Comprehensive review: In the first three quarters of 2025, BBMG Jidong achieved an operating income of 18.575 billion yuan, a slight increase of 0.1% over the same period last year, and a net profit attributable to the shareholders of the parent company of 40 million yuan, an increase of 113.6% over the same period last year. In the third quarter, the operating income was 6.814 billion yuan, down 7.13% year on year, and the net profit attributable to the shareholders of the parent company was 194 million yuan, down 61.92% year on year. Despite the decline in profits in the third quarter due to the off-season, the company focused on lean operation management, strived to improve efficiency, and still achieved profits, helping to turn losses into profits in the first three quarters.
Figure 1 and 2: Revenue of BBMG Jidong in the first three quarters of 2025, Profit Trend
Data Source: Cement Big Data (https://data.ccement.com/)
Q3 Sustained Profitable Operation Turned Losses into Profits
In the first quarter of this year, the northern region, the main operating region of BBMG Jidong, was mostly in the stage of off-peak production in winter. The market demand was sluggish and the cost of enterprises was relatively high. The company's operating income was 3.903 billion yuan, an increase of 16.82% over the same period last year, and the net profit loss attributable to the parent company was 873 million yuan. As the price of cement was higher than that of the same period last year, the loss was reduced. Demand in the second quarter has improved, coupled with the overall price level higher than same period last year, the company achieved operating income of 7.858 billion yuan, a slight decrease of 0.27% over the same period last year, but thanks to the decline in coal prices, production costs have been greatly reduced, profits have been rapidly restored, net profit attributable to the parent company recorded 719 million yuan, an increase of 145.97% over the same period last year. In the third quarter, the off-season characteristics of the market were obvious, the volume and price of cement fell, the company's operating income fell by 7.13% to 6.814 billion yuan, and the net profit attributable to the parent company fell by 61.92% to 194 million yuan. Despite the decline in profitability, the company still made profits in the context of the generally poor industry environment. Thanks to this, the company's overall operation in the first three quarters was good, turning losses into profits smoothly. From January to September, the Company achieved an operating income of RMB18.575 billion, representing a slight increase of 0.1% as compared with the same period of last year; the net profit attributable to the parent company was RMB40 million, representing an increase of 113.6% as compared with the same period of last year.
Table 1: Main operating data
of BBMG Jidong in the first three quarters of 2025 Source: Cement Big Data (https://data.ccement.com/)
All the main profit indicators have improved. Benefiting from the decline in coal prices and the continuous and in-depth promotion of cost reduction and quality improvement and achieving remarkable results, the company's comprehensive gross profit rate has increased, with a gross profit rate of 21.06% in the first three quarters of 2025, an increase of 2.93 percentage points over the same period last year. In addition, net interest rate and return on equity were both positive, with 0.09% and 0.15% recorded in the first three quarters, respectively, up 2.3 and 1.19 percentage points from the same period last year.
According to the data of three fees, the decrease of three fees in the first three quarters also played a certain role in promoting the company to turn around its losses. The rate of three fees was 18.61%, which was 0.11 percentage points lower than that of the same period last year. Among which, the financial expenses were RMB352 million, representing a decrease of 17.18% as compared with the same period of last year, and the decrease in financial expenses was the main factor for the decrease in the rate of the three expenses; the selling expenses slightly decreased by 0.53% to RMB376 million; the administrative expenses rebounded to a certain extent and recorded RMB2.728 billion, representing an increase of 2.17% as compared with the same period of last year.
Profit outlook: There may be a loss in the fourth quarter, and the pressure to turn around the loss for the whole year is enormous
. Looking forward to the fourth quarter, it is expected that BBMG Jidong will probably continue to lose money, and the pressure to turn around the loss for the whole year is enormous. First of all, according to the usual practice in previous years, the company will generally make a large amount of asset impairment losses and credit impairment losses in the fourth quarter, and it is expected that the amount of both will still be large in the fourth quarter of this year, which will have a great impact on the company's profits.
Figure 3: Assets and credit impairment losses
of BBMG Jidong in the fourth quarter in recent years Data source: Cement Big Data (https://data.ccement.com/)
Secondly, market factors are also an important reason. Since the fourth quarter, the company's main operating area in the northern region has been affected by rainy weather and lack of funds, demand is relatively weak, cement prices have risen less and fallen more, and the overall oscillation has declined. At present, many places have entered the peak staggering stage of winter heating season, the downstream construction is further weakened, the price is fatigue, and the coal price is rising, which leads to high production costs, and the operating pressure is expected to be greater. To sum up, BBMG Jidong has a high probability of loss in the fourth quarter, and it is under great pressure to achieve the goal of turning losses into profits throughout the year. (This article does not constitute investment advice)
Figure 4: Hebei Cement Price Trend
Data Source: Cement Big Data (https://data.ccement.com/)
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