华润建材科技(01313) - 2025 - 中期财报

Company Profile The company is the holding entity for China Resources Group's cement, concrete, and aggregates businesses, incorporated in 2003 and relisted in 2009 - The company was incorporated in the Cayman Islands on March 13, 2003, as the holding company for China Resources Group's cement, concrete, and aggregates businesses[1][2] - Initially listed on the Hong Kong Stock Exchange on July 29, 2003, it was later privatized in 2006 and relisted on October 6, 2009[1][3][4] - The company was renamed China Resources Building Materials Technology Holdings Limited on November 3, 2023, with China Resources Group holding approximately 68.72% of the issued shares as of the report date[1][4] Corporate Information The company's board, committees, auditor, principal bankers, share registrar, and contact details are outlined Executive and Non-executive Directors The Board of Directors comprises executive, non-executive, and independent non-executive members with defined key leadership roles - Executive Directors include Jing Shiqing (Chairman) and Xie Ji (President)[7][8] - Independent Non-executive Director Gong Xiaofeng has been appointed with effect from September 1, 2025[7][8] Committee Composition The company has established five committees to ensure effective corporate governance - Jing Shiqing chairs the Strategy and Investment Committee, with Gong Xiaofeng appointed as a member and Zhu Ping ceasing to serve from September 1, 2025[8][9] - The Audit Committee is chaired by Ng Kam Wah, and the Risk and Compliance Committee is chaired by Ngan Bik Lan[11][12] Independent Auditor and Principal Bankers The company's independent auditor is KPMG, and it maintains relationships with several major banks - The independent auditor is KPMG[11][12] - Principal bankers include Agricultural Bank of China, Bank of China, Bank of Communications, and China Construction Bank[11][13] Share Registrar and Contact Information This section provides details on the company's share registrar, Hong Kong headquarters, stock code, and website - The share registrar is Hong Kong Registrars Limited[14][15] - The Hong Kong headquarters and principal place of business is located at China Resources Building, 26 Harbour Road, Wanchai, Hong Kong[14][15] - The company's stock code on the Hong Kong Stock Exchange is 1313, and its website is www.cr-bmt.com[14](index=14&type=chunk)[15] Definitions This section provides definitions for key terms and abbreviations used throughout the interim report to ensure clarity and consistency Business Overview The company is a leading producer of cement, clinker, and concrete in Southern China, focusing on infrastructure and high-rise construction projects - The company is a large-scale and competitive producer of cement, clinker, and concrete in Southern China, with operations covering limestone quarrying, production, sales, and distribution[22][23] - Products are mainly sold in Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, Shanxi, and Hunan for infrastructure projects and high-rise buildings[22][23] Production Capacity of Self-owned Facilities as of June 30, 2025 | Province/Autonomous Region/SAR | Annual Cement Capacity (million tonnes) | Annual Clinker Capacity (million tonnes) | Annual Concrete Capacity (million cubic meters) | | :------------------- | :------------------- | :------------------- | :------------------- | | Guangdong | 27.7 | 15.5 | 16.0 | | Guangxi | 34.8 | 27.9 | 19.6 | | Fujian | 10.1 | 7.0 | 0.6 | | Hainan | 4.4 | 2.9 | 3.3 | | Yunnan | 5.1 | 4.2 | 0.6 | | Guizhou | 4.0 | 2.8 | 0.8 | | Shanxi | 2.0 | 1.5 | 0.6 | | Hunan | 2.1 | 1.5 | – | | Zhejiang | – | – | 1.1 | | Hong Kong | – | – | 1.6 | | Total | 90.2 | 63.3 | 44.2 | - The company's attributable annual capacity from associates and joint ventures is 22.3 million tonnes of cement, 12.0 million tonnes of clinker, and 3.9 million cubic meters of concrete[27][28] - The company emphasizes corporate social responsibility, focusing on safety, energy conservation, and carbon management, with all cement production bases equipped with waste heat recovery systems[27][29] Significant Events in 2025 The company successfully acquired mining rights for a limestone quarry in Guangdong, significantly increasing its resource reserves - In July 2025, the Group successfully bid for the mining rights of the first batch of cement-grade limestone quarry in Dadong Mining Area, Shiling Town, Lianjiang City, Guangdong[30][31] - The mining area has resource reserves of approximately 10.5 million tonnes and a planned annual production capacity of about 2.0 million tonnes[30][31] Financial Highlights This section presents key financial data for the six months ended June 30, 2025, with comparative figures from the previous two years Financial Highlights for the Six Months Ended June 30 | Indicator | 2025 (RMB million) | 2024 (RMB million) | 2023 (RMB million) | | :----------------------- | :-------------------- | :-------------------- | :-------------------- | | Revenue | 10,205.6 | 10,311.7 | 11,974.6 | | EBITDA | 2,043.6 | 1,871.6 | 2,189.3 | | Profit for the period | 171.0 | 135.2 | 529.5 | | Profit attributable to owners of the Company | 306.7 | 165.8 | 556.0 | | Basic earnings per share (RMB) | 0.044 | 0.024 | 0.080 | Balance Sheet Highlights as of June 30: | Indicator | 2025 (RMB million) | 2024 (RMB million) | 2023 (RMB million) | | :----------------------- | :-------------------- | :-------------------- | :-------------------- | | Total assets | 71,921.9 | 71,963.1 | 72,792.2 | | Equity attributable to owners of the Company | 44,410.9 | 44,121.2 | 44,108.5 | | Non-controlling interests | 1,445.6 | 1,575.6 | 1,638.7 | | Gearing ratio | 35.1% | 34.6% | 36.9% | | Net asset value per share (RMB) | 6.36 | 6.32 | 6.32 | - For the six months ended June 30, 2025, revenue decreased by 1.0% year-on-year, while profit attributable to owners of the Company surged by 85.0%[33][36][38] Chairman's Statement The Chairman reviews the company's performance, business environment, and strategic initiatives for transformation and innovation Interim Results The company's revenue slightly decreased, but profit attributable to its owners saw a significant increase in the first half of 2025 Interim Results for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :------------------- | :-------------------------- | :-------------------------- | :------- | | Revenue | 10,205.6 | 10,311.7 | -1.0% | | Profit