BBMG Corp, a Beijing-based building material manufacturer, aims to increase its cement output capacity to 45Mt at the end of this year and more than 50Mt by the end of 2012, said President and Executive Director Jiang Deyi.
The Hong Kong-listed firm’s cement output capacity had reached 40Mt of 30 June 2011. In the first half of this year, the company booked CNY6.14bn in cement sales, soaring 47.8% YoY and accounting for 47.2% of the total. The average cement price stood at CNY293/t, up 13.1% from a year earlier.
Chief Financial Officer Wang Hongjun said the company, which targets around CNY10bn in capital expenditure for 2011, plans to issue CNY2.3bn in medium-term notes and CNY5bn in bonds in the year. At the end of June, BBMG had CNY5.98bn in cash, and the firm’s net debt/asset ratio was 71.3%, 1.8 percentage points higher than that at the end of 2010.