Taiwan Cement's H1 Net Profit Soars 241%, EPS Reaches NT$0.38! Cimpor International IPO Plans Gain Momentum

Taiwan Cement today (12) released its 2026 second-quarter financial report. Consolidated revenue for the first half reached NT$71.29 billion, a 1% increase compared to the same period last year. Net profit attributable to owners amounted to NT$3.28 billion, up 241% year-on-year, with earnings per share (EPS) at NT$0.38, demonstrating the resilience of its diversified business portfolio and international operations.

Taiwan Cement's gross profit for the first half was approximately NT$13 billion, a 15.5% year-on-year increase. The gross margin improved from 16% in the same period last year to 18.2%, up 2.2 percentage points. Operating profit reached NT$5.17 billion, a 51% increase year-on-year. After-tax net profit reached NT$4.57 billion, up 204% year-on-year, with net margin rising from 2.1% to 6.4%.

The company explained that the profit growth was primarily driven by improved performance in its overseas cement and energy businesses. In Portugal, cement operations saw increased sales volume and higher selling prices, boosting profits by approximately NT$150 million. In Turkey, recovering market demand drove simultaneous increases in sales volume and prices. Heping Power, a subsidiary of Taiwan Cement, also contributed to profit growth due to increased operating days and higher energy tariff rates.

On the other hand, Taiwan Cement's cement operations in Taiwan and mainland China continue to face market challenges. In Taiwan, the weak real estate market and imported cement, coupled with reduced ready-mixed concrete sales, led to declines in both sales volume and gross margin. In mainland China, supply-demand imbalances and intensified competition have pressured cement prices and margins. Fortunately, growth in overseas cement and energy operations has offset some of the operational pressures in the Taiwan-China market.

As of the end of the second quarter of 2026, Taiwan Cement's total assets stood at NT$596 billion, with total liabilities at NT$296.6 billion, resulting in a debt-to-total-assets ratio of approximately 49.8%, maintaining a stable financial structure. Taiwan Cement stated that in response to changing global industrial conditions, the company will continue to strengthen its low-carbon building materials, energy business, and international market presence, enhancing operational efficiency and financial resilience to steadily advance corporate transformation.

Integration of Turkish, Portuguese, and African Cement and Concrete Businesses for Overseas Listing

Additionally, Taiwan Cement's board of directors has approved the integration of its cement and concrete-related businesses in Turkey, Portugal, and Africa into a newly established subsidiary, Cimpor International Holdings (hereinafter referred to as "Cimpor International"), and plans to file for an initial public offering (IPO) and listing on an overseas securities exchange under this entity. This proposal will be submitted for shareholder approval at the upcoming shareholders' meeting.

Taiwan Cement indicated that the London Stock Exchange in the UK or Euronext are currently being considered as potential listing venues. After listing, Taiwan Cement will maintain control over Cimpor International and continue to include it in its consolidated financial statements, with existing shareholders' interests fully protected. The final listing location, place of incorporation, and transaction structure will be determined based on regulatory feedback, applicable laws, and capital market conditions. NHOA Energy, responsible for global energy storage development and deployment, and Atlante, which develops integrated charging and storage solutions in Europe, will not be included in this listing and will be evaluated separately in the future.

Taiwan Cement stated that the primary objectives of pursuing an overseas listing for Cimpor International are to strengthen its capital structure, establish diversified funding channels, enhance visibility in international capital markets, and attract global professional talent. With clearer business positioning and independent fundraising capabilities, this move is expected to support the long-term development of cement and concrete building materials operations across Europe, Asia, Africa, and surrounding markets, further boosting the group's overall revenue and profitability, and creating long-term value for shareholders.

Taiwan Cement noted that the IPO is expected to proceed through a combination of new share issuance and transfer of existing shares. In accordance with listing regulations, the public float is expected to be no less than 10% of Cimpor International's total share capital. The actual issuance size, equity ratio, pricing, and transaction terms will be determined based on funding needs, market conditions, investor subscription interest, and consultations with regulators, exchanges, and securities underwriters. The existing operations of OYAK Çimento Fabrikaları A.Ş. and its listing status on the Istanbul Stock Exchange will remain unaffected.

To protect the interests of existing shareholders, Taiwan Cement will commission an independent expert to issue an opinion on the reasonableness of the number of shares offered, pricing, and impact on shareholder interests prior to the share distribution. This will be submitted for review and approval by the Audit Committee and Board of Directors in accordance with corporate governance procedures.

Taiwan Cement emphasized that even after Cimpor International completes its listing and Taiwan Cement's ownership stake may be diluted due to share dispersion, it will maintain control through TCC Dutch Holdings and continue to consolidate Cimpor International in its financial statements. This arrangement will not alter the nature of the group's existing businesses nor affect Taiwan Cement's listing status on the stock exchange.

Taiwan Cement noted that the plan is currently in the preparation stage. The actual filing timeline, listing location, issuance terms, and review schedule may still be affected by regulatory reviews, applicable laws, capital market conditions, and other factors. The company will provide timely updates based on relevant regulations and overall progress.