West China Cement (02233) announces good news, expecting a year-on-year increase of approximately 80% to 100% in mid-term earnings attributable to shareholders.

West China Cement (02233) announced that the Group is expected to achieve a net profit attributable to owners of the company of approximately RMB 6.96 billion to RMB 7.74 billion for the six months ending on June 30, 2025. This represents an increase of approximately 80% to 100% compared to the net profit of around RMB 3.87 billion for the six months ending on June 30, 2024. The expected increase in the net profit attributable to owners of the company for the six months ending on June 30, 2025 can be mainly attributed to the following factors: 1. The Group's overseas cement sales volume is expected to increase from approximately 1.16 million tons for the six months ending on June 30, 2024 to approximately 3.8 million tons for the six months ending on June 30, 2025, driving the overseas cement revenue to approximately RMB 1.881 billion for the six months ending on June 30, 2025, significantly exceeding the overseas cement revenue of RMB 923 million for the six months ending on June 30, 2024. 2. The average selling price of cement in China for the six months ending on June 30, 2025 is approximately RMB 281 per ton (compared to RMB 270 per ton for the six months ending on June 30, 2024), while the sales cost of cement in China for the six months ending on June 30, 2025 is approximately RMB 217 per ton (compared to RMB 230 per ton for the six months ending on June 30, 2024). Due to the increase in average selling price and decrease in sales cost, the gross profit from cement sales in China increased by approximately 48% from around RMB 284 million for the six months ending on June 30, 2024 to around RMB 419.8 million for the six months ending on June 30, 2025. 3. For the six months ending on June 30, 2025, the Group generated a net profit of approximately RMB 97.7 million from property sales (compared to none for the six months ending on June 30, 2024). 4. For the six months ending on June 30, 2025, the Group reversed impairments on goodwill and other non-current assets of approximately RMB 114.6 million, while no such reversals were made for the six months ending on June 30, 2024.