attributable to owners of the Company | 306.7 | 165.8 | +85.0% | | Basic earnings per share (RMB) | 0.044 | 0.024 | +83.3% | Interim Dividend The Board declared an interim dividend of HKD0.014 per share, payable in October 2025 - The Board of Directors declared an interim dividend of HKD0.014 per share (2024: HKD0.02)[37][39] - The total interim dividend amounts to approximately HKD97.8 million (2024: HKD139.7 million), expected to be paid on or about October 24, 2025[37][39] - Shareholders may elect to receive the dividend in HKD or RMB, at an exchange rate of HKD1.0 to RMB0.91054[37][40] Closure of Register of Members The register of members will be closed from September 15 to September 19, 2025, to determine dividend entitlement - The register of members will be closed from September 15 to September 19, 2025[43][47] - To qualify for the interim dividend, all transfer documents must be lodged with the share registrar by 4:30 p.m. on September 12, 2025[43][47] Business Environment China's economy showed stable growth in H1 2025, though the real estate market continued its adjustment phase - In H1 2025, China's GDP grew by 5.3% year-on-year to RMB66.1 trillion[48][49] - National fixed asset investment (excluding rural households) increased by 2.8% year-on-year to RMB24.9 trillion[48][49] - Approximately RMB2.2 trillion of new local government special-purpose bonds were issued, a 45% increase year-on-year[50] - The real estate market continued to recover, but sales area and sales value of new commodity housing decreased by 3.5% and 5.5% respectively, with real estate development investment down by 11.2%[52][54] - The government emphasized expanding effective investment, promoting new urbanization, and renovating 17,000 old urban residential communities in H1[53][55] Industry National cement output declined in H1 2025, with policies focusing on industry structure optimization and environmental protection - In H1 2025, national cement output decreased by 4.3% year-on-year to 820 million tonnes[56][58] Cement Production and YoY Change in Key Operating Regions for H1 2025 | Region | Cement Production (million tonnes) | YoY Change | | :----- | :---------------- | :------- | | Guangdong | 60.2 | +1.1% | | Guangxi | 42.5 | -1.7% | | Fujian | 29.1 | -2.0% | | Hainan | 6.2 | -7.7% | | Yunnan | 41.5 | -7.3% | | Guizhou | 22.6 | -5.0% | | Shanxi | 15.3 | -14.3% | | Hunan | 30.0 | -5.4% | - Three new clinker production lines were added nationwide, increasing annual capacity by about 4.9 million tonnes, but no new capacity was added in the Group's main operating regions[59] - Government and industry associations introduced policies to address disorderly low-price competition and promote the exit of outdated capacity[57][60] - The Ministry of Ecology and Environment issued guidelines to strengthen hazardous waste management and enhance environmental inspections[62][63] Transformation and Innovation The company integrates green and low-carbon concepts into its operations and has received multiple awards for technological innovation - The company integrates green and low-carbon concepts throughout its production and operations, advancing energy-saving and carbon-reduction technological upgrades[64][66] - In H1, 32 mines were listed as provincial-level green mines, and 9 mines were selected as national-level green mines[64][66] - Three of the company's technological achievements won the "2024 Building Materials Science and Technology Award," including one first prize for technological progress[65][67] Strategy and Outlook The company will focus on deepening reforms and enhancing core competitiveness while accelerating its intelligent, green, and high-end development - The Chinese government plans to implement a more proactive fiscal policy, including issuing RMB1.3 trillion in ultra-long-term special treasury bonds and arranging RMB4.4 trillion in local government special-purpose bonds[69][71] - In real estate, the government will promote the construction of "good housing" and provide policy support in planning, land, finance, and taxation[69][72] - The company will focus on "deepening reform and embracing innovation" to strengthen its three main businesses of cement, aggregates, and concrete[73][75] - The company will accelerate the upgrade of traditional industries, increase R&D investment, and advance the layout of strategic emerging industries to lead digital and intelligent transformation[73][75] Appreciation The Chairman extends gratitude to the directors, management, employees, and all stakeholders for their contributions and support - The Chairman thanks the directors, management team, and all employees for their contributions to the Group's high-quality development[74][76] - The Chairman also expresses gratitude to shareholders, customers, suppliers, business partners, and other stakeholders for their continued trust and support[74][76] Management Discussion and Analysis This section provides a detailed analysis of the company's operational and financial performance for the first half of 2025 Production Capacity The company's production capacity remained stable in H1 2025, with varying utilisation rates across its product segments Changes in Production Bases The Group's production capacity for clinker, cement, aggregates, and concrete remained unchanged during the first half of 2025 - During the period, there were no changes in the Group's production capacity for clinker, cement, aggregates, and concrete[79][82] Capacity Utilisation In H1 2025, the utilisation rate for cement production lines was 56.8%, concrete was 32.0%, and aggregates was 80.2% Capacity Utilisation Rate for H1 2025 | Product | H1 2025 | H1 2024 | | :----- | :----------- | :----------- | | Cement | 56.8% | 64.2% | | Concrete | 32.0% | 27.1% | | Aggregates | 80.2% | 75.1% | Cost Management The company achieved significant cost reductions in H1 2025 through optimized procurement, equipment upgrades, and refined operational management Operational Management The company deepened its full value chain cost reduction initiatives, significantly lowering clinker costs through various operational enhancements - In H1 2025, the Group deepened its full value chain cost reduction initiatives for cement, achieving a significant decrease in clinker costs[81][84] - Optimized coal procurement management and an integrated logistics model led to a substantial reduction in coal usage and procurement costs[81][84] - 