Shangfeng Cement: The net profit in 2022 decreased by 56.38% year-on-year to 949 million yuan

Shangfeng Cement announced on April 19 that in 2022, its revenue was 7.135 billion yuan, down 14.19% year-on-year; its net profit attributable to its parent company was 949 million yuan, down 56.38% year-on-year; its basic earnings per share was 0.99 yuan; and it planned to distribute a cash dividend of 3.5 yuan per 10 shares to all shareholders.

In 2022, the Company produced 15.25 million tons of clinker , representing a decrease of 5.69% over the previous year, and actually exported 4.45 million tons of clinker, representing a decrease of 18.72% over the previous year. The gross profit margin of clinker sales was 32.86%, representing a decrease of 9.74 percentage points over the previous year. This was mainly due to the significant increase in costs and the decrease in sales price of products as a result of the increase in the price of raw fuel and coal. Meanwhile, the sales proportion of clinker of the subsidiaries in the western region increased while the selling price was relatively low, resulting in the decrease in the overall gross profit margin.

In 2022, the Company produced 15.12 million tons of cement, representing a decrease of 2.85% as compared with the previous year, and sold 14.87 million tons of cement, representing a decrease of 3.00% as compared with the previous year. The gross profit margin of cement sales was 27.60%, representing a decrease of 12.99 percentage points as compared with the previous year, which was mainly due to the increase in cost and the decrease in selling price as compared with the previous year as a result of the increase in raw material and fuel prices. In addition, the proportion of cement sales of the western subsidiaries increased, and the gross profit margin of cement sales of the western subsidiaries was lower than that of the subsidiaries along the Yangtze River in East China. In this year, the sales volume of 42.5 grade cement and 52.5 grade cement increased, and the sales volume of oil well cement increased.

In 2022, the Company produced 16.13 million tons of aggregates, representing a year-on-year increase of 20.8%; sold 16.12 million tons of aggregates, representing a year-on-year increase of 20.75%; and the gross profit margin of aggregate sales was 78.73%, which was basically stable.