Huaibei GreenGold Industry Investment (2450) H1 2024 earnings summary

Executive summary

• H1 revenue fell 26.9% YoY to RMB110.752m amid weak demand and lower aggregate and concrete prices; period loss was RMB11.147m versus profit of RMB23.666m.

• Attributable loss was RMB7.678m versus profit of RMB16.429m; Gaoloushan Phase II began operating, adding 8m tonnes of annual capacity.

Financial highlights

• Gross profit fell to RMB40.403m from RMB67.912m and operating profit to RMB25.426m from RMB64.044m.

• Loss before tax was RMB9.738m versus profit before tax of RMB30.912m; trade-receivable impairment was RMB4.018m versus a RMB1.130m reversal.

• Cost of sales declined to RMB70.349m from RMB83.626m, while finance costs rose to RMB35.164m from RMB33.132m.

• Operating cash flow was RMB56.121m, down from RMB125.297m; cash and cash equivalents were RMB566.723m at 30 June 2024.

Outlook and guidance

• FY2024 aggregate production target is 6.0m tonnes; annual production is planned to increase gradually in 2025 following Phase II commissioning.

• Two aggregate sales agreements signed in June 2024 cover at least 1.2m tonnes within one year.

• H2 infrastructure projects are expected to support demand; sales priorities include developing customers, monitoring market needs and maintaining stable production.