16 production lines, accounting for 44% of output, met the benchmark level of the national energy consumption standard GB16780[81][85] - Quarry operations were enhanced through long-term planning and the adoption of new energy mining trucks to replace traditional diesel ones[86][87] - The aggregates business adopted a "full production, full sales" philosophy, focusing on major projects and strengthening cost control across the entire process[91] - The artificial stone business achieved cost savings through centralized procurement, raw material substitution, and formula optimization[89][92] Procurement Management The company effectively reduced procurement costs for coal, admixtures, and aggregates through strategic sourcing and negotiation - In H1 2025, total coal procurement was approximately 3.0 million tonnes (H1 2024: approx 3.6 million tonnes)[94][96] - The average coal procurement price was approximately RMB681 per tonne, a 17.8% decrease from RMB828 in the same period of 2024[94][97] - Future plans include deepening strategic cooperation with major domestic coal enterprises and leveraging the "integrated logistics" advantage to reduce costs[94][97] - Admixture procurement costs were reduced by broadening channels, direct sourcing, regional centralized purchasing, and price negotiations[95][98] - Aggregates procurement was optimized through enhanced internal synergy, benchmarking, dynamic price management, and improved procurement strategies[99][100] Logistics Management The company achieved an overall reduction in logistics costs in H1 2025 through optimized shipping, road transport, and its extensive logistics network - In H1 2025, the Group's logistics costs showed an overall downward trend due to a series of measures[102] - Shipping costs were reduced by exploring lower freight rates, optimizing tender schemes, and improving vessel type matching[100][102] - Road transport efficiency was improved by promoting two-way logistics for raw materials and exploring new energy electric vehicle business[100][102] - The Group's annual transport capacity in the Xijiang River Basin is approximately 47 million tonnes, and it controls 30 transit depots with an annual transit capacity of 31 million tonnes[101][102] Marketing The company focused on promoting specialty products and strengthening its "Runfeng" and "Runpin" brands to build a competitive edge Product Promotion The company continued to promote specialty products like nuclear power cement to establish a differentiated competitive advantage - In H1 2025, the Group continued to focus on promoting specialty products such as nuclear power cement and road silicate cement to build a differentiated competitive advantage[104][106] - Specialty products were used in key projects of the Sichuan-Tibet Railway and six plateau hydropower station projects[104][106] Brand Building The company enhanced its "Runfeng" and "Runpin" brand influence through strategic updates and customer engagement activities - In H1 2025, the Group comprehensively deepened the brand building of "Runfeng" and "Runpin," releasing the "Runfeng Brand Optimization Strategy" to enhance brand influence[105][107] - The "Runpin" brand construction was continuously deepened through its network of flagship stores and showrooms[105][107] - On June 28, 2025, the Group held its ninth consecutive brand anniversary event to boost customer confidence[105][107] Transformation and Innovation The company advanced its new business development, digital transformation, and R&D initiatives to optimize its business structure and foster innovation New Business Development The company actively promoted new business development in H1 2025, enhancing synergies and increasing the revenue share of new segments - In H1 2025, the Group actively promoted new business development, leveraging the integrated synergies of cement, aggregates, and concrete[108][110] - The business structure was continuously optimized by accelerating the construction and operation of aggregates projects, leading to an increased share of new business assets and revenue[108][110] Aggregates No new aggregate projects were commissioned in H1 2025, with total operational capacity remaining stable - In H1 2025, the Group had no new aggregate projects commissioned[111] - As of June 30, 2025, the Group's operational annual aggregates capacity through subsidiaries was approximately 108.6 million tonnes, with an attributable capacity from associates of about 3.7 million tonnes[112] - Upon full completion, the total annual capacity is expected to reach 134.8 million tonnes (subsidiaries) and 13.6 million tonnes (attributable from associates and joint ventures)[112] Functional Building Materials The company's artificial stone business faced market challenges due to economic downturn, leading to low capacity utilisation and increased operational pressure - In H1 2025, the Group completed its national layout for artificial stone, with an annual production capacity of approximately 26.1 million square meters[114][116] - Due to the macroeconomic downturn and sluggish real estate market, the artificial stone business faced declining demand, falling prices, and intensified competition, resulting in low capacity utilisation[114][117] - The Group is deepening cost reduction efforts, reshaping its sales system, and exploring new customer channels for the artificial stone business[114][117] Digital Transformation As a digital benchmark enterprise, the company advanced smart factory construction and explored AI applications to upgrade traditional industries - As a digital and intelligent benchmark enterprise of China Resources Group, the company continues to promote digital and intelligent construction[115][118] - In smart factories, the company increased the digitalization rate of key processes and promoted advanced control and intelligent operation applications[119] - The company is actively exploring AI applications, piloting AI control for alternative fuels and AI-based aggregate particle size detection[120][121] - A localized deployment of the DeepSeek large model was achieved to build a knowledge base for new concrete product R&D[120][121] - The Fengkai, Hepu, and Luoding cement bases were rated as national advanced-level smart factories[122][124] Smart Logistics The company enhanced logistics efficiency and safety by piloting a new dispatch system and upgrading its one-code pass system at multiple sites - A