Financial Performance Overview

Condensed Consolidated Balance Sheet

• Current Assets: RMB 7,900,077,000 at 31 March 2026, up from RMB 7,663,329,000 at 31 December 2025 but down from RMB 8,438,138,000 at 31 March 2025.
• Non-current Assets: RMB 20,872,340,000 at 31 March 2026, a decline from RMB 21,078,489,000 at 31 December 2025 and RMB 21,637,114,000 at 31 March 2025.
• Current Liabilities: Increased to RMB 10,595,160,000 at 31 March 2026 from RMB 9,690,639,000 at 31 December 2025 and RMB 10,090,693,000 at 31 March 2025.
• Non-current Liabilities: RMB 1,870,652,000 at 31 March 2026, down from RMB 2,067,213,000 at 31 December 2025 and RMB 2,383,062,000 at 31 March 2025.
• Total Net Assets: RMB 16,306,605,000 at 31 March 2026, down from RMB 16,983,966,000 at 31 December 2025 and RMB 17,601,497,000 at 31 March 2025.

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

• Operating Revenue: RMB 1,175,561,000, a sharp decline from RMB 1,620,867,000 in Q1 2025.
• Operating Cost: RMB 1,145,839,000, down from RMB 1,534,006,000 in Q1 2025.
• Gross Profit: Just RMB 29,722,000, compared to RMB 86,861,000 in Q1 2025.
• Selling and Marketing Expenses: RMB 45,531,000, down from RMB 54,880,000 in Q1 2025.
• Administrative Expenses: RMB 341,686,000, significantly higher than RMB 237,692,000 in Q1 2025.
• Expenses During Off-Peak Suspension: RMB 399,053,000, down from RMB 428,208,000 in Q1 2025.
• Other Net Income: RMB 13,911,000, slightly lower than RMB 14,440,000 in Q1 2025.
• Operating Loss: RMB 742,637,000, deeper than RMB 619,479,000 in Q1 2025.
• Finance Costs: RMB 27,869,000, down from RMB 35,999,000 in Q1 2025.
• Share of Results of Associates: RMB -4,917,000, versus RMB -4,629,000 in Q1 2025.
• Loss Before Taxation: RMB 775,423,000, compared to RMB 660,107,000 in Q1 2025.
• Income Tax Expense: RMB 11,594,000, up from RMB 8,138,000 in Q1 2025.
• Total Loss for the Period: RMB 787,017,000, a significant increase from RMB 668,245,000 in Q1 2025.
• Loss Attributable to Equity Shareholders: RMB 716,422,000, compared to RMB 600,469,000 in Q1 2025.
• Loss Attributable to Non-Controlling Shareholders: RMB 70,595,000, up from RMB 67,776,000 in Q1 2025.

Other Comprehensive Expenses

• Exchange Differences: RMB -8,890,000, compared to RMB -1,089,000 in Q1 2025.
• Total Comprehensive Expenses: RMB 795,907,000, up from RMB 669,334,000 in Q1 2025.
• Total Comprehensive Expenses Attributable to Equity Shareholders: RMB 725,312,000, versus RMB 601,558,000 in Q1 2025.
• Total Comprehensive Expenses Attributable to Non-Controlling Shareholders: RMB 70,595,000, up from RMB 67,776,000 in Q1 2025.

Key Issues for Shareholders and Potential Price-Sensitive Information

• Deepening Losses: The Group recorded a significant operating loss and net loss, both notably higher than the previous year. This could potentially impact investor confidence and share price.
• Declining Revenue: Operating revenue fell sharply year-on-year, suggesting ongoing challenges in market demand or pricing pressure within the cement sector.
• Rising Administrative Expenses: Administrative expenses increased substantially, raising questions about cost controls and efficiency.
• Decrease in Net Assets: Total net assets have declined for the second consecutive quarter and year-on-year, indicating a weakening financial position.
• Balance Sheet Concerns: While current assets increased slightly compared to the previous quarter, they are still lower than last year’s Q1. Non-current assets are also down, and current liabilities rose, which may signal short-term liquidity risks.
• Unaudited Figures: The report emphasizes that the financial data is preliminary, unaudited, and may be subject to material adjustments. Investors should be cautious, as these numbers have not been independently verified.
• Potential Impact on Share Price: The combination of deepening losses, declining assets, and unaudited status of these results could have a negative impact on share price, especially if further adjustments reveal even worse performance.
• Management Caution: The Board specifically advises shareholders and investors to exercise caution when dealing in the Company’s shares due to the preliminary nature of this report.

Board Composition

• The Board consists of three executive directors: Mr. TENG Yongjun (Chairman), Ms. WU Ling-ling, and Ms. ZHENG Yingying.
• There are three independent non-executive directors: Mr. CHANG Ming-cheng, Mr. LI Jianwei, and Mr. HSU You-yuan.

Conclusion

China Shanshui Cement Group Limited’s Q1 2026 unaudited financials reveal a deteriorating financial position, with rising losses, declining revenue, increasing administrative expenses, and shrinking net assets. The unaudited status of these results adds further uncertainty. Investors should be aware that these developments are potentially price-sensitive and could negatively impact the Company’s share value in the near term, particularly if the official audited results confirm or worsen the reported losses.

Disclaimer

The information provided is based on preliminary, unaudited financial data released by China Shanshui Cement Group Limited. These results may be subject to further review and adjustments. Investors are strongly advised to exercise caution and consult official audited reports and professional advisors before making any investment decisions. The author assumes no responsibility for any actions taken based on this article.

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