Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Asia Cement (China) Holdings Corporation ʮ̡ (Incorporated in the Cayman Islands with limited liability) (Stock Code: 743) ANNOUNCEMENT OF UNAUDITED RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2025 SUMMARY The board of Directors (the “ Board ”) of Asia Cement (China) Holdings Corporation (“the Company ”) announces the unaudited consolidated results of the Company and its subsidiaries (collectively, the “ Group ”) for the nine months ended 30 September 2025. This announcement is made as part of the Company’s practice to publish its financial results quarterly and pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exc hange of Hong Kong Limited (“ Listing Rules ”). The unaudited consolidated profit attributable to owners for the nine months ended 30 September 2025 was approximately RMB146,272,000.
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– 2 – The Board is making this announcement of the Group’s unaudited consolidated results for the nine months ended 30 September 2025 in line with its practice to publish the Group’s financial results quarterly and pursuant to Rule 13.09 of the Listing Rules. CONDENSED CONSOLIDATED INCOME STATEMENT For the nine months ended 30 September 2025 2024 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue 3,731,711 4,118,612 Cost of sales (3,167,780) (3,893,727) Gross profit 563,931 224,885 Other income 144,986 88,073 Reversal of (allowance for) expected credit losses on trade receivables, net 6,854 (76,571) Other expenses, other gains and losses 7,209 15,631 Distribution and selling expenses (258,673) (247,155) Administrative expenses (212,680) (226,668) Share of losses of joint ventures (4,285) (5,356) Share of losses of associates (3,355) (3,379) Finance costs (30,464) (42,714) Profit (loss) before tax 213,523 (273,254) Income tax expense (63,750) (190,855) Profit (loss) for the period 149,773 (464,109) Profit (loss) for the period attributable to: Owners of the Company 146,272 (458,998) Non-controlling interests 3,501 (5,111) 149,773 (464,109) RMB RMB Earnings (Loss) per share: Basic 0.093 (0.293)
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– 3 – CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 September 2025 As at 31 December 2024 RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 5,807,901 5,791,017 Quarry 720,805 764,349 Right of use assets 705,365 695,026 Investment properties 138,492 120,540 Goodwill 554,241 554,241 Intangible assets 2,365 2,536 Interest in joint ventures 64,715 69,461 Interest in associates 723,368 726,723 Deferred tax assets 159,361 158,953 Restricted bank deposits 27,917 9,113 Bank deposits with original maturities of more than three months 3,673,000 – 12,577,530 8,891,959 CURRENT ASSETS Inventories 502,257 532,364 Trade and other receivables 950,060 910,230 Financial assets at fair value through profit or loss 110,665 135,315 Tax recoverable 23 3,529 Amount due from an associate – 3,956 Amount due from joint ventures 23,312 36,324 Amount due from ultimate holding company 10,887 – Restricted bank deposits 226,153 280,802 Bank deposits with original maturities of more than three months 4,276,000 – Bank balances and cash 1,218,790 8,883,071 7,318,147 10,785,591 CURRENT LIABILITIES Trade and other payables 893,785 1,037,109 Amount due to a joint venture 14,899 19,458 Amount due to an associate 256 256 Tax payables 36,237 76,425 Borrowings – due within one year 1,376,000 1,012,000 Lease liabilities 5,307 6,975 Contracts liabilities 162,969 108,864 Deferred income 6,218 2,097 2,495,671 2,263,184 NET CURRENT ASSETS 4,822,476 8,522,407 TOTAL ASSETS LESS CURRENT LIABILITIES 17,400,006 17,414,366
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– 4 – As at 30 September 2025 As at 31 December 2024 RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT LIABILITIES Borrowings – due after one year – 132,000 Lease liabilities 84,256 87,746 Provision for environmental restoration 71,360 64,628 Deferred income 53,378 27,290 Deferred tax liabilities 161,244 222,707 370,238 534,371 NET ASSETS 17,029,768 16,879,995 CAPITAL AND RESERVES Share capital 140,390 140,390 Reserves 16,520,810 16,374,538 Equity attributable to owners of the Company 16,661,200 16,514,928 Non-controlling interests 368,568 365,067 TOTAL EQUITY 17,029,768 16,879,995 CONDENSED CONSOLIDATED CASH FLOW STATEMENT For the nine months ended 30 September 2025 2024 RMB’000 RMB’000 (Unaudited) (Unaudited) Net cash from operating activities 423,121 258,811 Net cash used in investing activities (694,665) (3,556,137) Net cash from (used in) financing activities 195,775 (763,841) Net decrease in cash and cash equivalents (75,769) (4,061,167) Cash and cash equivalents at beginning of the year 1,294,559 5,718,017 Cash and cash equivalents at 30 September 1,218,790 1,656,850
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– 5 – The Group’s unaudited consolidated results for the nine months ended 30 September 2025 have been prepared in accordance with the same accounting policies adopted by the Group as disclosed in the last annual report for the year ended 31 December 2024. The Board does not recommend payment of a dividend in respect of the first nine months of 2025 (2024: Nil). Business Review and Prospects In the first three quarters of 2025, despite a complex external environment and pressures on economic development, the domestic economy, in general, maintained stability while making steady progress. The ability of China’s economy to adapt to challenging conditions and to resist and withstand pressure fully demonstrated its strong resilience. However, there were still a number of unstable and uncertain external factors, which posed significant challenges to global economic and trade growth. Certain dom estic sectors continued to show structural contradictions, and enterprises still faced operational difficulties. The national gross domestic product in the first three quarters of 2025 reached RM B101.5 trillion, representing a year-on-year increase of 5.2%. From January to September, the national fixed asset investment declined by 0.5% year-on-year (excluding real estate development investment, it grew by 3.0% y ear-on-year); infrastructure investment increased by 1.1% year-on-year, manufacturing investment increased by 4.0% year-on-year, and real estate development investment decreased by 13.9% year-on-year, the added value of the industrial enterprises above designated size increased by 6.2% year-on-year. (Source: National Bureau of Statistics of China) From January to September of 2025, the na tional cumulative cement production volume amounted