Huaxin Cement (600801) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 16.05 billion, down 1.17% year-over-year; net profit attributable to shareholders rose 51.05% to RMB 1.10 billion, driven by higher cement prices, overseas growth, and cost controls.

• Cement sales volume fell 2.63% year-over-year, but overseas cement and clinker sales grew 10.41%; aggregate sales increased 6.33%, while concrete sales declined 9.88%.

• Overseas business contributed significantly, with Asia and Africa segments showing double-digit revenue growth; the company completed key overseas acquisitions and project launches.

Financial highlights

• Operating income: RMB 16.05 billion (down 1.17% year-over-year).

• Net profit attributable to shareholders: RMB 1.10 billion (up 51.05% year-over-year).

• Basic EPS: RMB 0.53 (up 52.03% year-over-year); diluted EPS: RMB 0.52.

• Gross margin improved by 5.27 percentage points to 28.92% due to higher cement prices and lower costs.

• Cash flow from operations: RMB 1.62 billion (down 6.17% year-over-year).

• Total assets: RMB 70.87 billion; net assets attributable to shareholders: RMB 30.49 billion.

Outlook and guidance

• The company expects continued pressure from domestic cement demand decline and overcapacity, but sees resilience in the Chinese economy and ongoing overseas expansion as growth drivers.

• Focus remains on cost control, green and digital transformation, and international business development.