Financial Performance - Total sales volume of cement and clinker decreased by 11.2% to 9.15 million tons in the first half of 2022 compared to 10.30 million tons in the same period of 2021[4]. - Revenue for the first half of 2022 was RMB 4,152.3 million, a decrease of 1.9% from RMB 4,232.9 million in the first half of 2021[4]. - Net profit attributable to the company's owners dropped by 37.7% to RMB 658.2 million, down from RMB 1,056.1 million in the same period last year[4]. - The company achieved a slight increase in EBITDA to RMB 1,690.1 million, compared to RMB 1,677.5 million in the first half of 2021[8]. - The group's revenue decreased by 1.9% from RMB 4,232,900,000 in the first half of 2021 to RMB 4,152,300,000 in the first half of 2022[42]. - Cement sales volume dropped by 13.8% from approximately 10,090,000 tons in the first half of 2021 to about 8,700,000 tons in the first half of 2022[42]. - The net profit for the period was RMB 698,049,000, down 42.7% from RMB 1,219,710,000 in the previous year[137]. - Basic earnings per share for the period was RMB 0.121, compared to RMB 0.194 in the same period last year, reflecting a decrease of 37.7%[137]. - The profit for the period was RMB 658,151,000, compared to RMB 1,056,068,000 in the previous year, representing a decrease of approximately 37.7%[144]. - The total comprehensive income for the period was RMB 674,004,000, down from RMB 1,087,420,000, indicating a decline of about 38.0%[144]. Cost and Expenses - The average cost of coal increased by approximately 56.1% from RMB 628 per ton in the first half of 2021 to RMB 980 per ton in the first half of 2022[45]. - Administrative expenses increased by 15.2% from RMB 246,600,000 in the first half of 2021 to RMB 284,000,000 in the first half of 2022[52]. - Financing costs increased by 62.9% from RMB 116.5 million in the first half of 2021 to RMB 189.8 million in the first half of 2022, primarily due to the issuance of priority notes in July 2021[59]. - The company's financing costs increased to RMB 189,783,000 from RMB 116,509,000, representing a rise of 62.8% year-on-year[137]. - The total depreciation and amortization expenses for the six months ended June 30, 2022, were RMB 580,135,000, an increase of 15.3% from RMB 503,477,000 in the previous year[187]. Assets and Liabilities - The total asset value increased by 2.8% to RMB 27,389.4 million as of June 30, 2022, compared to RMB 26,648.4 million at the end of 2021[4]. - Net debt increased to RMB 5,569 million as of June 30, 2022, from RMB 4,990.4 million as of December 31, 2021, with a net debt-to-equity ratio of 46.5%[69]. - The company's equity attributable to owners increased to RMB 11,514,369,000 from RMB 11,313,548,000, reflecting a growth of about 1.8%[141]. - The company's inventory increased to RMB 1,430,701,000 from RMB 1,111,169,000, reflecting a rise of about 28.7% year-over-year[139]. - Trade and other receivables rose to RMB 2,913,438,000, up from RMB 2,497,218,000, indicating an increase of approximately 16.7%[139]. - The net current assets decreased significantly to RMB 273,221,000 from RMB 1,100,268,000, a decline of about 75.2%[139]. - Non-current liabilities totaled RMB 7,468,460,000, compared to RMB 7,122,106,000 in the previous year, marking an increase of approximately 4.9%[141]. Market and Sales - Sales volume in Mozambique increased by 127.3% compared to the same period last year, contrasting with declines in other regions[8]. - In the first half of 2022, cement sales in Shaanxi decreased by approximately 11.5%, but the average selling price increased to about RMB 372 per ton, compared to RMB 290 per ton in 2021[15]. - The average selling price of cement in the Guanzhong region rose to RMB 351 per ton in the first half of 2022, up from RMB 319 per ton in 2021, despite a sales decline of about 13.7%[18]. - In Xinjiang, cement sales dropped nearly 30.7% to approximately 970,000 tons, with an average selling price of RMB 442 per ton, up from RMB 406 per ton in 2021[19]. - In Guizhou, total cement sales were about 390,000 tons, a decrease of approximately 39.0% from 640,000 tons in the first half of 2021, with an average selling price of RMB 429 per ton, up from RMB 260 per ton in 2021[19]. - Mozambique's cement sales increased by 127.3% to approximately 500,000 tons, with an average selling price rising to RMB 509 per ton from RMB 413 per ton in 2021[20]. - The group reported a total segment profit of RMB 995,314,000 for the six months ended June 30, 2022, down 31.2% from RMB 1,447,770,000 in the same period of 2021[174]. Environmental and Sustainability Initiatives - The company has installed De-NOx equipment across all plants in Shaanxi, Xinjiang, and Guizhou, reducing nitrogen oxide emissions by approximately 60% per ton of clinker[35]. - The company aims to reduce carbon dioxide emissions by approximately 22,000 tons per million tons of cement produced through energy recovery systems[34]. - The company continues to explore opportunities for solid waste disposal projects in response to China's circular economy development requirements[35]. - The group will focus on green development strategies, increasing the use of clean energy and optimizing energy structure[80]. - All plants have completed upgrades to meet new air pollution emission standards, with ongoing efforts to enhance environmental management and supervision[91]. Corporate Governance and Shareholder Information - The company has maintained compliance with all provisions of the corporate governance code during the six months ended June 30, 2022[119]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2022[121]. - Major shareholders include 盈亞 with 1,756,469,900 shares, representing 32.30% of the issued share capital as of June 30, 2022[99]. - 海螺國際控股 holds 1,584,849,970 shares, accounting for 29.14% of the total issued share capital[99]. - The company has established a remuneration committee to review the compensation policies for directors and senior management[124]. Future Outlook and Strategic Plans - The group plans to increase investment to enhance industrial capabilities and extend the upstream and downstream supply chain[79]. - The group anticipates stable prices in the second half of 2022 due to stringent environmental policies limiting supply[84]. - Several major infrastructure projects are expected to commence in 2022, which will support market demand in urban and rural areas[81]. - The management will continue to strengthen macroeconomic monitoring and adjust operations accordingly to maintain stability[80]. - The business in Xinjiang and Guizhou is expected to remain sluggish in 2022, with a forecasted demand boost from ongoing infrastructure projects in southern Xinjiang, including two highways[85].
西部水泥(02233) - 2022 - 中期财报