | 730,553,374 | 51.05 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 1,070,009,720 | 680,295,259 | 57.29 | | Net Cash Flow from Operating Activities | 1,623,794,304 | 1,730,584,063 | -6.17 | | Net Assets Attributable to Shareholders of Listed Company | 30,488,032,523 | 30,291,427,176 | 0.65 | | Total Assets | 70,872,821,162 | 69,512,689,187 | 1.96 | (II) Main Financial Indicators Basic and diluted EPS significantly increased, with weighted average ROE improving by over 1 percentage point Main Financial Indicators | Main Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.53 | 0.35 | 52.03 | | Diluted Earnings Per Share (RMB/share) | 0.52 | 0.35 | 48.57 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (RMB/share) | 0.51 | 0.33 | 54.55 | | Weighted Average Return on Net Assets (%) | 3.57 | 2.49 | Increased by 1.08 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 3.47 | 2.32 | Increased by 1.15 percentage points | IX. Non-Recurring Gains and Losses and Amounts Total non-recurring gains and losses were RMB 33.48 million, mainly from government subsidies and receivable impairment reversals Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Disposal gains/losses of non-current assets | -1,416,744 | | Government subsidies recognized in current profit/loss | 54,395,661 | | Gains/losses from changes in fair value and disposal of financial assets and liabilities | 471,938 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 3,153,787 | | Other non-operating income and expenses | -18,304,048 | | Less: Income tax impact | 6,503,665 | | Minority interest impact (after tax) | -1,678,157 | | Total | 33,475,086 | X. Companies with Equity Incentives or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact Net profit after deducting share-based payment impact was RMB 1.117 billion, a 50.59% year-on-year increase Net Profit After Deducting Share-Based Payment Impact | Main Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 1,116,705,549 | 741,543,049 | 50.59 | Section III Management Discussion and Analysis This section elaborates on the company's operating performance in the first half of 2025, including the macro environment of the building materials industry, the company's main business and products, operating model, operating results, core competitiveness, and risk response measures I. Explanation of the Company's Industry and Main Business During the Reporting Period The company operates in the building materials industry, which is highly correlated with fixed asset investment, and has evolved into a global group covering the entire industry chain, with cement business remaining dominant (I) The Company's Industry is Building Materials, Sub-industry is Building Materials H1 2025 saw a 4.3% drop in cement output, but prices rebounded, improving industry profitability to RMB 15-16 billion - In the first half of 2025, national fixed asset investment increased by 2.8% year-on-year, with infrastructure investment growing by 4.6% and real estate development investment decreasing by 11.2%[27] - From January to June, national cumulative cement output was 815 million tons, a year-on-year decrease of 4.3%, with the decline narrowing compared to the same period last year[27] - Overall profitability of the cement industry improved in the first half, with total profit expected to be approximately RMB 15-16 billion[27] (II) Company's Main Businesses The company is a global building materials group with a full industry chain, operating in 17 domestic and 20 overseas countries, with cement business revenue at 57% and non-cement EBITDA at 44% - The company's business covers 17 provinces/cities/autonomous regions in China and 20 overseas countries, with over 300 subsidiaries and branches[29] - As of June 30, 2025, the company has a cement production capacity of 126 million tons/year, aggregates of 300 million tons/year, and waste disposal of 18.24 million tons/year[30] - As of June 30, 2025, cement business revenue accounted for 57% of the company's total operating revenue, and non-cement businesses contributed 44% of EBITDA[30] (III) Company's Main Products Main products include cement, concrete, aggregates, and low-carbon materials, with extensive domestic and overseas production networks and overseas operational cement grinding capacity reaching 24.7 million tons/year - The company's domestic cement production bases are located in 9 provinces/cities, including Hubei, Hunan, Yunnan, Chongqing, Sichuan, Guizhou, Tibet, Guangdong, and Henan[31] - The company has established production bases in 12 overseas countries, including Tajikistan and Kyrgyzstan, with overseas operational cement grinding capacity reaching 24.7 million tons/year[31] - The company actively develops various new low-carbon building materials, such as ultra-high performance concrete (UHPC), mortar, and new wall materials[33] (IV) Company's Operating Model The company uses a three-segment structure, produces based on sales, balances direct/distribution sales, and employs a "centralized procurement + smart" procurement strategy - The company's organizational structure is divided into three segments: "business operations," "business management," and "business support," to enhance management and decision-making efficiency[34] - The production model is based on sales, the sales model balances direct sales and distribution, and procurement implements a "centralized procurement + smart" strategy[34] II. Discussion and Analysis of Operating Performance H1 2025 revenue declined 1.17% to RMB 16.046 billion, but net profit rose 51.05% to RMB 1.103 billion due to price hikes, overseas growth, and cost control 2025 H1 Operating Performance Overview | Indicator | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | RMB 16.046 billion | -1.17% | | Net Profit Attributable to Parent Company Shareholders | RMB 1.103 billion | +51.05% | | Cement and Commercial Clinker Sales Volume | 27.7366 million