Asia Cement China (743) Q2 2025 earnings summary

Executive summary

• Net profit rebounded to RMB117.0 million in H1 2025, reversing a net loss of RMB411.2 million in H1 2024, driven by higher selling prices and lower coal costs.

• Revenue for H1 2025 was RMB2,496.3 million, down 7% year-over-year due to lower sales volume, despite higher average selling prices.

• Gross profit margin improved to 16% from 5% year-over-year, reflecting improved pricing and cost control.

• The company maintained a strong financial position with total assets of RMB19,629.0 million and a gearing ratio of 13%.

• No interim dividend declared for the period.

Financial highlights

• Revenue: RMB2,496.3 million (down 7% year-over-year).

• Gross profit: RMB411.2 million (up from RMB133.0 million in 2024).

• Net profit: RMB117.0 million (vs. net loss of RMB411.2 million in 2024).

• Basic EPS: RMB0.073 (2024: loss per share RMB0.258).

• Total assets: RMB19,629.0 million as of 30 June 2025.

Outlook and guidance

• Cement demand is expected to remain weak in H2 2025 due to continued real estate sector decline, with infrastructure investment providing some support.

• Industry profitability will depend on supply-side discipline and policy enforcement; price recovery hinges on effective capacity control.

• The company aims to improve performance by focusing on efficiency, quality, customer service, and environmental protection.