West China Cement Ltd. · HKEX:2233
West China Cement — H1 2023 Earnings Presentation
28 slides from West China Cement's earnings presentation, August 2023
Slide 1: 2023 Interim Results
2023 Interim Results August 2023
Slide 2: Important Disclaimer and Notice to Recipients
Important Disclaimer and Notice to Recipients Institutional presentation materials By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by represe
Slide 3: Company Overview
oo Umma RAS M@A WEST CHINA CEMENT LIMITED Company Overview
Slide 4: Company Overview
Company Overview Western China focus – Shaanxi, Xinjiang, Guizhou and Sichuan The largest Market leader in Southern cement producer in and Eastern Central Shaanxi Province by NSP Shaanxi production capacity Cement capacity: 33.3mt Shaanxi: 21.7mt Xinjiang: 3.5mt Aggregates capacity: Guizhou: 1.8mt 1
Slide 5: 2023 Interim Results
oo Umma RAS M@A WEST CHINA CEMENT LIMITED 2023 Interim Results
Slide 6: 2023 Interim Results Highlights
2023 Interim Results Highlights ◼ Operational Cement: − Period-end installed capacity of 33.3mt (30 June 2022: 29.0mt) − Sales volume of 9.14mt (30 June 2022: 8.70mt). Including clinker sales 9.54mt Regional operational metrics (Cement) (30 June 2022: 9.15mt). PRC Africa Total − ASP of RMB 383/t (30
Slide 7: Financial Analysis and KPIs
Financial Analysis and KPIs RMB Million Ended Ended Ended Ended (unless otherwise specified) 30 Jun 2023 30 Jun 2022 Change 30 Jun 2023 30 Jun 2022 Sales Volume: Cement: Cement (mt) 9.14 8.70 5.1% ASP/t (RMB) 383 384 Aggregates (mt) 2.06 2.30 (10.4%) -PRC 321 374 Commercial Concrete (mcm) 0.92 0.64
Slide 8: Production Cost Analysis
Production Cost Analysis Production Cost (Cement) Average Coal Cost RMB (million) (RMB per ton) 5,400.0 +33.4% -6.2% 1,200 1,039 5,069.8 975 1,000 +60.3% -7.4% 779 6.3% 800 4,800.0 4,637.6 5.4% 600 525 486 6.6% 400 4,200.0 4,017.0 6.1% 3,955.3 14.1% 200 8.4% 8.2% 0 14.1% 2019 2020 2021 2022 1H 2023
Slide 9: Operations & Markets
oo Umma RAS M@A WEST CHINA CEMENT LIMITED Operations & Markets
Slide 10: Our Position in Shaanxi’s Market
Our Position in Shaanxi’s Market Fuping Plant Yaowangshan Plant Annual Capacity (mt): 2.0 Annual Capacity (mt): 1.1 Acquired: Jun 2012 Acquired: Nov 2015 Yulin Hancheng Plant Annual Capacity (mt): 2.0 Tongchuan Plant Acquired: Jun 2011 Annual Capacity (mt): 5.0 Commissioned: Jun 2021 Yan’an Shifeng
Slide 11: Dominant Position in Our Core Markets
Dominant Position in Our Core Markets NSP production capacity: NSP production capacity: 23.1 million tons 3.6 million tons WCC: 6.1m ◼ Southern Shaanxi – Shangluo, Ankang & Hanzhong NSP production capacity: 12.6 million tons An area dominated by the Qingling Mountains Yulin NSP production capacity
Slide 12: Emission Controls and Cost Savings
Emission Controls and Cost Savings New environmental standards – upgrades and cost savings Progress Impact ◼ Reduce 30% electricity consumption Residual heat recovery systems ◼ Decrease CO₂ emissions by c.22,000 tons/year/mn tons 70% of total capacity Denitration ◼ Installation completed at all plan
Slide 13: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Key infrastructure projects Xi’an-Yan’an High-Speed Railway Xi’an-Shiyan High-Speed Railway Xi’an-Ankang High-Speed Railway ◼ The Xi’an-Yan’an Railway is a component of the Baohai ◼ The project starts at Xi'an East Station to Shiyan ◼ Xi’an-Ankang Railway
Slide 14: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Other infrastructure projects Planned Planned Project Name Project Name Construction Period Construction Period Railway Huaneng Power-Coal Transportation Railway (Central 2021-2024 Hanzhong-Bazhong-Nanchong Railway (Shannan 2020-2024 Region) Region) Expres
Slide 15: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Other infrastructure projects scheduled to commence construction Planned Planned Project Name Project Name Construction Period Construction Period Railway Xi'an-Hancheng Intercity Railway (Central Region) TBC Lanzhou-Hanzhong-Shiyan High-Speed Railway TBC