pilot project for the Fengkai terminal dispatch system was launched to improve operational efficiency and reduce safety risks[123][125] - The one-code pass system was expanded to three more weighbridges at the Runsheng aggregates mine and upgraded at four cement bases[123][125] Smart Marketing The company's e-commerce platform continued its steady development in logistics distribution and supply chain finance - In H1 2025, the Group's e-commerce platform saw steady development in logistics distribution and supply chain finance businesses[127][129] E-commerce Platform Data as of June 30, 2025 | Indicator | Data | | :--------------- | :--------- | | Cumulative shipment volume | 330 million tonnes | | Cumulative registered users | 49,000 | | Cumulative registered carriers | 592 | | Cumulative registered vehicles/vessels | 117,000 | | Cumulative delivery volume | 713,000 tonnes | R&D and Innovation The company maintained a strong focus on R&D, with 525 technology professionals driving innovation in new products and AI applications - As of June 30, 2025, the Group had 525 technology professionals, including 104 full-time R&D personnel[130] - The company actively promoted R&D of new products and technologies, improving the rotary furnace technology and building a demonstration plant for alternative fuels[131] - Continuous technological upgrades were carried out for quartz powder modifiers and resin-reducing additives to reduce costs and improve the quality of artificial stone products[131] - The company embraced AI technology, conducting research on AI-based inspection, grinding system optimization, and intelligent clinker quality analysis[131] - External cooperation was strengthened through participation in national key laboratories and a strategic agreement with the University of Jinan, winning three industry association awards[132][133] - As of June 30, 2025, the company held 393 valid patents, including 109 invention patents[132][133] Employees The company employed 16,837 full-time staff as of June 30, 2025, with a total employee cost of approximately RMB1.36 billion for the first half of the year General Information As of June 30, 2025, the Group employed 16,837 full-time staff, primarily in Mainland China - As of June 30, 2025, the Group employed 16,837 full-time employees, with 378 in Hong Kong and 16,459 in Mainland China[135] Employee Distribution by Function | Function | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :------------- | | Management | 490 | 498 | | Finance, Admin & Others | 2,287 | 2,323 | | Production | 8,990 | 9,216 | | Technical | 4,237 | 4,220 | | Marketing | 833 | 773 | | Total | 16,837 | 17,030 | - Total employee costs for H1 (including directors' remuneration) were approximately RMB1,356,471,000 (H1 2024: RMB1,284,462,000)[137][139] - The Group is committed to its "3+1" talent development framework, progressively implementing specialized talent training programs[137][140] Business Review This section reviews the company's business performance in H1 2025, analyzing revenue, cost of sales, gross profit, and other key financial metrics Revenue Consolidated revenue for H1 2025 was RMB10.21 billion, a slight decrease of 1.0% year-on-year Segment Revenue Analysis for the Six Months Ended June 30 | Product | 2025 Sales Volume ('000 tonnes/cubic meters) | 2025 Avg. Selling Price (RMB/tonne/cubic meter) | 2025 Revenue (RMB'000) | 2024 Sales Volume ('000 tonnes/cubic meters) | 2024 Avg. Selling Price (RMB/tonne/cubic meter) | 2024 Revenue (RMB'000) | | :--------- | :----------------------- | :---------------------------------- | :------------------------ | :----------------------- | :---------------------------------- | :------------------------ | | Cement Products | 25,309 | 246.9 | 6,248,989 | 28,963 | 237.9 | 6,891,141 | | Concrete | 6,877 | 302.7 | 2,081,335 | 5,057 | 343.5 | 1,736,957 | | Aggregates | 36,336 | 36.2 | 1,315,625 | 29,497 | 36.8 | 1,086,961 | | Others | | | 559,635 | | | 596,658 | | Total | | | 10,205,584 | | | 10,311,717 | - External sales volume of cement products decreased by 12.6%, while concrete sales volume increased by 36.0% and aggregates sales volume increased by 23.2%[143][144] - The average selling price of cement products increased by 3.8% to RMB246.9 per tonne, while concrete decreased by 11.9% to RMB302.7 per cubic meter, and aggregates decreased by 1.6% to RMB36.2 per tonne[147][150] Cost of Sales The cost of sales for cement products was driven by coal and electricity costs, with a significant decrease in coal procurement prices - For cement products, the cost of sales was composed of 37.1% coal, 13.5% electricity, 17.4% materials, and 32.0% other costs (H1 2024: 40.5%, 13.7%, 17.5%, and 28.3% respectively)[151] - The average procurement price of coal was approximately RMB681 per tonne, a 17.8% decrease from RMB828 in the same period of 2024[152] - Unit coal consumption for clinker production decreased from 129.9 kg to 129.0 kg per tonne, with the average coal cost decreasing by 18.4% to RMB87.7 per tonne[152] - The average electricity cost per tonne of cement decreased by 6.3% to RMB27.0[153] - Waste heat recovery systems generated 631.5 million kWh, a 7.4% decrease year-on-year, resulting in cost savings of approximately RMB267.9 million[153] - Repair and maintenance costs included in the cost of sales for cement products amounted to RMB242.8 million, an increase of 16.1% compared to H1 2024[154][158] Gross Profit and Gross Profit Margin Consolidated gross profit and gross profit margin both increased in H1 2025, driven by higher cement prices and lower costs - Consolidated gross profit was RMB1,887,200,000, an increase of 22.2% compared to the same period in 2024[155][159] - The consolidated gross profit margin was 18.5%, an increase of 3.5 percentage points from the same period in 2024[155][159] - The gross profit margins for cement products, concrete, and aggregates were 20.1%, 14.0%, and 25.3% respectively (H1 2024: 12.1%, 12.6%, and 39.4%)[155][159] Other Income Other income for H1 2025 amounted to RMB132.6 million, a decrease of 5.4% from the prior year period - Other income for the period was RMB132,600,000, a decrease of 5.4% from RMB140,200,000 in the same period of 2024[156][160] Selling and Distribution Expenses Selling and distribution expenses decreased by 8.9% in H1 2025 and represented 1.9% of consolidated revenue - Selling and distribution expenses for the period were RMB189,500,000, a