6-K - CPAC - Equibles

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUERPURSUANT TO RULE 13a-16 OR 15b-16 OFTHE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2023

Commission File Number 001-35401

CEMENTOS PACASMAYO S.A.A.

(Exact name of registrant as specified in its charter)

PACASMAYO CEMENT CORPORATION

(Translation of registrant’s name into English)

Republic of Peru

(Jurisdiction of incorporation or organization)

Calle La Colonia 150, Urbanización El Vivero

Surco, Lima

Peru

**(**Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

CEMENTOS PACASMAYO S.A.A.

The following exhibit is attached:

EXHIBIT NO.	DESCRIPTION
99.1	Unaudited interim condensed consolidated financial statements as of June 30, 2023 and for the three and six-month periods then ended.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CEMENTOS PACASMAYO S.A.A.
By:	/s/ CARLOS JOSE MOLINELLI MATEO
Name:	Carlos Jose Molinelli Mateo
Title:	Stock Market Representative
Date:	July 20, 2023

Exhibit 99.1

Cementos Pacasmayo S.A.A. and Subsidiaries

Unaudited interim condensed consolidated financial statements

as of June 30, 2023 and for the three and six-month periods then ended

Cementos Pacasmayo S.A.A. and Subsidiaries

Unaudited interim condensed consolidated financial statements as of June 30, 2023 and for the three and six-month periods then ended

Content

Report on review of interim condensed consolidated unaudited financial statements	1
Interim condensed consolidated unaudited financial statements
Interim condensed consolidated unaudited statements of financial position	2
Interim condensed consolidated unaudited statements of profit or loss	3
Interim condensed consolidated unaudited statements of other comprehensive income	4
Interim condensed consolidated unaudited statements of changes in equity	5
Interim condensed consolidated unaudited statements of cash flows	6
Notes to the interim condensed consolidated unaudited financial statements	8

Reporton review of interim condensed consolidated unaudited financial statements

To the Board of Directors and Shareholders of Cementos Pacasmayo S.A.A.

Introduction

We have reviewed the accompanying interim condensed consolidated unaudited statement of financial position of Cementos Pacasmayo S.A.A. and its Subsidiaries (together the “Group”) as of June 30, 2023, and the related interim condensed consolidated unaudited statements of profit or loss, other comprehensive income, changes in equity and cash flows for the three and six-month periods then ended, and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated unaudited financial statements in accordance with IAS 34 Interim Financial Reporting (IAS 34). Our responsibility is to express a conclusion on these interim condensed consolidated unaudited financial statements based on our review.

Scope of review

We conducted our review in accordance with International Auditing Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of the persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated unaudited financial statements are not prepared, in all material respects, in accordance with IAS 34.

Lima, Peru

July 20, 2023

Countersigned by:

Manuel Arribas
C.P.C. Register No. 45987

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of financial position

As of June 30, 2023 (unaudited) and December 31, 2022

		As<br> of <br> June 30,<br><br>2023			As<br> of <br> December 31,<br><br>2022
		S/(000)			S/(000)
Assets
Current assets
Cash and cash equivalents	3		65,660			81,773
Term deposits with maturity greater than ninety<br> days	3		10,000			-
Derivative financial instruments	15		-			86,893
Trade and other receivables	4		92,072			101,491
Income tax prepayments			7,450			8,268
Inventories	5		929,918			884,969
Prepayments			26,375			25,059
Total<br> current asset			1,131,475			1,188,453
Non-current assets
Trade and other receivables	4		44,076			43,543
Financial instruments designated at fair value<br> through other comprehensive income	15		274			274
Property, plant and equipment	6		2,090,370			2,007,838
Intangible assets			59,681			56,861
Goodwill			4,459			4,459
Deferred income tax assets			10,873			9,005
Right of use asset	7		7,199			3,639
Other assets			81			89
Total<br> non-current asset			2,217,013			2,125,708
Total<br> assets			3,348,488			3,314,161
Liability and equity
Current liabilities
Trade and other payables	8		234,958			284,554
Financial obligations	9<br> and 15		345,146			618,907
Lease liabilities	7		3,052			2,005
Income tax payables			11,773			16,340
Provisions	10		48,510			31,333
Total<br> current liabilities			643,439			953,139
Non-current liabilities
Financial obligations	9<br> and 15		1,267,393			974,264
Lease liabilities	7		4,585			2,350
Non-current provisions	10		17,860			47,638
Deferred income tax<br> liabilities			131,635			141,635
Total<br> non-current liabilities			1,421,473			1,165,887
Total<br> liability			2,064,912			2,119,026
Equity
Capital stock			423,868			423,868
Investment shares			40,279			40,279
Investment shares held in treasury			(121,258	)		(121,258	)
Additional paid-in capital			432,779			432,779
Legal reserve			168,636			168,636
Other accumulated comprehensive loss			(16,272	)		(17,787	)
Retained earnings			355,544			268,618
Total<br> equity			1,283,576			1,195,135
Total<br> liability and equity			3,348,488			3,314,161

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of profit or loss

For the three and six-month periods ended June 30, 2023 and June 30, 2022 (unaudited)

			For<br> the three-month period<br><br> ended June 30, 2023						For<br> the six-month period<br><br> ended June 30, 2023
	Note		2023			2022			2023			2022
			S/(000)			S/(000)			S/(000)			S/(000)
Sales of goods		12		442,039			502,886			922,034			1,028,295
Cost of sales				(289,461	)		(344,804	)		(608,861	)		(705,248	)
Gross<br> profit				152,578			158,082			313,173			323,047
Operating income (expense)
Administrative expenses				(58,327	)		(54,861	)		(116,056	)		(108,250	)
Selling and distribution expenses				(15,674	)		(17,025	)		(33,208	)		(33,995	)
Other operating income<br> (expense), net				73			(311	)		1,476			(1,335	)
Total<br> operating expenses, net				(73,928	)		(72,197	)		(147,788	)		(143,580	)
Operating<br> profit				78,650			85,885			165,385			179,467
Other income (expenses)
Finance income				836			1,012			2,191			1,570
Finance costs				(24,156	)		(23,813	)		(49,877	)		(46,608	)
Net<br> profit (loss) for valuation of trading derivative financial instruments		15(a)		-			45			19			(64	)
Gain from exchange difference,<br> net				4,518			6,865			5,341			351
Total<br> other expenses, net				(18,802	)		(15,891	)		(42,326	)		(44,751	)
Profit before income tax				59,848			69,994			123,059			134,716
Income tax expense		11		(16,414	)		(22,015	)		(36,133	)		(41,012	)
Profit<br> for the period				43,434			47,979			86,926			93,704
Earnings per share
Basic<br> profit for the period attributable to equity holders of common shares and investment shares of the parent (S/ per share)		14		0.10			0.11			0.20			0.22

The accompanying otes are an integral part of the interim condensed consolidated unaudited financial statements.

