Comprehensive comments: In the first half of 2025, Huaxin Cement achieved an operating income of 16.047 billion yuan, a year-on-year decrease of 1.17%, and a net profit attributable to shareholders of listed companies of 1.103 billion yuan, a year-on-year increase of 51. In the first half of this year, the company's cement business reduced costs and raised prices, and its profitability improved significantly. It has made a major contribution to profit growth. At the same time, through mergers and acquisitions, the company's overseas business continues to develop at a high speed, gradually narrowing the gap with the domestic business scale, and will continue to bring incremental performance in the future.
Figures 1 and 2: Revenue and net profit attributable to parent company of Huaxin Cement in the first half of 2025 (Unit: 100 million yuan,%)
Data source: Cement Big Data (https://data.ccement.
During the reporting period, The unit price of Huaxin Cement's cement business has risen to around 330 yuan/ton, with a year-on-year increase of about 8. According to the disclosed data, the unit price of domestic and overseas cement business is around 260 yuan/ton and 492 yuan/ton respectively, with a year-on-year increase of 6.6% and 4. In the first half of 2025, driven by the price increase at the end of last year, the price base at the beginning of the year is relatively high. Despite the subsequent downward trend, the average sales price of domestic cement and clinker of Huaxin Cement can still achieve year-on-year growth. In addition, the supply and demand structure of some overseas markets is still tight, so the average sales price of overseas cement business of Huaxin Cement also maintains a growth trend.
At the same time, the domestic coal price further dropped, the cost pressure of cement enterprises was weakened, and the unit cost of cement business of Huaxin Cement dropped to about 232 yuan/ton, a decrease of about 3. Affected by this, the unit gross profit of cement business reached 98 yuan/ton during the reporting period. Year-on-year growth 55.
Table 1: Unit product sales data of Huaxin Cement in the first half of 2025 (unit: yuan/ton, yuan/m3,%)
Data source: Cement Big Data (in the first half of https://data.ccement.2025
, The gross profit margin of the cement business of Huaxin Cement was approximately 29.7%, representing an increase as compared with the same period of last year. 9 Meanwhile, the price recovery of the cement business offset the impact of the decline in sales volume, and the revenue scale of the cement business increased by 5.6% year-on-year to 9 1. In
addition to the main cement business, the gross profit margin of Huaxin Cement's concrete and commercial mixing business in the first half of 2025 was 13.1% and 47%, respectively. However, due to the decline in both the volume and price of concrete business and the rise and fall in the price of aggregate business, the scale of revenue showed a shrinking trend. Therefore, the gross profit of Huaxin Cement in these two business areas is lower than that of the same period last year. Among them, the gross profit of concrete business was 450 million yuan, a decrease of about 0.9% compared with the same period last year; Aggregate business realized gross profit of 1.32 billion yuan.
Figures 3 and 4: Gross profit margin and gross profit of each business segment of Huaxin Cement in the first half of 2025 (Unit: RMB100 million,%)
Source: Cement Big Data (https://data.ccement.com/)
During the reporting period, The gross profit of Huaxin Cement's cement business accounted for about 58.6% of the total gross profit, which increased by about 11.9 percentage points compared with the same period last year; Aggregate and concrete businesses accounted for 28.5% and 9.8% of gross profit respectively, representing a decrease of 8.0 percentage points and 2% respectively as compared with the same period of last year.
It can be seen that the recovery of profitability of cement business is the main reason for Huaxin Cement to achieve profit growth in the first half of 2025. The proportion of
overseas business continues to increase,
and Huaxin Cement, as one of the first Chinese cement enterprises to go out, has achieved remarkable results in overseas market expansion. During the reporting period, Huaxin Cement has established production bases in 12 overseas countries in Asia, Africa and South America, and its overseas cement grinding capacity reached 24.7 million tons per year. At the end of August 2025, Huaxin Cement announced that the acquisition of Holcim's Nigerian assets had been completed. Up to now, Huaxin Cement's overseas cement grinding capacity has exceeded 35 million tons per year, and its clinker production capacity has exceeded 26 million tons per year, making it the largest Chinese enterprise in overseas cement clinker production capacity. In the
first half of 2025, the overseas business revenue of Huaxin Cement reached 4.5 billion yuan, an increase of 21.6% over the previous year, accounting for 28.0% of the total revenue, an increase of about 5% over the same period last year. During the
reporting period, the proportion of overseas cement business revenue in the total revenue of Huaxin Cement business rose to 45.1%, an increase of 3 compared with the same period last year.