decrease of 8.9% from RMB208,100,000 in the same period of 2024[157][161] - These expenses as a percentage of consolidated revenue decreased to 1.9% from 2.0% in the same period of 2024[157][161] General and Administrative Expenses General and administrative expenses rose by 32.4% in H1 2025, primarily due to an impairment loss on property, plant and equipment - General and administrative expenses for the period were RMB1,250,500,000, an increase of 32.4% from RMB944,400,000 in the same period of 2024[163][168] - An impairment loss on property, plant and equipment of RMB112,200,000 (H1 2024: nil) was included in these expenses[163][168] - These expenses as a percentage of consolidated revenue increased to 12.3% from 9.2% in the same period of 2024[163][168] Share of Results of Associates The Group's share of losses from associates narrowed in H1 2025 compared to the previous year - The Group's share of results of associates for the period was a loss of RMB41,900,000 (H1 2024: loss of RMB65,200,000)[164][169] Share of Results of Joint Ventures The Group's share of profits from joint ventures slightly decreased in H1 2025 - The Group's share of results of joint ventures for the period was a profit of RMB21,200,000 (H1 2024: profit of RMB24,100,000)[165][170] Taxation The Group's effective tax rate for H1 2025 was 48.4%, an increase from 43.2% in the same period of 2024 - The Group's effective tax rate for the period was 48.4%, compared to 43.2% in the same period of 2024[166][171] - Excluding certain impacts, the effective tax rate was 44.2% (H1 2024: 36.0%)[166][171] Net Profit Margin The Group's net profit margin improved to 1.7% in H1 2025 from 1.3% in the prior year period - The Group's net profit margin for the period was 1.7%, an increase of 0.4 percentage points from 1.3% in the same period last year[167][172] Liquidity and Financial Resources The company's funding is sourced from internal funds, bank loans, and other financing activities, maintaining sufficient financial resources - The Group's funding sources mainly include internal funds, bank loans, medium term notes, loans from related parties, issuance of equity securities, and cash flows from operations[173] Cash and Bank Balances (RMB'000) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :------------ | :------------- | | HKD | 151,665 | 85,793 | | RMB | 3,141,999 | 2,632,989 | | USD | 127 | 181 | Bank and Other Borrowings (RMB'000) | Category | June 30, 2025 | December 31, 2024 | | :----------- | :------------ | :------------- | | Bank loans | 14,405,826 | 14,067,712 | | Medium term notes | 1,000,000 | 1,000,000 | | Loans from related parties | 199,132 | 194,182 | | Total | 15,604,958| 15,261,894 | Repayment Schedule of Borrowings (RMB'000) | Repayment Period | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :------------- | | Within one year | 5,470,863 | 7,162,187 | | After one year but within two years | 1,960,180 | 1,375,920 | | After two years but within three years | 3,210,344 | 2,142,742 | | After three years but within four years | 1,048,615 | 954,646 | | After four years but within five years | 1,730,237 | 1,180,368 | | After five years | 2,184,719 | 2,446,031 | - As of June 30, 2025, the Group had banking facilities of HKD2.3 billion and RMB39.9944 billion, of which RMB27.6861 billion was unutilised[181][183] - The Group complied with financial covenants in its bank loan agreements, including maintaining China Resources (Holdings) Company Limited's shareholding at no less than 35% and a net gearing ratio not exceeding 180%[181][184] - On April 22, 2024, the Company completed the issuance of the first tranche of medium term notes of RMB1 billion with a coupon rate of 2.44% and a term of three years[182][185] - As of June 30, 2025, the Group had net current liabilities of RMB5.8484 billion[191] - As of June 30, 2025, debts denominated in non-RMB currencies accounted for 13% of the Group's total debt (December 31, 2024: 14%)[190] Pledge of Assets Certain assets of the company's subsidiaries with a total carrying value of RMB129.6 million were pledged to secure banking facilities - As of June 30, 2025, certain assets of the Company's subsidiaries with a total carrying value of RMB129,600,000 (December 31, 2024: nil) were pledged to banks[192][195] Contingent Liabilities The Group has provided guarantees to banks for credit facilities granted to its associates and joint ventures - As of June 30, 2025, the Group had provided guarantees to banks for credit facilities granted to associates and joint ventures amounting to RMB1,704,000,000[193][196] - Of this amount, RMB1,497,700,000 had been utilised[193][196] Future Plans and Capital Expenditure The Group has outstanding capital expenditure of approximately RMB3.20 billion for its expansion plans - As of June 30, 2025, the Group's outstanding capital expenditure for its expansion plans was approximately RMB3,204,000,000[194][197] - The total capital expenditure payment for the second half of 2025 is expected to be approximately RMB2,118,500,000, to be funded by borrowings and internal resources[194][197] Other Information This section covers corporate governance compliance, changes in directors' information, and interests of directors and substantial shareholders Model Code The company has adopted a code of conduct for securities transactions by directors that is no less exacting than the required standard - The Board has adopted a code of conduct with terms no less exacting than the required standards set out in the Model Code[199][202] - All directors have confirmed their compliance with the required standards regarding their securities transactions during the period[199][202] Corporate Governance The company complied with the Corporate Governance Code, with a temporary deviation regarding the roles of Chairman and CEO - During the period, the Company complied with the applicable code provisions of the Corporate Governance Code, except for the period from January 1 to January 5, 2025, when the roles of Chairman and CEO were held by the same individual[200][203] - Effective January 6, 2025, Mr Jing Shiqing was appointed Chairman and ceased to be President, and Mr Xie Ji was appointed President and Executive Director, bringing the company into compliance with code provision C.2.1[200][203] Changes in Directors' Information This section details changes in directors' information since the publication of the 2024 annual report - Effective