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of other comprehensive income

For the three and six-month periods ended June 30, 2023 and June 30, 2022 (unaudited)

			For<br> the three-month period <br>ended June 30,					For<br> the six-month period <br>ended June 30,
	Note		2023		2022			2023			2022
			S/(000)		S/(000)			S/(000)			S/(000)
Profit<br> for the period				43,434		47,979			86,926			93,704
Other<br> comprehensive income
Other<br> comprehensive income to be reclassified to profit or loss in subsequent periods:
Net<br> gain (loss) on cash flow hedges		15(a)		-		(1,655	)		2,154			391
Deferred<br> income tax		11		-		488			(634	)		(116	)
Other<br> comprehensive income for the period, net of income tax				-		(1,167	)		1,520			275
Total<br> comprehensive income for the period, net of income tax				43,434		46,812			88,446			93,979

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of changes in equity

For the six-month period ended June 30, 2023 and June 30, 2022 (unaudited)

	Capital<br> <br> stock		Investment<br><br> shares		Investments<br><br> shares<br><br> held in treasury			Additional<br><br> paid-in<br><br> capital		Legal<br><br> reserve		Unrealized gain<br><br> (loss) on financial<br><br> instruments<br><br> designated at fair<br><br> value			Unrealized<br> gain<br><br> (loss) on <br>cash flow hedge			Retained<br> earnings		Total<br> <br> equity
	S/(000)		S/(000)		S/(000)			S/(000)		S/(000)		S/(000)			S/(000)			S/(000)		S/(000)
Balance<br> as of January 1, 2022		423,868		40,279		(121,258	)		432,779		168,636		(15,869	)		(4,225	)		271,595		1,195,805
Profit<br> for the period		-		-		-			-		-		-			-			93,704		93,704
Other<br> comprehensive income for the period, net of income tax		-		-		-			-		-		-			275			-		275
Total<br> comprehensive income		-		-		-			-		-		-			275			93,704		93,979
Balance<br> as of June 30, 2022		423,868		40,279		(121,258	)		432,779		168,636		(15,869	)		(3,950	)		365,299		1,289,784
Balance<br> as of January 1, 2023		423,868		40,279		(121,258	)		432,779		168,636		(16,267	)		(1,520	)		268,618		1,195,135
Profit<br> for the period		-		-		-			-		-		-			-			86,926		86,926
Other<br> comprehensive income for the period, net of income tax		-		-		-			-		-		-			1,520			-		1,520
Others		-		-		-			-		-		(5	)		-			-		(5	)
Total<br> comprehensive income		-		-		-			-		-		(5	)		1,520			86,926		88,441
Balance<br> as of June 30, 2023		423,868		40,279		(121,258	)		432,779		168,636		(16,272	)		-			355,544		1,283,576

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of cash flows

For the three and six-month period ended June 30, 2023 and June 30, 2022

			For<br> the three-month period <br>ended June 30						For<br> the six-month period <br>ended June 30
	Note		2023			2022			2023			2022
			S/(000)			S/(000)			S/(000)			S/(000)
Operating<br> activities
Profit<br> before income tax				59,848			69,994			123,059			134,716
Non-cash<br> adjustments to reconcile profit before income tax to net cash flows (used in) provided by operating activities
Depreciation<br> and amortization				33,963			34,639			67,906			68,530
Finance<br> costs				24,156			23,813			49,877			46,608
Long-term<br> incentive plan		13		1,855			1,902			3,923			3,804
Estimate<br> expected credit loss		4		231			396			1,515			1,893
Unrealized<br> exchange difference related to monetary transactions				32			(3,477	)		180			4,222
(Gain)<br> loss on settlement of trading derivative financial instruments				-			(45	)		(19	)		64
Net<br> gain on disposal of property, plant and equipment		6		(276	)		(231	)		(387	)		(407	)
Finance<br> income				(836	)		(1,012	)		(2,191	)		(1,570	)
Other<br> operating, net				1,142			1,628			1,838			1,049
Working<br> capital adjustments
Decrease<br> in trade and other receivables				8,444			17,103			7,267			8,929
(Increase)<br> in prepayments				(691	)		(13,032	)		(5,363	)		(14,739	)
(Increase)<br> in inventories				(333	)		(83,724	)		(46,145	)		(116,492	)
(Decrease)<br> increase in trade and other payables				9,568			9,217			(55,594	)		14,636
				137,103			57,171			145,866			151,243
Interests<br> received				691			778			2,061			1,288
Interests<br> paid				(9,852	)		(2,711	)		(46,126	)		(37,314	)
Income<br> tax paid				(20,773	)		(18,235	)		(53,726	)		(51,100	)
Net<br> cash flows provided by operating activities				107,169			37,003			48,075			64,117

Interim condensed consolidated unaudited statements of cash flows (continued)

	Note		For<br> the three-month period <br>ended June 30,						For<br> the six-month period <br>ended June 30,
	Note		2023			2022			2023			2022
			S/(000)			S/(000)			S/(000)			S/(000)
Investing<br> activities
Opening<br> of term deposits with original maturity greater than 90 days		3		(10,000	)		-			(10,000	)		-
Purchase<br> of property, plant and equipment				(73,134	)		(26,252	)		(148,713	)		(38,916	)
Purchase<br> of intangibles assets				(3,336	)		(2,939	)		(7,363	)		(5,152	)
Loans<br> to third parties				(130	)		-			(500	)		(141	)
Collection<br> of loan to third parties				150			149			150			149
Proceeds<br> from sale of property, plant and equipment				355			678			685			1,121
Net<br> cash flows used in investing activities				(86,095	)		(28,364	)		(165,741	)		(42,939	)
Financing<br> activities
Paid<br> bank loans		9		-			-			(507,338	)		(159,000	)
Bank<br> overdraft paid				-			-			(85,333	)		-
Payment<br> of hedge finance cost				-			-			(7,708	)		(7,682	)
Payment<br> of lease liabilities		7		(761	)		(733	)		(1,387	)		(1,193	)
Dividends<br> paid				(184	)		(313	)		(456	)		(639	)
Loan<br> received		9		-			-			525,000			159,000
Proceeds<br> from sale of derivative financial instruments				-			-			93,323			-
Bank<br> overdraft				-						85,333
Dividends<br> returned				290			-			299			170
Net<br> cash flows (used in) provided by financing activities				(655	)		(1,046	)		101,733			(9,344	)
Net<br> (decrease) increase in cash and cash equivalents				20,419			7,593			(15,933	)		11,834
Net<br> foreign exchange difference				(32	)		5,799			(180	)		(7,246	)
Cash<br> and cash equivalents at the beginning of the period				45,273			264,598			81,773			273,402
Cash<br> and cash equivalents at the end of the period		3		65,660			277,990			65,660			277,990
Transactions<br> with no effect in cash flows:
---	---	---	---	---	---	---	---
Unrealized<br> exchange difference related to monetary transactions		32	(3,477	)	180		4,222
Outstanding<br> accounts payable related to acquisition of property, plant and equipment as of June 30	6	379	6,027		(11,036	)	6,027
Recognition<br> of right-of-use assets and lease liabilities during the period	7	4,829	305		4,829		305

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements

Cementos Pacasmayo S.A.A. and Subsidiaries

Notesto interim condensed consolidated unaudited financial statements (unaudited)

As of June 30, 2023 and 2022, and December 31, 2022

1.	Economic activity
(a)	Economic<br> activity -
---	---

Cementos Pacasmayo S.A.A. (hereinafter “the Company”) was incorporated in 1957 and, in accordance with the Law of Peruvian Companies, is an open stock corporation, its shares are listed in the Lima and New York Stock Exchange. The Company is a subsidiary of Inversiones ASPI S.A., which holds 50.01 percent of the Company’s common shares as of June 30, 2023, December 31, 2022 and June 30, 2022.

