Half-year Report

Steppe Cement

09/09/2026 09:00

RNS Number : 0259U
  
Steppe Cement Limited
  
09 September 2026
  
 


9 September 2026
Steppe Cement Ltd
("Steppe Cement" or the "Company")
Unaudited Interim Results for the Half Year Ended 30 June 2026, Market Update and Dividend
Steppe Cement Ltd (AIM: STCM), is pleased to announce its unaudited interim results for the half year ended 30 June 2026.
A copy of this announcement and the full interim financial statements are available on the Company's website at https://www.steppecement.com/investors/rns-announcements/
Unaudited Interim Results
During the six-month period to 30 June 2026 ("H1 2026" or the "Period"), the Company sold 978,950 tonnes of cement, generating consolidated turnover of KZT29,588 million (approximately USD61.1 million), compared with 850,424 tonnes and KZT20,717 million (approximately USD40.9 million) in H1 2025. Sales volume increased by 15% and turnover in KZT increased by 43%. The Group recorded a profit after tax of USD9.0 million, compared with a loss of USD0.5 million in H1 2025.
 








6 months ended

30 June 2026


6 months ended

30 June 2025


% change




Sales (Tonnes)


978,950


850,424


+15%




Consolidated Turnover (KZT million)


29,588


20,717


+43%




Consolidated Turnover (USD million)


61.1


40.9


+49%




Consolidated profit/(loss) after tax (USD million)


9.0


(0.5)


n/a




Earnings/(loss) per share (Cents)


4.1


(0.2)


n/a




June exchange rate (KZT/USD)


