On April 2, Jinyu Group (601992. SH/02009. HK), the leading cement manufacturer, released its annual report for 2023.
In the past year, BBMG Group achieved an operating income of approximately RMB107.956 billion, representing a year-on-year increase of 4.99%. The net profit attributable to the parent company was approximately RMB25.2628 million, representing a year-on-year decrease of 97.92%. The net profit after deduction of non-profits was a loss of RMB2.028 billion, compared with a loss of RMB540 million in the same period of 2022. During the
reporting period, the net cash flow generated by the company's operating activities was 7.141 billion yuan, down 48.87% from the same period last year. By the end of 2023, the total assets of the company were 269.679 billion yuan, and the net assets attributable to shareholders of listed companies were 73.007 billion yuan.
In 2023, the sharp decline in the company's performance was related to the large provision for impairment of assets. During the reporting period, the amount of asset impairment losses of the Company decreased by 124.6% year-on-year to RMB1.859 billion, mainly due to the year-on-year increase in the provision for inventory impairment of real estate projects. In 2023, the amount of asset impairment losses from the real estate development and operation sector reached RMB1.551 billion. Statistics from
the National Bureau of Statistics show that in 2023, the national real estate development investment was about 11.09 trillion yuan, down 9.6% from the previous year, of which residential investment was about 8.38 trillion yuan, down 9.3% from the previous year. Residential investment accounted for 75.6% of real estate development investment, down 0.1 percentage points from 2022.
BBMG Group is a company principally engaged in the production of building materials and the investment, development and management of real estate, which operates mainly through four business units, including the cement unit, the new building materials unit, the real estate development unit and the property investment and management unit. They are engaged in the production and sale of cement and concrete, the production and sale of building materials and furniture, the development of real estate, the investment of property leasing, and the management of residential and commercial properties. The downturn of the
real estate industry will inevitably drag down the company's performance. The 2023 annual report pointed out that in the company's main business, the revenue from the green building materials sector and the real estate development and operation sector was 79.469 billion yuan and 30.125 billion yuan, respectively, an increase of 1.1% and 15.05% over the previous year; The corresponding gross profit margins were 8.55% and 18.9% respectively, representing a decrease of 4.55 percentage points and 3.26 percentage points respectively as compared with the previous year.
According to the data of China Cement Network Cement Big Data Research Institute, the national cement output in 2023 was about 2.02 billion tons, down 3.3% from the same period last year, and the cement output hit a new low since 2011. From the perspective of cement supply and demand, the contradiction between overcapacity and insufficient market demand in the cement industry is still prominent, and the price of cement in various regions has generally declined year on year, which has greatly affected the efficiency of the industry. During the
reporting period, the consolidated sales volume of cement and clinker of the Company was approximately 93.24 million tons (excluding joint ventures and associates), representing a year-on-year increase of approximately 7.3%. In particular, the sales volume of cement was approximately 86.33 million tonnes and the sales volume of clinker was approximately 6.91 million tonnes. The consolidated gross profit margin of cement and clinker was approximately 8.9%, representing a year-on-year decrease of approximately 11.1 percentage points.
In order to find a new incremental market, in November last year, Jinyu Group announced that it had invested more than 2.2 billion yuan in the home in exchange for a 10% stake in the latter. The two sides will carry out in-depth cooperation in the fields of store operation, real estate development, assembly business, property management, digital transformation and logistics delivery network construction.
In fact, this is not the first time that Jinyu Group has crossed the border in the field of home decoration. As early as 2021, Jinyu Group launched the whole decoration brand "Temple of Heaven", developing from finished furniture to customized decoration. In the annual report of 2022, Jinyu Group said that "we hope to take the Tiantan Assembly Platform as the leader, drive mortar, paint, furniture, sanitary ware and sanitary ware into the home supply chain system, and enhance the comprehensive efficiency of the industrial chain system". In the annual report of 2023, Jinyu Group pointed out that the whole business of Tiantan has achieved a contract value of 1.03 billion yuan, which has ranked among the top three in Beijing.
At present, the debt pressure of Jinyu Group seems to be more severe. By the end of 2023, the company's short-term borrowings were about 29.527 billion yuan, its non-current liabilities due within one year were about 22.401 billion yuan, and its cash and cash equivalents were only about 13.779 billion yuan.
While disclosing the 2023 annual report, Jinyu Group also issued the Announcement on the Application for the Quota of Debt Financing Instruments in the Interbank Market, saying that it intends to continue to apply to the China Association of Interbank Market Traders for the quota of debt financing instruments and issue them at an opportune time. The purpose is to improve financing efficiency, optimize debt structure, reduce financing costs and meet the needs of capital operation.
The announcement pointed out that the specific registration and issuance plan, variety and duration will be determined according to the company's capital needs. The registration project is to apply for the qualification of multi-variety unified registered debt financing instruments (DFI), or to apply for the special quota of various inter-bank market debt financing instruments with a total amount not exceeding 40 billion yuan. The types of registered issuance include but are not limited to ultra-short-term financing bonds, short-term financing bonds, medium-term notes, perpetual medium-term notes, directional debt financing instruments, asset-backed notes, etc.
At the same time, Jinyu Group also intends to use idle self-owned funds for investment and financial management with low-risk characteristics, including asset management products and debt financing instruments of underlying assets, with the investment balance of self-owned funds for portfolio investment not exceeding 3.2 billion yuan at the end of each day. Its purpose is to improve the efficiency of capital use and increase the investment income of cash assets.
