Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 8,851,107,000, a decrease of RMB 1,280,591,000 or approximately 12.6% compared to RMB 10,131,698,000 in the same period of 2022[17]. - The company's net loss for the reporting period was RMB 307,916,000, compared to a net profit of RMB 472,071,000 in the same period of 2022[21]. - The gross profit for the six months ended June 30, 2023, was RMB 1,212,786,000, with a gross margin of 13.7%, down from 21.1% in 2022[18]. - The operating loss for the period was RMB 42,692,000, compared to an operating profit of RMB 822,768,000 in the same period of 2022[58]. - The net loss attributable to shareholders for the first half of 2023 was approximately RMB 236,847,000, compared to a profit of RMB 480,364,000 in the same period last year[73]. - The basic loss per share for the first half of 2023 was RMB 0.05[74]. - The company reported a total revenue of RMB 9,306,450,000 for the first half of 2023, compared to RMB 10,792,029,000 for the same period in 2022, indicating a decrease of about 13.7%[146]. - The gross profit for the first half of 2023 was RMB 107,264,000, a significant drop from RMB 1,164,661,000 in the first half of 2022, reflecting a decline of approximately 90.8%[146]. Market Conditions - The average price of cement in the national market for the first half of 2023 was RMB 421 per ton, a decrease of RMB 78 per ton or about 16% year-on-year[13]. - The company faced a significant decline in cement prices, with some regions seeing prices drop below cost levels due to high inventory and weak demand[11]. - The average monthly cement market price in June 2023 fell to RMB 393 per ton, the lowest monthly price since 2018[13]. - Cement prices have reached new lows, reflecting a weak market demand[175]. - The real estate market continued to experience a downturn, with a 7.9% year-on-year decline in investment by real estate development enterprises[174]. - The overall cement market demand is expected to be better in the second half of 2023, with a potential recovery in profitability, although total annual profit is projected to be lower than last year[176]. Assets and Liabilities - As of June 30, 2023, the total assets increased by approximately 3.6% to about RMB 32,582,419,000, compared to RMB 31,457,274,000 as of December 31, 2022[22]. - The company's total liabilities as of June 30, 2023, were RMB 12,641,998,000, an increase from RMB 8,397,613,000 as of December 31, 2022[146]. - Current liabilities increased to RMB 12,024,659,000 from RMB 10,438,081,000 year-over-year[64]. - The total equity as of June 30, 2023, was RMB 19,177,930,000, down from RMB 19,432,600,000 as of December 31, 2022[82]. - The total equity attributable to shareholders of the company was RMB 18,988,967,000 as of June 30, 2023, slightly down from RMB 19,161,336,000 at the end of 2022[105]. Cash Flow and Financing - The company's investment activities resulted in a net cash outflow of RMB 1,118,760,000, a decrease of RMB 232,137,000 year-on-year, primarily due to reduced capital expenditures for new cement and clinker production lines[24]. - The net cash generated from financing activities was RMB 1,650,068,000, an increase of 250.5% compared to RMB 470,136,000 in the previous period, primarily due to increased short-term borrowings[40]. - Operating cash flow generated a net amount of RMB 505,994,000, a decrease of RMB 756,401,000 compared to the previous year, mainly due to falling cement prices leading to reduced revenue[186]. - The company’s liquidity position showed no bank loan repayment defaults as of June 30, 2023[162]. Operational Efficiency - The company plans to enhance cost management by focusing on production management, procurement management, and expense management to improve operational efficiency[29]. - The group aims to enhance internal management to improve operational quality and sustainable profitability[177]. - The group reported a sales cost for the reporting period of RMB 7,638,321,000, a decrease from RMB 7,995,743,000 in 2022, primarily due to lower raw material, coal, and electricity costs[181]. - Selling expenses decreased by 10.3% from RMB 158,356,000 to RMB 142,057,000, mainly due to reduced employee compensation and business entertainment expenses[183]. Future Outlook - The outlook for the second half of the year suggests potential recovery in the real estate market due to favorable policies, which may support cement demand[28]. - The company expects higher demand for cement products in the second half of the year due to the construction season starting in the second quarter[147]. - The national infrastructure investment maintained a high growth level, which provided important support for cement demand[174]. Employee and Corporate Governance - The company had 16,592 employees as of June 30, 2023, providing various insurance and retirement benefits in accordance with applicable laws[26]. - The company did not recommend any interim dividend for the six months ended June 30, 2023, following the rejection of the 2021 final dividend proposal by the High Court[130]. - The company has not engaged in any significant acquisitions or disposals during the reporting period[43]. - The company continues to engage in negotiations with suppliers regarding the settlement of certain claims, with outcomes currently uncertain[165]. - The company has not identified any other significant unresolved litigation or claims that could threaten its financial position as of June 30, 2023[173].
山水水泥(00691) - 2023 - 中期业绩