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/