Asia Cement China (743) Q4 2024 earnings summary

Executive summary

• Revenue declined 21% year-over-year to RMB5.89 billion due to lower average selling prices and decreased sales volume amid weak cement demand.

• Net loss attributable to owners was RMB263.7 million, reversing from a profit of RMB106.1 million in 2023.

• No final dividend proposed for 2024.

Financial highlights

• Gross profit dropped to RMB592.6 million (2023: RMB1,070.3 million); gross margin fell to 10% from 14%.

• Basic loss per share was RMB0.168, compared to earnings per share of RMB0.068 last year.

• Total assets decreased 3% to RMB19.68 billion; total equity down 2% to RMB16.88 billion.

• Gearing ratio improved to 14% (2023: 15%).

• Cash generated from operations fell sharply to RMB460 million (2023: RMB1.53 billion).

Outlook and guidance

• Cement demand expected to remain weak in 2025 due to sluggish real estate and limited infrastructure stimulus.

• Industry supply-demand imbalance likely to persist, with continued price competition and pressure on profitability.

• Group plans 2025 cement sales volume similar to 2024 and will focus on cost reduction, efficiency, and market consolidation.