486


520


-7%




 
From the low of 550 KZT/USD in July 2025, the Kazakh Tenge has appreciated significantly against the USD. The effect on the accounts of Steppe Cement denominated in USD has been significant when compared to the accounts of the subsidiaries denominated in KZT.
The average delivered cement price for the Period was KZT30,224 per tonne (approximately USD62.1 per tonne), compared with KZT24,361 per tonne (approximately USD47.6 per tonne) in H1 2025. The ex-factory price was KZT27,747 per tonne (approximately USD57.1), compared with KZT21,126 per tonne (approximately USD41.3) in H1 2025. The average 5% appreciation of the KZT against the USD over the period contributed to the increase in the USD-denominated selling price.
Gross margin increased to 34% in H1 2026 from 21% in H1 2025, driven by higher selling prices and improved operating performance on bigger produced volumes. Selling expenses stayed constant in KZT but increased in USD terms by 7% to USD5.8 million, while administrative expenses increased by 14% to USD4.1 million. Transport and electricity costs continued to increase faster than inflation. The Company remained focused on markets close to the factory.
Profit from operations was USD11.8 million compared with USD0.01 million in H1 2025. Finance costs decreased to USD0.3 million from USD0.6 million. The Group recorded an income tax charge of USD2.5 million, resulting in profit after tax of USD9.0 million for the Period.
Production
·    Production levels in H1 2026 were maintained at levels comparable to H1 2025. Property, plant and equipment additions during H1 2026 were USD2.1 million, compared with USD0.7 million in H1 2025.
·    The production levels are maintained in July and August.
Capex
·    The Company continued its project to expand production capacity to 2.5 million tonnes. USD2 million was spent in H1 2026 on advance payments. All the project contracts have been signed. Major demolition and foundation works are nearing completion and structural works have started in most project areas, with more than 250 workers on site. Commissioning remains planned for summer 2027 after a 3-month shutdown of line 6.
·    The clay crusher bag filter, a significant ecological improvement, has been commissioned.
·    The line 6 back-end filter is expected to be completed in October.
·    The Company has signed a new agreement with the Ecological Department of the Government, committing to implementing BAT (best available technologies) over a period of ten years. This agreement involves investments of up to USD10 million over the period (2025 to 2035) but brings savings in ecological taxes of USD1.5 million per annum.
·    The USD35 million capacity expansion project and related ecological improvements is currently being financed from cash flow, rather than the debt financing originally envisaged. The Company intends to consider debt financing only in scenarios where the current project is expanded. As the project contracts are mostly denominated in USD, the Company is hedging most of the related currency exposure by keeping USD deposits.
·    Pictures of the progress on the site can be found in https://karcement.kz/project-l6-4500-2
Kazakh Cement Market Update
·    In H1 2026, the domestic Kazakh cement market remained broadly flat year-on-year, with exports and imports also remaining at approximately H1 2025 levels.
·    The Company's market share reached approximately 15% in the first half, an increase of 2% from the prior year.
·    For the full year 2026, the Company anticipates sales of approximately 1.95 to 2 million tonnes of cement. This is slightly below 2025 levels, primarily due to the lower clinker inventory carried into the year.
·    The Company expects the total Kazakh cement market for 2026 to remain broadly in line with 2025.
Financial Update
·    Total finance costs for the period were USD0.3 million, including USD0.2 million of interest expense on borrowings.
·    Net cash generated from operating activities increased to USD9.6 million from USD2.2 million in H1 2025.
·    Total borrowings were USD2.1 million on 30 June 2026 and cash equivalents were USD18.8 million, resulting in a net cash position of approximately USD16.7 million.
·    Inventories were USD20.6 million as of 30 June 2026, compared with USD19.0 million on 31 December 2025.
·    The Group had USD6.2 million undrawn working capital facilities available under Halyk Bank JSC short-term loan facilities as of 30 June 2026.
Macroeconomic background
·    Inflationary pressures moderated slightly in H1 2026, with inflation at 10.3% compared with 11.8% in H1 2025. The National Bank of Kazakhstan base rate stood at 17%, compared with 16.5% at the same point in 2025 and 18% between October 2025 and early June 2026. The National Bank of Kazakhstan cut rates to 16.75% in July and further to 16.25% in September.
·    The KZT appreciated by approximately 7% against the USD from June 2025 to June 2026, from approximately KZT520/USD to KZT486/USD and KZT453/USD at the time of writing this update.  The appreciation of the KZT and the high interest has attracted foreign investors into the sovereign debt market. Non-residents held approximately 8% of outstanding government debt securities as of end June 2026, an all-time high.
Corporate
·    The Company completed the restructuring of the holding companies by closing the Netherlands based holding company and Mechanical and Electrical Sdn Bhd in Malaysia.
·    The Kazakh subsidiaries are now held directly by the Steppe Cement Sdn Bhd in Malaysia, itself owned 100% by the listed entity Steppe Cement Ltd in Labuan. Further improvements to the structure are still under consideration.
·    This structure allows the Company to pay a dividend with an effective withholding tax on dividends of 5% or 10% depending on the amount. Smaller dividends are subject to lower taxation in Kazakhstan.
·    The local subsidiary Karcement has issued a bond that is progressively being bought by the holding company, replacing a direct loan that has been outstanding from 2008. At the end of June 2026 USD15 million of bonds have been purchased. This is considered internal debt, so it does not appear at the consolidated level.
·    The Board of Directors has resolved that the Company will pay an interim dividend of 2p per ordinary share. The dividend will be paid in the month of October 2026.
·    The Company will give a presentation on the H1 unaudited results on 15 September 2026 at 10AM Londontime via InvestorMeet.
For further information, please contact:
 




Steppe Cement Ltd
 Javier del Ser Pérez, Executive Chairman


www.steppecement.com


Tel: +(603) 2166 0361




Strand Hanson Ltd

(Nominated & Financial Adviser and Broker)

James Spinney / Ritchie Balmer / Imogen Ellis


www.strandhanson.co.uk


Tel: +44 20 7409 3494




 
 


STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS
FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)
 
 












 


The Group


 


The Company












 


6 months ended


 


6 months ended












 


30 June 2026


 


30 June 2025


 


30 June 2026


 


30 June 2025












Note


USD'000


 


