Yunnan Construction and Investment Concrete: Expected loss of 11.49 million in the first half of this year!

On August 8, Yunnan Construction and Investment Concrete issued a profit warning and an announcement of the latest business development. According to the

announcement, the Group expects a net profit loss of approximately RMB11.49 million for the six months ended 30 June 2023 and a net profit of approximately RMB20.7 million for the six months ended 30 June 2022. The main reason for the aforesaid

expected loss is that, despite there was an increase of approximately 6.98% in the sales volume of commercial concrete, the Group's major product, in the first half of 2023 as compared to the same period of 2022, and there was a slight decrease in the production costs of concrete as compared to the same period of 2022, the average selling price of concrete decreased by approximately 11.62% as compared to the same period of 2022. As a result, the sales revenue of concrete decreased by about 5.45% and the gross profit per unit decreased by about 27.60%.

Business development update:

As of 20 July 2023, the total amount of new sales contracts signed by the Group was approximately RMB2.58 billion, representing an increase of approximately 9.6% as compared with the same period of 2022. In particular, the proportion of newly signed sales contracts with independent third parties was approximately 60.9%, representing an increase of approximately 17 percentage points as compared with the same period of 2022. The sales contract value of new products such as cement and mortar was approximately RMB820 million. In addition, it is expected that the Group will enter into certain sales contracts in the near future. Based on preliminary estimation, it is expected that the amount of new sales contracts will be approximately RMB1.7 billion, of which the amount of new sales contracts for the concrete business is expected to be approximately RMB1.34 billion, involving a demand for concrete of approximately 4.2 million cubic meters; It is estimated that the amount of newly signed sales contracts for new products such as cement and mortar will be approximately RMB360 million.