On August 5, Shanshui Cement released its interim report, with operating income of about 6.567 billion yuan in the first half of the year, down 25.8% from the same period last year; Operating loss for the first half of 2024 was approximately RMB500 million, as compared to an operating loss of approximately RMB43 million for the same period last year; loss attributable to shareholders of the Company for the first half of 2024 was approximately RMB530 million, as compared to a loss attributable to shareholders of the Company of approximately RMB240 million for the same period last year; basic loss per share for the first half of 2024 was RMB0.12. According to the analysis of
the report, in the first half of 2024, the cement industry showed the operational characteristics of "continuous decline in demand, low price fluctuation and continuous loss of the industry". The real estate industry is still in the adjustment stage, while the growth rate of infrastructure investment continues to slow down, dragging down the overall demand for cement. In most of the first half of the year, the price competition in the mainstream consumer markets such as the Yangtze River Delta and the Pearl River Delta remained fierce, prompting the bottom of cement prices to run. Volume shrinkage and low price lead to historic losses in the industry. On the demand side, it continued the trend of sharp decline in recent years; on the supply side, the cement price fell to the bottom in the first quarter due to the continuous deterioration of market supply and demand, and the whole industry suffered serious losses; in the second quarter, the kiln shutdown was strengthened, and the inventory was improved compared with last year.
In the outlook of the Company for the second half of the year, Shanshui Cement proposed that the Company will strictly implement the peak-shifting production plan, fully explore the market, deepen the cost reduction and efficiency enhancement, and strengthen the risk prevention and control.
