Asia Cement (China) Holdings Corporation reported consolidated revenue of RMB5957.5 million for the nine months ending 30 September and profit of RMB530.6 million. The Group attributed the improved performance to an increased sales volume, higher cement selling prices and decreased coal costs.
Having sold a total of 21.31 million t of cement over the 9 months across its subsidiaries, the Group achieved a 16% growth in sales volumes and gross profit of RMB1328 million, a y/y increase of 47%.
Mr Hsu Shu-tong, Chairman of Asia Cement (China), said: “In the third quarter of 2014, the macro economy continued to remain stable, but the growth rate of fixed assets investment declined, while the property market stayed depressed. The growth rate of cement demand hit its lowest level in 10 years. All these combined with high temperature and rains posed severe challenges to demand. Faced with a transforming operating environment, the Group proactively coped with its challenges. Through further market segmentation, the Group adopted marketing strategy targeted according to different competitive situations in different markets, and strengthened control of end-user distribution channel, to increase its share in core markets.
Meanwhile, the Group steadily promoted measures to lower production and logistics costs so as to improve its overall competitiveness.”
For the remainder of the year, Mr Hsu is expecting further cement demand growth as the industry enters its traditional peak season. He said: “The Ministry of Industry and Information Technology announced that the elimination of over 82 million tonnes of obsolete production capacities will be completed before the end of the year. The figure represented an increase of over 30 million tonnes from the original target of 50.50 million tonnes, thereby improving the industry’s supply-demand relationship.”
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/10112014/asia-cement-china-performs-well-in-challenging-environment-826/