USD'000


 


USD'000


 


USD'000














































Revenue






7


61,056






40,948






611






871














































Cost of sales










(40,359)






(32,355)






-






-














































Gross profit










20,697






8,593






611






871




Other income










1,133






554






-






9




Selling expenses










(5,760)






(5,364)






-






-




Administrative expenses










(4,132)






(3,625)






(520)






(228)




Other expenses











(101)








(148)








4








-















































Profit from operations
 
Finance cost                                  
                                                               






 
 
8



11,837
 
(330)








10
 
 (611)








95
 
-








652
 
-





Profit/(Loss) before tax










11,507






 (601)






95






652














































Tax (expense)/credit






9


(2,518)






125






-






-














































Profit/(Loss) for the period










8,989






(476)






95






652














































Attributable to shareholders








































of the Company










8,989






(476)






95






652
























































































Basic and diluted earnings








































 per ordinary share (cents)






10


4.1






(0.2)


































 
 
 
The accompanying notes form an integral part of the Condensed Financial Statements.



STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)
 
 
 












The Group


 


The Company
















6 months ended


 


6 months ended
















30 June 2026


 


30 June 2025


 


30 June 2026


 


 30 June 2025
















USD'000


 


USD'000


 


USD'000


 


USD'000
















































 




Profit/(Loss) for the period






8,989






(476)






95






652






 












































 




Other comprehensive income:






































 




 
Item that may not be reclassified subsequently to profit or loss






































 




 
Exchange differences arising on translation of foreign operations






 
 
 
 
3,184






 
 
 
 
158






 
 
 
 
-






 
 
 
 
-






 












































 




Total comprehensive income/(loss) for the period






 
12,173






 
(318)






 
95






 
652






 












































 




Attributable to shareholders






































 




of the Company






 
12,173






 
(318)






 
95






 
652






 


















 
 
 
The accompanying notes form an integral part of the Condensed Financial Statements.




 
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2026 (UNAUDITED)
 
 




 


 


 


 


The Group


 


The Company




 


 


 


 


Unaudited


 


Audited


 


Unaudited


 


Audited




 


 


 


 


30 June 2026


 


31 Dec 2025


 


30 June 2026


 


31 Dec 2025




 


 


 


Note


USD'000


 


USD'000


 


USD'000


 


USD'000




Assets












































Non-Current Assets












































Property, plant and equipment










 
11


 
46,874






 
45,439






 
-






 
-




Right-of-use assets














554






15






-






-




Investment in subsidiary companies














 
-






 
-






 
36,218






 
36,152




Loan to subsidiary company














 
-






 
-






 
2,600






 
13,400




Other assets
Investment in bond                               










12


269
-
 






252
-






-
15,000






-
10,000


















































Total Non-Current Assets














 
47,697






 
45,706






 
53,818






 
59,552


















































Current Assets












































Inventories










13


20,562






19,046






-






-




Trade receivables
Other receivables










14


328
10,148






129
4,482






-
4






-
4




Tax recoverable














427






928






-






-




Loans and advances to subsidiary companies














 
-






 
-






 
515






 
509




Cash and cash equivalents


 
 






15
 


18,781
 


 
 


11,433
 






5,970
 






267
 


















































Total Current Assets














50,246






36,018






6,489






780


















































Total Assets














97,943






81,724






60,307






60,332


















 
 
(Cont'd)



STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2026 (UNAUDITED)
















The Group


 


The Company


 
















Unaudited


 


Audited


 


Unaudited


 


Audited


 
















30 June 2026


 


31 Dec 2025


 


30 June 2026


 


31 Dec 2025


 












Note


USD'000


 


USD'000


 


USD'000


 


USD'000


 




Equity and Liabilities






































 












































 




Capital and Reserves






































 




Share capital










61,050






61,050






61,050






61,050








Asset revaluation reserve










3,368






3,368






-






-








Translation reserve










(128,400)






(131,584)






