Tianrui Cement's First Half Results Continue to Be Delayed

2024-10-10 10:36:24

Tianrui Cement said that as the financial information of major associates has not yet been determined, more time is needed to prepare the interim results, so the company will delay the publication of the interim results for the six months ended 30 June 2024.

Recently, Tianrui Cement issued a supplementary announcement on the delayed publication of its interim results for 2024.

Earlier, Tianrui Cement said that as the financial information of major associates has not yet been determined, more time is needed to prepare the interim results, so the company will delay the publication of the interim results for the six months ended 30 June 2024.

Tianrui Cement noted that there was a significant difference between the public financial information of the associate and the unconfirmed financial information for the first half of 2024, as well as the confirmed financial information for the first half of 2024. The confirmed financial information for the first half of 2024 shows a loss of approximately RMB43.5 million, while the unconfirmed financial information for the first half of 2024 shows a loss of approximately RMB40.6 million. However, the loss figure shown in the public financial information of the associate was approximately RMB8.1 million. On September 9,

2024, Tianrui Cement received a formal reply from the joint venture company, in which it provided incomplete financial data for the first half of 2024, and explained the difference between the public financial information of the joint venture company and the unconfirmed financial information for the first half of 2024. However, in order to provide relevant supporting materials for the explanation of differences, it did not confirm whether the preparation methods and accounting adjustments adopted in the above two sets of financial data were consistent. At the same time, the joint venture company also indicated in its reply that it would not cooperate with Tianrui Cement's special audit of the joint venture company for the time being. On September 13,

2024, the Group responded to the Associated Companies with further requests. On 25 September 2024, the Group received a formal response from the Associate, the content of which the Group considered not to be supporting documentation providing disclosure of financial information and an explanation of data discrepancies, and therefore sent a follow-up letter to the Associate reiterating that the Group would assert its legal rights.

In addition, the associate sought loan support from the Group to pay its employees' salaries and social insurance expenses, requesting a loan amount of RMB3,139,462.48 for a term of one year at an annual interest rate of 4.75%. In view of the above incomplete, unreasonable and evasive response of the Associate, and its unreasonable position on the Company's request to cooperate with the special audit work and the past audit procedures, the Company has serious doubts about the reliability of the information provided by the Associate and its claims on the production and operation. The Company will continue to make efforts to communicate with the associated company to determine its financial, production and operation status.

As a result of the above developments, the Company is unable to publish the 2024 Interim Results on 30 September 2024. The Company will announce the expected release date of the Interim Results as soon as further progress is made in obtaining reliable financial information from the associate.

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Correlation

Recently, due to the persistent cost pressure in the south, the price of concrete has risen slightly with the raw materials, but the growth of market demand is limited, and the overall quotation is still stable. From October 31 to November 6, the national concrete price index closed at 112.47 points, up 0.31% annually and down 10.11% year-on-year.