tons | -2.63% | | Overseas Cement and Commercial Clinker Sales Volume | 8.3884 million tons | +10.41% | | Aggregates Sales | 76.0526 million tons | +6.33% | | Concrete Sales | 13.2480 million cubic meters | -9.88% | 2025 H1 Segment Operating Revenue and Gross Profit Margin | Business Type | Operating Revenue (RMB billion) | YoY Change | Gross Profit Margin (%) | Prior Year Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Cement Business | 9.152 | +5.60% | 29.74 | 20.71 | | Domestic Cement Business | 5.024 | -1.26% | - | - | | Overseas Cement Business | 4.128 | +15.37% | - | - | | Aggregates Business | 2.763 | -6.72% | 47.91 | 47.41 | | Concrete Business | 3.457 | -12.33% | 13.12 | 11.61 | | Comprehensive Gross Profit Margin | - | - | 28.92 | 23.65 | - Overseas multi-business development continued to make progress, with projects in Zimbabwe, Zambia, South Africa, and Tanzania completed and put into operation, and the acquisition of 100% equity of Embu Aggregates Company in Brazil completed, marking the first entry into the Americas market[37] III. Analysis of Core Competitiveness During the Reporting Period As one of "China's Top 500 Most Valuable Brands," the company boasts a long history and profound cultural heritage, further consolidating its scale, green development, innovation, brand, quality, and management advantages - The company was founded in 1907, and is one of "China's Top 500 Most Valuable Brands" large enterprise groups[39] - The company's core competitiveness includes scale and complete industry chain, green and low-carbon development, technological innovation, trade name and brand, product quality, strategic layout, intelligent management, and professional management team advantages[39] IV. Main Operating Performance During the Reporting Period This section analyzes financial statement changes, asset/liability status, investments, and major holding/participating companies, showing profit growth despite revenue decline (I) Analysis of Main Business Revenue decreased 1.17%, costs decreased 8%, while total profit increased significantly; investment cash flow outflow increased due to M&A Financial Statement Item Variation Analysis | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,046,640,187 | 16,237,373,654 | -1.17 | | Operating Cost | 11,405,577,296 | 12,396,833,893 | -8 | | Selling Expenses | 762,586,412 | 787,871,075 | -3.21 | | Administrative Expenses | 939,872,641 | 908,113,338 | 3.5 | | Financial Expenses | 437,166,210 | 399,954,782 | 9.3 | | R&D Expenses | 72,224,935 | 70,954,352 | 1.79 | | Net Cash Flow from Operating Activities | 1,623,794,304 | 1,730,584,063 | -6.17 | | Net Cash Flow from Investment Activities | -2,143,578,153 | -1,178,576,055 | -81.88 | | Net Cash Flow from Financing Activities | 90,949,808 | -1,083,480,073 | 108.39 | - The change in net cash flow from investment activities was primarily due to increased enterprise acquisition expenditures[40] - The change in net cash flow from financing activities was primarily due to reduced maturing debt[40] (III) Analysis of Assets and Liabilities Total assets grew 1.96%; goodwill increased 48.78% due to overseas M&A; short-term borrowings decreased, and bonds payable increased Asset and Liability Status Changes | Item Name | Current Period End (RMB) | % of Total Assets (Current Period End) | Prior Year End (RMB) | % of Total Assets (Prior Year End) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,675,259 | - | 31,704,908 | 0.05 | -94.72 | Related financial products liquidated | | Notes Receivable | 123,020,139 | 0.17 | 202,597,711 | 0.29 | -39.28 | Increased endorsement of notes | | Prepayments | 453,238,991 | 0.64 | 314,887,975 | 0.45 | 43.94 | Increased advance payments for goods and services | | Other Receivables | 787,055,227 | 1.11 | 1,237,502,508 | 1.78 | -36.40 | Recovery of asset disposal proceeds | | Goodwill | 1,798,800,610 | 2.54 | 1,209,007,806 | 1.74 | 48.78 | Increased due to overseas acquisitions | | Short-term Borrowings | 137,579,445 | 0.19 | 296,807,055 | 0.43 | -53.65 | Debt structure adjustment | | Employee Compensation Payable | 196,045,620 | 0.28 | 280,892,309 | 0.40 | -30.21 | Payment of prior year's performance bonuses | | Other Payables | 1,417,172,772 | - | 1,011,487,419 | 1.46 | 40.11 | H-share dividends awaiting payment after distribution | | Bonds Payable | 3,543,705,234 | - | 2,445,745,035 | 3.52 | 44.89 | New issuance of RMB 1.1 billion high-growth industrial bonds | | Special Reserves | 68,837,903 | 0.10 | 51,893,030 | 0.07 | 32.65 | Increased safety production fee balance | - Overseas assets amounted to RMB 14,739,822,415, accounting for 19.2% of total assets[43] Restricted Assets at Period End | Item | Book Value at Period End (RMB) | | :--- | :--- | | Monetary Funds | 913,075,307 | | Fixed Assets | 5,039,418 | | Intangible Assets | 3,409,197 | | Total | 921,523,922 | (IV) Analysis of Investment Status Other equity investments slightly increased, long-term equity investments stable, and trading financial assets significantly decreased Overall Analysis of External Equity Investments | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 945,621,616 | 934,524,059 | 1.19 | | Other | 1,675,259 | 31,704,908 | -94.72 | | Long-term Equity Investments | 583,078,169 | 584,752,454 | -0.29 | Financial Assets Measured at Fair Value | Asset Category | Balance at Period Start (RMB) | Fair Value Change Gains/Losses in Current Period (RMB) | Purchases in Current Period (RMB) | Sales/Redemptions in Current Period (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 38,143,738 | 2,128,471 | - | - | 39,983,240 | | Other | 31,704,908 | 1,556,780 | 330,000,000 | 360,000,000 | 1,675,259 | | Total | 69,848,646 | 3,685,251 | 330,000,000 | 360,000,000 | 41,658,499 | (VI) Analysis of Major Holding and Participating Companies Major subsidiaries Huaxin Green Building Materials (Wuxue) and Huaxin Cement (Wuxue) were profitable; Brazil acquisition