Anhui Conch Cement Company (914) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB41.29 billion, down 9.38% year-over-year, while net profit attributable to equity shareholders rose 32.83% to RMB4.63 billion under IFRS.

• Basic earnings per share increased to RMB0.88, up over 31% year-over-year.

• The company maintained strong operational resilience, with total profits up 33.05% year-over-year despite a challenging market.

• Gross profit margin improved significantly, driven by higher selling prices and lower costs, with consolidated gross margin up 5.70 percentage points to 28.41%.

• Innovation, digitalization, and green transformation initiatives advanced, including 162 new patents and expanded use of AI and green energy projects.

Financial highlights

• Net cash flows from operating activities increased 20.61% year-over-year to RMB8.29 billion.

• Gross profit was RMB9.89 billion, up from RMB8.17 billion.

• Operating profit reached RMB6.15 billion, up from RMB4.75 billion.

• Interim dividend of RMB0.24 per share was declared, totaling RMB1.27 billion and representing a 29% payout ratio.

• Total assets at period end were RMB253.14 billion, down 0.59% from year-end 2024.

Outlook and guidance

• The company expects continued government support for infrastructure, but real estate market weakness will persist, keeping cement demand under pressure.

• Plans include strengthening cost and management advantages, digital transformation, expansion of green energy and environmental protection businesses, and overseas growth.

• Focus on mergers, industrial chain extension, and new energy projects to drive future growth.