The address registered by the Company is Calle La Colonia No.150, Urbanización El Vivero, Santiago de Surco, Lima, Peru.

The main activity of the Company is the production and commercialization of cement, precast, concrete and quicklime in the northern region of Peru.

The interim condensed consolidated unaudited financial statements of the Company and its subsidiaries (hereinafter the “Group”) as of June 30, 2023 and for the six-month period then ended, were approved for issuance by the Company’s Management on July 20, 2023. The consolidated audited financial statements as of December 31, 2022 have been approved by the General Meeting of Shareholders, on March 24, 2023.

2.	Basis of preparation<br> and changes to the Group’s accounting policies
2.1	Basis of<br> preparation -
---	---

The interim condensed consolidated unaudited financial statements of the Group have been prepared in accordance with IAS 34 Interim FinancialReporting as issued by the International Accounting Standards Board (IASB) and have been prepared on a historical cost basis, except for financial instruments designated at fair value through other comprehensive income (OCI) and derivatives financial instruments that have been measured at fair value. The interim condensed consolidated unaudited financial statements are presented in soles and all values are rounded to the nearest thousand (S/000), except when otherwise indicated. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Management consider that there are no material uncertainties that may cast doubt significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.

The interim condensed consolidated unaudited financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with Group’s annual consolidated financial statements as of December 31, 2022.

Notesto interim condensed consolidated unaudited financial statements (continued)

New standards, interpretations and amendments

The accounting policies adopted in the preparation of the interim condensed consolidated unaudited financial statements are consistent with the policies considered in the preparation of the consolidated financial statements of the Group at December 31, 2022, except for the adoption of new standards effective as of 1 January 2022. The standards and interpretations relevant to the Group, that are effective since January 1, 2023 are disclosed below.

Definitionof Accounting Estimates - Amendments to IAS 8

The amendments to IAS 8 clarify the distinction between changes in accounting estimates, and changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Group’s interim condensed consolidated unaudited financial statements.

Disclosureof Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2

The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ’significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments had no impact on the Group’s interim condensed consolidated unaudited financial statements but are expected to affect the accounting policy disclosures in the Group’s annual consolidated financial statements.

DeferredTax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

The amendments to IAS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities. The amendments had no impact on the Group’s interim condensed consolidated financial statements.

Notesto interim condensed consolidated unaudited financial statements (continued)

2.2	Basis of<br> consolidation -
The interim condensed consolidated unaudited financial statements comprise the financial statements<br> of the Company and its subsidiaries as of June 30, 2023 (unaudited) and December 31,2022 and for the six-month period ended June 30,<br> 2023 and 2022 (unaudited).
---

For the six-month period ended June 30, 2023, there was no changes in the participation of the common shares that the Company’s had on its subsidiaries; the main activities and information about subsidiaries are revealed on the consolidated financial statements as of December 31, 2022.

2.3	Seasonality<br> of operations - Seasonality is not relevant to the Group’s activities.

3.	Cash and cash<br> equivalents
(a)	This caption<br> consists of the following:
---	---
	As<br> of <br>June 30,<br><br> 2023		As<br> of <br>December 31, <br>2022
---	---	---	---	---
		S/(000)		S/(000)
Cash on hand		167		161
Cash at banks (b)		34,493		39,112
Term deposits with original<br> maturities of ninety days or less (c)		31,000		42,500
Cash balances included in statements of cash<br> flows		65,660		81,773
Term deposits with original<br> maturities greater than ninety days (c)		10,000		-
		75,660		81,773
(b)	Cash at<br> banks is denominated in local and foreign currencies, is deposited in domestic and foreign<br> banks and is freely available. The cash at banks interest yield is based on daily bank deposit<br> rates.
---	---
(c)	As of June<br> 30, 2023, the short-term deposits held in domestic banks and are comprised of S/31,000,000,<br> with annual interest of term deposits and original maturity of ninety days or less.
---	---

As of June 30, 2023, long-term deposits with original maturities greater than ninety days comprehend S/10,000,000 with an annual interest rates between 7.80 percent and 7.92 percent, and original maturity of 95 to 123 days.

4.	Trade and other<br> receivables

As of June 30, 2023 and December 31, 2022 this caption mainly includes trade receivables, value-added tax credit (VAT), interest receivables and accounts receivables from related parties. At those dates, approximately 57% and 63% of the trade receivables were guaranteed by bank guarantees and mortgages amounting to S/47,109,000 and S/49,162,000, respectively.

Notesto interim condensed consolidated unaudited financial statements (continued)

On March 22, 2021, the Company received Tax Court Resolution N° 00905-4-21 that declares the calculation of Mining Royalty should be based on gross sale of the final product (cement) for the years 2008 and 2009. This is an opposite position to what is established by the Constitutional Court in the STC Exp. N° 1043-2013-PA/TC that declares founded the writ of protection presented by the Company and its right to calculate the Mining Royalty exclusively based on the value of the mining component, without considering in any way the value of the final products derived from industrial and manufacturing processes.

The Company has made, under protest, partial payments of the debts arbitrarily placed in collection. These payments as of June 30, 2023 and December 31, 2022 amounts to approximately S/29,559,000, and are presented in the caption “Trade and other receivables”, non-current assets. To date, the Company has already initiated the corresponding legal actions to recover said payments and in the opinion of Management and its external legal advisors, it has a high probability of obtaining a favorable result.

For the six-month period ended June 30, 2023 and 2022, the Group recorded S/1,515,000 and S/1,893,000, respectively, related to the provision for expected credit losses for trade receivables, which are presented in the caption “Salling and distribution expenses” of the interim condensed consolidated unaudited statement profit or loss and; corresponds to the best estimate of Management considering the current situation. The Group’s Management will continue evaluating the conditions of its client portfolio and, if deemed necessary, the corresponding provisions will be made.

