Asia Cement China (743) Q1 2025 earnings summary

Executive summary

• Profit attributable to owners for Q1 2025 was RMB3.08 million, marking a return to profitability from a significant loss in Q1 2024.

• Cement demand remained weak, but average cement prices rebounded compared to the same period last year.

• The company did not recommend a dividend for the first three months of 2025.

Financial highlights

• Revenue for Q1 2025 was RMB1,149.3 million, down from RMB1,223.8 million in Q1 2024.

• Gross profit reached RMB143.4 million, a significant improvement from a gross loss of RMB0.23 million in Q1 2024.

• Net profit for the period was RMB3.96 million, compared to a net loss of RMB131.8 million in Q1 2024.

• Basic earnings per share were RMB0.002, up from a loss per share of RMB0.083 in Q1 2024.

Outlook and guidance

• Cement demand is expected to continue declining in 2025, but the rate of decline should narrow.

• Infrastructure investment, especially in water conservancy, is anticipated to drive new demand.

• The market trend is expected to be weak in the first half and stronger in the second half of 2025.

• The company aims to improve performance through cost reduction, efficiency, and industry collaboration.