had no major impact Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaxin Green Building Materials (Wuxue) Co., Ltd. | Production and sales of aggregates | 522,500,000 | 1,558,995,359 | 1,000,784,290 | 685,249,976 | 181,870,179 | | Huaxin Cement (Wuxue) Co., Ltd. | Production and sales of cement, aggregates, concrete, wall materials | 300,000,000 | 3,351,396,769 | 1,749,344,745 | 1,032,985,955 | 327,364,888 | - During the reporting period, the company acquired ITATUBA PARTICIPAÇÕES LTDA and its subsidiaries through equity acquisition, which had no significant impact on the company's overall production, operations, and performance[52] V. Other Disclosure Matters The company addresses risks like declining demand and rising costs through strategic reforms, and enhances value via "Quality Improvement, Efficiency Enhancement, and Return Focus" plan (I) Potential Risks The company faces risks from declining domestic cement demand, overcapacity, compliance, rising costs, and international operations/exchange rates - Risks of declining performance due to continuous decline in domestic cement demand and severe overcapacity[52] - Risks of safe production, energy saving and carbon reduction, environmental emission compliance, and continuously rising production costs[53] - Risks of international operations and exchange rate fluctuations, influenced by geopolitical factors, economic and trade disputes, and financial market volatility[53] - The company will address risks by promoting supply-side reform, increasing investment in safety and environmental protection, optimizing capacity, reducing costs, strengthening marketing, and hedging risks[55] (II) Other Disclosure Matters The company implements four strategies, engages investors, saw management stock increases, and approved a 40% dividend payout for 2024 - The company is fully advancing four major strategies: "overseas multi-business development, domestic integrated synergy, carbon reduction and value-added innovation, and digital AI-driven"[56] - In the first half, the company conducted over 300 investor communication activities, and management purchased 195,300 shares of the company's stock through the secondary market[56] 2024 Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Distribution Base | 2,078,995,649 shares | | Cash Dividend Per Share (incl. tax) | RMB 0.46/share | | Total Dividends Distributed (incl. tax) | RMB 956,337,999 | | % of Net Profit Attributable to Shareholders of Listed Company | 40% | - The company strictly fulfills its information disclosure obligations in accordance with regulatory requirements, disclosing 2 periodic reports, 18 interim announcements, and 21 other online documents domestically in the first half[57] Section IV Corporate Governance, Environment and Society This section covers changes in directors (Luo Zhiguang retired, Olivier Milhaud elected), no semi-annual profit distribution, ongoing equity incentive plans, environmental disclosures for 59 subsidiaries, and rural revitalization efforts I. Changes in Company Directors, Supervisors, and Senior Management Luo Zhiguang retired as director; Olivier Milhaud was elected non-executive director on July 15, 2025 - Mr. Luo Zhiguang resigned as director, member of the Board Audit Committee, member of the Board Remuneration and Assessment Committee, and Chairman of the Board Governance and Compliance Committee on June 4 due to retirement[59] - On July 15, 2025, the company elected Mr. Olivier Milhaud as a non-executive director of the Eleventh Board of Directors[59] II. Profit Distribution or Capital Reserve Conversion to Share Capital Plan No profit distribution or capital reserve conversion to share capital is planned for this reporting period - No profit distribution or capital reserve conversion to share capital will be made in this reporting period[60] III. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact Resolutions for the 2024 and 2025 core employee stock ownership plans were approved, continuing incentive measures - The company approved the resolution on the grant results of the "Second Phase (2024) Core Employee Stock Ownership Plan of the 2023-2025 Core Employee Stock Ownership Plan"[61] - The company approved the resolution on the "Third Phase (2025) Core Employee Stock Ownership Plan of the 2023-2025 Core Employee Stock Ownership Plan"[61] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law 59 enterprises are on the environmental disclosure list, with reports accessible via the company website - The company has 59 enterprises included in the list of enterprises required to disclose environmental information by law[63] - Huaxin Cement Co., Ltd.'s environmental information disclosure report can be accessed at https://www.huaxincem.com/shehuizeren/shehuizerenbaogao.html**[63](index=63&type=chunk) V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc. The company actively supports rural revitalization through various assistance programs, enhancing local development capabilities - The company actively responds to the national rural revitalization strategy through multi-dimensional precise assistance measures such as village-based assistance, community co-construction, agricultural support, educational assistance, and material donations[65] - The company effectively enhances local residents' self-development capabilities and stimulates endogenous vitality in rural areas through industrial drive and educational empowerment[65] Section V Important Matters This section covers no unfulfilled commitments or illegal related party transactions/guarantees, a significant arbitration case with Moncement Building Materials LLC (USD 77.07 million), and the completion of Holcim Nigeria asset acquisition I. Fulfillment of Commitments No commitments were fulfilled by the company or related parties during the reporting period - No fulfillment of commitments during the reporting period[67] VII. Major