1. Earnings Snapshot Conch Cement reported H1 2026 revenue of RMB 36.93 billion, down 10.88% year-on-year. Profit attributable to equity shareholders fell 41.85% to RMB 2.72 billion, and basic EPS declined to RMB 0.52 (-RMB 0.37). The profit contraction mainly reflected lower selling prices in China’s cement market.
2. Margin Compression • Consolidated gross profit margin on self-produced products slipped to 22.46%, a fall of 6.40 percentage points. • 42.5-grade cement margin dropped 7.17 ppts to 21.91%; clinker margin fell 9.21 ppts to 9.37%. • Trading business (4.61 million tonnes, +146.13%) delivered a slim 1.02% margin.
3. Sales & Capacity • Self-produced cement and clinker sales reached 121 million tonnes (-3.96%). • Total cement/clinker sales, including trading, edged down 1.75% to 125 million tonnes. • Installed capacities: clinker 234 million t, cement 385 million t, aggregates 186 million t, concrete 84.35 million m³. Renewable power in operation stands at 1,431 MW.
4. Cost and Expense Trends Consolidated unit cost of self-produced cement/clinker fell 6.33% to RMB 163.12/tonne, supported by lower fuel and raw-material inputs. Operating expenses rose modestly to RMB 4.63 billion (+4.26%), with R&D spend reduced 38.32% and finance costs swinging to a net expense of RMB 232.08 million (vs. income a year earlier) due to FX losses and lower interest income.
5. Balance Sheet and Liquidity Total assets stood at RMB 252.46 billion (-1.57%) and total liabilities at RMB 50.55 billion (-3.74%), producing a gearing ratio of 20.02% (-0.44 ppt). Cash at bank decreased 32.15% to RMB 34.33 billion, while financial assets held for trading nearly doubled to RMB 23.45 billion. Operating cash inflow fell 45.83% to RMB 4.52 billion; net cash inflow from investing activities reached RMB 1.67 billion on higher redemption of time deposits and wealth-management products.
6. Capital Expenditure & Commitments Capex during the period totalled RMB 4.34 billion, focused on project construction and investments. Outstanding capex commitments were RMB 16.35 billion, of which RMB 9.40 billion is contracted.
7. Shareholder Returns & Capital Actions An interim dividend of RMB 0.13 per share (tax inclusive) was declared, implying a payout of approximately RMB 679.94 million. Treasury stock stood at 24.44 million A shares and 2.63 million H shares after repurchases of 4.83 million shares during H1; 22.24 million previously repurchased A shares were cancelled in July 2026.
8. Outlook Highlights Management expects continued demand headwinds from China’s real-estate adjustment but sees infrastructure spending and overseas projects supporting volumes. Priorities include: • Deepening domestic market penetration and strengthening overseas project execution. • Further cost optimisation through alternative fuels, digitalisation and bulk procurement. • Accelerating ultra-low-emission upgrades and expanding renewable-energy operations.
The company will pursue selective M&A and industrial-chain extensions while maintaining disciplined capital spending under its “15th Five-Year” plan.
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