The movement of the allowance for expected credit losses on trade and others receivable for the six-month period ended as of June 30, 2023 and 2022 is as follows:

	2023			2022
	S/(000)			S/(000)
Opening balance		16,467			14,573
Additions		1,515			1,893
Recoveries and others		(32	)		(47	)
Ending balance		17,950			16,419
5.	Inventories
---	---

As of June 30, 2023 and December 31, 2022 includes goods and finished products, work in progress, raw materials and other supplies to be used in the production process.

6.	Property, plant<br> and equipment, net

During the three- and six-month periods ended June 30, 2023 the Group’s additions amounted approximately to S/72,755,000 and S/145,189,000 (S/26,295,000 and S/37,328,000 during the three- and six-month periods ended June 30, 2022, respectively).

Assets with a net book value of S/193,000 were sold during the six-month period ended June 30, 2023 (S/533,000 for the six-month period ended June 30, 2022), resulting in a net gain on disposal of S/387,000 (S/407,000 for the six-month period ended June 30, 2022).

As of June 30, 2023 the Group maintains accounts payable related to the acquisition of property, plant and equipment for S/11,036,000 (S/14,560,000 as of December 31, 2022).

Notesto interim condensed consolidated unaudited financial statements (continued)

7.	Leases

The Group has lease contracts with third parties, mainly 4 to 5-year lease contracts of front loaders and trucks.

The annual incremental interest rate used for the initial recognition of the right-of-use asset and the lease liability ranges between 5.2 and 6.2 percent.

The Group also leases certain minor equipment for less than 12 months, the Group has decided to apply the recognition exemption for short term leases (less than 12 months) and for leases of low value assets. The expense for this type of lease amounted to S/1,074 ,000 for the six-month period ended June 30, 2023 (S/656,000 for the six-month period ended June 30, 2022) and was recognized in the “Administrative expenses” caption of the interim condensed consolidated unaudited statement of profit or loss.

The movement of the right of use assets recognized by the Group is shown below:

	Transportation<br> units			Machinery<br> and equipment		Other		Total
	S/(000)			S/(000)		S/(000)		S/(000)
Cost -
Balance as of January 1, 2022		7,721			-		-		7,721
Additions		305			-		-		305
Balance as of June<br> 30, 2022		8,026			-		-		8,026
Balance as of January 1, 2023		8,029			-		307		8,336
Additions		136			4,693		-		4,829
Sales and/or retirement		(344	)		-		-		(344	)
Balance as of June<br> 30, 2023		7,821			4,693		307		12,821
Accumulated depreciation<br> -
Balance as of January 1, 2022		3,053			-		-		3,053
Additions		809			-		-		809
Balance as of June<br> 30, 2022		3,862			-		-		3,862
Balance as of January 1, 2023		4,672			-		25		4,697
Additions		769			334		51		1,154
Sales and/or retirement		(229	)		-		-		(229	)
Balance as of June<br> 30, 2023		5,212			334		76		5,622
Net book value
As of December 31, 2022		3,357			-		282		3,639
As of June 30, 2023		2,609			4,359		231		7,199

Notesto interim condensed consolidated unaudited financial statements (continued)

The movement of the lease liabilities recognized by the Group is shown below:

	2023			2022
	S/(000)			S/(000)
Balance as of January, 1		4,355			5,829
Additions		4,829			305
Disposals		(147	)		-
Financial interest expense		191			148
Lease payments		(1,387	)		(1,193	)
Others		(204	)		(111	)
Balance as of June 30		7,637			4,978
Maturity
Current portion		3,052			1,860
Non-current portion		4,585			3,118
Balance as of June 30		7,637			4,978
Net book value
---	---
As of December<br> 31, 2022	4,355
As of June 30, 2023	7,637

The future cash disbursements in relation to lease liabilities have been disclosed in note 9.

8.	Trade and other<br> payables

As of June 30, 2023 and December 31, 2022, this caption includes trade payables, account payables to related parties, interest payable, dividends payable among other minor payables.

As of June 30, 2023 dividends payable amounted to S/9,607,000 (S/ 9,764,000 as of December 31, 2022).

9.	Financial Obligations
(a)	Corporate<br> bonds
---	---

On January 31, 2019, corporate bonds were issued in soles for S/260,000,000 at a rate of 6.688 percent per year and maturity of 10 years and; 15-year bonds for S/310,000,000 at a rate of 6.844 percent per year. As of December 31, 2022 the corporate bonds issued in US Dollars amounts to US$131,612,000 with an annual rate of 4.5 percent and theses have been paid with the corporate loan indicated in section (d) in February 2023.

For the six-month period ended June 30, 2023 and 2022, the corporate bonds generated interests that have been recognized in the interim condensed consolidated unaudited financial statement of profit or loss for S/19,575,000 and S/30,253,000, respectively.

Notesto interim condensed consolidated unaudited financial statements (continued)

(b)	Short-term<br> promissory notes

As of June 30, 2023, and December 31, 2022, the Company maintains two loans of S/38,000,000 each with maturity in December 2023 and at an effective annual interest rate of 8.93 percent. In addition, the Company acquired two promissory notes in January 2023 for S/38,000,000 each, with a maturity in January 2024 and an effective annual interest rate of 9.78 percent and 9.44 percent, respectively. In March 2023, the Company acquired two promissory notes of S/19,000,000 each, with maturity in March 2024 and an effective annual interest rate of 8.83 percent.

(c)	Financial<br> covenants –

The contracts for corporate bonds issued in soles have the following covenants to limit incurring indebtedness for the Company and its guarantor subsidiaries, which are measured prior to the following transactions: issuance of debt or equity instruments, merger with another company or disposal or rental of significant assets. The covenants are the following:

-	The<br> debt service coverage ratio (includes amortization plus interest) must be at least 2.5 to<br> 1.
-	The<br> financial debt to Ebitda ratio may not be greater than 3.5 to 1.
---	---
(d)	Medium-term<br> Corporate Loan under “Club deal” modality -
---	---

On August 6, 2021, the Company established the conditions of a medium-term corporate loan under “Club Deal” modality with Banco de Crédito del Perú S.A. and Scotiabank Perú S.A.A. The loan amounts to S/860,000,000 that allowed the payment of all the financial obligations that the Company maintained with maturity until February 2023. The loan conditions include a grace/availability period of 18 months from August 6 and a payment term of 7 years from the last disbursement, which was in February 2023. Since that date, the loan will be paid in 22 equal quarterly installments and has an annual interest rate of 5.82 percent.

As part of the loan conditions, the Company would assume the following obligations:

I.	Comply<br> with the following financial safeguards:
(a)	Debt Ratio<br> (Financial Debt / EBITDA) <= 3.50x
---	---
(b)	Debt Service<br> Coverage Ratio (FCSD / SD) >= 1.15x
---	---
(c)	Debt Service<br> Coverage Ratio (EBITDA / SD) >= 1.50x
---	---

These financial safeguards will be calculated and verified at the end of each calendar quarter, considering the information of consolidated financial statements of the Company for the last 12 months, prepared in accordance with International Financial Reporting Standards - IFRS.