The scale gap between overseas cement business and domestic cement business is gradually narrowing.
Figure 5: Revenue scale and proportion of overseas business of Huaxin Cement in the first half of 2025 (unit: 100 million yuan,%)
Data source: Cement Big Data (https://data.ccement.com/)
In the first half of 2025, The total net profit of Huaxin Cement in the overseas market reached 660 million yuan, an increase of about 29.0% over the previous year, accounting for about 46% of the total net profit. Among them, the net profit in Asia reached 470 million yuan, accounting for about 33.9%; Net profits in Africa and the Americas were 160 million yuan and 0.2 billion yuan, respectively.
Figure 6: Proportion of Huaxin Cement's net profit by region in the first half of 2025 (Unit:%)
Data source: Cement Big Data (https://data.ccement.
in view of Huaxin Cement's overseas business It has become an important source of revenue and profit pillar, and considering the needs of its overseas multi-business development strategy, this spin-off listing plan will help Huaxin Cement grow into a global multinational building materials group.
First of all, the spin-off listing will enhance the valuation level of Huaxin Cement's overseas business.
At the present stage, China's cement industry is in the downward stage of demand, the market competition is fierce, and the valuation of the cement industry in the domestic securities market is generally low. At the same time, some overseas markets are in the rapid development stage of demand growth, and the valuation of overseas multinational cement leaders is on the rise. The different stages of development make the rational valuation level of domestic and foreign cement business different, and the spin-off listing can avoid the impact of the downward cycle of domestic cement industry on the overseas incremental business sector.
Figure 7: Changes in P/B ratio of foreign multinational cement groups and China's cement industry from 2018 to 2024 (unit: times)
Data source: Cement Big Data (https://data.ccement.
Huaxin Cement is currently an A-share and H-share listed company, and investors mainly come from China. Foreign investors pay less attention to Huaxin Cement than other overseas multinational cement enterprises. After the spin-off and listing on overseas exchanges, Huaxin Cement can attract the attention of investors from more countries and regions, broaden the channels and scope of financing, and bring financial support to Huaxin Cement's overseas multi-business development strategy. In addition, financing through overseas exchanges can directly obtain local currencies and reduce the transaction risks arising from foreign exchange.
Finally, the spin-off listing will help to enhance the professional operation ability of Huaxin Cement's overseas business. With the integration and spin-off of
overseas assets, Huaxin Cement can establish a more targeted corporate structure and a more professional management team for overseas business, and give it greater operational autonomy, so that it can focus more on the development of overseas markets and minimize the constraints of other priorities of the parent company. From the perspective of human resources, the equity compensation incentive mechanism established after overseas listing can attract more overseas talents, help to tap and establish a talent echelon, and enhance the depth and sustainability of business operations.
Market outlook: The profit of domestic business is under pressure, and the overseas business will continue to contribute to the increment
. In the second half of 2025, considering the dual pressures brought by the continuous decline in cement prices and the rising cost of coal, the gross profit margin of Huaxin Cement's domestic business will probably decline compared with the first half of the year, which will form a certain drag on the profit growth. However, as the acquisition of cement assets in Nigeria has been completed, overseas business will continue to contribute to the performance increment in the second half of the year, and the profit share is expected to further increase. On the whole, the overseas business development achievements of Huaxin Cement in the second half of the year continue to show, and the annual performance is expected to achieve growth.
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