China Shanshui Cement Group Limited (CSC) disclosed interim results for the six months ended 30 June 2026, revealing sharp top-line contraction and deeper losses amid a challenging mainland cement market.
Revenue and Profitability • Operating revenue fell 26.6% year-on-year to RMB 4.07 billion, pressured by weaker demand and lower selling prices across all core products. • Gross profit declined 41.4% to RMB 467.05 million; margin narrowed to 11.5% from 14.3%. • Loss from operations expanded to RMB 701.48 million versus RMB 175.40 million a year earlier. • Net loss attributable to equity shareholders enlarged to RMB 725.78 million, compared with RMB 250.25 million in 1H 2025. Basic loss per share was RMB 0.17.
Sales Metrics • Cement sales volume dropped 9.7% to 15.96 million tonnes; average selling price decreased 18.8% to RMB 215.6 per tonne. • Clinker sales volume plunged 66.4% to 0.65 million tonnes; average price down 13.6% to RMB 200.5 per tonne. • Concrete volume rose 47.1% to 1.02 million m³, yet average price slid 14.1% to RMB 231.8 per m³. • Shandong region remained the largest revenue contributor, accounting for 60.6% of cement sales.
Cost Structure • Cost of sales represented 88.5% of revenue, up 2.8 percentage points. • Raw-material costs fell in absolute terms but rose to 30.7% of revenue. • Average coal purchase price climbed 11.9% to RMB 794.2 per tonne; unit coal consumption per tonne of clinker improved to 99.8 kg.
Cash Flow & Balance Sheet • Net cash generated from operations contracted to RMB 46.92 million (1H 2025: RMB 674.81 million). • Capital expenditure totaled RMB 153.88 million, primarily for resource, clinker and cement line upgrades. • Cash and deposits stood at RMB 3.94 billion; total borrowings edged up to RMB 5.45 billion, raising the net gearing ratio to 15.7% (end-2025: 14.8%). • The company reported net current liabilities of RMB 2.60 billion.
Litigation & Contingencies CSC remains involved in multiple legal proceedings, including a winding-up petition in the Cayman Islands initiated by shareholder Tianrui and related actions in Hong Kong. The Grand Court has scheduled a four-week trial from 12 October 2026.
Strategic Outlook Management expects only marginal demand improvement in 2H 2026 and plans to intensify cost-reduction, enforce staggered production, optimise asset portfolios, and accelerate digital and low-carbon initiatives to restore profitability.
Dividend No interim dividend was declared for the period.
Governance CSC adhered to the Corporate Governance Code during the period, with the Chairman also performing chief executive duties. All directors confirmed compliance with the Model Code for securities dealings.