-






-








Retained earnings /
(Accumulated losses)










 
134,472






 
125,483






 
(926)






 
(1,021)








 
Total Equity










 
70,490






 
58,317






 
60,124






 
60,029






















































Non-Current Liabilities












































Borrowings






16


2,098






1,755






-






-








Deferred taxes










3,657






2,919






-






-








Deferred income
Lease Payable










1,675
-






1,675
25






-
-






-
-








Provision for site restoration










 
37






 
36






 
-






 
-






















































Total Non-Current Liabilities










 
7,467






 
6,410






 
-






 
-






















































Current liabilities












































 
Trade and payables
Other payables                             










 
11,595
8,109






 
10,468
5,518






 
-
183






 
-
303








Borrowings






16


31






866






-






-








Lease liabilities










-






5






-






-








Deferred income










251






140






-






-






















































 
Total Current Liabilities










 
19,986






 
16,997






 
183






 
303






















































Total Liabilities










27,453






23,407






183






303








 












































Total Equity and Liabilities










 
97,943






 
81,724






 
60,307






 
60,332






















 
 
The accompanying notes form an integral part of the Condensed Financial Statements.




STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)
 
 




 


 


 


Non-distributable


 


 


Distributable


 


 




 


 


 


 


 


 


 


 


 




The Group


Share capital


 


Revaluation reserve


 


Translation reserve


 


 


Retained earnings


 


Total




 


USD'000


 


USD'000


 


USD'000


 


 


USD'000


 


USD'000


















































As at 1 January 2026


61,050






3,368






(131,584)










125,483






58,317




Profit for the period
Other comprehensive income


-
-






-
-






-
3,184










8,989
-






8,989
3,184


 




Total comprehensive income for the period
Transfer of revaluation reserve relating to property, plant and equipment through use


 
-
 
 
-






 
-
 
 
-






 
3,184
 
 
-










 
8,989
 
 
-






 
12,173
 
 
-


 
















































 




As at 30 June 2026


61,050






3,368






(128,400)










134,472






70,490


 



















 
(Cont'd)



STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)
 
 
 




 


 


 


Non-distributable


 


 


Distributable


 


 




The Group


Share capital


 


Revaluation reserve


 


Translation reserve


 


 


Retained earnings


 


Total




 


USD'000


 


USD'000


 


USD'000


 


 


USD'000


 


USD'000


















































As at 1 January 2025


65,400






3,669






(133,882)










121,864






57,051


 




Loss for the period


-






-






-










(476)






(476)


 




Other comprehensive income


-






-






158










-






158


 




Total comprehensive income/(loss) for the period
Transfer of revaluation reserve relating to property, plant and equipment through use


 
-
 
 
-






 
-
 
 
-






 
158
 
 
-










 
(476)
 
 
-






 
(318)
 
 
-


 
















































 




As at 30 June 2025


65,400






3,669






(133,724)










121,388






56,733


 























 
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)
 
  




 


 


 


 


 


 




The Company


Share capital


 


Accumulated
losses
 


 


Total








USD'000


 


USD'000


 


USD'000






























As at 1 January 2026


61,050










(1,021)






60,029


 




Total comprehensive income for the period


-










95







95



 




As at 30 June 2026


61,050










(926)






60,124


 





















As at 1 January 2025


65,400










(2,065)






63,335




Total comprehensive income for the period


                -










652






652




As at 30 June 2025


65,400










(1,413)






63,987




 
       




STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)
 
















The Group


 


The Company






 
















6 months ended


 


6 months ended






 
















30 June
2026


 


30 June
2025


 


30 June 2026


 


30 June
2025






 
















USD'000


 


USD'000


 


USD'000


 


USD'000






 




 










































 




OPERATING ACTIVITIES










































 




Profit/(Loss) before income tax










11,507






(601)






95






652








 
Adjustments for:
 












































