en.Wedoany.com Reported - Dimension News, China Resources Building Materials Technology Holdings Limited (01313.HK) issued a profit warning on July 17, 2026, forecasting a loss attributable to shareholders of approximately 400 million to 500 million yuan for the first half of 2026. In the same period of 2025, the company recorded a profit attributable to shareholders of approximately 306.7 million yuan. This turnaround from profit to loss is primarily due to a decline in selling prices of core products, with cost reductions failing to fully offset the impact of price declines.
China Resources Building Materials Technology is one of China's leading producers of cement, concrete, and aggregates, with its controlling shareholder being China Resources Group. Its operations cover multiple regional markets including South China, Southwest China, and East China. According to the company's announcement, despite ongoing efforts to reduce costs across the entire value chain in the first half of 2026, the unit sales costs of its three core products—cement, concrete, and aggregates—all decreased compared to the same period in 2025. However, the selling prices of these three products also declined year-on-year. The benefits from cost reductions were insufficient to cover the losses caused by falling prices, leading to a simultaneous decline in gross profit and gross profit margin, ultimately resulting in a loss.
The announcement emphasized that the profit warning data is based solely on a preliminary assessment by the company's board of directors of the unaudited consolidated management accounts for the six months ended June 30, 2026, and has not been audited or reviewed by independent auditors or the audit committee. Subsequent financial data remains subject to adjustment and revision, and the final accurate semi-annual financial data will be based on the company's interim results announcement for 2026 to be released later.
In the first half of 2026, China's building materials industry as a whole faced weak demand and intensified price competition. Affected by factors such as the continued downturn in real estate investment and insufficient funding for infrastructure projects, the cement market experienced overall weak demand, prominent industry overcapacity, and sustained pressure on product prices. China Resources Building Materials Technology's profit warning, indicating a shift from profit to loss, reflects the common operational difficulties faced by the building materials industry under the dual pressures of insufficient demand and cost burdens. Investors should pay attention to the detailed financial data disclosed in the company's subsequent formal results announcement.
