China National Building Material Company (3323) H2 2025 earnings summary

Executive summary

• Revenue declined 1.9% year-over-year to RMB177,847 million, with a net loss attributable to equity holders of RMB3,745 million versus a profit of RMB2,387.3 million in 2024.

• Basic loss per share was RMB -0.483, compared to earnings per share of RMB0.283 last year.

• Final dividend proposed at RMB0.15 per share, down from RMB0.158 per share in 2024.

• The year was marked by weak demand, overcapacity, and intensified competition, but new materials and engineering technology services segments showed growth.

Financial highlights

• Gross profit rose slightly to RMB33,252 million, but profit before tax fell sharply to RMB1,167 million from RMB9,493 million year-over-year.

• Administrative expenses surged 32% due to significant impairment provisions for property, plant, equipment, and goodwill.

• Provision for expected credit losses increased 226.5% to RMB2,056 million.

• Net cash inflow from operating activities was RMB22,518 million, down from RMB23,196 million in 2024.

• Debt to assets ratio increased to 39.4% from 38.8%.

Outlook and guidance

• 2026 is the first year of the “15th Five-Year Plan,” with a focus on transformation, innovation, and internationalization.

• The company aims to strengthen value creation, industrial system development, and green transformation, despite ongoing supply-demand imbalances.

• Plans include accelerating digitalization, green initiatives, and expanding international operations.