Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 4,105,099, a decrease of 16.9% compared to RMB 4,946,981 in the same period of 2022[7] - Gross profit for the period was RMB 646,005, down 16.4% from RMB 773,502 in 2022, maintaining a gross profit margin of 16%[7] - Profit for the period attributable to owners of the Company was RMB 195,784, a decline of 37.2% from RMB 311,892 in the previous year[7] - Basic earnings per share decreased to RMB 0.125 from RMB 0.199, reflecting a 37.1% drop year-on-year[7] - Profit before tax was RMB 394,977, down from RMB 487,282 in 2022, reflecting a decrease of 18.9%[11] - Other income for the period was RMB 100,141, compared to RMB 105,162 in the previous year[11] - The total tax expense for the period was RMB 194,660,000, an increase of 17.9% from RMB 165,106,000 in 2022[34] - The net profit for the period was RMB 200.3 million, down RMB 121.9 million from RMB 322.2 million in the corresponding period of 2022, primarily due to decreased selling prices[72] Assets and Liabilities - Net assets as of June 30, 2023, were RMB 17,295,883, slightly down from RMB 17,390,864 at the end of 2022[9] - Current ratio decreased to 4.53 from 5.10, indicating a decline in liquidity[9] - Quick ratio also fell to 4.24 from 4.69, suggesting a tighter cash position[9] - Total assets less current liabilities increased to RMB 18,951,060, up from RMB 18,086,496, reflecting a growth of 4.8%[13] - Net current assets decreased to RMB 9,002,094 from RMB 8,474,417, indicating a decline of 6.2%[13] - Non-current liabilities decreased to RMB 1,560,196 from RMB 1,361,646, representing an increase of 14.6%[15] - Total equity attributable to owners of the Company was RMB 16,932,547, down from RMB 16,987,459, reflecting a decrease of 0.3%[15] - Cash and cash equivalents at the end of the period were RMB 8,812,619, slightly up from RMB 8,793,260, showing a marginal increase of 0.2%[20] Segment Performance - For the six months ended June 30, 2023, the Group's revenue from cement products and related products was RMB 4,028,123, a decrease of 16% compared to RMB 4,797,949 in the same period of 2022[24] - The total revenue for the cement business was RMB 4,044,439, while the concrete business generated RMB 76,976, leading to a consolidated total of RMB 4,105,099 after eliminations[25] - The segment result for the cement business was RMB 426,378, and for the concrete business, it was RMB 27,289, resulting in a total segment profit of RMB 453,667[25] - Sales of cement and related products accounted for 98% of total revenue in the first half of 2023, up from 97% in 2022[68] Market Conditions - The company experienced a slow recovery in cement demand due to a sluggish real estate market and fewer new construction projects[60] - Cement prices are expected to stabilize after a decline, with demand anticipated to improve in the second half of the year but still below last year's levels[60] - The market experienced pricing chaos in May 2023, with industry players cutting prices or offering rebates to secure orders amid shrinking demand[62] - The Group expects improved demand in the second half of 2023, allowing it to maintain its market share[63] Cost Management - The Group's cost of sales decreased to RMB 3,459.1 million for the six months ended June 30, 2023, down from RMB 4,173.5 million in 2022, primarily due to lower coal costs[70] - Distribution and selling expenses increased by 8% to RMB 223.0 million from RMB 206.0 million in the previous year, driven by higher transportation fees and handling charges[70] - Administrative costs rose by 8% to RMB 166.0 million from RMB 153.8 million in 2022, attributed to increased other expenses[70] - Finance costs surged by 165% to RMB 36.0 million from RMB 13.6 million in the previous year, mainly due to higher borrowing rates[70] Strategic Outlook - The Group plans to implement cost-efficiency measures to reduce production costs while ensuring quality[83] - The Group will maintain its business strategy focused on high efficiency, high quality, excellent service, and high environmental standards in the second half of the year[83] - The company aims to achieve its established performance targets despite the challenging market environment[84] - The overall strategy includes a focus on new product development and market expansion to enhance competitiveness[84] Corporate Governance - The company has complied with all corporate governance code provisions during the six months ended June 30, 2023[102] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[103] - The Board does not recommend any dividend for the six months ended June 30, 2023, consistent with the previous year[113]
亚洲水泥(中国)(00743) - 2023 - 中期财报