China Shanshui Cement Group Limited has released its results for the year ended 31 December 2013.
2013 financial highlights
- Revenue increased by 2.3% y/y from RMB16,161 million in 2012 to RMB16,535 million in 2013.
- Profit from operations decreased to RMB2,557 million, compared to RMB3,099 million in 2012.
- Net profit totalled RMB1,075 million, falling from RMB1,604 million in 2012.
- Net profit attributable to equity shareholders of the company amounted to approximately RMB1,017 million, a decrease of 33% y/y compared to RMB1,518 million 2012.
- Earnings per share fell to RMB0.54 in 2013, representing a decrease of 33.3% y/y from RMB0.54 in 2012.
- Total assets improved from RMB28,033 million in 2012 to RMB32,236 million in 2013.
- Total liabilities increased to RMB22,27 million in 2013, against RMB18,637 million in 2012.
- Sales volume of cement amounted to 53.42 million t in 2013, representing an 11.7% y/y growth from 47.834 million t in 2012.
- Sales volume of clinker increased by 2% y/y to 9.22 million t from 9.024 million t in 2012.
- Sales volume of concrete improved by 72.4% y/y to 2.86 million m3, compared to 1.661 million m3 recorded in 2012.
Production facilities and capacity
The company’s production facilities are mainly located in Shandong Province, Liaoning Province, the eastern part of Inner Mongolia, Shanxi Province and the Kashi region in Xinjiang Province.
As of 31 December 2013, the company had a total cement production capacity of 94.2 million t and a clinker production capacity of 45.35 million t. The total capacity of cement and clinker in the Shandong region reached 57 million t and 26.21 million t, respectively, while the total capacity of cement and clinker in the Northeast region reached 26.7 million t and 10.98 million t, respectively. Cement and clinker capacity in the Shanxi region reached 7.5 million t and 6.56 million t, respectively. Cement and clinker capacity in the Xinjiang region totalled 3 million t and 1.6 million t, respectively.
Outlook for 2014
- The Central Economic Work Conference revealed that, in 2014, the Chinese government will push ahead with sweeping reform and innovation in every area of economic and social development and keep the proactive fiscal policy and prudent monetary policy unchanged.
- The company believes that there are positive elements in supply and demand for China’s cement industry in 2014. However, attention should be paid to unfavourable factors, such as overcapacity, which is not expected to improve in a short period of time. In the long-term, the introduction and implementation of a series of measures to reduce overcapacity and the rise in environmental compliance costs is expected to speed up the elimination of obsolete production capacity and promote the reorganisation and consolidation of small and medium enterprises by large enterprises in the cement industry.
- The process of new urbanisation and investment in infrastructure will be the main cement demand driver in the future.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/24032014/shanshui_cement_saw_a_2-3_percent_increase_in_revenue_in_2013_936/