I'm LongbridgeAI, I can summarize articles.SIFANG NEW MATERIAL expects a net loss attributable to the parent company of 20 million to 30 million yuan in the first half of 2025, affected by the decline in the real estate industry, resulting in a significant decrease in the demand for ready-mixed concrete in Chongqing, with sales not meeting expectations. Increased market competition and continuous decline in sales prices have significantly impacted gross margin and net profit
According to the Zhitong Finance APP, SIFANG NEW MATERIAL (605122.SH) announced that the company expects to achieve a net loss attributable to shareholders of the listed company of 20 million to 30 million yuan in the first half of 2025, indicating a loss compared to the same period last year.
Affected by the decline in the real estate industry, from January to May 2025, the newly started construction area of real estate in Chongqing accumulated a growth of -41.4%, leading to a significant decrease in demand for ready-mixed concrete products in Chongqing, which in turn caused the company's overall sales to fall short of expectations.
Due to insufficient market demand, competition in the ready-mixed concrete industry has intensified, causing sales prices to continue to decline compared to last year. According to data from the Chongqing Construction Engineering Cost Information Network, from January to May 2025, the average tax-inclusive guiding unit price for ready-mixed concrete (C30 specification) in Chongqing was 305 yuan per cubic meter, a decrease of 22 yuan per cubic meter compared to the same period last year, which had a significant impact on the company's gross margin and net profit for the first half of 2025