On March 15, China Shanshui Cement Group Co., Ltd. released its preliminary performance report for 2023. The
report shows that
the operating income in 2023 is about 18.116 billion yuan, and that in 2022 is about 21.489 billion yuan, a decrease of 15.7% compared with the same period last year; The operating loss for
2023 was approximately RMB647 million, and the operating profit for 2022 was approximately RMB1,464 million.
The loss attributable to the shareholders of the Company for 2023 was approximately RMB884 million, and the profit attributable to the shareholders of the Company for 2022 was approximately RMB755 million; Basic loss per share was RMB0.2 in
2023 and basic earnings per share was RMB0.17 in 2022. In
2023, the Group is committed to refining internal basic management to improve the quality of existing production and operation, financial resources and liquidity management capabilities. As at 31 December 2023, the Group had a cement production capacity of 95.53 million tonnes, clinker production capacity of 50.12 million tonnes and commercial concrete production capacity of 18.1 million cubic meters. The loss for the year was mainly due to the significant decrease in gross profit as the decrease in cement price was greater than the decrease in unit production cost.
Shanshui Cement said that 2024 will still be an extremely difficult year for the industry. The cement market demand is insufficient and the total production capacity is at a high level. It is unlikely that the supply-demand relationship will be significantly improved, and periodic price competition is inevitable.
However, cement enterprises around the country have experienced many rounds of price troughs, and under the background of relatively stable market demand, the demand for profit improvement or stability is still there, and it is unlikely to adopt a comprehensive and sustained ultra-low price operation strategy. It is expected that the national cement market price will continue to maintain the trend of shock adjustment, and it will be difficult for the industry to improve its efficiency substantially.
Looking forward to 2024, the expected situation of the cement industry is still grim, Shanshui Cement will adhere to the general tone of steady progress, promote stability, focus on improving quality and efficiency, focus on consolidating competitiveness, actively carry out work around reducing costs, supporting stable operation and increasing benefits through price recovery, and comprehensively improve the level of operation and management. We will continue to strengthen our ability to survive, compete and prevent risks, so as to ensure that we can go steadily and far in the adversity of the industry.
At present, China's cement industry has a serious overcapacity, the impact of peak staggering production on the supply side has declined significantly, the "competition and cooperation relationship" formed over the years has broken down, and the pressure of industry operation has doubled. How should China's cement industry get out of the predicament and face the new cycle? On March 28-29, China Cement Network will hold the "13th China Cement Industry Summit and TOP100 Award Ceremony" in Hangzhou, during which awards will be given to top 100 cement and supplier enterprises, and experts and scholars will be invited. China Railway and other construction units jointly discuss the new development trend of the cement industry in the future, and work together to create the future!
