On January 31, Fujian Cement issued an annual performance forecast, the company expects to increase losses from January to December 2023, and the net profit attributable to shareholders of listed companies is-380 million to-290 million. Net profit fell 56.61% to 19.52% year on year. Affected
by the decline in market demand, the cement sales volume of the Company in 2023 decreased by 5.66% as compared with the same period of last year, and the average selling price of cement decreased by 15.87% as compared with the same period of last year. As the decrease in the selling price of cement was greater than the decrease in the cost, the gross profit margin of cement sales decreased year on year, resulting in a large loss in the main business during the period.
2. Fujian Haixia Cement Co., Ltd. (Haixia Cement), a holding subsidiary, was affected by limestone mining problems, high cost of limestone outsourcing and low cement market price, the kiln system was in a state of shutdown throughout the year, and the decline in cement market sales. The company employs professional institutions to conduct impairment test and assessment on Straits Cement and its loss-making subsidiaries, and it is expected that there will be a certain amount of impairment assessment. Impact
of non-operating profit and loss During the reporting period, the Company realized non-recurring profit and loss of approximately RMB11.07 million (before tax), mainly due to government subsidies of RMB12.89 million included in the current profit and loss, which increased the net profit attributable to the owners of the parent company for the current period.
(3) The impact of accounting treatment.
Accounting treatment has no significant impact on the company's current performance.
