Asia Cement (China) reports positive performance in sluggish market

Asia Cement (China) has reported interim revenue of RMB30006.4 million for the half year ending 30 June. Gross profit reached RMB427.7 million and the gross profit margin was 14%.

1H15 was hit by declining growth in demand and a 19% drop in selling prices. National cement output decreased by 5.9% y/y to 1077 million t. Asia Cement (China) achieved its target of full disposal of all output, selling a total of 12.95 million t of cement and clinker during 1H15. The group’s new 70 000 t capacity silo in Taizhou commenced operation in April 2015 and began exports overseas in May, helping to adjust the group’s sales portfolio. In addition, the group won tenders for a number of key projects, with a total contract volume exceeding 2 million t.  Furthermore, the group was able to improve cost efficiency, with the consolidated cost of cement falling by more than 8% y/y.

Looking ahead, the group expects to benefit from government construction projects and stimulus measures in 2H15, as well as environmental and quality standards that will lead small and medium-sized players to exit the market. In 2015, the group plans to sell a total of 31 million t of cement, clinker and slag powder, a 4% increase on 2014.

Adapted from press release by Katherine Guenioui

Read the article online at: https://www.worldcement.com/asia-pacific-rim/05082015/asia-cement-china-reports-positive-performance-in-sluggish-market-271/