Depreciation of property,
 plant and equipment










 
2,859






 
2,833






 
-






 
-








Depreciation of right-of-use
 Assets
Capital reduction










 
1
-






 
3
-






 
-
-






 
-
-








Other non-cash items










                227






896






(65)






(603)






















































Operating Profit Before Working Capital Changes










14,594






3,131






30






49




















































 




(Increase)/Decrease in:










































 




Inventories










(1,516)






1,056






-






-






 




Trade and other receivables, advances and prepaid expenses










 
(5,921)






 
(3,353)






 
-






 
(11)






 




Loans and advances to subsidiary companies










 
-






 
-






 
(6)






 
(98)






 
















































 




Increase/(Decrease) in:
 










































 




Trade and other payables, accrued and other liabilities










 
4,536






 
2,171






 
(121)






 
10






 
















































 




Cash Generated From/(Used In) Operations










           11,693






3,005






(97)






(50)






 




Income tax paid










(1,982)






(661)






-






-






 




Interest paid










(85)






(173)






-






-






 
















































 




Net Cash Generated From/(Used In) Operating Activities










 
9,626






 
2,171






 
(97)






 
(50)






 
















































 




(Cont'd)










































 
















The Group


 


The Company






 
















6 months ended


 


6 months ended






 
















30 June 2026


 


30 June  2025


 


30 June 2026


 


30 June
2025






 
















USD'000


 


USD'000


 


USD'000


 


USD'000






 




INVESTING ACTIVITIES










































 




Purchase of property, plant and equipment










 
(2,082)






 
(668)






 
-






 
-






 




Purchase of other assets










(34)






(28)






-






-






 




Interest received
Acquisition of bond
Repayment from subsidiary










187
-
-






271
-
-






-
(5,000)
10,800


 
 


-
-
-






 
















































 




Net Cash (Used In)/Generated From Investing Activities










 
(1,929)






 
(425)






 
5,800






 
-






 
















































 
















































 




FINANCING ACTIVITIES










































 




Proceeds from borrowings










-






1,306






-






-






 




Repayment of borrowings










(530)






(2,034)






-






-






 
















































 




Net Cash (Used In) Financing Activities










 
(530)






 
(728)






 
-






 
-






 
















































 




NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS










 
 
7,167






 
 
1,018






 
 
5,703






 
 
(50)






 




EFFECTS OF FOREIGN EXCHANGE RATE CHANGES










 
 
181






 
 
185






 
 
-






 
 
-






 




CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD










 
 
 
11,433






 
 
 
6,064






 
 
 
267






 
 
 
117






 




 










































 




CASH AND CASH EQUIVALENTS AT END OF THE PERIOD (NOTE 15)










 
 
18,781






 
 
7,267






 
 
5,970






 
 
67






 
















































 




























 
The accompanying notes form an integral part of the Condensed Financial Statements.



STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)
AND ITS SUBSIDIARY COMPANIES
 
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
 
1.         GENERAL INFORMATION
                   
Steppe Cement Ltd ("the Company") is incorporated and domiciled in Malaysia. The Company's and its subsidiaries' ("the Group") principal place of business is located at Aktau village, Karaganda region, Republic of Kazakhstan. The Company's shares are listed on the AIM Market of the London Stock Exchange plc.
 
The registered office of the Company is located at Brumby Centre, Lot 42, Jalan Muhibbah, 87000 Labuan FT, Malaysia.
 
2.         BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL STATEMENT
           
Basis of presentation
                
The condensed interim financial statements of the Group and the Company are unaudited and have been prepared in accordance with International Financial Reporting Standards ("IFRS").
 
The condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2025. 
 
The condensed interim financial statements of the Group and the Company were authorised for issue by the Board of Directors on 4 September 2026.
 
Use of estimates and assumptions
 
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Due to the inherent uncertainty in making those estimates, actual results reported in future periods could differ from such estimates.




 
3.         SIGNIFICANT ACCOUNTING POLICIES
                               
            Basis of Accounting
                   
The financial statements of the Group and the Company have been prepared under the historical cost convention except the revaluation of land and building to fair values in accordance with IAS 16 "Property, Plant and Equipment" (Note 11).
 