Litigation and Arbitration Matters A USD 77.07 million arbitration with Moncement Building Materials LLC is awaiting ruling, with RMB 40 million estimated liability Major Litigation and Arbitration Matters | Plaintiff (Applicant) | Defendant (Respondent) | Type of Litigation/Arbitration | Amount Involved in Litigation/Arbitration (USD) | Whether Estimated Liabilities Formed and Amount (RMB) | Progress of Litigation/Arbitration | | :--- | :--- | :--- | :--- | :--- | :--- | | Moncement Building Materials LLC | Huaxin Cement Co., Ltd. | Arbitration | 77.0696 million | Yes, 40 million | Hearing held on March 22-23, 25-28, 2024, awaiting arbitration | X. Major Related Party Transactions The company completed the equity transfer of Holcim Nigeria assets on August 29, 2025, bringing target companies into consolidation scope - The company completed the equity transfer of Holcim Nigeria assets on August 29, 2025[70] - The target companies Caricement B.V. and Davis Peak Holdings Limited, as well as the ultimate target company Lafarge Africa Plc, will be included in the company's consolidated financial statements[70] - The buyer in this transaction will make a tender offer to other shareholders of the ultimate target company[70] XI. Major Contracts and Their Performance No external guarantees were made, but total outstanding guarantees to subsidiaries were RMB 11.116 billion, representing 31.75% of net assets Company's Total Guarantees | Indicator | Amount (RMB) | | :--- | :--- | | Total guarantees provided to subsidiaries during the reporting period | -147,701,974 | | Total outstanding guarantees to subsidiaries at period-end (B) | 11,116,207,818 | | Total Guarantees (A+B) | 11,116,207,818 | | % of Total Guarantees to Company's Net Assets | 31.75 | | Debt guarantees provided for guaranteed parties with asset-liability ratio exceeding 70% (D) | 7,691,979,984 | Section VI Share Changes and Shareholder Information This section details unchanged share capital, 45,661 ordinary shareholders, HKSCC Nominees as the largest shareholder (35.34%), and secondary market share increases by key management I. Share Capital Changes The company's total share capital and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total share capital and share capital structure remained unchanged[78] II. Shareholder Information Total ordinary shareholders were 45,661; HKSCC Nominees Limited was the largest shareholder with 35.34% - Total number of ordinary shareholders at the end of the reporting period: 45,661[79] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | HKSCC Nominees Limited | 734,719,819 | 35.34 | Overseas Legal Person | | HOLCHIN B.V. | 451,333,201 | 21.71 | Overseas Legal Person | | Huaxin Group Co., Ltd. | 338,060,739 | 16.26 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 56,903,205 | 2.74 | Overseas Legal Person | III. Information on Directors, Supervisors, and Senior Management Key management, including Li Yeqing and Chen Qian, increased their company stock holdings via the secondary market Shareholding Changes of Current and Resigned Directors, Supervisors, and Senior Management During the Reporting Period | Name | Position | Shares Held at Period Start (shares) | Shares Held at Period End (shares) | Change in Shares During Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yeqing | Director, President | 1,407,930 | 1,537,930 | 130,000 | Secondary market increase | | Chen Qian | Vice President, CFO | 200,000 | 220,000 | 20,000 | Secondary market increase | | Xu Gang | Vice President | 391,300 | 407,900 | 16,600 | Secondary market increase | | Ye Jiaxing | Vice President, Board Secretary | 244,225 | 272,925 | 28,700 | Secondary market increase | Section VII Bond-Related Information This section details the basic information, use of raised funds, and progress of special bond categories for the company's various corporate bonds and non-financial enterprise debt financing instruments, showing improved interest coverage ratios I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company issued multiple corporate bonds and debt instruments; consolidated interest-bearing debt was RMB 19.803 billion, with improved interest coverage (I) Corporate Bonds (Including Enterprise Bonds) Multiple corporate bonds were issued, including overseas, low-carbon, and tech innovation bonds, with varying rates and maturities Corporate Bond Basic Information | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (RMB 100 million) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Overseas Bond Issued in 2020 | HXCEME | XS2256737722 | Nov 19, 2020 | Nov 18, 2025 | 20 | 2.25 | SGX | | Corporate Bond Publicly Issued to Professional Investors in 2022 (Low-Carbon Transition-Linked Bond) (Tranche 1) (Type 2) | 22 Huaxin 02 | 137545.SH | Jul 15, 2022 | Jul 19, 2027 | 4 | 3.39 | SSE | | Technology Innovation Corporate Bond Publicly Issued to Professional Investors in 2024 (Tranche 1) | 24 Huaxin K1 | 241419.SH | Aug 12, 2024 | Aug 14, 2029 | 11 | 2.49 | SSE | | Corporate Bond Publicly Issued to Professional Investors in 2022 (Low-Carbon Transition-Linked Bond) (Tranche 1) (Type 1) | 22 Huaxin 01 | 137544.SH | Jul 15, 2022 | Jul 19, 2025 | 5 | 2.99 | SSE | | "Belt and Road" Technology Innovation Corporate Bond Publicly Issued to Professional Investors in 2023 (Tranche 1) (Type 1) | 23 Huaxin K1 | 240065.SH | Dec 1, 2023 | Dec 5, 2026 | 8 | 3.12 | SSE | | "Belt and Road" Technology Innovation Corporate Bond Publicly Issued to Professional Investors in 2025 (High-Growth Industrial Bond) (Tranche 1) | 25 Huaxin K1 | 242246.SH | Jan 9, 2025 | Jan 13, 2030 | 11 | 2.14 | SSE | (II) Corporate Bond Raised Funds Utilization The RMB 1.1 billion 25 Huaxin K1 bond proceeds were used for working capital and "Belt and Road" acquisitions, which are performing well Raised Funds Basic Information | Bond Code | Bond Abbreviation | Is it a Special Bond? | Specific Type of Special Bond | Total Raised