Comprehensive review: In the first half of 2025, Shanshui Cement achieved an operating income of 5.554 billion yuan, a year-on-year decrease of 15.42%; the net profit attributable to parent company was -250 million yuan, a year-on-year decrease of 52.84%. In the first half of this year, the company's operating income continued to decline due to the decline in demand for cement in the main business area; however, the company gave full play to its subjective initiative, actively acted, paid attention to cost reduction internally, and paid attention to price recovery externally, resulting in a significant reduction in losses and a significant improvement in overall efficiency.
Figure 1 and 2: Revenue of Shanshui Cement in the first half of 2025, Profit Trend
Data Source: Cement Big Data (https://data.ccement.com/)
Sluggish demand and continuous decline in
revenue Shanshui Cement is mainly engaged in cement, clinker and concrete, as well as a small amount of aggregate and slag powder. Among them, cement and clinker are the main products, accounting for more than 90% of the revenue all the year round; the business areas are in Shandong, Northeast, Shanxi and Xinjiang, of which Shandong and Northeast account for a higher proportion of the revenue, about 60% and 25% respectively, which are the main business areas. In the first half of this year, the new construction area of real estate and investment in highways and waterways in Shandong Province declined by about 20%, while the downstream demand was relatively weak, and cement production declined by about 11%, far more than that of the whole country.
Affected by this, the company's total sales volume of cement clinker was 19.594 million tons, down 20.4% from the same period last year, weakening significantly. Although the average sales price has rebounded, the range is less than change of sales volume, and the revenue of cement clinker is 5.14 billion yuan, down 14.1% from the same period last year. Concrete business is also poor, achieving revenue of 190 million yuan, down 46.2% year-on-year. Aggregate, slag powder and other businesses changed little, with operating income of 230 million yuan, a slight decrease of 3.8% over the same period last year. In the first half of 2025, Shanshui Cement realized business income of 5.554 billion yuan, down 15.42% from the same period last year.
Figure 3. Sales
of cement clinker in the first half of 2025 Source: Cement Big Data (https://data.ccement.com/)
Cost reduction and price recovery achieved remarkable results Profitability improved
significantly In the first half of this year, Shanshui Cement has paid close attention to the work of reducing costs and increasing benefits, and its profitability has been significantly improved. In terms of cost reduction, the average purchase price of coal in the first half of the year was RMB709.9 per ton, representing a decrease of 18.9% as compared with RMB875.2 per ton in the same period of last year; the administrative expenses were RMB475 million, representing a decrease of 14.9% as compared with the same period of last year. The average selling price of cement clinker was 262.1 yuan/ton, an increase of nearly 20 yuan/ton over the same period last year, an increase of 8%, and the increase rate was in the forefront of the industry. With the decrease of operating costs and the increase of product prices, the company turned around its losses substantially, with a net profit of-250 million yuan in the first half of the year, a decrease of 52.84% compared with the same period last year.
Table 1: Major financial indicators
of Shanshui Cement for the first half of 2025 Source: Cement Big Data (https://data.ccement.com/)
In terms of other indicators, the consolidated gross profit margin for the first half of 2025 was 14.34%. Compared with the same period of last year, it increased by 4.85 percentage points; although the return on equity was still negative, it was significantly better than same period of last year, reaching -1.39%. Due to the large decline in business income, the company's three-fee rate increased slightly by 0.24 percentage points to 12.14%. Outlook for
the second half of the year: demand continues to decline, corporate profit pressure is greater
. At present, real estate in Shandong is still bottoming out, and it is expected that the drag in the second half of the year will remain large; In terms of transportation, according to the plan and process, the investment in the second half of the year may decline by about 50%. It is expected that the demand in the region will decline considerably, and the sales of cement products of the company will face greater challenges. At the same time, the competition in Shandong is very fierce, and the price has failed many times, so the trend in the second half of the year is hard to say optimistic. It is expected that the company's profit level will be lower than that of the same period last year, and the annual profit pressure will be greater. (This article does not constitute investment advice)
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