4, China Shanshui Cement Group Co., Ltd. The announcement shows that the operating income of Shanshui Cement in the first half of the year was about RMB 8.851 billion, down 12.6% from the same period last year; the loss attributable to shareholders of the company was about RMB 237 million, and the profit attributable to shareholders of the company in the same period last year was about RMB 480 million. Basic loss per share was RMB0.05.
The announcement shows that in the first half of 2023, the Group continued to refine its internal basic management to improve the quality of existing production and operation and sustainable profitability. As at 30 June 2023, the Group had a cement production capacity of 91.95 million tons, a clinker production capacity of 50.22 million tons and a commercial concrete production capacity of 18.1 million cubic meters. During the
reporting period, the Group sold a total of 27,014,000 tons of cement and clinker, representing a year-on-year increase of 13.3%; sold 1,497,000 cubic meters of commercial concrete, representing a year-on-year decrease of 1.0%; and recorded an operating revenue of RMB8,851,107,000, representing a year-on-year decrease of 12.6%; Loss for the period was RMB307,916,000, while profit for the six-month period ended 30 June 2022 was RMB472,071,000. According to
the announcement, the Group's operating income during the reporting period was RMB8,851,107,000, representing a decrease of RMB1,280,591,000, or approximately 12.6%, as compared with RMB10,131,698,000 for the same period in 2022. The decrease in operating revenue was mainly due to the year-on-year decrease in cement price during the period . Outlook for
the second half of the year Analysis of
the operating situation In the first half of the year, the real estate market continued to be weak, while the growth of sales volume driven by infrastructure construction was limited. The overall recovery of cement demand was insufficient, and the gap between the off-peak and peak seasons of the market narrowed. Faced with the complex and severe market situation, the industry continued to promote off-peak production, and some enterprises took the initiative to reduce production and stop production, striving to maintain prices and reduce inventory, but the actual effect was not up to expectations, and cement prices in most areas fell sharply year-on-year. Although the unit production cost of the Company decreased significantly compared with the same period last year, it failed to outperform the price decline and the profit decreased.
Looking forward to the second half of the year, firstly, with the implementation of favorable real estate policies in various regions, the real estate market is expected to recover, and the continuous investment in high-quality infrastructure projects will help maintain the demand for cement; secondly, under the combined effect of the "double carbon" and "double control" policies, the cement industry will accelerate the supply-side reform, and the ineffective and low-end supply will gradually withdraw, so that the industry ecology will be more healthy and stable. Business outlook
of
the Company for the second half of the year (I) The Company plans to fully develop the cement market. Adhere to demand orientation, carry out differentiated marketing according to local conditions and time, fully release the marketing vitality of sub-enterprises, further consolidate the competitive advantages in customer accumulation, brand quality, service guarantee and other aspects, and at the same time, combine with market demand, focus on research and development of low-carbon, low-magnetic and other special building materials products, hoping to open up traditional and emerging markets.
(II) The Company plans to further tap the potential and reduce the cost. We should deepen meticulous management, comprehensively implement the measures of "increasing, saving and reducing" and create benefits. Firstly, we should focus on production management, give full play to the benchmarking role of high-benefit enterprises, and improve the operation quality and efficiency of each production line by benchmarking key technical indicators such as cost and energy consumption. Second, focus on procurement and supply management, refine the benchmarking management of comparable materials, further improve the analysis of benchmarking results, accurately grasp market differences and market changes, and scientifically formulate procurement strategies; actively organize upstream sources of goods, continue to promote the "de-intermediation" of suppliers, establish direct supply cooperation with more leading supply chain enterprises, and further explore the space for the decline of raw materials and fuels. Third, we will focus on cost management, strengthen cost benchmarking management and budget execution, and improve cost efficiency. We will practice thrift, strengthen supervision and approval, and strictly control non-essential expenditure.
The Company plans to strengthen its risk provention and control. Firstly, we should accurately grasp the policy changes such as energy and environmental protection, carbon emission "double control" and elimination of production capacity, actively respond to policy risks and enhance sustainable development capacity. Second, we should adhere to precise investment, maximize the benefits of limited funds, improve the level of capital operation, formulate financing plans scientifically and rationally, and ensure the safety and stability of the capital chain. Thirdly, safety management measures such as production inspection, safety supervision, risk early warning and emergency disposal should be strengthened to further strengthen the basic ability of safety production of sub-enterprises and enhance intrinsic safety. Fourth, we should pay more attention to product quality control, strengthen sampling inspection and prevent quality risks.
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