The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2025, except for the adoption of new standards effective as of 1 January 2026.
 
The adoption of these Amendments did not have an impact on the Group's condensed consolidated interim financial statements.
 
The principal closing rates used in translation of foreign currency amounts are as follows:








 


USD




1 Pound Sterling






1.3230




1 Ringgit Malaysia






0.2457




1 Euro Dollar






1.1394




1 Kazakhstan Tenge ("KZT")






0.0021




 








 


KZT




1 US Dollar






485.82








 
4.         REVIEW OF RESULTS FOR THE PERIOD
 
During the six-month period ended 30 June 2026, the Group posted revenue of USD61.1 million, an increase of 49% from USD40.9 million in the corresponding period of 2025. The growth in revenue was mainly attributable to an 15% increase in sales volume, particularly in regions nearer to the plant. 
 
The average sales price in tenge was USD62 (KZT30,224) per tonne compared with  USD48 (KZT24,361) per tonne in the same period of 2025.
 
The gross margin improved to 34% in the six-month period to 30 June 2026, compared with 21% in the same period last year, driven by higher volumes, increased selling prices and production efficiencies despite higher costs.  Selling expenses increased by USD0.4 million or 7% to USD5.8 million, while general and administration expenses increased by 14% (USD0.5 million) to USD4.1 million.
 
As a result, the Group recorded a higher net profit of USD9.0 million, compared with a loss after tax of USD0.5 million in the same period of 2025.
 
 
5.         SEASONAL OR CYCLICAL FACTORS
 
The Group's revenue is closely linked to the construction sector which experiences significant seasonal slow-down in construction activities due to extremely cold temperatures, especially during the months of December, January and February in most parts of Kazakhstan. Each year, the Group's sales improve after winter and typically peak during the summer months.
 
6.         SEGMENTAL REPORTING
 
No industry and geographical segmental reporting are presented as the Group's primary business is in the production and sale of cement, which is located in Karaganda region, Republic of Kazakhstan. 




 
7.         REVENUE
 








The Group






The Company








6 months ended






6 months ended








30 June 2026






30 June 2025


 


30 June 2026






30 June 2025








USD'000






USD'000


 


USD'000


 


USD'000















 




Sales of manufactured goods


61,044






40,944






-






-




Transmission and distribution of electricity


 
12






 
4






-






-




Net interest income


-






-






611






871






































Total


61,056






40,948






611






871




 
 
8.         FINANCE COSTS
 








The Group












6 months ended












30 June 2026






30 June 2025


 








USD'000






USD'000


 




 




Interest expense on borrowings


218






533








Other finance costs


112






78






























Total


330






611








 
 




 
9.         INCOME TAX EXPENSE
 








The Group






The Company








6 months ended






6 months ended








30 June 2026






30 June 2025


 


30 June 2026






30 June 2025








USD'000






USD'000


 


USD'000






USD'000




 




 
Income tax expense


(1,859)






 
-






-






-




 
Deferred tax (expense)/credit


(659)






 
 
125






-






-










































(2,518)






125






 -






 -




 
 
 
 
10.       EARNINGS PER SHARE
 
 




 


The Group


 




 


6 months ended


 


6 months ended




 


30 June 2026






30 June 2025




 


USD'000






USD'000




 














 




Profit/(Loss) attributable to ordinary shareholders


8,989






(476)


 












 
 








6 months ended


 


6 months ended








30 June 2026


 


30 June 2025








'000


 


'000




 
















Number of ordinary shares in issue at beginning and at end of period


 
219,000






 
219,000




Weighted average number of ordinary shares at beginning and at end of period


 
219,000






 
219,000




 


 


 


 




Earnings per share, basic and diluted (cents)


4.1






(0.2)




 
The basic earnings per share is calculated by dividing the consolidated profit attributable to shareholders of the Company by the weighted average number of ordinary shares in issue during the financial period.
 
