Zheng Quan Shi Bao Wang·2025-08-26 13:39Core Viewpoint - Conch Cement reported a differentiated performance in the first half of the year, with revenue declining while profit increased, indicating strong operational resilience despite challenging market conditions [1][2]. Financial Performance - The company achieved operating revenue of 41.292 billion yuan, a year-on-year decrease of 9.38%, primarily due to an 11.2% decline in real estate investment impacting cement demand [1]. - Net profit attributable to shareholders reached 4.368 billion yuan, a year-on-year increase of 31.34%, with a non-recurring net profit of 4.198 billion yuan, up 31.81% [1]. - The comprehensive gross margin improved by 5.7 percentage points to 28.41%, driven by a 13.76% reduction in fuel and power costs [1]. - Operating cash flow was robust, with a net amount of 8.287 billion yuan, reflecting a year-on-year growth of 20.61% [1]. Business Operations - The core cement business saw a slight decline in self-produced cement clinker sales, totaling 12.6 million tons, down 0.35% year-on-year, but high-margin products like 42.5-grade cement and clinker saw gross margin increases of 6.45 and 11.87 percentage points, respectively [1]. - Revenue from self-produced products in the eastern and western regions grew by 13.55% and 3.88% year-on-year, respectively, while overseas market revenue reached 2.462 billion yuan, up 7.06% [1]. Market Conditions - The real estate sector continued to face challenges, with a reported 11.2% decline in development investment, leading to a nationwide decrease in cement demand [2]. - National cement production in the first half was 815 million tons, down 4.3% year-on-year, although the decline was less severe than the previous year [2]. Growth Drivers - The company invested 309 million yuan in R&D, despite a 40.55% year-on-year decrease, resulting in 162 new authorized patents [2]. - Digitalization and green transformation are identified as new growth engines, with AI technology applied across various operational scenarios [2]. - The company is advancing its green manufacturing initiatives, including the integration of renewable energy projects and achieving ISO50001 certification for energy management [2]. Future Outlook - The company plans to increase the direct supply ratio of raw materials and the use of alternative fuels, aiming to enhance efficiency and leverage procurement advantages [3]. - There is a focus on extending the upstream and downstream industrial chain, accelerating the production of aggregate projects, and expanding the ready-mixed concrete industry in major cities [3]. - The renewable energy sector will concentrate on providing "zero (low) carbon solutions" and expanding green electricity scale [3].