Huaxin Building Materials Group Co., Ltd. (abbrev. HX BLDG MAT) reported solid top- and bottom-line growth for 2025, driven by a sharp recovery in overseas operations, disciplined cost control and improved product mix.
Revenue and Profitability • Revenue rose 3.31% year on year to RMB 35.35 billion. • Net profit increased 20.00% to RMB 3.54 billion, while net profit attributable to shareholders advanced 18.09% to RMB 2.85 billion. • Basic EPS grew 18.10% to RMB 1.37. • Net profit after extraordinary items surged 50.98% to RMB 2.69 billion, highlighting improved underlying performance. • Group gross margin widened by 5.53 percentage points to 30.22%, led by a 9.82-point jump in cement gross margin to 33.57%.
Segment Highlights • Cement revenue expanded 14.18% to RMB 20.59 billion on a 2.8% volume increase and stronger overseas pricing. • Ready-mixed concrete sales fell 14.65% to RMB 7.18 billion amid an 11.0% volume drop. • Aggregate revenue slipped 2.82% to RMB 5.48 billion despite a 12.2% rise in tonnage, reflecting lower selling prices. • Overseas markets delivered revenue of RMB 11.80 billion, up 46.76%, and accounted for 33% of group sales. Overseas cement sales volumes jumped 25% to 20.30 million tons.
Cost and Expense Dynamics • Operating costs contracted 4.28% to RMB 24.67 billion despite higher sales, aided by fuel savings, procurement optimisation and logistics efficiencies. • Selling and distribution, admin and finance expenses rose 14–21% owing to enlarged overseas footprint and higher financing costs linked to acquisitions.
Cash Flow and Balance Sheet • Operating cash flow improved 11.99% to RMB 6.69 billion. • Net investing outflow widened to RMB 8.75 billion, mainly reflecting the USD 773.86 million acquisition of Lafarge Africa Plc and a USD 176.90 million Brazilian aggregate deal. • Net financing inflow reached RMB 2.76 billion, reversing the prior-year outflow after new bank loans and bond issues. • Total assets climbed to RMB 81.07 billion (+16.64%), while the asset-liability ratio edged up to 53.87%. Interest-bearing liabilities rose 33.46% to RMB 24.19 billion. • Goodwill swelled to RMB 4.35 billion (+260.13%) due to overseas acquisitions.
Dividend The board proposes a cash dividend of RMB 0.55 per share (interim RMB 0.34 already paid; final RMB 0.21 pending AGM approval), representing a 40.04% payout of 2025 attributable profit.
Corporate Actions During the year HX BLDG MAT repurchased 2.58 million A-shares for RMB 49.00 million and transferred them to 11 participants under a restricted share incentive scheme.
Strategic Progress • Overseas cement capacity surpassed 40 million tons following plant upgrades in South Africa and Zambia, commissioning in Malawi, and the Nigerian acquisition. • The EMBU aggregate project in Brazil added 8.8 million tons of annual capacity. • Group aggregate production hit 219 million tons (+5.15%), keeping HX BLDG MAT in the leading position nationally. • Thirteen kiln-line plants were recognised as national energy-efficiency leaders; logistics using new-energy vehicles carried 100 million tons of materials.
Outlook for 2026 Management targets global sales of 67 million tons of cement and clinker, 190 million tons of aggregates and 30 million m³ of concrete, aiming for revenue above RMB 40 billion and capital expenditure of roughly RMB 15.00 billion, focused on overseas capacity additions and M&A.
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