Dongwu Cement International Limited released its unaudited interim results for the six months ended 30 June 2026, highlighting a sharp contraction in top-line performance and a deeper net loss, reflecting sustained weakness in China’s cement market.
Financial Performance • Revenue fell 55.4% year on year to HKD 52.97 million (H1 2025: HKD 118.64 million) as sales volumes dropped 51.8% to 259 thousand tonnes and average selling prices declined. • Gross margin slid to –7.7% (H1 2025: –3.3%), producing a gross loss of HKD 4.09 million. • Other income decreased 35.1% to HKD 16.03 million due to the absence of last year’s disposal gains from clinker-quota transfer, partly offset by a HKD 13.23 million gain on early settlement of a loan in the current period. • Operating performance reversed from a HKD 8.79 million profit to a HKD 5.65 million loss, weighed down by a HKD 6.86 million impairment on property, plant and equipment. • Net loss attributable to shareholders expanded to HKD 15.98 million (H1 2025: HKD 9.16 million); basic loss per share rose to HKD 0.029 (H1 2025: HKD 0.017).
Segment Dynamics • The Group’s sole revenue source is now the cement business following the disposal of its rare-earth and biomedical operations in 2025. • PO 42.5 cement sales generated HKD 31.58 million (59.6% of group revenue), while PC 42.5 and PSS 32.5 contributed HKD 19.33 million and HKD 2.06 million respectively. • Jiangsu province remained the largest market, accounting for 65.5% of sales, followed by Zhejiang (33.7%) and Shanghai (0.7%).
Balance Sheet & Liquidity • Cash and cash equivalents increased 23.8% to HKD 190.76 million since year-end 2025, supported by collection of disposal proceeds and working-capital inflows. • Borrowings declined 11.0% to HKD 93.04 million after repayment and restructuring of an unsecured loan. • Debt-to-equity ratio improved to 50.2% (31 Dec 2025: 56.7%). • Capital commitments stood at HKD 1.08 million; no new major capex was recorded during the period.
Cash Flow • Operating activities used HKD 5.64 million (H1 2025: outflow of HKD 0.77 million). • Investing activities generated HKD 49.13 million, primarily from receipt of disposal consideration and release of deposits. • Financing outflow totalled HKD 11.97 million, reflecting net loan repayments and interest costs.
Dividend No interim dividend was declared for H1 2026 (H1 2025: nil).
Outlook & Strategy Management plans to sustain core cement operations through stringent cost controls, selective market expansion, and continued focus on environmental compliance. Concurrently, the Group is progressing with an integrated-circuit packaging and testing initiative, including recruitment of specialised talent, site selection and equipment procurement, aiming to diversify revenue streams and enhance long-term resilience.
Regulatory & Compliance The company reported no material litigation during the period and confirmed full compliance with the Hong Kong Corporate Governance Code and the Model Code for securities transactions by directors.
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