Comprehensive review: In 2023 , the performance of Huaxin Cement has stabilized and rebounded, with an operating income of 33.757 billion yuan, an increase of 10.79% over the previous year, and a net profit attributable to parent company of 2.763 billion yuan, an increase of 2.34% over the previous year; Net profit after deduction of non-profits was RMB2.322 billion, representing a year-on-year decrease of 9.95%; gross profit margin on sales was 26.71%, representing a year-on-year increase of + 0.49 PCT; and net profit margin on sales was 9.53%, representing a year-on-year increase of -0.In terms of revenue, the revenue from overseas business and non-cement business increased significantly. In terms of profit, after deducting the profit growth of non-cement business, Gain on disposal of non-current assets in the fourth quarter 4.
Figures 1 and 2: Increase
in both revenue and profit of Huaxin Cement in 2023 Source: Cement Big Data (https://data.ccement. The expense ratios of sales/management/finance were 4.5%/5.4%/2.1% respectively. The sales expense ratio was flat year on year, while the management/finance expense ratio was + 0.2pct/+ 0.R & D expense ratio rose to 0.9% year on year. Gain on disposal of assets of the Company in the fourth quarter 4.
Figure 3: a slight increase
in the expense ratio of Huaxin in 2023 Source: Cement Big Data (https://data.ccement.com/)
The overseas business is developing well. In
2023, Huaxin's overseas business revenue was 5.489 billion yuan, an increase of 29.99% over the previous year, accounting for 16% of the total revenue of + 2.4 PCT over the previous year. SAOG, a newly acquired Oman Cement Company, has created 942 million yuan of revenue for Huaxin. 1. In terms of production capacity, the newly added cement grinding capacity overseas is 8.54 million tons per year, with a capacity of 20.91 million tons per year, an increase of 69% over the same period last year.
Huaxin has been expanding its overseas business in 11 countries, including Tajikistan, Kyrgyzstan, Uzbekistan, Cambodia, Nepal, Tanzania, Zambia, Malawi, South Africa, Mozambique and Oman. In 2023, Huaxin successfully completed its 64.66% stake in Oman Cement Company SAOG and Natal Portland Cement Company (Pty) Ltd.
Figure 4: Huaxin's Overseas Revenue Continues to Rise
Source: Cement Big Data (https://data.ccement.com/)
Non-cement business grew rapidly, with impressive
performance in terms of revenue, profit, sales volume and production capacity. The scale and proportion of Huaxin's non-cement business revenue were further increased, with aggregate and concrete accounting for 38.5.364 billion yuan of total revenue, an increase of 75.7.652 billion yuan of concrete revenue, an increase of 49.4.The profit contribution of non-cement business increased, and the gross profit of aggregate and concrete accounted for 40% of the total gross profit. At the same time, the concrete business also performed well, contributing a gross profit of RMB1.18 billion, representing a year-on-year increase of 3.
In 2023, Huaxin's non-cement business achieved outstanding results in terms of sales volume and production capacity. The aggregate sales volume was 131.37 million tons, with a year-on-year increase of 99.69%, and the concrete sales volume was 27.27 million cubic meters, with a year-on-year increase of 66. In 2023, Huaxin's high-quality machine-made sand was officially put into production, with an additional aggregate production capacity of 67 million tons per year, and by the end of the year, the aggregate production capacity was 277 million tons per year. Concrete production capacity reached 1.
Figures 5 and 6: In 2023, the proportion of non-cement business revenue of Huaxin continued to increase. High
profit contribution Source: Cement Big Data (https://data.ccement.2023) The direct carbon dioxide emission intensity of Huaxin Cement decreased to 576.47 kg per ton of cement, representing a year-on-year decrease of 31.23%. In 2023, the calorific value substitution rate of Huaxin Cement (domestic + foreign) reached 20%. Increase by 6 PCT compared with 2022, and achieve 23% calorific value replacement rate in China, increase by 7 PCT compared with 2022. (According to the data of China Cement Association in 2024, the research on alternative fuel technology in China's cement industry started late, and the calorific value substitution rate is less than 2% at present.) In 2023, the comprehensive energy consumption of Huaxin domestic kiln line was 94.2023, and the comprehensive energy consumption of Conch Cement was 102.63 kg standard coal/ton. Comprehensive energy consumption of Tianshan Cement 106.
Figure 7:2023 New calorific value substitution rate domestic leading
data source: cement big data (https://data.ccement.com/) 0 HTML0UN K22 Table 1: Part of cement enterprises 0 HTML0 UNK2 3 Clinker 0 HTML0 UNK2 4 Comprehensive energy consumption data (kg standard coal/ton) 0 HTML0 UNK2 5 Data source: Cement Big Data (https://data.ccement.2024, Huaxin plans to invest 6.9 billion yuan. Expand aggregate, concrete and overseas cement production capacity, and strengthen alternative fuel construction. With the addition of new businesses in South Africa and Mozambique, the overseas performance will be further improved. By the end of 2023, Huaxin Cement has put into operation 36 aggregate factories in China, with nearly 4.3 billion tons of mine resources reserves along the Yangtze River and annual aggregate production capacity. 2. Huaxin said that the aggregate production capacity put into operation after mid-2023 has not fully played its role, and there is room for further growth in sales. Huaxin plans to sell 156 million tons of aggregate in 2024. Increasing 14. Concrete is Huaxin's strategic choice on the basis of sales in 2023. Under the extension of integrated industry, Huaxin's concrete receivable is lower than the industry level. Huaxin's nearly 300 million tons of aggregate production capacity can make 150 million cubic meters of concrete. Under the background of strategic development, Huaxin's planned sales of concrete in 2024 are 30.52 million cubic meters. Increase on the basis of sales volume in 2023 11. The above factors together contribute to the further increase of Huaxin Cement's revenue in 2024.
