Comprehensive review: In the first half of 2025, Asia Cement achieved an operating income of 2.496 billion yuan, a year-on-year decrease of 7.18%; the net profit attributable to parent company was 114 million yuan, a year-on-year increase of 128.26%. In the first half of this year, affected by the decline in cement demand in the main business area, the company's operating income declined, but due to the decline in coal prices, coupled with the rise in cement prices, the gross profit increased significantly, and eventually the operation turned around and realized a small profit. (Note: The data in the article are the operation data of Asian Cement in mainland China. Excluding Taiwan and overseas)
Figures 1 and 2: Asian cement revenue in the first half of 2025, Profit trend
Data source: Cement big data (https://data.ccement.com/)
Decline in cement sales volume Decline
in operating income Total clinker production capacity in Asia is 23.095 million tons, distributed in Jiangxi, Sichuan and Hubei provinces. Jiangxi region is the headquarters, with a total production capacity of 9.92 million tons, accounting for 15.9% of the whole province, second only to Evergreen and Conch, especially in Jiujiang area of northern Jiangxi, with strong competitiveness; Sichuan region has a production capacity of 7.75 million tons, all located in Chengdu, accounting for 65.8% of the city, with obvious competitive advantages; Hubei's production capacity is distributed in Wuhan, with a capacity of 5.425 million tons, ranking third in the province, with a certain competitiveness.
Figure 3: Clinker Capacity Distribution
of Asia Cement Source: Cement Big Data (https://data.ccement.com/)
From the perspective of products, Asia Cement is mainly engaged in cement and concrete business, with few other businesses, which can be ignored. Among them, cement business occupies an absolute dominant position. In the first half of 2025, affected by the weak downstream demand, the cement sales volume of the Company was poor, and the operating income of the cement business (including slag powder, etc.) was RMB2.44 billion, representing a year-on-year decrease of 7%; the concrete income was RMB58 million, representing a year-on-year decrease of 14.7%.
Figure 4: Revenue
of main products of Asia Cement Source: Cement Big Data (https://data.ccement.com/)
From the perspective of regions, the southeast region is the main source of revenue of Asia Cement, and the company's sales scope covers Jiangxi. Surrounding Fujian, southern Anhui and the Yangtze River Delta region, where there are many enterprises, fierce competition, the company's operating income in the first half of the year was 1.41 billion yuan, down 12.3% year-on-year, the proportion of revenue fell 3.3 percentage points to 56.3%; In the first half of the year, Chengdu was seriously impacted by the surrounding areas, and the market as a whole declined. The company's operating income in southwest China was 720 million yuan, down 10.2% from the same period last year, and the proportion of revenue was relatively stable; Central China performed better in the first half of the year, with business income increasing to 370 million yuan, an increase of 30.9%, and revenue accounting for 14.8%, an increase of 4.3 percentage points over the same period last year. Overall, in the first half of the year, Asia Cement realized business income of 2.496 billion yuan, down 7.18% from the same period last year.
Figure 5: Revenue Trend
of Three Major Regions of Asian Cement Data Source: Cement Big Data (https://data.ccement.com/)
Production Costs Decrease The company's operating losses
in the first half of this year. The coal market was affected by the loose supply and demand, and the coal price fluctuated lower. The average price for half a year dropped by about 200 yuan/ton compared with the same period last year, a decrease of about 20% compared with the same period last year, and the production cost of cement enterprises was significantly reduced. Asia Cement's profitability indicators improved significantly, with a consolidated gross profit margin of 16.47%, up 11.5 percentage points from the same period last year. In addition, due to the reduction of tax surcharge and enterprise income tax, and the decrease of three fees, the company's final operating performance has improved significantly. In the first half of 2025, the company's net profit was 114 million yuan, an increase of 128.26% over the same period last year.
Table 1: Main Financial Indicators
of Asia Cement in the First Half of 2025 Data Source: Cement Big Data (https://data.ccement.com/)
Outlook for the Second Half of 2025: Profit May Decline Year-on-Year In the second half of
2025, it is expected that the real estate market in Jiangxi, the main operating area of the company, will still be dragged down, the construction progress of infrastructure projects will fall short of expectations, and the decline in cement demand will expand. Although the market concentration is relatively high, the strength of major enterprises is comparable, and it is difficult to reach a consensus. It is expected that the price level will be repeated, the final rise will be limited, and the profit level may be lower than same period. On the whole, due to better profits in the first half of the year, it is expected that the annual operating performance will be improved compared with 2024. (This article does not constitute investment advice)
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