Tapai Group: the price of cement is lower than the same period of last year and the net profit in th

Byzengjiaming12

Updated Thu, 28 Oct 2021 15:36:19 GMT

    On the evening of October 21st, Tapai Group released its third quarter report. In the third quarter, Tapai Group achieved operating revenue of 1.608 billion yuan, with a year-on-year decrease of 14.29%; the net profit attributable to the parent company was 398 million yuan, fell by 13.32% year-on-year.

    Tapai Group achieved a net profit of 1.312 billion yuan in the first three quarters, with a year-on-year decrease of 4.74%. On the whole, the sales price of cement in the first three quarters was lower than the same period of last year, while the average sales cost of cement increased by 6.58% from the same period last year affected by the increase in coal prices.

    The report also said that in the first three quarters, the cement output achieved 14.7906 million tons and the sales volume reached 14.5884 million tons, with an increase of 15.53% and 19.36% respectively over the same period of the previous year; thanks to the year-on-year increase in cement sales, the company achieved operating revenue of 5241.7325 million yuan, with an increase of 12.11% compared with the same period of last year.

    In detail, the cement price in eastern Guangdong region where Tapai Group is located has continued to run at a low level since the beginning of the year. In the second quarter, the price fell after rose. In the third quarter, under the situation of dual control of energy consumption and power curtailment, the supply has tightened, so that the price of cement begun to rise rapidly since the beginning of September. Overall, the sales price of cement in the first three quarters was lower than the same period of last year. The average sales price of cement from January to September this year fell by 4.17% over the same period of last year.

    Besides, due to the increase in coal prices, the average sales cost of cement of Tapai Group increased by 6.58% over the same period of last year; the company’s comprehensive gross profit margin was 36.80%, fell by 6.06 percentage points. The profitability of cement products has declined, and therefore the company’s operating profit, total profit and net profit attributable to shareholders of listed companies declined slightly year-on-year.

    In the interim report of this year, Tapai Group stated that the company’s main operating revenue was 3.634 billion yuan in the first half of the year, with an increase of 29.8% year-on-year; the net profit attributable to the parent company was 915 million yuan, with a year-on-year decrease of 0.46%. In regard to inventory issues, Tapai Group stated in answering investors’ questions on the 13th that the company’s cement storage capacity ratio is higher than 50%. The company has a stable supply of coal and a coal reserve over one month, which are enough to guarantee production.