May 14, 2025, Mr Jing Shiqing was elected as the Vice President of the 9th Council of the China Cement Association[201][204] - Effective June 6, 2025, Mr Shih Lai Him was appointed as a non-executive director and chairman of Jingye Management and Holdings Group Limited[205][207] - Effective September 1, 2025, Mr Gong Xiaofeng was appointed as an independent non-executive director and a member of the Company's Strategy and Investment Committee[206][209] Directors' and Chief Executive's Interests in Securities As of June 30, 2025, certain directors held interests in the shares of the company's associated corporations Directors' Interests in China Resources Beer (Holdings) Company Limited (as of June 30, 2025) | Name of Director | Capacity | Number of ordinary shares held | Percentage of total issued shares (%) | | :------- | :------- | :--------------- | :------------------------- | | Yu Shutian | Beneficial owner | 6,000 | 0.01 | Directors' Interests in China Resources Pharmaceutical Group Limited (as of June 30, 2025) | Name of Director | Capacity | Number of ordinary shares held | Percentage of total issued shares (%) | | :------- | :------- | :--------------- | :------------------------- | | Zhu Ping | Beneficial owner | 350,000 | 0.01 | Directors' Interests in China Resources Medical Holdings Company Limited (as of June 30, 2025) | Name of Director | Capacity | Number of ordinary shares held | Percentage of total issued shares (%) | | :------- | :------- | :--------------- | :------------------------- | | Tang Yunghui | Interest of spouse | 150,000 | 0.01 | - Save as disclosed above, as of June 30, 2025, none of the directors or the chief executive of the Company or their respective associates had any interests or short positions in the shares, underlying shares, and debentures of the Company that were required to be notified to the Company and the Stock Exchange pursuant to Part XV of the SFO[217][218] Substantial Shareholders' Interests As of June 30, 2025, China Resources Company Limited and its related entities were the substantial shareholders, holding approximately 68.72% of the company's shares Substantial Shareholders' Interests (as of June 30, 2025) | Name of person having an interest | Long/Short Position | Number of shares | Approximate percentage of shareholding (%) | | :----------------------- | :-------- | :------------- | :----------------- | | China Resources Company Limited | Long | 4,798,453,749 | 68.72 | | China Resources Co., Limited | Long | 4,798,453,749 | 68.72 | | CRC Bluesky Limited | Long | 4,798,453,749 | 68.72 | | China Resources (Holdings) | Long | 4,798,453,749 | 68.72 | | China Resources Group (Cement) Co., Limited | Long | 4,792,189,749 | 68.63 | - China Resources Company Limited and its related entities are the substantial shareholders of the Company, collectively holding approximately 68.72% of the issued shares[221][223] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of the company's listed securities during H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the period[225][229] - As of June 30, 2025, the Company did not hold any treasury shares[226][230] Review of Interim Report The company's interim report for the first half of 2025 has been reviewed by the Audit Committee - The Company's interim report for the period, which includes the unaudited condensed consolidated financial statements, has been reviewed by the Company's Audit Committee[227][231] Condensed Consolidated Statement of Comprehensive Income This statement presents the company's unaudited financial performance for the six months ended June 30, 2025 Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :----------------------- | :------------------ | :------------------ | | Revenue | 10,205,584 | 10,311,717 | | Cost of sales | (8,318,370) | (8,766,922) | | Gross profit | 1,887,214 | 1,544,795 | | Other income | 132,577 | 140,192 | | Selling and distribution expenses | (189,479) | (208,079) | | General and administrative expenses | (1,250,450) | (944,363) | | Exchange gain | 1,421 | 2,821 | | Finance costs | (229,041) | (256,431) | | Share of results of associates | (41,912) | (65,159) | | Share of results of joint ventures | 21,208 | 24,111 | | Profit before taxation | 331,538 | 237,887 | | Taxation | (160,568) | (102,667) | | Profit for the period | 170,970 | 135,220 | | Other comprehensive income (expense) | 45,823 | (25,170) | | Total comprehensive income for the period | 216,793 | 110,050 | | Profit for the period attributable to owners of the Company | 306,653 | 165,764 | | Profit for the period attributable to non-controlling interests | (135,683) | (30,544) | | Basic earnings per share (RMB) | 0.044 | 0.024 | Condensed Consolidated Statement of Financial Position This statement presents the company's unaudited financial position as of June 30, 2025 Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :----------------------- | :------------------------- | :-------------------------- | | Non-current assets | | | | Property, plant and equipment | 30,532,059 | 31,153,445 | | Right-of-use assets | 5,160,377 | 5,180,396 | | Intangible assets | 18,045,047 | 18,351,715 | | Interests in associates | 5,192,685 | 5,296,366 | | Interests in joint ventures | 1,760,093 | 1,738,709 | | Current assets | | | | Inventories | 2,154,503 | 1,762,724 | | Trade receivables | 2,192,469 | 1,968,351 | | Cash and bank balances | 2,781,776 | 2,235,178 | | Current liabilities | | | | Trade payables | 2,882,400 | 3,260,380 | | Other payables | 5,494,945 | 5,561,035 | | Bank loans — due within one year | 5,271,731 | 6,968,005 | | Net current liabilities | (5,848,407) | (9,081,355) | | Non-current liabilities | | | | Bank loans — due after one year | 9,134,095 | 7,099,707 | | Medium term notes | 1,000,000 | 1,000,000 | | Equity attributable to owners of the Company | 44,410,927 | 44,121,216 | | Total equity | 45,856,500 | 45,696,840 | Condensed Consolidated Statement of Cash Flows This statement presents the company's unaudited cash flows for the six months ended June 30, 2025 Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Activity Category | 2025 (RMB'000) | 2024 (RMB'000) | | :----------------------- | :------------------ | :------------------ | | Net cash generated from (used in) operating activities | 751,822 | (996,765) | | Net cash used in investing activities | (548,621) | (1,298,169) | | Net cash generated from financing activities | 345,105 | 805,856 | | Net increase (decrease) in cash and cash equivalents during the period | 548,306 | (1,489,078) | | Cash and cash equivalents at the beginning of the period | 2,235,178 | 2,603,664 | | Effect of exchange rate changes on cash and bank balances | (1,708) | 1,011 | | Cash and cash equivalents at the end of the period | 2,781,776 | 1,115,597 | Condensed Consolidated Statement of Changes in Equity This statement shows the unaudited changes in the company's equity for the six months ended June 30, 2025 Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | | :----------------------- | :------------------------- | :------------------------- | | At the beginning of the period (audited) | 45,696,840 | 45,747,169 | | Total comprehensive income (expense) for the period | 216,793 | 110,050 | | 2024 final dividend | (63,993) | (38,147) | | Capital contribution from non-controlling shareholders | 6,860 | 13,321 | | Dividend paid to non-controlling shareholders | – | (2,191) | | At the end of the period (unaudited) | 45,856,500 | 45,830,202 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes explaining the basis of preparation, accounting policies, and key figures in the financial statements Basis of Preparation The financial statements have been prepared in accordance with HKAS 34 "Interim Financial Reporting" - The condensed consolidated financial statements have been prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Listing Rules and with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[243][245] Principal Accounting Policies The accounting policies adopted are consistent with the 2024 annual financial statements, with no material impact from new standards - The condensed consolidated financial statements have been prepared on the historical cost basis, except for equity investments measured at fair value through other comprehensive income and certain trade receivables which are measured at fair value[246] - The accounting policies adopted in the preparation of the condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of amended standards effective from January 1, 2025[247] - The application of the amendments to HKFRSs in the current period has not had a material impact on the amounts reported and/or disclosures set out in these condensed consolidated financial statements[250][252] Segment Information The Group's operating and reportable segments are cement, concrete, and aggregates and others - The Group's operating and reportable segments are: cement, concrete, and aggregates and others[254] Segment Results (For the six months ended June 30, 2025) | Indicator | Cement (RMB'000) | Concrete (RMB'000) | Aggregates and others (RMB'000) | Elimination (RMB'000) | Total (RMB'000) | | :------------- | :---------------- | :------------------ | :---------------------- | :---------------- | :---------------- | | External sales | 6,248,989 | 2,081,335 | 1,875,260 | – | 10,205,584 | | Inter-segment sales | 373,475 | 1,851 | 312,763 | (688,089) | – | | Segment results | 546,125 | 157,021 | 99,521 | – | 802,667 | Segment Results (For the six months ended June 30, 2024) | Indicator | Cement (RMB'000) | Concrete (RMB'000) | Aggregates and others (RMB'000) | Elimination (RMB'000) | Total (RMB'000) | | :------------- | :---------------- | :------------------ | :---------------------- | :---------------- | :---------------- | | External sales | 6,891,141 | 1,736,957 | 1,683,619 | – | 10,311,717 | | Inter-segment sales | 267,633 | 979 | 195,844 | (464,456) | – | | Segment results | 254,495 | 75,076 | 329,217 | – | 658,788 | Finance Costs Total finance costs for H1 2025 decreased to RMB245.1 million from RMB287.7 million in the prior year period Details of Finance Costs (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :------------------- | :------------------ | :------------------ | | Interest on bank loans and medium term notes | 200,018 | 240,119 | | Interest on loans from non-controlling shareholders | 3,272 | 2,646 | | Provision for environmental restoration | 13,795 | 15,149 | | Payables for acquisition of assets | 25,355 | 23,835 | | Lease liabilities | 2,701 | 5,960 | | Total | 245,141 | 287,709 | | Less: Amount capitalised in property, plant and equipment | (16,100) | (31,278) | | Net Finance Costs | 229,041 | 256,431 | Profit Before Taxation Profit before taxation for H1 2025 was RMB331.5 million, with key deductions including staff costs and depreciation Major Items Deducted (Credited) in Profit Before Taxation (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :----------------------- | :------------------ | :------------------ | | Total staff costs | 1,356,471 | 1,284,462 | | Impairment loss on trade receivables | 17,075 | 37,223 | | Amortisation of mining rights | 306,454 | 226,828 | | Depreciation of property, plant and equipment | 1,035,720 | 990,155 | | Depreciation of right-of-use assets | 120,108 | 119,213 | | Impairment of property, plant and equipment | 112,199 | – | | Short-term lease payments | 14,699 | 13,487 | | Variable lease payments — motor vehicles | 162,389 | 173,578 | | Interest income | (13,423) | (19,508) | Taxation Total taxation for H1 2025 was RMB160.6 million, an increase from RMB102.7 million in the same period of 2024 Details of Taxation (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--------------- | :------------------ | :------------------ | | Current tax | | | | Hong Kong Profits Tax | 11,923 | 13,658 | | Mainland China Enterprise Income Tax | 191,565 | 247,408 | | Subtotal | 203,488 | 261,066 | | Deferred tax | | | | Hong Kong | (1,490) | (974) | | Mainland China | (41,430) | (157,425) | | Subtotal | (42,920) | (158,399) | | Total Taxation | 160,568 | 102,667 | - Hong Kong Profits Tax is calculated at 16.5%, Mainland China Enterprise Income Tax at 25%, including a 5% withholding tax on dividends and deferred tax on expected distributable profits[269][270] Earnings Per Share Basic earnings per share for H1 2025 was RMB0.044, up from RMB0.024 in the prior year period Calculation of Basic Earnings Per Share (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :----------------------- | :------------------ | :------------------ | | Profit attributable to owners of the Company | 306,653 | 165,764 | | Weighted average number of shares | 6,982,937,817 | 6,982,937,817 | | Basic earnings per share (RMB) | 0.044 | 0.024 | - No diluted earnings per share is presented as the Company had no potential ordinary shares