Financial Performance - Revenue increased by 24.2% to RMB 5,911.7 million in 2018 compared to RMB 4,760.0 million in 2017[6] - Gross profit rose by 67.5% to RMB 1,985.8 million in 2018, with a gross margin of 33.6%, up 8.7 percentage points from 24.9% in 2017[6] - Profit attributable to owners of the company increased by 63.1% to RMB 1,159.4 million, with basic earnings per share rising by 62.6% to 21.3 cents[6] - EBITDA rose from approximately RMB 1,880,000,000 in 2017 to RMB 2,640,000,000 in 2018[18] - The company's revenue increased by 24.2% from RMB 4,760,000,000 in 2017 to RMB 5,911,700,000 in 2018[34] - The net profit for the year was RMB 1,180,463 thousand, an increase of 63% compared to RMB 726,196 thousand in 2017[125] - Basic and diluted earnings per share for 2018 were both RMB 0.213, compared to RMB 0.131 in 2017, reflecting a 62% increase[125] Sales and Production - Total sales volume of cement and clinker decreased by 4.7% to 18.2 million tons in 2018 from 19.1 million tons in 2017[6] - The group’s total production capacity reached 29.2 million tons, with 20 new dry-process cement production lines established in Shaanxi, Xinjiang, and Guizhou provinces[8] - The production capacity utilization rate in Shaanxi was approximately 78% in 2018, down from 83% in 2017[24] - The sales volume in Southern Shaanxi decreased by about 5.9% to approximately 7.54 million tons in 2018, compared to 8.01 million tons in 2017[24] - The sales volume in the Guanzhong region slightly decreased by about 2.4% to approximately 7.47 million tons in 2018, compared to 7.65 million tons in 2017[24] - In Xinjiang, the sales volume decreased by approximately 0.6% to about 1,680,000 tons in 2018, compared to 1,690,000 tons in 2017[25] Pricing and Market Conditions - The average selling price in Shaanxi, Xinjiang, and Guizhou provinces increased due to improved market order and reduced supply from all producers[13] - The average selling price of cement in the Guanzhong region increased significantly, while the average selling price in Shaanxi remained at a reasonable and strong level[19] - The average selling price of cement in Xinjiang increased to approximately RMB 360 per ton in 2018, up from RMB 298 per ton in 2017[25] - The average selling price of cement in the central region improved significantly despite ongoing low demand[25] - The average selling price improved significantly, benefiting from the reduction in supply during the off-peak season[17] Cost and Expenses - Sales costs increased by 9.8% from RMB 3,574,100,000 in 2017 to RMB 3,926,000,000 in 2018[34] - The average cost of coal per ton rose by approximately 3.5% from RMB 491 in 2017 to about RMB 508 in 2018[34] - The total cost of producing cement and clinker increased by approximately RMB 3.0 per ton due to rising raw material costs[34] - Administrative expenses rose by 26.5% from RMB 266.2 million in 2017 to RMB 336.7 million in 2018, mainly due to increased employee costs[35] - Employee costs increased by about 17.7% year-on-year, contributing to the rise in administrative and sales expenses[35] Debt and Financial Health - The net debt ratio improved to 26.0% in 2018 from 34.5% in 2017, reflecting a 13.6% reduction in net debt to RMB 1,976.5 million[7] - The net cash outflow from financing activities was RMB 1,311,727,000, significantly higher than RMB 396,331,000 in 2017, marking an increase of 231%[137] - The company’s borrowings increased to RMB 863,571 thousand in 2018 from RMB 584,000 thousand in 2017, representing a rise of about 47.8%[128] - The company’s retained earnings rose to RMB 3,633,494 thousand in 2018, compared to RMB 2,841,754 thousand in 2017, indicating an increase of approximately 28%[133] Environmental Initiatives - The group has implemented energy-saving measures, achieving a 30% reduction in electricity consumption and a decrease of approximately 20,000 tons of CO2 emissions per million tons of cement produced[13] - The group’s facilities have installed De-NOx equipment, reducing nitrogen oxide emissions by about 60% per ton of clinker[13] - The company is committed to achieving energy-saving and emission-reduction industry standards and is actively developing environmentally friendly solutions[70] - The company has initiated two green limestone mining projects focused on soil restoration and mine re-greening to comply with new environmental protection policies[70] Corporate Governance - The board of directors consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[41] - The company aims to maintain high standards of corporate governance to maximize shareholder returns[40] - The company has established a whistleblowing policy allowing employees and stakeholders to report misconduct confidentially[47] - The company has a structured approach to ensure compliance with legal and regulatory requirements for the board[43] Future Outlook - The company maintains a cautious optimism regarding local infrastructure and urbanization demand in 2019, despite a slight decline in cement sales in 2018[22] - The group expects reasonable growth in infrastructure demand in 2019, with several large projects expected to commence, consuming up to 2,500,000 tons of cement[32] - The group anticipates that the market in Xinjiang will remain sluggish in 2019, while the Guizhou business is expected to remain stable[33] Shareholder Information - The company proposed a final dividend of RMB 0.014 per ordinary share for the year ended December 31, 2018, subject to shareholder approval at the annual general meeting[77] - As of December 31, 2018, the major shareholder, Yingya Investment Limited, holds 1,756,469,900 shares, representing 32.32% of the company's issued share capital[99] - The shareholding structure indicates a significant concentration of ownership, with the top two shareholders holding over 53% of the total shares[99]