Fujian Cement: The net profit loss attributable to the shareholders of the listed company in 2023 is about 323 million yuan.

2024-04-26 10:07:55

Operating revenue was approximately RMB2.051 billion, representing a decrease of 20.83% as compared with the previous year.

Recently, Fujian Cement released its annual report for 2023, which showed that in 2023, Fujian Cement's business income was about 2.051 billion yuan, down 20.83% from the previous year; The net profit loss attributable to shareholders of listed companies was about 323 million yuan, down 32.97% from the previous year.

It is understood that Fujian Cement has seven new dry process clinker cement production lines, with a designed clinker production capacity of 9.545 million tons and a supporting cement production capacity of 12.4 million tons. The production bases are located in Yongan City, Nanping City, Quanzhou City, Fuzhou City, Ningde City and other areas in Fujian Province, and the main products are "Jianfu" and "Lianshi" two brands of Portland cement of various grades.

Fujian cement market is mainly concentrated in Fujian Province. In recent years, with the growth of production capacity, it has begun to actively expand the opportunity market in the surrounding Jiangsu, Zhejiang and Guangdong provinces. In 2023, the competition in the cement market intensified, the prices in the surrounding provinces outside Fujian Province fell rapidly and remained at a low level, coupled with the high logistics costs in the markets outside Fujian Province, Fujian Cement responded flexibly, vigorously stabilized the core market share in Fujian Province, and reduced the volume of low-price areas outside Fujian Province. In the whole year, Fujian Cement sold 7.525 million tons of cement in the province, an increase of 1.80% over the same period last year, the market share in the province increased by 1.5 percentage points, and the sales in other provinces decreased by 635000 tons. In terms of

product sales volume, Fujian Cement produced 8.3291 million tons of cement in the whole year, a decrease of 6.5% compared with the same period last year, and sold 8.5491 million tons of cement (including commercial clinker), a decrease of 5.99% compared with the same period last year. The performance is better than the 16.23% decline in cement production in the whole province. The main reason is that the company promotes marketing upgrading, internal solid team building and basic management, strengthens customer management, implements precision marketing, maintains terminal channels, and improves market share in the province. The decrease in sales volume had a negative impact on operating income and amortization of fixed costs; as the gross profit margin was negative in the current period, there was no significant impact on the profit. In terms of

cement price, the average price of Fujian cement in the whole year was 237.48 yuan/ton, a decrease of 44.66 yuan or 15.83% over the previous year. Price decline is the biggest factor in the company's current performance decline. Data show that the average transaction price of the national cement market in 2023 is 394 yuan/ton (P. O42.5 (price in place), a sharp drop of 15% year-on-year, of which: 15.8% in East China. The company's cement price decline is basically the same as that in East China. In terms of cost of

sales, the average cost of sales of Fujian Cement in the whole year was 253.51 yuan/ton, a decrease of 31.47 yuan or 11.04% over the previous year. Cost reduction has played a positive role in reducing losses and controlling losses in the current period. In terms of provision for impairment of

assets, in 2023, Fujian Cement Subsidiary made a total provision for impairment of assets of 85.7249 million yuan, and made a provision for bad debt losses of other receivables and interest receivables of the parent company of 73.0058 million yuan. Due to the above provision, the profit of the consolidated statement of the company was reduced by 85.725 million yuan. Reduce the net profit attributable to shareholders of listed companies in consolidated statements by 77.9233 million yuan. During the reporting period, except Yongan Jianfu, the other six subsidiaries suffered losses and there were signs of impairment. The company hired professional institutions to conduct impairment test and assessment on the six subsidiaries, and made corresponding provision for impairment according to the assessment results.

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