Slide 16: Central Shaanxi – Competitive Landscape
Central Shaanxi – Competitive Landscape WCC-Hancheng: 2.0mt Shengwei-Jingyang: 2.2mt Manyi: 2.2mt Jidong-Jingyang: 4.4mt Conch-Fenghuang: 2.0mt Conch-Liquan: 4.4mt WCC-Yaowangshan: 1.1mt Conch-Qianxian: 2.2mt Tongchuan WCC-Tongchuan: 5.0mt Jidong-Fufeng: 4.4mt Weinan Shaanxi Coal-Fuping: 4.0mt Conch
Slide 17: Southern Shaanxi – Competitive Landscape
Southern Shaanxi – Competitive Landscape WCC-Xixiang: 1.1mt WCC- Zhen’an: 0.7mt WCC-Yangxian: 1.1mt WCC-Danfeng 1: 1.1mt WCC-Danfeng 2: 1.5mt WCC-Mianxian: 1.1mt Shangluo Hanzhong Ankang Jinlong: 1.1mt WCC-Xunyang: 2mt SINOMA-Hanjiang: 2.2mt WCC Sinoma Other Indicated tonnage is annual cement capaci
Slide 18: Xinjiang, Guizhou and Sichuan- Diversified Revenue Source
Xinjiang, Guizhou and Sichuan- Diversified Revenue Source Kangding Kangding Plant Annual Capacity (mt): 1.5 Commissioned: July 2022 ◼ Guizhou & Sichuan Strategic location close to Guiyang city within “Gui- An New Area” Buoyant infrastructure led cement market Guiyang Huaxi Plant Annual Capacity
Slide 19: Africa - Diversified Revenue Source
Africa - Diversified Revenue Source National Cement Plant Annual Capacity (mt): 1.3 Commissioned: November 2022 ◼ D.R. Congo Strategic location close to the Lake Tanganyika which enabling exports to nearby countries, i.e. Rwanda, Burundi, western Tanzania Buoyant infrastructure led cement market
Slide 20: Board of Directors
Board of Directors ◼ Over 31 years of cernent industry experience Mr. Zhang Jimin, ◼ Chairman of the Shaanxi Cement Association and Vice Chairman of the China Cement Association Chairman & Executive Director ◼ Received professional training course in economic management from Peking University ◼ Over
Slide 21: Financial Performance
oo Umma RAS M@A WEST CHINA CEMENT LIMITED Financial Performance
Slide 22: Operational Performance
Operational Performance Sales volume of cement Revenue (RMB per ton) (RMB mm) 24 9,000 8,459 19.9 8,003 19.6 7,247 7,131 20 18.8 18.5 16 6,000 4,398 12 9.14 8 3,000 3,311 4,152 4 8.7 8.45 0 0 2019 2020 2021 2022 1H2023 2019 2020 2021 2022 1H2023 Gross profit and gross profit margin EBITDA and EBITDA
Slide 23: Debt Profile & Key Credit Ratios
Debt Profile & Key Credit Ratios Debt profile Total debt/EBITDA 1 Net debt/EBITDA 1 4.0x 3.0x 2.7x 3.3x 2.4x 2.9x 3.0x 3.0x 2.0x Senior Notes 1.6x 44.6% 2.0x 1.2x 1.0x 0.8x 1.0x 0.6x 1.0x 0.0x 0.0x 2019 2020 2021 2022 1H2023 2019 2020 2021 2022 1H 2023 Medium-term Notes Total debt/total capitalizati
Slide 24: Appendices
oo Umma RAS M@A WEST CHINA CEMENT LIMITED Appendices
Slide 25: Summary of Consolidated Income Statement
Financial Information Summary of Consolidated Income Statement For the year ended 31 Dec For the period ended 30 Jun RMB ’000 2020 2021 2022 2022 2023 Revenue 7,131,052 8,002,791 8,489,135 4,152,252 4,398,290 Cost of Sales (4,788,586) (5,626,224) (6,307,305) (2,799,305) (3,164,046) Gross Profit 2,34
Slide 26: Summary of Consolidated Balance Sheet
Financial Information Summary of Consolidated Balance Sheet Assets Liabilities and Equity As at 31 Dec As at 30 Jun As at 31 Dec As at 30 Jun RMB ’000 2020 2021 2022 2023 RMB ’000 2020 2021 2022 2023 Non-current assets Non-current liabilities Investment in an associate 77,643 - - 5,559 Bank Borrowin
Slide 27: Summary Consolidated Cash Flow Statements
Financial Information Summary Consolidated Cash Flow Statements For the year ended 31 Dec For the period ended 30 Jun RMB ’000 2020 2021 2022 2022 2023 Net cash generated from operating activities 2,702,612 1,959,650 2,134,538 976,986 1,114,132 Net cash used in investing activities (3,122,968) (3,51
Slide 28: Contact Us
Contact Us WEST CHINA CEMENT LIMITED 中国西部水泥有限公司 YAOBAI SPECIAL CEMENT GROUP CO., LTD. 尧柏特种水泥集团有限公司 No. 336 4th Shenzhou Road 中国 陕西省 西安市 Aerospace Industrial Base 长安区 Chang’an District 航天基地 Xi’an, Shaanxi, China 神舟四路336号 Tel: +86 29 8925 4988 电话： +86 29 8925 4988 Fax: +86 29 8925 4088 传真： +86 29 8925