Notesto interim condensed consolidated unaudited financial statements (continued)

II.	It<br> maintains the following main obligations to do:
(a)	Subordinate<br> any obligation the Company had or may have to this loan.
---	---
(b)	Maintain<br> the loan with a status equal to other senior financing of the Company.
---	---
(c)	Keep your<br> assets in good condition and properly insured.
---	---
(d)	Maintain<br> all licenses, authorizations, concessions, permits, titles and rights required by government<br> authorities.
---	---
III.	It<br> maintains the following obligations not to do:
---	---
(a)	Refrain<br> from paying dividends, reducing capital stock or any other distribution to its shareholders<br> if this event make the Company not comply with the obligations assumed.
---	---
(b)	That the<br> Company and its subsidiaries participate in processes of liquidation, transformation, corporate<br> reorganization, acquisition of companies, merger or spin-off.
---	---
(c)	Transfer,<br> sell, alienate, donate or give in usufruct, lease, give in fiduciary domain, encumber their<br> assets, income flows and / or collection rights.
---	---
(d)	Grant financing,<br> personal or real guarantees in favor of third parties.
---	---

As of June 30, 2023, the Company complies with the ratios contained in the loan conditions.

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

	Less<br> than 3 months		3<br> to 12 months		1<br> to 5 <br> years		More<br> than 5 years		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
As of June 30, 2023
Financial<br> obligations		39,092		307,272		625,452		648,184		1,620,000
Interests		31,825		62,867		249,264		98,811		442,767
Trade<br> and other payables		134,470		89,298		-		-		223,768
Lease<br> liabilities		733		2,319		4,585		-		7,637
As<br> of December 31, 2022
Financial<br> obligations		414,290		116,818		326,544		651,638		1,509,290
Interests		36,222		45,282		213,427		119,201		414,132
Trade<br> and other payables		231,698		41,510		-		-		273,208
Hedge<br> finance cost payable		7,473		-		-		-		7,473
Lease<br> liabilities		502		1,503		2,350		-		4,355

Notesto interim condensed consolidated unaudited financial statements (continued)

10.	Provisions

As of June 30, 2023 and December 31, 2022, this caption includes workers’ profit sharing, provision for contingencies, long-term incentive plan and rehabilitation provision.

11.	Income tax

The Group calculates income tax expense of the period using the tax rate that would be applicable to the expected total annual earnings.

The major components of the income tax expense in the interim condensed consolidated unaudited statement of profit or loss and interim condensed consolidated unaudited statement of other comprehensive income are:

	For<br> the three-month period <br> ended June 30,						For<br> the six-month period <br> ended June 30,
	2023			2022			2023			2022
	S/(000)			S/(000)			S/(000)			S/(000)
Current<br> income tax		(18,702	)		(24,247	)		(48,635	)		(44,583	)
Deferred<br> income tax		2,288			2,232			12,502			3,571
Income<br> tax expense		(16,414	)		(22,015	)		(36,133	)		(41,012	)
Deferred<br> Income tax recognized in other comprehensive income		-			488			(634	)		(116	)
Total<br> income tax		(16,414	)		(21,527	)		(36,767	)		(41,128	)

The movement of the Group’s deferred income tax assets and liabilities is shown below:

	For<br> the three-month period <br> ended June 30,				For<br> the six-month period <br> ended June 30,
	2023		2022		2023			2022
	S/(000)		S/(000)		S/(000)			S/(000)
Increase<br> of deferred income tax asset		1,715		927		1,868			718
Increase<br> of deferred income tax liability		573		1,793		10,000			2,737
Total<br> variation of deferred income tax		2,288		2,720		11,868			3,455
Deferred<br> income tax expense recognized in interim condensed consolidated unaudited statement of profit or loss		2,288		2,232		12,502			3,571
Deferred<br> income tax recognized in other comprehensive income		-		488		(634	)		(116	)
Total<br> variation of deferred income tax		2,288		2,720		11,868			3,455

Notesto interim condensed consolidated unaudited financial statements (continued)

Following is the composition of deferred tax related to items recognized in interim condensed consolidated unaudited statements of other comprehensive income:

	For<br> the three-month period<br> ended June 30,				For<br> the six-month period<br> ended June 30,
	2023		2022		2023			2022
	S/(000)		S/(000)		S/(000)			S/(000)
Loss<br> (gain) unrealized on derivative financial instruments		-		488		(634	)		(116	)
Total<br> deferred income tax recognized in OCI		-		488		(634	)		(116	)
12.	Sales of goods
---	---

This caption is made up as follows:

	Cement,<br> concrete, mortar and precast		Quicklime		Construction<br> Supplies		Other		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
For the three-month period ended June 30,<br> 2023
Revenue<br> from external customers		420,645		5,244		16,128		22		442,039
Revenue<br> from external customers		420,645		5,244		16,128		22		442,039
For the six-month period ended June 30, 2023
Revenue from external<br> customers		867,755		16,297		37,949		33		922,034
Revenue<br> from external customers		867,755		16,297		37,949		33		922,034
For the three-month period ended June 30,<br> 2022
Revenue from external<br> customers		469,399		7,448		26,039		-		502,886
Revenue<br> from external customers		469,399		7,448		26,039		-		502,886
For the six-month period ended June 30, 2022
Revenue from external<br> customers		947,036		21,812		59,443		4		1,028,295
Revenue<br> from external customers		947,036		21,812		59,443		4		1,028,295

Notesto interim condensed consolidated unaudited financial statements (continued)

13.	Related party<br> transactions

During the three and six-months periods ended June 30, 2023 and 2022, the Group carried out the following main transactions with Inversiones ASPI S.A. and its related parties:

	For<br> the three-month period<br> ended June 30,				For<br> the six-month period<br> ended June 30,
	2023		2022		2023		2022
	S/(000)		S/(000)		S/(000)		S/(000)
Income
Parent
Inversiones ASPI S.A.
Fees<br> from office lease		4		3		8		8
Fees<br> for management and administrative services		22		25		44		50
Other<br> related parties
Compañía<br> Minera Ares S.A.C. (Ares)
Fees<br> from land rental services		283		288		576		578
Fees<br> from leasing of parking		64		39		130		131
Fosfatos<br> del Pacífico S.A. (Fospac)
Fees<br> from office lease		4		3		8		8
Fees<br> for management and administrative services		36		12		71		22
Fossal<br> S.A.A. (Fossal)
Fees<br> from office lease		4		3		8		8
Fees<br> for management and administrative services		11		13		22		26
Asociación<br> Sumac Tarpuy
Fees<br> from office lease		4		3		8		8
Expenses
Other<br> related parties
Security<br> services provided by Compañía Minera Ares S.A.C.		660		660		1,320		1,320

Notesto interim condensed consolidated unaudited financial statements (continued)

