West China Cement (2233) H2 2025 earnings summary

Executive summary

• Achieved record sales volume of 21.8 million tons, up 9% year-over-year, with revenue rising 15.3% to RMB 9,621.2 million and EBITDA up 14.6% to RMB 3,015.2 million, driven by overseas expansion and asset restructuring.

• Overseas operations contributed 49% of revenue and 80% of gross profit, reflecting a strategic shift from China to high-growth markets in Africa and Central Asia.

• Major developments included the acquisition of the CILU plant in DRC, sale of Xinjiang assets, and successful issuance of $700 million in senior notes.

Financial highlights

• Net profit attributable to shareholders increased 40.5% year-over-year to RMB 879.6 million.

• Gross margin improved to 25.6% (+1.9 pts), while EBITDA margin remained strong at 31.3%.

• Net gearing rose to 71.6% from 65.3%, with net debt at RMB 9,964.6 million and net debt/EBITDA at 3.3x.

• Cash balance at year-end was RMB 766 million, down from RMB 1.16 billion in 2024.

• Basic EPS increased 40% to 16.1 cents; proposed final dividend up 41.1% to 4.8 cents.

Outlook and guidance

• Focus remains on expanding in sub-Saharan Africa and Central Asia, leveraging modern NSP plants and local resource advantages.

• Overseas investments and new projects in Uganda and Mozambique expected to drive further growth in sales, profitability, and cash flow.

• Stable profitability expected in China due to supply-side discipline and infrastructure demand.

• Anticipates continued strong demand in Africa and Central Asia, supported by infrastructure and demographic trends.