Comprehensive review: In the first half of 2026, Shanshui Group realized an operating income of 4.074 billion yuan, a year-on-year decrease of 26.64%; the net profit loss attributable to parent company was 726 million yuan, an increase of 190%. In the first half of this year, the cement market in the northern region continued to operate under pressure, and the price competition in Shandong, the main business area, became white-hot. The volume and price of cement and clinker of the Company fell, combined with the rise in coal prices and the sharp increase in management costs, the loss margin increased significantly.
Figure 1 and 2: Revenue of Shanshui Group in the first half of 2026, Profit Trend
Data Source: Cement Big Data (https://data.ccement.com/)
Demand fell sharply, prices bottomed out, and the decline in revenue significantly expanded
. Shanshui Group is mainly engaged in cement, clinker and concrete business, of which cement clinker accounts for nearly 90% of the revenue; Its business areas are mainly in Shandong and Northeast China. In the first half of the year, the national cement output was 736 million tons, with a year-on-year decrease of about 8%; the cement output of Shandong, the main base, was 45.7609 million tons, with a year-on-year decrease of 9.63%, which was higher than that of the whole country. The cement output hit a 23-year low, and the industry generally suffered losses. The continuous inflow of low-priced cement from Henan and Hebei further squeezed the market space of local enterprises. In the
first half of this year, the total sales volume of cement clinker of the Company was 16.602 million tons, with a year-on-year decrease of 15.3%, of which the sales volume of cement was 15.957 million tons, with a year-on-year decrease of 9.7%, and the sales volume of clinker was 645,000 tons, with a year-on-year decrease of 66.4%. The price decline was even more severe: the average price of cement was RMB215.6/ton, representing a year-on-year decrease of RMB49.8/ton or 18.8%; the average price of clinker was RMB200.5/ton, representing a year-on-year decrease of RMB31.5/ton. With both volume and price falling, the revenue of cement clinker was 3.57 billion yuan, down about 30% from the same period last year.
Figures 3 and 4: Sales
of cement clinker in the first half of 2026 Source: Cement Big Data (https://data.ccement.com/)
In the first half of 2026, Shanshui Group accelerated the pace of extending its industrial chain downstream. In the core areas of Shandong and Northeast China, we increased the layout of commercial mixing stations, relying on the supporting advantages of our own cement raw materials, digging deep into the orders of infrastructure and municipal projects, and the volume of concrete business increased against the trend, with a sales volume of 1.021 million square meters, an increase of 47.1% over the previous year, which led to an increase of 26.4% in revenue to 237 million yuan. Due to the small volume of concrete, it is difficult to hedge the decline of the main cement industry. In the first half of this year, the company's operating income was 4.074 billion yuan, down 26.64% from the same period last year.
Figure 5: Shanshui Group's concrete sales increased
significantly Data source: cement big data (https://data.ccement.com/)
Cost and expense double squeeze Loss margin expanded
From the cost side, In the first half of the year, the average purchase price of coal increased by about 11.9% year-on-year, resulting in an increase of 2.2% in the cost of coal per ton of clinker to 79.2 yuan per ton. In terms of expenses, sales expenses amounted to RMB98 million, representing a year-on-year decrease of 13.0%; financial expenses amounted to RMB85 million, basically flat; administrative expenses amounted to RMB649 million, representing a year-on-year increase of 36.5%, mainly due to the increase in expenses caused by the optimization of personnel, and the rigid expenditure did not decrease but increased. With a sharp decline in revenue and a two-way squeeze on costs and expenses, the net profit loss in the first half of the year was 726 million yuan, a significant increase over the same period last year.
Table 1: Major financial indicators
of Shanshui Group for the first half of 2026 Source: Cement Big Data (https://data.ccement.com/)
In terms of other indicators, the consolidated gross profit margin for the first half of 2026 was 11.46%. The net profit margin was -20.1%, a decrease of 14.62 percentage points. As the decrease in revenue was far greater than decrease in expenses, the rate of three expenses increased by 8.29 percentage points to 20.42%. Outlook for
the second half of the year: Resumption pressure is heavy and it is
difficult to turn around losses. Looking forward to the second half of the year, major transportation infrastructure projects in Shandong are difficult to increase, real estate is still bottoming out, and cement demand is still relatively low; Although the Shandong region has increased the intensity of peak staggering production and the self-discipline of supply has been continuously strengthened, the demand has continued to be weak, the impact of low-price cement superimposed on the periphery has not been reduced, and the space for price repair is limited. In the second half of the year, the company's main cement business is difficult to improve, concrete volume and cost reduction and efficiency can only be partially offset, a glass of water is difficult to extinguish the car salary, and it is expected that it will be more difficult to turn around losses throughout the year. (This article does not constitute investment advice)
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