As a result of these and other transactions, the Group had the following rights and obligations with Inversiones ASPI S.A. and its related parties as of June 30, 2023 and December 31, 2022:

	June<br> 30, 2023				December<br> 31, 2022
	Accounts<br> <br> receivable		Accounts<br> <br> payable		Accounts<br> <br> receivable		Accounts<br> <br> payable
	S/(000)		S/(000)		S/(000)		S/(000)
Parent
Inversiones<br> ASPI S.A.		35		-		-		5
		35		-		-		5
Other<br> related parties
Fosfatos<br> del Pacífico S.A.		1,315		21		1,123		461
Compañía<br> Minera Ares S.A.C.		1,106		3,187		564		2,220
Fossal<br> S.A.A.		21		-		75		-
Other		281		-		96		-
		2,723		3,208		1,858		2,681
		2,758		3,208		1,858		2,686

Outstanding balances are unsecured and interest free. There have been no guarantees provided or received from any related party. As of June 30, 2023 and December 31, 2022, the Group has not recorded any allowance for expected credit losses on receivables from related parties.

Compensationof key management personnel of the Group -

The compensation paid to key management personnel includes expenses for profit-sharing, compensation and other concepts for members of the Board of Directors and the key management. The total short-term compensation expense amounted to S/5,982,000 and S/12,109,000 during the three and six-month periods ended June 30, 2023, respectively (S/5,549,000 and S/10,938,000 during the three and six-month periods ended June 30, 2022), and the total long-term compensations expense amounted to S/1,855,000 and S/3,923,000 during the three and six-month periods ended June 30, 2023, respectively (S/1,902,000 and S/3,804,000 during the three and six-month period ended June 30, 2022, respectively). The Group does not compensate Management with post-employment or contract termination benefits or share-based payments.

14.	Earnings per<br> share (EPS)

Basic earnings per share amounts are calculated by dividing net profit for the six-month period ended June 30, 2023 and 2022 by the weighted average number of common and investment shares outstanding during those periods.

The Group has no dilutive potential common shares as of June 30, 2023 and 2022.

Notesto interim condensed consolidated unaudited financial statements (continued)

Calculation of the weighted average number of shares and the basic earnings per share is presented below:

	For<br> the three-month period <br> ended June 30,				For<br> the six-month period<br> ended June 30,
	2023		2022		2023		2022
	S/(000)		S/(000)		S/(000)		S/(000)
Numerator
Net<br> profit attributable to ordinary equity holders of the Parent		43,434		47,979		86,926		93,704
Denominator
Weighted<br> average number of common and investment shares (thousands)		428,107		428,107		428,107		428,107
Basic<br> profit for common and investment shares		0.10		0.11		0.20		0.22

There have been no other transactions involving common and investment shares between the reporting date and the date of completion of these interim condensed consolidated unaudited financial statements.

15.	Financial assets and liabilities
(a)	Financial<br> asset –
---	---

Derivatives assets of hedging -

Foreigncurrency risk –

As of December 31, 2022 the Group maintained Cross currency swap contracts for a nominal amount of US$132,000,000, with maturity in February 2023 and a rate of 2.97%. Of this total, US$131,612,000 had been designated as hedging instruments for Senior notes that are denominated in U.S. dollars, with the intention of reducing the foreign exchange risk.

The cash flow hedge of the expected future payments was assessed to be highly effective and in the interim condensed consolidated unaudited statement of other comprehensive income is included an unrealized gain of S/2,154,000 and S/391,000 for the six-month period ended June 30, 2023 and 2022.

As of June 30, 2023 the Group settled the Cross currency swap contracts on their maturity date in relation with the payment of international bonds in dollars mentioned in note 9(a).

Derivative assets from trading –

As of June 30, 2022, cross currency swaps that do not have an underlying relationship amounts to US$388,000, have been designated as trading. The effect on profit or loss from its measurement at fair value was a loss of S/64,000 for the six-month period ended June 30, 2022.

Notesto interim condensed consolidated unaudited financial statements (continued)

In February 2023, cross currency swaps from trading have been settled and obtained a gain of S/19,000 which was recognized in the interim condensed consolidated unaudited statement of profit or loss for the three-month period ended June 30, 2023 presented in “Net profit (loss) for valuation of trading derivative financial instruments” caption.

(b)	Fair values<br> and fair value accounting hierarchy –

Set out below is a comparison of the carrying amounts and fair values of financial instruments of the Group, as well as the fair value accounting hierarchy:

	Carrying<br> amount				Fair<br> value				Fair<br> value<br> hierarchy
	2023		2022		2023		2022		2023/2022
	S/(000)		S/(000)		S/(000)		S/(000)
Financial<br> assets
Cash<br> and cash equivalents		65,660		81,773		65,660		81,773	Level<br> 1
Term<br> deposits with original maturities greater than ninety days		10,000		-		10,000		-	Level<br> 1
Trade<br> and other receivables		136,148		145,034		136,148		145,034	Level<br> 2
Derivative<br> financial assets -“cross currency swaps”		-		86,893		-		86,893	Level<br> 2
Financial<br> instruments at fair value through other comprehensive income		274		274		274		274	Level<br> 3
Total<br> financial assets		212,082		313,974		212,082		313,974
Financial<br> liabilities
Trade<br> and other payables		234,958		284,554		234,958		284,554	Level<br> 2
Senior<br> notes		569,137		1,071,781		513,913		996,156	Level<br> 1
Fixed<br> rate notes		1,043,402		521,390		932,146		459,117	Level<br> 2
Total<br> financial liabilities		1,847,497		1,877,725		1,681,017		1,739,827

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Notesto interim condensed consolidated unaudited financial statements (continued)

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy. As of June 30, 2023 and December 31, 2022, there were no transfers between the fair value hierarchies.

Management assessed that cash and cash equivalents, trade and other receivables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

-	The<br> fair value of cross currency swaps is measured by using valuation techniques where inputs<br> are based on market data. The most frequently applied valuation techniques include swap valuation<br> models, using present value calculations. The models incorporate various inputs, including<br> the credit quality of counterparties, foreign exchange, forward rates and interest rate curves.

A credit valuation adjustment (CVA) is applied to the “Over-The-Counter” derivative exposures to take into account the counterparty’s risk of default when measuring the fair value of the derivative. CVA is the mark-to market cost of protection required to hedge credit risk from counterparties in this type of derivatives portfolio. CVA is calculated by multiplying the probability of default (PD), the loss given default (LGD) and the expected exposure (EE) at the time of default.

A debit valuation adjustment (DVA) is applied to incorporate the Group’s own credit risk in the fair value of derivatives (that is the risk that the Group might default on its contractual obligations), using the same methodology as for CVA.