There are no dilutive instruments in issue as at 30 June 2026 and 30 June 2025.




11.      PROPERTY, PLANT AND EQUIPMENT, NET
 




 
 
The Group


Freehold land and land improvement


 


 
 
Buildings


 


 
Machinery and equipment


 


Railway
Wagons
 


 


 
Other
assets


 


Stand-by equipment and major spare parts


 


 
Construction
in progress


 


 
 
Total








USD'000






USD'000






USD'000






USD'000






USD'000






USD'000






USD'000






USD'000




Cost
































































At 1 January 2026


1,882






6,110






70,358






6,864






11,041






7,036






1,690






104,980




Additions


-






-






930






-






71






224






856






2,082




Transfers


-






167






504






35






84






(23)






(768)






-




Disposals


-






-






(5)






-






(60)






(150)






-






(216)




Reclassification from inventories


-






-






364






-






80






 
(744)






1,243






943




Exchange differences


70






68






3,871






236






126






128






60






4,559









































 





























At 30 June 2026


1,952






6,345






76,022






7,135






11,342






6,471






3,081






112,348




































































 




Accumulated depreciation
































































At 1 January 2026


-






384






49,532






3,253






6,372






-






-






59,541




Charge for the period


-






170






2,057






219






412






-






-






2,859




Disposals


-






-






(2)






-






(60)






-






1






(61)




Exchange differences


-






14






3,154






112






(144)






-






-






3,136






































































At 30 June 2026


-






568






54,741






3,584






6,580






-






1






65,474






































































Net Book Value
































































 
At 30 June 2026


1,952






5,777






21,281






   3,551






4,762






 
6,471






3,080






46,874




 
At 31 December 2025


1,882






5,725






20,826






3,611






4,669






 
7,036






1,690






45,439

























 




 
12.       OTHER ASSETS








The Group






The Company








As at






As at






As at






As at








30 June 2026






31 Dec 2025






30 June 2026






31 Dec 2025








USD'000






USD'000


 


USD'000


 


USD'000




 




Site restoration fund


263






222






-






-




Others


6






30






-







-





 
Total


269






252






        -






-




 
 
13.       INVENTORIES
 








The Group






The Company








As at






As at






As at






As at








30 June 2026






31 Dec 2025






30 June 2026






31 Dec 2025








USD'000






USD'000


 


USD'000


 


USD'000




 




Finished goods


3,322






3,089






-






-




Spare parts


10,049






6,794






-






-




Work in progress


1,140






654






-






-




Raw materials


3,178






2,939






-






-




Other materials


3,495






6,210






-






-




Packing materials


214






169






-






-






































Total


21,398






19,855






-






-




 Less: Provision for obsolete inventories


(836)






(809)






-






-






































 Net


20,562






19,046






-






-




 
 
No additional provision for obsolete inventories is necessary based on current conditions as at 30 June 2026.
 
 
 
 
 
 
 
 
 
 
 
 
 
14.       TRADE RECEIVABLES
 








The Group






The Company








As at


As at






As at






As at








30 June 2026






31 Dec 2025






30 June 2026






31 Dec 2025








USD'000






USD'000


 


USD'000


 


USD'000




 




Trade Receivables


1,159






932






-






-




Less: Loss allowances


(831)






(803)






-






-










































328






   129






-






-






































 
 
The Company enters into sales contracts with trade customers on cash terms. Some customers with good payment history are granted certain credit periods on their cement purchases which are secured against bank guarantee or other credit enhancements.
 
The recoverability of trade accounts receivable depends to a large extent on the Group's customers' ability to meet their obligations and other factors which are beyond the Group's control. The recoverability of the Group's trade accounts receivable is determined based on conditions prevailing and information available as at reporting date. The Directors have reviewed the trade receivables and considered no further loss allowances for trade receivables is necessary, based on conditions prevailing and available information as at 30 June 2026.
 