Funds (RMB 100 million) | Raised Funds Balance at Period End (RMB 100 million) | | :--- | :--- | :--- | :--- | :--- | :--- | | 242246.SH | 25 Huaxin K1 | Yes | Belt and Road Bond, Technology Innovation Bond, High-Growth Industrial Bond | 11 | 11 | Actual Use of Raised Funds | Bond Code | Bond Abbreviation | Actual Amount of Raised Funds Used (RMB 100 million) | Amount for Supplementing Working Capital (RMB 100 million) | Amount for Equity Investment, Debt Investment, or Asset Acquisition (RMB 100 million) | | :--- | :--- | :--- | :--- | :--- | | 242246.SH | 25 Huaxin K1 | 11 | 3.30 | 7.70 | - The acquisition project funded by the 25 Huaxin K1 bond completed equity transfer on March 17, 2025, and generated operating revenue of RMB 156 million and net profit of RMB 20.87 million in the second quarter[94] (III) Other Matters to be Disclosed for Special Bonds "Belt and Road" bonds funded overseas investments; low-carbon bond KPIs were met, avoiding coupon rate adjustment - Part of the 23 Huaxin K1 bond's raised funds were used to invest in Natal Portland Cement Company (Pty) Ltd. in South Africa, which has become a wholly-owned subsidiary of the company[96] - Part of the 25 Huaxin K1 bond's raised funds were used to invest in ITATUBA PARTICIPAÇÕES LTDA and EMBU S.A. ENGENHARIA E COMÉRCIO in Brazil, strategically expanding into emerging potential markets[98] - The key performance indicators for the 22 Huaxin 02 low-carbon transition-linked corporate bond have been met, with unit clinker carbon emissions of 809.19 kgCO2/t in 2024, a reduction of 36.61 kgCO2/t from the baseline, achieving a total carbon emission reduction of approximately 2.2585 million tons[105] (IV) Important Matters Related to Corporate Bonds During the Reporting Period Non-operating receivables were RMB 0.587 billion (2% of net assets); consolidated interest-bearing debt was RMB 19.803 billion, with RMB 2 billion overseas bonds maturing within one year - At the end of the reporting period, total outstanding non-operating receivables and intercompany loans were RMB 587 million, accounting for 2% of consolidated net assets[106] Company's Consolidated Interest-Bearing Debt Structure | Interest-Bearing Debt Category | Due Within 1 Year (incl.) (RMB 100 million) | Due Beyond 1 Year (excl.) (RMB 100 million) | Total Amount (RMB 100 million) | % of Total Interest-Bearing Debt | | :--- | :--- | :--- | :--- | :--- | | Corporate Credit Bonds | 25.40 | 35.44 | 60.84 | 30.72 | | Bank Loans | 31.17 | 101.90 | 133.08 | 67.20 | | Non-Bank Financial Institution Loans | 1.58 | 2.54 | 4.11 | 2.08 | | Total | 58.15 | 139.88 | 198.03 | 100 | - At the end of the reporting period, the company's consolidated outstanding overseas bond balance was RMB 2 billion, with a principal amount of RMB 2 billion maturing within one year[111] (V) Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market The company issued RMB 1 billion of 5-year "25 Huaxin Cement MTN001 (Tech Innovation Bond)" at 2.08% in 2025 Non-Financial Enterprise Debt Financing Instruments Basic Information | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (RMB 100 million) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaxin Cement Co., Ltd. 2025 First Tranche Technology Innovation Bond | 25 Huaxin Cement MTN001 (Tech Innovation Bond) | 102582893.IB | 2025-7-14 | 2030-7-15 | 10 | 2.08 | Interbank | | Repayment Method | Annual interest payment, principal repayment at maturity | | Investor Appropriateness Arrangement | Professional institutional investors | | Trading Mechanism | Subject to relevant regulations issued by the Interbank Lending Center | (VII) Main Accounting Data and Financial Indicators Current and quick ratios improved; asset-liability ratio increased to 50.6%; net profit (excl. non-recurring) grew 57.29%; interest coverage ratios significantly improved Main Accounting Data and Financial Indicators | Main Indicator | Current Period End/Current Period (Jan-Jun) | Prior Year End/Prior Year Period | Change from Prior Year End/Prior Period (%) | | :--- | :--- | :--- | :--- | | Current Ratio | 0.90 | 0.87 | 3.45 | | Quick Ratio | 0.70 | 0.68 | 2.94 | | Asset-Liability Ratio (%) | 50.6% | 49.8% | Increased by 0.8 percentage points | | Net Profit (Excluding Non-Recurring Gains/Losses) | 1,070,009,720 | 680,295,259 | 57.29 | | Total Debt to EBITDA | 0.10 | 0.10 | - | | Interest Coverage Ratio | 6.71 | 4.56 | 47.15 | | Cash Interest Coverage Ratio | 8.27 | 7.55 | 9.54 | | EBITDA Interest Coverage Ratio | 10.43 | 9.80 | 6.43 | | Loan Repayment Rate (%) | 100% | 100% | - | | Interest Payment Rate (%) | 100% | 100% | - | Section VIII Financial Report This section presents unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and equity changes, along with detailed notes on accounting policies, taxes, and specific financial items I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5] II. Financial Statements This section provides consolidated and parent company balance sheets, income statements, cash flow statements, and equity changes for H1 2025 Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were RMB 70.873 billion, liabilities RMB 35.863 billion, and parent equity RMB 30.488 billion Consolidated Balance Sheet Key Data | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 70,872,821,162 | 69,512,689,187 | | Total Liabilities | 35,863,182,134 | 34,614,884,740 | | Total Owners' Equity Attributable to Parent Company | 30,488,032,523 | 30,291,427,176 | | Total Current Assets | 15,764,521,247 | 15,791,607,023 | | Total Current Liabilities | 17,597,042,515 | 18,168,904,092 | Parent Company Balance Sheet As of June 30, 2025, parent company total assets were RMB 32.409 billion, liabilities RMB 16.353 billion, and equity RMB 16.056 billion Parent Company Balance Sheet Key Data | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 32,409,212,476 | 30,400,524,002 | | Total Liabilities | 16,352,888,551 | 14,694,976,691 | | Total