China Resources Building Materials Technology (1313) H1 2024 earnings summary

Executive summary

• Turnover for 1H24 was RMB 10,311.7 million, down 13.9% year-over-year.

• Profit attributable to owners fell 70.2% year-over-year to RMB 165.8 million.

• Basic earnings per share was RMB 0.024; interim dividend per share was HK$0.02.

• Net margin dropped to 1.3% from 4.4% in the prior year.

Financial highlights

• Gross profit was RMB 1,544.8 million, with gross margin at 15.0%, down from 16.8%.

• EBITDA for the period was RMB 1,871.6 million, down from RMB 2,189.3 million in 2023.

• Net cash from operating activities was negative RMB 996.8 million in 1H24.

• Cash and bank balances as of June 30, 2024, ranged from RMB 1,115.6 million to RMB 1,454.7 million.

• Effective tax rate rose to 43.2% from 29.2% year-over-year.

Outlook and guidance

• The group will accelerate strategic emerging industries, promote green development, and focus on digital transformation and R&D.

• The Chinese government’s proactive fiscal policy and infrastructure investment are expected to support demand for building materials.

• Supportive real estate and rural revitalization policies are anticipated to benefit the sector.

• Expected capital expenditures for 2H24 are approximately RMB 2,837 million.