to 1,259 million tonnes, representing a year-on-year decrease of 5.2%. Although the decline rate had narrowed compared to that of the same period last year, it had widened relative to the January-August period of 2025, reflecting continued significant downward pressure on industry demand. (Source: National Bureau of Statistics of China) Regional performance of the Group’s two major markets – the central and downstream region of the Yangtze River and Sichuan region – showed significant divergence in the third quarter: A. Markets in the central and downstream region of the Yangtze River displayed poor performance in the third quarter. In July and August, sustained high temperatures and frequent rainfall slowed down construction activities, resulting in persistently weak market demand. Cement prices across various areas stayed at the lower end of the price range. Although downstream cement enterprises attempted to raise prices twice – one in August and one in mid-to-late September – in hopes of improving profitability, the lack of solid demand support and inconsistent implementation of staggered peak production among enterprises hindered the full realization of the price increases. Some companies, in order to maintain market share, limited the extent of price hikes or promised not to raise price, which directly led to a rapid decline in price. As of mid-October, prices in the central and downstream region of the Yangtze River had yet to rise from their low levels, while prices in the Shanghai market even fell below the level recorded at the end of the second quarter.
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– 6 – B. Markets in the Sichuan region demonstrated relatively positive performance in the third quarter. Impacted by low-priced cement from the surrounding areas, prices continued to decline in July. At the end of July, cement enterprises in both Chengdu and surrounding areas began implementing staggered peak production and kiln suspension for 20 days each month. This significantly reduced cement supply. Although demand had yet to recover, the pressure from external cement on the local market eased, alleviating the supply and demand imbalance. By mid-August, the initial stage of staggered peak production had been effectively executed, leading to reduced inventory pressure. Cement producers began initiating price increases to restore profitability. In early to mid-September, the previous round of price hikes was successfully implemented. With the recovery in demand in the Chengdu market and the successful implementation of staggered peak production measures in neighboring provinces, local companies gained confidence and proceeded with a second round of price increases. As of mid-October, the second round of price hikes had been largely implemented. However, with the rise in Chengdu market prices, low-priced cement from surrounding areas once again began to exert pressure on the local market. Whether the subsequent market trend can be sustained remains uncertain. From January to September 2025, the property market has remained depressed. Growth in infrastructure investment had slowed down and differed in various sectors and areas. Accordingly, demand varied in different cities where the Group had presence, causing sales volume in different areas to rise or drop. However, the Group was able to maintain its share in core markets, and its overall cement sales volume decline was in line with the national average. Although prices started at high levels at the beginning of the year, they continued to decline due to a persistent downward trend in cement demand throughout the year and greater challenges faced by industry players to reach a consensus. Against such a backdrop, the Group’s average selling price of cement from January to September remained similar to that of the corresponding period of the previous year. In late September, six government departments including the Ministry of Industry and Information Technology jointly issued the work plan for stabilizing growth in the building materials industry during the 2025-2026 period, which addressed the industry’s pain point of “actual production capacity severely exceeded approved and filed capacity”, requiring enterprises to formulate replacement plans for exceeded filed capacity before the end of 2025. These mandatory requirements to reduce overcapacity is expected to curb the industry’s involutionary competition and promote rational and orderly supply-side development. Looking into the fourth quarter, the Group is of the view: that the property sector will remain in a stage of deep adjustment in the short run and can hardly effectively support cement demand; that certain key infrastructure projects are likely to step up construction before the end of the year, which will prop up cement demand to certain extent, and the national cement demand will exhibit a mild recovery trend in the fourth quarter. However, in view of the fact that a fundamental reversal of the downward trend in overall demand is unlikely to be seen, industry prices will rely more on staggered peak production policy implementation efforts and the degree of self-discipline practiced by industry players. It is expected that market performance in the fourth quarter will improve on the third quarter, but will be dwarfed by the robust market performance in the fourth quarter of the previous year.
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– 7 – In the future, the Group will insist on its operational strategies of high efficiency, high quality, excellent service and high environment protection. It will also continue to leverage its integrated storage and transportation advantages to promote cost reduction and higher efficiency. Simultaneously, the Group will keep enhancing customer service experience to maintain its core market shares. It will actively respond to national anti-involution policies, strengthen industry communication, and strive to seize opportunities and make an impact in the fiercely competitive market. Based on the above market analysis and strategies, the Group will strive to improve its performance in the fourth quarter. By Order of the Board Asia Cement (China) Holdings Corporation HSU Shu-tong Chairman Hong Kong, 28 October 2025 As at the date of this announcement, the executive Directors are Mr. HSU Shu-ping, Mr. CHANG Chen-kuen and Mr. LIN Seng-chang; the non-executive Directors are Mr. HSU Shu-tong (Chairman), Mr. LEE Kun-yen, Mr. CHEN Ruey-long and Ms. WU Ling-ling; the independent non-executive Directors are Mr. TSIM Tak-lung Dominic, Mr. WANG Wei, Dr. WANG Kuo-ming and Mr. WU Chun-pang.