Comprehensive review: In 2025, Shanshui Cement will achieve an operating income of 11.561 billion yuan, a year-on-year decrease of 20.33%; the net profit attributable to parent company will be -983 million yuan, and the deficit will increase by 599.11%. Since the beginning of this year, the demand for cement in the main business area has declined significantly, coupled with the continuous decline in cement prices, the company's operating income has declined significantly; especially since the second half of the year, the decline in cement prices has become larger, coupled with the impairment of fixed assets of suspended enterprises and the increase in enterprise income tax, the company's losses have expanded due to multiple factors.
Figures 1 and 2: Trend
of Shanshui Cement's Revenue and Profit in 2025 Data Source: Cement Big Data (https://data.ccement.com/)
Cement Volume and Price Decline, Revenue Decline Is Larger
Shanshui Cement is mainly engaged in cement, Clinker, concrete, as well as a small amount of aggregate and slag powder business, among which cement and clinker are the main business, accounting for more than 90% of the revenue all the year round; the business areas are in Shandong, Northeast, Inner Mongolia, Shanxi and Xinjiang, of which Shandong and Northeast account for a relatively high proportion of revenue, accounting for about 58% and 27% respectively, which are the main business areas. In 2025, the investment in real estate development in Shandong Province decreased by 15% compared with the same period last year, the investment in highway and waterway decreased by more than 26%, the downstream demand was seriously depressed, and the cement production decreased by about 10%, which was more than that of the whole country.
Affected by this, the company's total sales volume of cement clinker was 42 million 968 thousand tons, down 17% from the same period last year, weakening significantly. The sales volume was not good, the superimposed competition was fierce, and the sales price went down synchronously, with an average price of 245.5 yuan/ton, down 4.2%. With the decrease of volume and price, the revenue of cement products dropped sharply, and the revenue of cement clinker was 10.55 billion yuan, down 20.5% from the same period last year. Concrete business is also poor, achieving revenue of 430 million yuan, down 37.3% year-on-year. Other businesses such as aggregates and slag powder improved slightly, with operating income of 590 million yuan, a slight increase of 5.2% over the same period last year. In the whole year of 2025, Shanshui Cement realized business income of 11.561 billion yuan, down 20.33% from the same period last year.
Figures 3 and 4: Sales
of cement clinker in 2025 Data source: Cement big data (https://data.ccement.com/)
The second half of the year significantly dragged down the loss margin
. The operating cost of Shanshui Cement decreased, the price of products increased, and the company turned around its losses substantially, with a net profit of-250 million yuan, a decrease of 52.84% over the same period last year. After entering the second half of the year, the downstream demand continued to be sluggish and the price of cement was fatigue. The average selling price of cement clinker products of the Company recorded 231.6 yuan/ton, a decrease of 11.6% compared with the previous year and a decrease of 13.8% compared with the previous year. At the same time, the impairment of fixed assets of suspended enterprises and the significant increase in accrued dividend income tax on the distribution of profits of subsidiaries in China led to the expansion of losses to 733 million yuan in the second half of the year. Due to the obvious drag in the second half of the year, the company's annual net return to its mother was-983 million yuan, an increase of 599.11% over the same period last year.
Table 1: Main financial indicators
of Shanshui Cement in 2025 Data source: cement big data (https://data.ccement.com/)
All other indicators turn bad. The consolidated gross profit margin for the year was 14.05%, representing a decrease of 0.38 percentage point as compared with the same period of 2024. The return on equity was -5.56%, representing a decrease of 4.79 percentage points as compared with the same period of 2024. Due to the large decline in business income, the company's three-fee rate increased slightly by 1.47 percentage points to 12.95%. Outlook
for 2026: Sales volume continues to decline, and enterprises are under great pressure to turn around.
At present, the decline of real estate investment in Shandong is still expanding, and new construction continues to bottom out. It is expected that the demand for real estate will continue to weaken; In terms of transportation, according to the plan, fixed assets investment in transportation will be 230 billion yuan in 2026, a year-on-year decline of more than 8%, and infrastructure will support fatigue. It is expected that the sales volume of Shanshui cement products will still face considerable challenges, coupled with the fierce regional competition, the price trend is hard to say optimistic. At the same time, the operation of Shanshui Cement is relatively single, the pace of transformation and upgrading is slow, and the growth momentum is insufficient. It is expected that the company will be difficult to turn negative throughout the year and face a greater risk of loss. (This article does not constitute investment advice)
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