Owners' Equity | 16,056,323,925 | 15,705,547,311 | | Total Current Assets | 13,163,529,771 | 12,110,896,656 | | Total Current Liabilities | 9,510,240,251 | 9,179,473,764 | Consolidated Income Statement H1 2025 consolidated revenue was RMB 16.047 billion (-1.17%), total profit RMB 2.025 billion (+50.74%), and parent net profit RMB 1.103 billion (+51.05%) Consolidated Income Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 16,046,640,187 | 16,237,373,654 | | Total Operating Costs | 14,034,455,983 | 14,939,003,710 | | Total Profit | 2,024,928,214 | 1,343,287,311 | | Net Profit Attributable to Parent Company Shareholders | 1,103,484,806 | 730,553,374 | | Basic Earnings Per Share (RMB/share) | 0.53 | 0.35 | | Diluted Earnings Per Share (RMB/share) | 0.52 | 0.35 | Parent Company Income Statement H1 2025 parent company revenue was RMB 1.116 billion (-7.27%), net profit RMB 1.319 billion (+21.44%), with investment income as the main source Parent Company Income Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 1,115,929,981 | 1,203,431,544 | | Total Profit | 1,314,261,641 | 1,074,591,781 | | Net Profit | 1,319,442,160 | 1,086,554,623 | | Investment Income | 1,340,340,740 | 1,122,846,395 | Consolidated Cash Flow Statement H1 2025 operating cash flow was RMB 1.624 billion (-6.17%); investment cash flow was RMB -2.144 billion (due to M&A); financing cash flow turned positive Consolidated Cash Flow Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,623,794,304 | 1,730,584,063 | | Net Cash Flow from Investment Activities | -2,143,578,153 | -1,178,576,055 | | Net Cash Flow from Financing Activities | 90,949,808 | -1,083,480,073 | | Net Increase in Cash and Cash Equivalents | -462,206,328 | -546,065,554 | Parent Company Cash Flow Statement H1 2025 parent operating cash flow was RMB 0.533 billion (+374.05%); investment cash flow RMB 0.092 billion (+575.99%); financing cash flow RMB -0.941 billion (-21.58%) Parent Company Cash Flow Statement Key Data | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 532,678,234 | 112,350,473 | | Net Cash Flow from Investment Activities | 92,428,542 | 13,671,175 | | Net Cash Flow from Financing Activities | -941,114,244 | -774,101,084 | | Net Increase in Cash and Cash Equivalents | -310,014,790 | -647,917,743 | Consolidated Statement of Changes in Owners' Equity H1 2025 consolidated owners' equity increased by RMB 0.112 billion, driven by comprehensive income and profit distribution Consolidated Statement of Changes in Owners' Equity Key Data | Item | 2025 H1 Period-End Balance (RMB) | 2024 H1 Period-End Balance (RMB) | | :--- | :--- | :--- | | Total Owners' Equity | 35,009,639,028 | 32,982,745,374 | | Total Owners' Equity Attributable to Parent Company | 30,488,032,523 | 28,687,519,804 | | Amount of Increase/Decrease in Current Period (decrease indicated by "-") | 111,834,581 | -312,137,068 | | Total Comprehensive Income | 1,458,238,881 | 1,187,768,486 | | Profit Distribution | -1,396,306,924 | -1,519,839,606 | Parent Company Statement of Changes in Owners' Equity H1 2025 parent company owners' equity increased by RMB 0.351 billion, influenced by comprehensive income and profit distribution Parent Company Statement of Changes in Owners' Equity Key Data | Item | 2025 H1 Period-End Balance (RMB) | 2024 H1 Period-End Balance (RMB) | | :--- | :--- | :--- | | Total Owners' Equity | 16,056,323,925 | 14,913,460,501 | | Amount of Increase/Decrease in Current Period (decrease indicated by "-") | 350,776,614 | 2,919,812 | | Total Comprehensive Income | 1,307,807,419 | 1,107,518,927 | | Profit Distribution | -956,337,999 | -1,101,867,695 | III. Company Basic Information Huaxin Cement, established 1993, listed on SSE/HKEX, produces building materials; H1 2025 financial statements approved Aug 29, 2025 - Huaxin Cement Co., Ltd. was established on November 30, 1993, with A-shares and H-shares respectively listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange[140] - The company and its subsidiaries primarily engage in the production and sale of building materials such as cement, concrete, clinker, and aggregates[140] - These financial statements were approved for issuance by the company's Board of Directors on August 29, 2025[141] IV. Basis of Financial Statement Preparation Financial statements prepared under PRC GAAP, Hong Kong Companies Ordinance, and Listing Rules, on a going concern basis - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations, and comply with the requirements of "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15" as well as the Hong Kong Companies Ordinance and Listing Rules[143] - These financial statements are presented on a going concern basis, and management believes the company has sufficient working capital to continue as a going concern[144] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including revenue recognition, financial instruments, and asset impairment - The Group has formulated specific accounting policies and estimates based on its actual production and operation characteristics, mainly reflected in impairment provisions for receivables, inventory valuation methods, depreciation of fixed assets, amortization of intangible assets, and revenue recognition and measurement[145] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its functional currency is RMB[147][148] - The company's financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[159] - The company's revenue recognition principle is to recognize revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[202] VI. Taxation Main tax types and rates are listed, with several subsidiaries enjoying corporate income tax incentives and VAT refunds Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income | General calculation: 13%, 6%; Simplified calculation: 3%; Overseas companies: 18%, 17%, 16%, 15%, 12%, 5% | | Corporate Income Tax | Taxable income | Overseas companies: 30%, 28%, 20%, 18%, 15%, 13%, 12.5%, 