TSC(SZ:000877)2023-10-25 16:00Financial Performance - The company's operating revenue for Q3 2023 was CNY 26,944.001 million, a decrease of 18.82% compared to the same period last year[5]. - The net profit attributable to shareholders for Q3 2023 was CNY -90.902 million, representing a decline of 115.86% year-on-year[5]. - For the first nine months of 2023, the company sold 17.191 million tons of cement, down 1.81% year-on-year, and 2.376 million tons of clinker, down 12.98% year-on-year[10]. - The company reported a basic earnings per share of CNY -0.0105 for Q3 2023, a decrease of 115.86% year-on-year[6]. - Operating profit decreased by 98.41% year-on-year, attributed to a decline in cement and concrete prices[13]. - Total profit fell by 97.36% year-on-year, mainly due to reduced profitability from cement and concrete prices[13]. - Net profit attributable to shareholders decreased by 98.75% year-on-year, reflecting a significant drop in overall profitability[13]. Cash Flow and Liquidity - The net cash flow from operating activities for Q3 2023 was CNY 11,110.969 million, an increase of 17.39% compared to the same period last year[6]. - Cash and cash equivalents increased by 72.49% compared to the beginning of the year, mainly due to an increase in interest-bearing liabilities[11]. - The cash inflow from operating activities for the period was CNY 79.43 billion, a decrease of 19.5% compared to CNY 98.70 billion in the previous period[27]. - The total cash and cash equivalents at the end of the period amounted to CNY 15.80 billion, a decrease from CNY 17.18 billion in the previous period[29]. - The net cash flow from investing activities decreased by 37.50% year-on-year, mainly due to reduced expenditures on fixed assets and long-term assets[13]. - The net cash flow from investing activities was -CNY 6.60 billion, an improvement from -CNY 10.56 billion year-on-year[29]. Market Conditions - The overall cement market in China showed weak demand, with a cumulative production of 1.495 billion tons in the first three quarters, down 0.7% year-on-year, marking the lowest level since 2011[10]. - The company has implemented cost control measures, resulting in a decrease in cement and concrete costs despite a significant drop in market sales prices[10]. Assets and Liabilities - The company's total assets as of the end of Q3 2023 were CNY 300,470.422 million, an increase of 4.03% from the end of the previous year[6]. - Total liabilities increased to CNY 205.20 billion, up from CNY 191.53 billion year-on-year, reflecting a rise of 7.1%[24]. - Non-current liabilities rose to CNY 77.93 billion, an increase of 36.1% compared to CNY 57.36 billion in the previous year[24]. - The company reported a total non-current assets of CNY 225.27 billion, up from CNY 220.90 billion, marking an increase of about 2%[22]. Strategic Initiatives - The company is focusing on strategic stability and internal management improvements to enhance quality, efficiency, and innovation capabilities[10]. - The company plans to acquire controlling stakes in cement-related businesses from Ningxia Building Materials Group, with a cash increase of approximately 2.72 billion yuan[18]. - The company has completed the restructuring of its cement business assets with Gansu Qilian Mountain Cement Group Co., Ltd., addressing competition issues within the industry[19]. - The company has signed a trust agreement to manage 100% equity of Gansu Qilian Mountain Cement Group post-restructuring, ensuring operational continuity[19]. - The company plans to issue convertible bonds with a total fundraising amount not exceeding CNY 9.27 billion, adjusted from the previous CNY 10 billion[20]. - The company is in the process of issuing convertible bonds, with the application currently under review by the Shenzhen Stock Exchange[20]. Research and Development - Research and development expenses rose by 38.81% year-on-year, primarily due to the addition of new R&D projects[11]. - Research and development expenses increased to CNY 1.64 billion, up 39% from CNY 1.18 billion year-on-year, indicating a focus on innovation[25].