West China Cement Limited Issues Positive Profit Alert for FY2025

Key Highlights

• Significant Profit Growth Expected: The Board of West China Cement Limited anticipates a substantial increase in profit attributable to shareholders for the year ended 31 December 2025. The estimated profit is in the range of RMB832.8 million to RMB895.5 million, marking a rise of approximately 33% to 43% compared to RMB626.2 million recorded in 2024.
• Drivers of Profit Growth:
  • Increase in overseas cement sales volume.
  • Lower costs of sales for cement products in the People’s Republic of China.
  • Recognition of negative goodwill from the acquisition of equity interests in Cimenterie de Lukala SA, which contributed to the profit increase.
• Preliminary Figures: The figures provided are based on a preliminary review of unaudited consolidated management accounts and other information available to the Board. These numbers have not yet been reviewed by the Company’s auditor or the audit committee.
• Final Results Pending: The Company is in the process of finalizing its annual results for 2025. The actual final figures may differ from those announced. The final results are expected to be published by the end of March 2026.

Important Shareholder Information

• Potential Impact on Share Price: This positive profit alert is likely to be a price-sensitive event due to the significant improvement in profitability, which may affect the valuation and trading of the Company’s shares.
• Acquisition Details: The Company recorded negative goodwill from the acquisition of equity interests in Cimenterie de Lukala SA. This accounting treatment typically arises when assets are acquired at below their fair value, providing a one-off profit boost.
• Caution Advised: As these are preliminary, unaudited figures, shareholders and investors are urged to exercise caution when dealing in the shares of West China Cement Limited until the audited results are released.

Additional Corporate Information

• Board Composition: The Board comprises Executive Directors (Mr. Zhang Jimin, Mr. Cao Jianshun, Ms. Wang Rui, Mr. Chu Yufeng), Non-Executive Directors (Mr. Ma Zhaoyang, Mr. Wang Manbo, Mr. Wang Zhixin), and Independent Non-Executive Directors (Mr. Lee Kong Wai, Conway, Mr. Zhu Dong, Mr. Tam King Ching, Kenny, Mr. Lau Ka Keung, Mr. Feng Tao).
• Date of Announcement: 4 March 2026.

Conclusion

The expected profit increase for FY2025, driven by higher overseas sales, improved cost efficiency, and the acquisition of Cimenterie de Lukala SA, is a material event for West China Cement Limited. Investors should monitor the upcoming final results announcement and consider the impact of these positive developments on the Company’s share value.

Disclaimer: The information above is based on unaudited preliminary estimates provided by West China Cement Limited and may differ from the final audited results. Investors and shareholders are advised to exercise caution and consult professional advisors before making any investment decisions. This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities.

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