10%; Other companies: 25%, 16.5%, 15%, 12.5%, 9%, 0% | - Multiple subsidiaries of the company enjoy corporate income tax incentives for high-tech enterprises, encouraged industries in Hainan Free Trade Port, encouraged industries in the Western Development region, and third-party pollution control enterprises, with a reduced rate of 15% or partial income tax exemption[224][225][226][227] - Some subsidiaries enjoy VAT immediate refund policies for comprehensive utilization products and services, with a refund ratio of 70%[228] VII. Notes to Consolidated Financial Statement Items Detailed notes on consolidated balance sheet items, including monetary funds, receivables, inventories, fixed assets, goodwill, and borrowings 1. Monetary Funds Total monetary funds were RMB 6.670 billion, with RMB 1.123 billion deposited overseas Monetary Funds Composition | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | | :--- | :--- | :--- | | Cash on Hand | 3,454,847 | 1,192,015 | | Bank Deposits | 5,753,379,156 | 6,217,848,316 | | Other Monetary Funds | 913,075,307 | 589,962,243 | | Total | 6,669,909,310 | 6,809,002,574 | | Of which: Funds Deposited Overseas | 1,122,597,481 | 1,441,956,475 | 4. Accounts Receivable Accounts receivable book value was RMB 3.531 billion, with 80.41% due within one year; impairment provision increased by RMB 56.52 million Accounts Receivable Aging Disclosure | Aging | Book Balance at Period End (RMB) | Book Balance at Period Start (RMB) | | :--- | :--- | :--- | | Within 1 year (incl. 1 year) | 3,117,071,483 | 2,679,545,907 | | 1 to 2 years | 528,209,141 | 425,135,025 | | 2 to 3 years | 103,382,207 | 65,994,623 | | Over 3 years | 127,352,208 | 117,966,856 | | Less: Impairment Provision for Accounts Receivable | 344,933,602 | 318,842,528 | | Total | 3,531,081,437 | 2,969,799,883 | Disclosure by Impairment Provision Method | Category | Book Balance at Period End (RMB) | Impairment Provision (RMB) | Provision Ratio (%) | | :--- | :--- | :--- | :--- | | Individually assessed impairment provision | 105,099,259 | 95,636,736 | 91 | | Collectively assessed impairment provision | 3,770,915,780 | 249,296,866 | 7 | - The impairment provision for bad debts increased by RMB 56,522,932 in the current period[246] 8. Inventories Inventory book value was RMB 2.938 billion, including raw materials, WIP, finished goods, and spare parts; total impairment provision was RMB 0.196 billion Inventory Classification | Item | Book Value at Period End (RMB) | Book Value at Period Start (RMB) | | :--- | :--- | :--- | | Raw Materials | 581,685,866 | 702,492,244 | | Work in Progress | 925,196,651 | 767,372,439 | | Finished Goods | 661,798,094 | 820,949,819 | | Spare Parts and Auxiliary Materials, etc. | 769,453,627 | 766,954,988 | | Total | 2,938,134,238 | 3,057,769,490 | - Total inventory impairment provision and contract performance cost impairment provision amounted to RMB 195,584,071[258] 13. Fixed Assets Fixed assets book value was RMB 28.147 billion; original cost increased by RMB 1.273 billion from transfers and M&A Fixed Assets Book Value | Item | Book Value at Period End (RMB) | Book Value at Period Start (RMB) | | :--- | :--- | :--- | | Buildings and Structures | 15,620,645,210 | 15,545,575,491 | | Machinery and Equipment | 12,252,263,981 | 12,618,076,233 | | Office Equipment | 99,012,543 | 102,012,750 | | Transportation Vehicles | 175,129,848 | 132,365,100 | | Total | 28,147,051,582 | 28,398,029,574 | - The original cost of fixed assets increased by RMB 1,273,033,109 in the current period, of which RMB 879,306,858 was transferred from construction in progress and RMB 356,939,906 was due to business combinations[267] - The company had temporarily idle fixed assets with a book value of RMB 329,628,013[268] 14. Construction in Progress Construction in progress book value was RMB 3.975 billion, up 16.47%, with major projects like Huangshi manufactured sand and Mozambique plant upgrade Construction in Progress Book Value | Item | Book Value at Period End (RMB) | Book Value at Period Start (RMB) | | :--- | :--- | :--- | | Construction in Progress | 3,974,544,849 | 3,412,128,279 | | Engineering Materials | 76,990,409 | 118,623,991 | | Total | 4,051,535,258 | 3,530,752,270 | - The Huaxin Huangshi Green Building Materials Billion-Ton Manufactured Sand Project has a cumulative investment of 80% of its budget, and the Mozambique Nacala Plant Upgrade Project has a cumulative investment of 90% of its budget[274] - Construction in progress increased by RMB 1,489,388,890 in the current period, with RMB 879,306,858 transferred to fixed assets[274] 17. Goodwill Goodwill original book value was RMB 1.969 billion, increasing by RMB 0.590 billion due to ITATUBA acquisition Goodwill Original Book Value | Name of Investee or Goodwill-Forming Event | Balance at Period Start (RMB) | Increase in Current Period (formed by business combination) (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | | Natal Portland Cement Company (Pty) Ltd. | 567,704,407 | - | 567,704,407 | | ITATUBA PARTICIPAÇÕES LTDA | - | 589,792,804 | 589,792,804 | | Total | 1,379,370,972 | 589,792,804 | 1,969,163,776 | Goodwill Impairment Provision | Name of Investee or Goodwill-Forming Event | Balance at Period Start (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | | Shide Jinying Cement (Hong Kong) Co., Ltd. and its subsidiaries | 69,557,768 | 69,557,768 | | Huaxin Cement (Ezhou) Co., Ltd. | 21,492,135 | 21,492,135 | | Hainan Xinhongda Building Materials Co., Ltd. | 79,313,263 | 79,313,263 | | Total | 170,363,166 | 170,363,166 | 29. Long-term Borrowings Total long-term borrowings were RMB 10.190 billion, with annual interest rates from 1.35% to 19.53% due to overseas investments Long-term Borrowings Classification | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | | :--- | :--- | :--- | | Guaranteed Borrowings | 8,682,243,181 | 8,591,443,197 | | Credit Borrowings | 4,487,044,762 | 