China Resources Building Materials Technology (the “Company”) reported a swing to loss for the six months ended 30 June 2026 as weaker market demand and lower selling prices eroded profitability despite ongoing cost-control measures.
Revenue and Profitability • Turnover fell 15.4% year on year to RMB 8.64 billion (1H25: RMB 10.21 billion). • The Group recorded a loss attributable to owners of RMB 441.2 million versus a profit of RMB 306.7 million in the prior-year period. • Basic loss per share was RMB 0.063 (1H25: earnings of RMB 0.044). • Consolidated gross profit contracted 62.2% to RMB 713.9 million; gross margin narrowed to 8.3% from 18.5%. • Net margin deteriorated to –6.2% (1H25: 1.7%).
Segment Performance • Cement: Revenue declined 17.2% to RMB 5.18 billion as average selling price dropped 16.6% to RMB 206 per tonne; sales volume slipped 0.7% to 25.13 million tonnes. Segment gross margin fell to 6.2% (1H25: 20.1%). • Concrete: Revenue dipped 5.8% to RMB 1.96 billion; volume rose 15.7% to 7.96 million m³, but average selling price decreased 18.6% to RMB 246 per m³. Gross margin edged down to 12.0% (1H25: 14.0%). • Aggregates: Revenue decreased 17.2% to RMB 1.09 billion on a 15.5% price decline to RMB 30.6 per tonne; volume slipped 2.0% to 35.62 million tonnes. Gross margin dropped to 13.6% (1H25: 25.3%).
Cost Dynamics • Unit cost of cement fell 3.4% to RMB 193.9 per tonne. • Average coal procurement price increased 5.9% to RMB 721 per tonne, partially offset by a 1.2 kg/tonne reduction in coal consumption to 127.5 kg per tonne of clinker. • Average electricity cost eased 5.9% to RMB 25.4 per tonne of cement; waste-heat power generation covered 27.9% of electricity needs. • Selling and distribution expenses were stable at RMB 189.7 million, while general and administrative expenses declined 26.6% to RMB 917.4 million, aided by the absence of impairment charges booked a year earlier.
Balance Sheet and Cash Flow • Total assets stood at RMB 69.71 billion (–1.0% versus end-2025). • Equity attributable to owners edged down 1.2% to RMB 43.99 billion; book value per share was RMB 6.30. • Gearing ratio rose to 32.2% from 30.7% six months earlier. • Cash, bank balances and pledged deposits totalled approximately RMB 2.54 billion; net current liabilities amounted to RMB 6.09 billion. • Total borrowings were RMB 14.17 billion, 14% of which were non-RMB denominated. Unutilised banking facilities totalled RMB 19.79 billion. • The Group plans capital expenditure of about RMB 1.50 billion in 2H26.
Dividends An interim dividend of HK$0.014 per share was declared, unchanged year on year, payable on or about 23 October 2026 to shareholders on record as of 18 September 2026. Shareholders may elect to receive the dividend in RMB (RMB 0.01210524 per share) or in HKD.
Operational Highlights • Capacity utilisation slipped to 53.5% for cement and 31.4% for concrete, reflecting softer demand; aggregates utilisation remained relatively resilient at 75.8%. • No new clinker lines commenced during the period; subsidiary-controlled clinker capacity remained at 52.3 million tonnes per year. • Coal procurement totalled 2.8 million tonnes, sourced 61% from northern China, 18% locally and 21% overseas. • Cash savings of approximately RMB 266.7 million were realised via residual-heat power generation. • Associates recorded a combined loss of RMB 135.1 million, widening from RMB 41.9 million a year earlier; joint ventures contributed RMB 4.2 million (1H25: RMB 21.2 million).
Management Outlook The Board cited continued macroeconomic challenges, subdued real-estate activity and infrastructure investment delays as key headwinds. Strategic priorities for the remainder of 2026 include bolstering cost management across the value chain, accelerating green and digital transformation, expanding aggregates and new-materials businesses, and pursuing disciplined capital allocation to enhance asset quality and regional leadership.