Asia Cement China (743) Q3 2024 earnings summary

Executive summary

• Reported unaudited consolidated net loss attributable to owners of RMB458.998 million for the nine months ended 30 September 2024, compared to a profit of RMB116.164 million in the same period last year.

• Revenue for the nine-month period was RMB4,118.6 million, down from RMB5,715.8 million year-over-year.

• Ms. Mok Ming Wai resigned as company secretary, process agent, and authorised representative, succeeded by Mr. Lui Wing Yat Christopher effective 31 October 2024.

Financial highlights

• Gross profit declined to RMB224.9 million from RMB845.8 million year-over-year.

• Basic loss per share was RMB0.293, compared to earnings per share of RMB0.074 in the prior year.

• Net cash from operating activities dropped to RMB258.8 million from RMB1,241.9 million year-over-year.

• Cash and cash equivalents at period end were RMB8,691.6 million, down from RMB9,256.5 million at the start of the year.

• No dividend was recommended for the first nine months of 2024.

Outlook and guidance

• Cement demand expected to recover moderately in Q4, with continued price increases anticipated.

• Profitability likely to see marginal improvement as supply-demand imbalances ease through staggered production.

• Group will focus on operational efficiency, customer service, and maintaining core market share.