3,969,692,679 | | Guaranteed Borrowings Due Within One Year | 2,279,594,824 | 2,639,427,349 | | Credit Borrowings Due Within One Year | 700,056,745 | 414,937,816 | | Total | 10,189,636,374 | 9,598,770,711 | - As of June 30, 2025, the annual interest rate for long-term borrowings ranged from 1.35% to 19.53%, with higher interest rates mainly due to the overall higher interest rate levels in some countries with overseas investments[312] 30. Bonds Payable Total bonds payable were RMB 3.544 billion, up 44.89%, including a new RMB 1.1 billion issuance; RMB 2.540 billion due within one year Bonds Payable Information | Item | Balance at Period End (RMB) | Balance at Period Start (RMB) | | :--- | :--- | :--- | | Overseas Bond Issued in 2020 | - | - | | Corporate Bond Issued in 2022 (Low-Carbon Transition-Linked Bond) (Tranche 1) | 399,685,909 | 399,823,745 | | Subsidiary Preferred Shares | 149,151,403 | 149,725,053 | | Corporate Bond Issued in 2023 | 798,700,976 | 799,354,497 | | Corporate Bond Issued in 2024 | 1,098,030,772 | 1,096,841,740 | | Corporate Bond Issued in 2025 | 1,098,136,175 | - | | Total | 3,543,705,234 | 2,445,745,035 | - A new issuance of RMB 1.1 billion of the 2025 "Belt and Road" Technology Innovation Corporate Bond (High-Growth Industrial Bond) (Tranche 1) was made in the current period[315] - Bonds payable due within one year amounted to RMB 2,540,196,941[309] 44. Operating Revenue and Operating Costs H1 2025 revenue RMB 16.047 billion (-1.17%), cost RMB 11.406 billion (-8%**); main business revenue RMB 15.937 billion Operating Revenue and Operating Costs | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 15,936,934,688 | 11,333,787,250 | 16,078,811,428 | 12,270,184,750 | | Other Businesses | 109,705,499 | 71,790,046 | 158,562,226 | 126,649,143 | | Total | 16,046,640,187 | 11,405,577,296 | 16,237,373,654 | 12,396,833,893 | Breakdown of Operating Revenue and Operating Costs (by Product Type) | Product Type | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | Cement Sales | 8,754,581,124 | 6,029,693,118 | | Concrete Sales | 3,456,745,885 | 3,003,271,938 | | Clinker Sales | 397,096,518 | 355,224,754 | | Aggregates Sales | 2,762,583,002 | 1,439,038,459 | | Other | 675,633,658 | 578,666,188 | - The company recognizes revenue from cement and other building materials sales at the point in time when control is transferred, and service revenue is recognized according to the progress of performance[348][349] 58. Earnings Per Share H1 2025 basic EPS was RMB 0.53, diluted EPS RMB 0.52, both significantly higher year-on-year Earnings Per Share | Item | Current Period (RMB/share) | Prior Period (RMB/share) | | :--- | :--- | :--- | | Basic Earnings Per Share (Continuing Operations) | 0.53 | 0.35 | | Diluted Earnings Per Share (Continuing Operations) | 0.52 | 0.35 | Earnings Per Share Calculation Basis | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | 1,103,484,806 | 730,553,347 | | Adjusted Net Profit Attributable to Ordinary Shareholders of the Company | 1,086,938,546 | 724,869,340 | | Weighted Average Number of Ordinary Shares Outstanding of the Company | 2,077,779,049 | 2,078,818,009 | | Adjusted Weighted Average Number of Ordinary Shares Outstanding of the Company | 2,079,932,326 | 2,078,818,009 | VIII. R&D Expenses Total R&D expenditure was RMB 76.0445 million, with RMB 72.2249 million expensed and RMB 3.8196 million capitalized R&D Expenditure by Nature of Expense | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation and Labor | 53,977,035 | 49,712,408 | | Depreciation and Amortization | 3,268,024 | 3,503,893 | | Intermediary Agency Service Fees | 7,152,393 | 6,318,521 | | Daily Office Expenses | 5,667,726 | 5,814,329 | | Other | 5,979,366 | 5,605,201 | | Total | 76,044,544 | 70,954,352 | | Of which: Expensed R&D Expenditure | 72,224,935 | 70,954,352 | | Capitalized R&D Expenditure | 3,819,609 | 399,345 | IX. Changes in Consolidation Scope The company acquired Brazil's ITATUBA PARTICIPAÇÕES LTDA (100% equity) for RMB 1.262 billion, adding RMB 0.590 billion goodwill - In the current period, the company acquired 100% equity of Brazil's ITATUBA PARTICIPAÇÕES LTDA through a non-same-control business combination, with an equity acquisition cost of RMB 1,262,165,065[398] - This acquisition resulted in goodwill of RMB 589,792,804, and the acquired company generated revenue of RMB 156,245,294 and net profit of RMB 20,874,967 from the acquisition date to the end of the period[398][400] - The Group deregistered 4 subsidiaries and newly established or acquired 6 subsidiaries through equity acquisition in the current period[403][404] X. Interests in Other Entities This section details the company's numerous subsidiaries and important non-wholly-owned subsidiaries, including their financial impact - The company has numerous subsidiaries, with business activities covering building materials production and sales, environmental protection, logistics, and investment[405][406][407][408][409][410] - The company exercises control over Huaxin Chunjin Building Materials (Wuxue) Co., Ltd. and Huaxin Yawan Cement Co., Ltd., among others, even with less than 50% shareholding, primarily through board voting rights[410][411] Key Financial Information of Important Non-Wholly-Owned Subsidiaries (Current Period) | Subsidiary Name | Operating Revenue (RMB) | Net Profit (RMB) | Total Comprehensive Income (RMB) | Cash Flow from Operating Activities (RMB) | | :--- | :--- | :--- | :--- | :--- | | Huangshi Huaxin Green Building Materials Industry Co., Ltd. | 516,175,394 | -90,330,897 | -90,330,897 | -76,635,788 | | Huaxin Green Building Materials (Wuxue) Co., Ltd. | 685,249,976 | 181,870,179 | 181,870,179 | -15,720,020 | | Oman Cement Company SAOG | 630,348,072 | 92,164,478 | 48,620,535 | 130,483,150 | XI. Risks Related to Financial Instruments The company manages credit, liquidity, and market risks (interest rate, foreign currency) through various strate