Highlights from Anhui Conch Cement Company Ltd’s 2013 results

China’s Anhui Conch Cement Company Ltd has released its results for the year ending 31 December 2013.

Financial highlights

• Anhui Conch achieved revenue of RMB55.262 billion in 2013, in accordance with IFRS. This is 20.75% higher than in 2012.
• Profit from operations was up 67.37% y/y to RMB11.742 billion.
• Consolidated costs fell by RMB15.34/t y/y. The decline has been attributed to lower coal prices and reduced coal consumption.

Expansion, mergers and acquisitions

• The Group completed the construction of six clinker production lines and residual heat electricity generation units at Guiding Conch Panjiang Cement Co. Ltd and Qianxian Conch Cement Co Ltd. In addition, 21 cement grinding units at Liangping Conch Cement Co. Ltd, Bozhou Conch Cement Co. Ltd and Xiangshan Conch Cement Co. Ltd began operating in 2013.
• Construction of two aggregate projects at Anhui Tongling Conch Cement Co. Ltd and Shimen Conch Cement Co. Ltd were completed.
• The Group acquired Yunnan Yingjiang Yunhan Cement Co. Ltd and Gansu Jinde Taizishan Building and Material Co. Ltd.
• Some 77 production lines at Wuhu Conch Cement Co. Ltd and Anhui Chizhou Conch Cement Co. Ltd underwent NO_X reduction upgrades.
• The new lines and acquisitions increased the Group’s production capacity by 11.6 million tpa of clinker and 24.3 million tpa of cement.
• Outside of China, the Group is establishing PT Conch Cement Co. Ltd in South Kalimantan, Indonesia. This comprises a clinker line with a capacity of 3200 tpd. Phase 1 of the project has now been completed and equipment is currently being installed.
• Anhui Conch has also been researching projects in countries such as Vietnam and Burma.

Cement and clinker figures

• The Group ended 2013 with a clinker capacity of 195 million t and a cement production capacity of 231 million t.
• Anhui Conch’s residual heat electricity generating capacity totalled 921 MW at the close of the year.
• Some 189 million t of cement was produced during the year and 183 million t of clinker. Compared to 2012, production levels grew by 16% for clinker and 25% for cement.
• Net sales of cement and clinker reached a total of 228 million t, an increase of 21.95% y/y.
• Sales volumes were up 19.13% y/y in East China and 29.94% y/y in Central China. In South China sales volumes rose by 2.91% y/y although selling prices fell by 2.39% y/y. Sales volumes in West China were 40.17% higher than in 2012.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/asia-pacific-rim/27032014/anhui_conch_cement_2013_results_954/