Anhui Conch Cement Company Limited (Conch Cement) reported markedly weaker interim results for 1H 2026 as subdued domestic demand and lower cement prices outweighed cost-control efforts.
Key Financials (PRC GAAP): • Revenue fell 10.88% year-on-year to RMB 36.93 billion. • Net profit attributable to shareholders dropped 42.76% to RMB 2.53 billion; net profit after extraordinary items sank 54.69% to RMB 1.90 billion. • Basic earnings per share decreased to RMB 0.48 from RMB 0.84. • Operating cash flow declined 45.83% to RMB 4.52 billion. • Gross margin on self-produced products narrowed 6.40 percentage points to 22.46%.
Balance Sheet Highlights: • Total assets slipped 1.57% versus end-2025 to RMB 252.46 billion. • Net gearing (IFRS basis) eased to 7.0% from 8.2% at end-2025. • Cash and cash equivalents stood at RMB 13.54 billion; financial assets held for trading nearly doubled to RMB 23.45 billion as idle funds were shifted into bank WMPs and structured deposits. • Total liabilities decreased 3.73% to RMB 50.53 billion; bonds payable fell 24.00% to RMB 9.50 billion after reclassification of near-term maturities.
Operations: • Group sales of self-produced cement and clinker declined 3.96% to 121 million tonnes. • Overseas revenue rose 20.98% with a gross margin of 47.44%; export sales surged 77.37%. • Domestic markets saw double-digit revenue contractions across East, Central, South and West China as average selling prices weakened.
Capital Expenditure & Capacity: • Capex reached RMB 4.34 billion, focused on aggregates, ready-mixed concrete and dry-mix mortar expansions; four aggregate plants and 26 concrete projects were added. • As of 30 June, clinker capacity was 234 million tonnes, cement 385 million tonnes, aggregates 186 million tonnes and ready-mixed concrete 84.35 million m³. Installed renewable energy capacity totalled 1,431 MW.
Shareholder Returns & Capital Actions: • Board proposed an interim cash dividend of RMB 0.13 per share, totalling RMB 679.94 million, equal to 26.9% of interim attributable profit. • In July the company cancelled 22.24 million repurchased A-shares; an additional 2.20 million A-shares and 2.63 million H-shares were bought back during the period for RMB 43.81 million and HKD 44.66 million respectively.
Strategic Outlook: Management plans to strengthen marketing, press ahead with M&A—including integration of Wanwei Updated High-Tech’s cement assets—expand overseas projects and deepen “cement+” diversification into aggregates, concrete and consumer building materials. Cost-efficiency, digitalisation and low-carbon initiatives remain priorities amid continued market softness and energy cost pressures for the remainder of 2026.