-	The<br> fair value of the quoted senior notes is based on the current quotations value at the reporting<br> date.
-	The<br> fair value of the promissory note is calculated using the results of cash flow discounted<br> at the indebtedness market rates effective as of the date of estimation.
---	---

-	The<br> fair value of financial instruments designated at fair value through other comprehensive<br> income has been determined using the percentage of shareholding of the Company on the equity<br> of Fossal S.A. A.

Notesto interim condensed consolidated unaudited financial statements (continued)

16.	Commitments<br> and contingencies

Operating lease commitments – Group as lessor

As of June 30, 2023, the Group, as lessor, has a land lease with Compañía Minera Ares S.A.C., a related party of Inversiones ASPI S.A. This lease is annually renewable, and provided a rent for the six-month period ended June 30, 2023 and 2022 for S/576,000 and S/578,000, respectively.

Consortium contract –

On December 19, 2022, Distribuidora Norte Pacasmayo S.R.L., subsidiary of the Group, has subscribed a collaboration contract with a third party, with the purpose to participate together in the project “Mejoramiento del Sistema de Pistas y Cerco Perimétrico del Aeropuerto de Piura”. The mentioned contract is valid for a maximum of 2 years and 11 months.

On this matter, the Company has communicated to the tax authority the subscription of the collaboration contract which will take independent accounting and Distribuidora Norte Pacasmayo S.R.L. will be the contracting party that will act as operator of the contract.

Capital commitments

As of June 30, 2023, the Group had no significant capital commitments.

Environmental matters

The Group exploration and exploitation activities are subject to environmental protection standards. Such standards are the same as those disclosed on the consolidated financial statement as of December 31, 2022.

Taxsituation

The Company is subject to Peruvian tax law. As of June 30, 2023 and 2022, the income tax rate is 29.5 percent of the taxable profit after deducting employee participation, which is calculated at a rate of 8 to 10 percent of the taxable income.

For purposes of determining income tax, transfer pricing transactions with related companies and companies resident in territories with low or no taxation, must be supported with documentation and information on the valuation methods used and the criteria considered for determination. Based on the analysis of operations of the Group, Management and its legal advisors believe that as a result of the application of these standards will not result in significant contingencies for the Group as of June 30, 2023 and December 31, 2022.

During the four years following the year tax returns are filed, the tax authority has the power to review and, as applicable, correct the income tax computed by each individual company.

Notesto interim condensed consolidated unaudited financial statements (continued)

The income tax and value-added tax returns for the following years are open for review by the tax authority

	Years<br> open to review by Tax Authorities
Entity	Income<br> tax	Value-added<br> tax
Cementos<br> Pacasmayo S.A.A.	2018-2022	Dec.2018-2023
Cementos<br> Selva S.A.	2018-2022	Dec.2018-2023
Distribuidora<br> Norte Pacasmayo S.R.L.	2018-2022	Dec.2018-2023
Empresa<br> de Transmisión Guadalupe S.A.C.	2018-2022	Dec.2018-2023
Salmueras<br> Sudamericanas S.A.	2018-2022	Dec.2018-2023
Soluciones<br> Takay S.A.C.	2019-2022	May<br> to Dec.2019-2023

Due to possible interpretations that the tax authorities may give to legislation in effect, it is not possible to determine whether any of the tax audits that may be performed will result in increased liabilities for the Group. For that reason, tax or surcharge that could arise from future tax audits would be applied to the income during the period in which it is determined. However, in management’s opinion, any possible additional payment of taxes would not have a material effect on the interim condensed consolidated unaudited financial statements as of June 30, 2023 and the consolidated financial statements as of December 31, 2022.

Legal claim contingency

As of June 30, 2023, the Group has received claims from third parties in relation with its operations which in aggregate represent S/2,111,000 that corresponded to labor claims from former employees.

Management expects that these claims will be resolved within the next five years based on prior experience; however, the Group cannot assure that these claims will be resolved within this period because the authorities do not have a maximum term to resolve cases.

The Group has been advised by its legal counsel that it is only possible, but not probable, that these actions will succeed. Accordingly, no provision for any liability has been made in these interim condensed consolidated unaudited financial statements.

Mining royalty

The Group signed agreements with third parties and with Peruvian Government related to the use of concessions for extraction activities on process of cement production. The information of the payment of royalties are reveled on the consolidated audited financial statements of the Group as of December 31, 2022.

Notes to interim condensed consolidatedunaudited financial statements (continued)

17.	Segment information

For management purposes, the Group is organized into business units based on their products and activities, and have three reportable segments as follows:

-	Production<br> and marketing of cement, concrete, mortar and precast in the northern region of Peru.
-	Sale of construction<br> supplies in the northern region of Peru.
---	---
-	Production<br> and marketing of quicklime in the northern region of Peru.
---	---

No operating segments have been aggregated to form the above reportable operating segments.

Management monitors the profit before income tax of each business units separately for the purpose of making decisions about resource allocation and performance assessment.

Transfer prices between operating segments are on an arm’s length basis in a similar manner to transactions with third parties.

	For<br> the three-month period ended June 30, 2023															For<br> the three-month period ended June 30, 2022
	Cement,<br> concrete, mortar and precast			Construction<br> supplies			Quicklime			Other			Total<br> consolidated			Cement,<br> concrete, mortar and precast			Construction<br> supplies			Quicklime			Other			Total<br> consolidated
	S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)
Sales<br> of goods		420,645			16,128			5,244			22			442,039			469,399			26,039			7,448			-			502,886
Gross<br> profit		152,651			(113	)		238			(198	)		152,578			159,755			112			(1,507	)		(278	)		158,082
Administrative<br> expenses		(57,196	)		(703	)		(317	)		(111	)		(58,327	)		(53,796	)		(661	)		(299	)		(105	)		(54,861	)
Selling<br> and distribution expenses		(15,369	)		(189	)		(86	)		(30	)		(15,674	)		(16,694	)		(205	)		(93	)		(33	)		(17,025	)
Other<br> operating income (expense), net		71			-			-			2			73			(327	)		(3	)		-			19			(311	)
Finance<br> income		819			(1	)		-			18			836			1,000			5			-			7			1,012
Finance<br> cost		(24,156	)		-			-			-			(24,156	)		(23,811	)		(2	)		-			-			(23,813	)
Net<br> profit gain on derivative financial instruments		-			-			-			-			-			45			-			-			-			45
Gain<br> (loss) from exchange difference, net		4,494			(1	)		34			(9	)		4,518			6,795			9			68			(7	)		6,865
Profit<br> (loss) before income tax		61,314			(1,007	)		(131	)		(328	)		59,848			72,967			(745	)		(1,831	)		(397	)		69,994
Income<br> tax expense		(16,846	)		282			60			90			(16,414	)		(22,900	)		210			551			124			(22,015	)
Profit<br> (loss) for the year		44,468			(725	)		(71	)		(238	)		43,434			50,067			(535	)		(1,280	)		(273	)		47,979

Notesto interim condensed consolidated unaudited financial statements (continued)

