Comprehensive review: In the first half of 2025, Evergreen achieved an operating income of 2.211 billion yuan, a year-on-year decrease of 14.56%; the net profit attributable to parent company was 41 million yuan, a year-on-year increase of 2601.49%. In the first half of this year, due to the weak downstream demand, the sales volume of cement, concrete and aggregate of the Company decreased significantly, which dragged down the revenue. However, due to the decrease in coal price, the decrease in three fees and the increase in income from asset disposal, the net profit attributable to the parent company of the Company increased significantly, and the operating efficiency improved significantly.
Figure 1 and 2: Revenue of Evergreen in the first half of 2025, Profit trend
Data source: Cement big data (https://data.ccement.com/)
Decline in sales volume of building materials products There was a significant
drop in operating income. Evergreen is mainly engaged in cement, concrete, aggregate and other building materials business. The three accounted for more than 95% of the total revenue, while involved in a small number of new wall materials, trade and other fields. In the first half of this year, the company's sales area was affected by capital and weather, demand continued to decline, sales of building materials products declined, and business income continued to decline. Among them, the sales volume of cement decreased by about 7% year on year, and the average sales price was basically the same as the same period last year, with the revenue of 1.51 billion yuan, down 6.1%; the revenue of concrete was 500 million yuan, down 31.3%; and the revenue of aggregate was 120 million yuan, down 21.4%. Concrete and aggregate revenue fell sharply, dragging down the overall revenue by a large margin. In the first half of the year, the company realized business income of 2.211 billion yuan, down 14.56% from the same period last year.
Figure 3: Revenue trend of the three major building materials segments (RMB100 million)
Data source: Cement Big Data (https://data.ccement.com/)
The main sales area of Evergreen is Jiangxi market, and it also radiates to Fujian, Zhejiang, Guangdong, Hubei and other surrounding provinces. In the first half of this year, Jiangxi contributed 1.94 billion yuan in revenue, down 17.4% from the same period last year, accounting for 87.9% of revenue, which is the core business area. The sales area in Zhejiang is mainly in the central and southern areas of Zhejiang, where the revenue is 130 million yuan, accounting for 5.7%. Fujian is the third largest sales area, with revenue of 0.9 billion yuan, accounting for about 4%. The rest of the regional revenue accounts for a relatively small proportion, less than 2% of the monomer.
Figure 4: Revenue Proportion of Evergreen in Each Region in the First Half of 2025
Data Source: Cement Big Data (https://data.ccement.com/)
Production Management Improves Simultaneously
Although the business income of Evergreen has declined greatly, the company insists on both production and management, reducing costs and strengthening management, and the company's operating efficiency has improved significantly. In terms of production, the average price of coal purchased by the Company in the first half of the year decreased by RMB170/ton as compared with the same period of last year, and the gross profit was RMB370 million, representing a year-on-year increase of 4.3%. In terms of management, although the rate of three fees increased slightly by 0.9 percentage point, the absolute level of three fees decreased by RMB20 million, representing a year-on-year decrease of 8.1%. In addition, the asset disposal income was 45 million yuan (compensation for demolition), an increase of 27 million yuan. Under the influence of multiple factors, the company realized a net profit of 41 million yuan, an increase of 2601.49% over the same period last year.
Table 1: Main Financial Indicators
of Evergreen in the First Half of 2025 Data Source: Cement Big Data (https://data.ccement.com/)
Outlook for the Second Half of 2025: The decline in cement sales will expand The benefit level is difficult to improve
. In the second half of 2025, the investment in real estate and infrastructure in Jiangxi will remain weak, which will greatly drag down the demand for cement. It is expected that the decline in sales of Evergreen Cement will show an expanding trend. Despite the strong willingness of enterprises to raise prices, the overcapacity is serious, the implementation of capacity management policies is poor, the market competition is fierce, coupled with the impact of the surrounding low-price cement, the road to price recovery is a long way to go. To sum up, in the second half of the year, Evergreen may face a double decline in profits, and the situation is more severe. (This article does not constitute investment advice)
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