outstanding[274] Dividends The Board proposed a final dividend for 2024 and declared an interim dividend for 2025 - The directors proposed a final dividend of HKD0.01 per share for the year ended December 31, 2024, which was approved by shareholders on May 30, 2025 and paid on July 23, 2025[275][277] - On August 15, 2025, the directors declared an interim dividend of HKD0.014 per share for the year ending December 31, 2025 (2024: HKD0.02)[275][278] - The total declared interim dividend of approximately HKD97,761,000 has not been recognised as a liability in the condensed consolidated statement of financial position[275][278] Property, Plant and Equipment / Right-of-use Assets / Intangible Assets The Group invested in fixed and right-of-use assets and recognised an impairment loss on fixed assets in H1 2025 - During the six months ended June 30, 2025, the Group acquired property, plant and equipment of RMB555,719,000 (H1 2024: RMB1,112,138,000)[279] - An impairment loss on property, plant and equipment of RMB112,199,000 was recognised (H1 2024: nil)[280] - Additions to right-of-use assets amounted to RMB100,744,000 (H1 2024: RMB161,677,000)[281] - There were no additions to mining rights (H1 2024: RMB29,362,000)[281] Trade Receivables Total trade receivables amounted to RMB2.19 billion as of June 30, 2025, with an average credit period of 0 to 60 days Details of Trade Receivables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :------------- | | Trade receivables from third parties | 2,016,192 | 1,774,253 | | Trade receivables from related parties | 176,277 | 194,098 | | Total | 2,192,469 | 1,968,351 | - The Group has a policy of granting an average credit period of 0 to 60 days from the date of invoice to its customers[284] Ageing Analysis of Trade Receivables (RMB'000) | Ageing | June 30, 2025 | December 31, 2024 | | :--------- | :------------ | :------------- | | 0 to 90 days | 1,438,812 | 1,351,716 | | 91 to 180 days | 206,982 | 191,731 | | 181 to 365 days | 323,309 | 203,805 | | Over 365 days | 223,366 | 221,099 | | Total | 2,192,469 | 1,968,351 | Other Receivables Total other receivables decreased to RMB1.02 billion as of June 30, 2025, from RMB1.13 billion at year-end 2024 Details of Other Receivables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :------------- | | Prepayments and deposits | 67,251 | 37,917 | | Deposits paid to raw material suppliers | 220,647 | 235,357 | | VAT and other recoverable taxes | 245,948 | 255,632 | | Current portion of long-term receivables | 97,743 | 97,743 | | Amounts due from associates | 47,936 | 19,698 | | Amounts due from joint ventures | 13,246 | 9,600 | | Consideration receivable for disposal of subsidiaries | – | 187,105 | | Others | 330,469 | 282,211 | | Total | 1,023,240 | 1,125,263 | - Amounts due from associates are unsecured and repayable on demand, with an interest-bearing portion of RMB12,206,000[290] - Amounts due from joint ventures are non-interest-bearing, unsecured, and repayable on demand[290] Trade Payables Total trade payables decreased to RMB2.88 billion as of June 30, 2025, with a typical credit period of 30 to 90 days Details of Trade Payables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :------------- | | Trade payables to third parties | 2,784,756 | 3,152,940 | | Trade payables to related parties | 97,644 | 107,440 | | Total | 2,882,400 | 3,260,380 | - The Group normally obtains a credit period of 30 to 90 days from its suppliers[293] Ageing Analysis of Trade Payables (RMB'000) | Ageing | June 30, 2025 | December 31, 2024 | | :--------- | :------------ | :------------- | | 0 to 90 days | 2,315,916 | 2,952,591 | | 91 to 180 days | 206,226 | 120,700 | | 181 to 365 days | 214,696 | 73,842 | | Over 365 days | 145,562 | 113,247 | | Total | 2,882,400 | 3,260,380 | Other Payables Total other payables stood at RMB5.49 billion as of June 30, 2025, slightly down from year-end 2024 Details of Other Payables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :------------- | | Payables to contractors and for acquisition of assets | 2,307,493 | 2,308,420 | | Consideration payable for acquisition of subsidiaries, associates and joint ventures | 538,451 | 542,565 | | Deposits from customers | 496,850 | 510,374 | | Accrued wages and bonuses payable | 440,226 | 504,577 | | Deposits from suppliers | 455,285 | 402,132 | | Other taxes payable | 281,251 | 436,787 | | Lease liabilities | 120,680 | 134,680 | | Environmental restoration payable | 6,983 | 6,994 | | Amounts due to non-controlling shareholders | 20,734 | 19,863 | | Dividends payable | 63,993 | – | | Others | 762,999 | 694,643 | | Total | 5,494,945 | 5,561,035 | - Amounts due to non-controlling shareholders are unsecured, non-interest-bearing, and repayable on demand[297] Medium Term Notes The company issued RMB1 billion in unsecured medium term notes in April 2024 with a three-year term - On April 22, 2024, the Company issued medium term notes of RMB1,000,000,000[298][299] - The medium term notes are unsecured, bear interest at a rate of 2.44% per annum, and have a term of three years[298][299] Other Long-term Payables Total other long-term payables amounted to RMB1.63 billion as of June 30, 2025 Details of Other Long-term Payables (RMB'000) | Item | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :------------- | | Lease liabilities | 108,768 | 117,181 | | Provision for environmental restoration | 639,193 | 630,877 | | Payables for acquisition of assets | 748,586 | 789,518 | | Others | 134,435 | 148,593 | | Total | 1,630,982 | 1,686,169 | Share Capital The company's authorised share capital is HKD1 billion, with issued and fully paid capital of approximately HKD698.3 million Share Capital Structure (RMB'000) | Category | Number of shares | Amount (HKD'000) | Amount (RMB'000) | | :--------- | :--------------- | :------------ | :---------------- | | Authorised | 10,000,000,000 | 1,000,000 | – | | Issued and fully paid | 6,982,937,817 | 698,294 | 617,812 | Contingent Liabilities The Group has provided guarantees for bank facilities granted to its associates and joint ventures Contingent Liabilities (RMB'000) | Item | June 30, 2025 | December 31, 2024 | | :--------- | :------------ | :------------- | | Amount of guarantees | 1,704,040 | 1,936,499 | | Amount utilised | 1,497,655 | 1,289,442 | - The directors consider that the fair value of the guarantees at their dates of inception is not significant[306] [Capital Commitments](index=71&type=sec