	For<br> the six-month period ended June 30, 2023															For<br> the six-month period ended June 30, 2022
	Cement,<br> concrete, mortar and precast			Construction<br> supplies			Quicklime			Other			Total<br> consolidated			Cement,<br> concrete, mortar and precast			Construction<br> supplies			Quicklime			Other			Total<br> consolidated
	S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)
Sales<br> of goods		867,755			37,949			16,297			33			922,034			947,036			59,443			21,812			4			1,028,295
Gross<br> profit		311,770			16			1,808			(421	)		313,173			321,474			2,403			(484	)		(346	)		323,047
Administrative<br> expenses		(113,805	)		(1,398	)		(631	)		(222	)		(116,056	)		(106,150	)		(1,304	)		(589	)		(207	)		(108,250	)
Selling<br> and distribution expenses		(32,563	)		(400	)		(181	)		(64	)		(33,208	)		(33,335	)		(409	)		(185	)		(66	)		(33,995	)
Other<br> operating income (expense), net		1,474			(1	)		-			3			1,476			(1,367	)		17			-			15			(1,335	)
Finance<br> income		2,156			-			-			35			2,191			1,541			16			-			13			1,570
Finance<br> cost		(49,876	)		-			-			(1	)		(49,877	)		(46,604	)		(3	)		-			(1	)		(46,608	)
Net<br> profit (loss) gain on (settlement of) derivative financial instruments		19			-			-			-			19			(64	)		-			-			-			(64	)
Gain<br> (loss) from exchange difference, net		5,309			(1	)		46			(13	)		5,341			349			11			-			(9	)		351
Profit<br> (loss) before income tax		124,484			(1,784	)		1,042			(683	)		123,059			135,844			731			(1,258	)		(601	)		134,716
Income<br> tax expense		(36,552	)		524			(306	)		201			(36,133	)		(41,355	)		(223	)		383			183			(41,012	)
Profit<br> (loss) for the year		87,932			(1,260	)		736			(482	)		86,926			94,489			508			(875	)		(418	)		93,704
	As<br> of June 30, 2023										As<br> of December 31, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Cement,<br> concrete and precast		Construction<br> supplies		Quicklime		Other		Consolidated		Cement,<br> concrete and precast		Construction<br> supplies		Quicklime		Other		Consolidated
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
Segment<br> assets		3,211,381		39,787		65,524		31,522		3,348,214		3,086,104		38,353		70,327		32,210		3,226,994
Other<br> assets (*)		-		-		-		274		274		86,630		-		-		537		87,167
Total<br> assets		3,211,381		39,787		65,524		31,796		3,348,488		3,172,734		38,353		70,327		32,747		3,314,161
Operating<br> liabilities		2,000,794		63,711		-		407		2,064,912		2,041,923		76,780		-		323		2,119,026
Capital<br> expenditure (**)		157,381		-		-		-		157,381		190,126		-		-		-		190,126
(*)	As of June 30, 2023, corresponds to the<br> financial instruments designated at fair value through other comprehensive income for S/274,000. As<br> of December 31, 2022, corresponds to the financial instruments designated at fair value through other<br> comprehensive income and to the fair value of derivative financial instruments (cross currency swap)<br> for approximately S/274,000 and S/86,893,000, respectively. The fair value of hedge derivative financial<br> instruments is allocated to the segment of cement, and the financial instruments designated at fair<br> value through other comprehensive income and the fair value of the trading derivative financial instrument<br> are presented as “Other”.
---	---
(**)	The capital expenditures amount to S/162,015,000<br> and S/190,126,000 as of June 30, 2023 and December 31, 2022, respectively corresponds to purchases<br> of property, plant and equipments, intangible assets and other minor non.current assets.
---	---

Notesto interim condensed consolidated unaudited financial statements (continued)

Geographic information

As of June 30, 2023 and December 31, 2022, all non-current assets are located in Peru and all revenues are from Peruvian clients.

18.	Financial risk<br> management, objectives and policies

The Group´s main financial assets include cash and short-term deposits (with maturity less than 360 days) and trade and other receivables that derive directly from its operations. The Group also holds financial instruments designated at fair value through OCI, cash flow hedges instruments and derivative financial instruments of trading. The Group’s main financial liabilities comprise trade payables and other payables, loans and borrowings, with short-term and long-term maturities. The main purpose of these financial liabilities is to finance the Group’s operations.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. The Group’s senior management is supported by financial management that advises on financial risks and the appropriate financial risk governance framework for the Group. The financial management provides assurance to the Group’s senior management that the Group’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group´s policies and risk objectives.

The Management reviews and agrees policies for managing each of these risks as mentioned in the consolidated financial statements as of December 31, 2022.

Foreigncurrency risk -

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange relates primarily to the Group’s operating activities (when revenue or expense is denominated in a different currency from the Group’s functional currency).

As of December 31, 2022 the Group hedged its exposure to fluctuations on the translation into soles of its Senior Notes which are denominated in US dollars, by using cross currency swaps contracts, see note 15.

Notesto interim condensed consolidated unaudited financial statements (continued)

Foreigncurrency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate, with all other variables held constant. The impact on the Group’s profit before income tax is due to changes in the fair value of monetary assets and liabilities.

For the six-month period ended June 30, 2023	Change<br> in<br> US rate	Effect<br> on<br><br> consolidated profit<br><br> before income tax
U.S. Dollar	%	S/(000)
			1,176
			2,353
			(1,176	)
			(2,353	)

All values are in US Dollars.

Fort he six-month period ended June 30, 2022	Change<br> in US rate	Effect<br> on <br>consolidated profit <br>before income tax
U.S. Dollar	%	S/(000)
			9,142
			18,285
			(9,142	)
			(18,285	)

All values are in US Dollars.

Liquidityrisk -

The Group monitors its risk of shortage of funds using a recurring liquidity planning tool.

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and debentures of long term. The Group generates positive cash flows by operating activities and has sources of financing sufficiently available according to its good credit record. Debt maturing within 12 months can be rolled over under the same conditions with existing lenders, if necessary.

Riskmanagement activities –

As a result of its activities, the Group is exposed to the foreign currency exchange rate risk, thereof the Company has acquired hedging financial instruments to cover this risk. Since November 2014, the Group has hedged its exposure to foreign currency from its corporate bonds (denominated in US dollars). During the six-month period ended June 30, 2023 and 2022, there was moderate volatility in the US dollar exchange rate with respect to the soles, whose effects were partially mitigated by the exchange rate hedge maintained by the Company.

As of June 30, 2023 and December 31, 2022, except for the derivatives financial instruments (cross currency swaps) signed by the Company to hedge the foreign currency risk of its Senior Notes, the Group had no other financial instruments to hedge its foreign exchange risk, interest rates or market price (purchase price of coal) fluctuations.

As of June 30, 2023 derivatives financial instruments (cross currency swaps) were fully settled in relation with the payment of international bonds in dollars.