West China Cement Ltd. · HKEX:2233
West China Cement — H1 2024 Earnings Presentation
29 slides from West China Cement's earnings presentation, August 2024
Slide 1: 2024 Interim Results
2024 Interim Results August 2024
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 and Guizhou The largest Market leader in Southern cement producer in and Eastern Central Shaanxi Province by NSP Shaanxi production capacity Cement capacity: 34.3mt Shaanxi: 21.7mt Xinjiang: 3.5mt Aggregates capacity: Guizhou: 1.8mt 15.0mt Moz
Slide 5: 2024 Interim Results
oo Umma RAS M@A WEST CHINA CEMENT LIMITED 2024 Interim Results
Slide 6: 2024 Interim Results Highlights
2024 Interim Results Highlights ◼ Operational Cement: − Period-end installed capacity of 34.3mt (30 June 2023: 33.3mt) Regional operational metrics (Cement) − Sales volume of 8.25mt (30 June 2023: 9.14mt). Including clinker sales 8.75mt PRC Africa Total (30 June 2023: 9.54mt). Market ◼ Highly Compet
Slide 7: Financial Analysis and KPIs
Financial Analysis and KPIs RMB Million Ended Ended Ended Ended (unless otherwise specified) 30 Jun 2024 30 Jun 2023 Change 30 Jun 2024 30 Jun 2023 Sales Volume: Cement: Cement (mt) 8.25 9.14 (9.7%) ASP/t (RMB) 344 383 Aggregates (mt) 1.60 2.06 (22.3%) -PRC 270 321 Commercial Concrete (mcm) 0.66 0.9
Slide 8: Production Cost Analysis
Production Cost Analysis Production Cost (Cement) Average Coal Cost RMB (million) (RMB per ton) 5,400.0 5,191.1 1,200 1,039 -15.5% -13.4% 5,069.8 +33.4% 1,000 878 6.9% +60.3% 779 760 6.3% 800 4,800.0 4,637.6 5.4% 6.2% 600 486 6.6% 400 4,200.0 6.1% 14.2% 3,955.3 14.1% 200 8.2% 0 14.1% 2020 2021 2022
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 Construction Project Name Construction Period Period Railway Huaneng Power-Coal Transportation Railway (Central Yanan-Yulin-Eerduosi High-Speed Railway 2023-2028 2021-2024 Region) (Central Region)
Slide 15: Shaanxi Demand Outlook – Infrastructure Led
Shaanxi Demand Outlook – Infrastructure Led Other infrastructure projects scheduled to commence construction Planned Planned Project Name Construction Project Name Construction Period Period Railway Xi'an-Hancheng Intercity Railway (Central Region) TBC Caotang Industrial Zone Railway Dedicated Freig
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 and Guizhou- Diversified Revenue Source
Xinjiang and Guizhou- Diversified Revenue Source ◼ Guizhou Strategic location close to Guiyang city within “Gui- An New Area” Buoyant infrastructure led cement market Guiyang Huaxi Plant Annual Capacity (mt): 1.8 Commissioned: April 2015 Well positioned for ongoing infrastructure demand Yining
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: Uzbekistan - Diversified Revenue Source
Uzbekistan - Diversified Revenue Source Andijan Plant Annual Capacity (mt): 2.5 Commissioned: May 2024 ◼ Uzbekistan Buoyant infrastructure led cement market Well positioned for ongoing infrastructure demand 20
Slide 21: Board of Directors
Board of Directors ◼ Over 32 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 22: Financial Performance
oo Umma RAS M@A WEST CHINA CEMENT LIMITED Financial Performance
Slide 23: Operational Performance
Operational Performance Sales volume of cement Revenue (RMB per ton) (RMB mil) 24 10,000 9,021 19.9 18.5 19.8 8,456 20 19.6 8,003 7,500 7,131 16 12 5,000 3,702 8.25 8 3,311 9.14 2,500 4,398 4 8.45 0 0 2020 2021 2022 2023 1H2024 2020 2021 2022 2023 1H2024 Gross profit and gross profit margin EBITDA a
Slide 24: Debt Profile & Key Credit Ratios
Debt Profile & Key Credit Ratios Debt profile Total debt/EBITDA 1 Net debt/EBITDA 1 5.0x 4.6x 4.0x 3.5x 4.0x 3.6x 2.9x 3.0x 3.0x 2.4x Senior Notes 2.9x 3.0x 37.8% 2.0x 1.6x 2.0x 1.2x 0.8x 1.0x 1.0x 0.0x 0.0x 2020 2021 2022 2023 1H2024 2020 2021 2022 2023 1H 2024 Total debt/total capitalization 2 Int
Slide 25: Appendices
oo Umma RAS M@A WEST CHINA CEMENT LIMITED Appendices
Slide 26: 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 2021 2022 2023 2023 2024 Revenue 8,002,791 8,489,135 9,020,901 4,398,290 3,701,812 Cost of Sales (5,626,224) (6,307,305) (6,560,882) (3,164,046) (2,716,667) Gross Profit 2,37
Slide 27: 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 2021 2022 2023 2024 RMB ’000 2021 2022 2023 2024 Non-current liabilities Non-current assets Investment in an associate - - 8,000 9,550 Bank Borrowing
Slide 28: 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 2021 2022 2023 2023 2024 Net cash generated from operating activities 1,959,650 2,134,538 2,700,141 1,116,702 1,356,481 Net cash used in investing activities (3,516,628) (3,
Slide 29: 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