Ge Long Hui·2025-09-02 11:55Core Viewpoint - The company reported a mixed performance in its 2025 H1 financial results, with a slight decline in revenue but a significant increase in net profit, driven by higher average selling prices in the cement business and growth in overseas operations [1][2][3]. Financial Performance - In 2025 H1, the company achieved revenue of 160.47 billion yuan, a year-on-year decrease of 1.17%, while net profit attributable to shareholders reached 11.03 billion yuan, up 51.05% year-on-year [1][2]. - The cement business generated revenue of 91.52 billion yuan in 2025 H1, reflecting a year-on-year increase of 5.60%, with sales volume at 27.74 million tons, down 2.63% year-on-year [2]. - The average selling price of cement was approximately 330 yuan per ton, an increase of 26 yuan per ton year-on-year, while production costs decreased by 9 yuan per ton to 232 yuan [2]. Overseas Business Growth - The overseas cement business reported revenue of 41.28 billion yuan in 2025 H1, a year-on-year increase of 15.37%, accounting for about 25.37% of total revenue [3]. - The company achieved net profit of 5.88 billion yuan from overseas operations, up 17.1% year-on-year, with sales volume of approximately 8.39 million tons, an increase of 10.41% year-on-year [3]. - Significant projects included the upgrade of production lines in Zambia and South Africa, and the acquisition of a 100% stake in a Brazilian aggregate company [3]. Aggregate and Concrete Business - The aggregate business generated revenue of 27.63 billion yuan in 2025 H1, a year-on-year decrease of 6.72%, with sales volume of 76.05 million tons, up 6.33% year-on-year [4]. - The concrete business reported revenue of 34.57 billion yuan, down 12.33% year-on-year, with sales volume of 1.325 million cubic meters, a decline of 9.88% year-on-year [4]. Profitability Metrics - The overall gross profit margin improved to 28.92%, an increase of 5.27 percentage points year-on-year, with the cement business gross margin at 29.74%, up 9.03 percentage points [5]. - The company’s operating cash flow was approximately 16.24 billion yuan, a decrease of 6.17% year-on-year [5]. Strategic Developments - The company announced plans to integrate all overseas assets into a subsidiary intended for overseas listing, focusing on cement manufacturing, sales, and related services [6]. - This strategic move aims to enhance financing capabilities and improve competitiveness in the global cement market [6]. Future Outlook - The company expects continued growth in overseas revenue and performance contributions, supported by an integrated strategy and high-margin aggregate business [7]. - Revenue projections for 2025-2027 are estimated at 360.27 billion yuan, 393.43 billion yuan, and 428.37 billion yuan, with corresponding net profits of 27.20 billion yuan, 30.90 billion yuan, and 34.49 billion yuan [7].