Last year, the net profit attributable to the parent increased by 5.42% year-on-year. China National Building Material Group: This year, Conch Cement faces three types of risks.

The reporter for | Cai Ding    The editor for | Yang Yi

Late on March 24, Anhui Conch Cement (SH600585) released its 2025 annual report. Last year, the company achieved revenue of approximately RMB 82.532 billion, down 9.33% year over year. It recorded attributable net profit of approximately RMB 8.113 billion, up 5.42% year over year. It achieved net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of RMB 7.588 billion, up 3.03% year over year. Basic earnings per share were RMB 1.54.

According to data compiled from Wind Financial Terminal, 13 institutions have a consensus forecast for Anhui Conch Cement’s attributable net profit for last year of approximately RMB 8.957 billion. Therefore, the company’s 2025 performance fell short of these institutions’ expectations.

Image source: Anhui Conch Cement’s annual report

On the cost side, in 2025, Anhui Conch Cement significantly improved its cost control level through technological innovation, strengthening logistics management, and increasing the use of alternative fuels. Last year, the company’s cement clinker comprehensive cost from self-production fell 11.12% year over year.

On the industrial chain side, in 2025, Anhui Conch Cement actively expanded upstream and downstream businesses such as aggregates and ready-mixed concrete. It added 22 ready-mixed concrete stations and built and started production on 13 dry-mixed mortar and tile adhesive projects, providing customers with “one-stop” comprehensive building materials services. Meanwhile, the development of its overseas projects has been progressing steadily, with Anhui Conch in Phnom Penh, Cambodia, successfully completed and put into operation.

The 2025 annual report shows that in terms of technological innovation, during the reporting period Anhui Conch Cement obtained nearly 400 authorized patents. The intelligent cement plant at Congyang Anhui Conch featuring data end-to-end closed-loop optimization was successfully selected for the Ministry of Industry and Information Technology’s 2025 “Excellence-Level Intelligent Factory” project. The first AI large model released in the building materials industry achieved breakthroughs in AI technology applications across five categories and more than 40 scenarios, including quality control, production optimization, equipment management, work safety, and intelligent Q&A. This effectively enabled precise control of production and helped reduce costs, improve efficiency, and cut emissions.

The 2025 annual report shows that as of the end of 2025, Anhui Conch Cement’s installed capacity for wind/solar/storage power generation in operation was 1,377 megawatts. A total of 56 subsidiaries were listed in provincial and municipal-level “green factory” rosters, while 29 subsidiaries were listed in national-level “green factory” rosters. It was recognized as having 44 national-level green mines and 42 provincial-level green mines.

It is worth noting that as of the end of 2025, Anhui Conch Cement’s total assets compiled under China’s accounting standards were RMB 256.001 billion, with the asset-liability ratio further declining by 0.89 percentage points to 20.42%. At the same time, the current ratio remained at a healthy level of 3.19:1.

On performance, in 2025, Anhui Conch Cement’s attributable net profit grew 5.42% year over year. Viewed longitudinally, it was the first time in the past five years that the company recorded positive growth. While attributable net profit achieved positive growth, in 2025 the net cash flow from operating activities of Anhui Conch Cement fell 9.92% year over year to RMB 16.644 billion.

In addition, it is worth noting that a reporter from The Daily Economic News learned that in its 2025 annual report, Anhui Conch Cement clearly stated that in 2026, the risk factors the company faces mainly involve three areas: demand fluctuation risk, intensifying competition risk, and pressure from environmental protection policies. In response to the intensifying competition risk, Anhui Conch Cement said: “Under the current circumstances where cement demand continues to decline and excess capacity has long existed, if supply-demand contradictions intensify, it is likely to trigger low-price competition in the industry. In that case, the company may face an increased risk of further pressure on profitability. In response to the above risks, the company will actively respond to the national ‘anti-chaos/anti-involution’ policy, strictly implement industry self-discipline, actively promote capacity reduction, and jointly maintain a good ecosystem for the industry.”

Cover image source: Media Database

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