 
15.       CASH AND CASH EQUIVALENTS
 








 


The Group












 


As at






As at












 


30 June 2026






31 Dec 2025












 


USD'000






USD'000


 




 




Cash in hand and at banks






93






479








Short-term deposit






18,688






10,954








 
Total






 
18,781






11,433








 
 
 
 
 
 
 
 
 
 
 
16.       BORROWINGS
 
 








 


The Group












 


As at






As at












 


30 June 2026






31 Dec 2025












 


USD'000






USD'000


 




 




Current portion:
























  Bank loans










 31






866






























Non-current portion: 
























  Bank loans










2,098






1,755




 
Total borrowings










2,129






2,621




 
 
Undrawn loan amounts
 
As at 30 June 2026, the Group has USD6.2 million in working capital facilities available for drawdown under the Halyk Bank JSC short-term loan facilities.
 




 
17.       RELATED PARTIES
 
Related parties include shareholders, directors, affiliates and entities under common ownership, over which the Group has the ability to exercise a significant influence.
 
Other related parties include entities which are controlled by a Director, which a Director of the Group has ownership interests and exercises significant influence.
 
Balances and transactions between the Company and its subsidiary companies, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.
 
The transactions between a related party and the Group included in the condensed consolidated income statement and condensed statement of financial position are as follows:
 








                 The Group        
         Purchase of services








30 June 2026






30 June 2025








USD'000






USD'000




Other related party
















Office rental


-






-




                                                                                                     
 
                                                                                                                           








      Payable to related parties








30 June 2026






30 June 2025








USD'000






USD'000




Other related party
















Office rental


-






-




 




 
Compensation of key management personnel
 
Included in the staff costs are remuneration of Directors and other members of key management during the financial period as follows:
 








The Group






The Company








30 June 2026






30 June 2025






30 June 2026






30 June 2025








USD'000






USD'000


 


USD'000


 


USD'000




 






































Short-term benefits


406






415






154






75




 
The remuneration of Directors and Key Executives is determined by the Remuneration Committee of the Company and subsidiary companies having regard to the performance of individuals and market trends.
 
 
18.       FINANCIAL INSTRUMENTS
 
Financial Risk Management Objectives and Policies
 
The operations of the Group are subject to various financial risks which include foreign currency risk, credit risk and liquidity risk.
 
The condensed interim financial statements of the Group do not include all financial risk management information and disclosures required in the annual financial statements. There has been no change in the financial risk management objectives and policies since the previous financial year ended 31 December 2025. The Group continuously manages its exposures to risks and/or costs associated with the financing, investing and operating activities of the Group.
 
Fair Value of Financial Assets and Financial Liabilities
 
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market condition, regardless of whether that price is directly observable or estimated using another valuation technique. As no readily available market exists for a large part of the Group's financial instruments, judgement is necessary in arriving at fair value, based on current economic conditions and specific risks attributable to the instrument. The fair value of the instruments presented herein is not necessarily indicative of the amounts the Group could realise in a market exchange from the sale of its full holdings of a particular instrument. 
 
The following methods and assumptions were used by the Group to estimate the fair value of financial instruments:
 




 
Cash and cash equivalents
The carrying value of cash and cash equivalents approximates their fair value due to the short-term maturity of these financial instruments.
 
Trade and other receivables and payables and accrued and other liabilities
For assets and liabilities with maturity less than twelve months, the carrying value approximates fair value due to the short-term maturity of these financial instruments.
 
Borrowings
The fair values of the borrowings are estimated by discounting expected future cash flows at market interest rates prevailing at the end of the relevant period with similar maturities adjusted by credit risk.
 
As at 30 June 2026 and 2025, the fair values of financial assets and short-term financial liabilities approximate their carrying values.
 
 
19.       CONTINGENCIES
 
There are no significant changes in the contingencies since the financial year ended 31 December 2025.
 
 
 
 
 
 
 




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IR FIFEDARIAIIR