China National Building Material Company (3323) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB83.47 billion, down 18.5% year-over-year, with a net loss attributable to equity holders of RMB2.02 billion compared to a profit of RMB1.40 billion in the prior year period.

• Basic loss per share was RMB0.239, compared to earnings per share of RMB0.166 last year; no interim dividend was declared.

• The Group faced challenging market conditions, including weak demand and low prices in the cement industry, leading to the first industry-wide loss since the 21st century.

• Strategic focus included cost reduction, efficiency improvement, digital transformation, green initiatives, and internationalization.

Financial highlights

• Gross profit fell 24.7% to RMB13.25 billion; EBITDA dropped 34.9% to RMB10.38 billion year-over-year.

• Operating profit dropped to RMB2.44 billion from RMB7.21 billion year-over-year.

• Net assets decreased 1.9% to RMB189.76 billion; net debt ratio rose to 91.7% from 81.4% at year-end 2023.

• Net cash flow from operating activities was RMB2.99 billion, down from RMB8.38 billion in the prior year period.

• Capital expenditure for the period was RMB13.01 billion.

Outlook and guidance

• The Group expects continued macroeconomic and industry challenges in the second half of 2024 but remains optimistic about long-term growth, focusing on value creation, industrial upgrading, and international expansion.

• Plans include accelerating transformation in basic building materials and new materials, fostering strategic emerging industries, and deepening reform and ESG initiatives.