China Shanshui Cement announces 2010 annual results

China Shanshui Cement announces 2010 annual results
Published: 28 March 2011

China Shanshui Cement, the largest cement enterprise in Shandong and Liaoning Provinces in China, announced its audited annual results for the 12 months ended 31 December 2010, prepared in accordance with International Financial Reporting Standards.

In 2010, the Group’s revenue grew by 35.8% year on year to RMB11,854m. Gross profit increased by 43.2% YoY to RMB2,550m. Profit attributable to equity holders of the Company achieved substantial year-on-year growth of 39.6% to RMB979m. Basic earnings per share reached RMB0.35. The Board recommended the payment of a final dividend of 14.5 HK cents per share for the year ended 31 December 2010.

Mr. Zhang Caikui, Chairman of Shanshui Cement, said, "We have adopted aggressive marketing strategies to seize the opportunity brought by the PRC government’s policy of boosting domestic demands as well as conserving energy and reducing emission. This has translated to encouraging results in 2010 with sales, revenue and net profit all attaining record highs. We have been expanding our cement production capacity through building new production lines and reorganizing acquired enterprises. While we are enlarging our coverage of the cement market in Shandong and Liaoning provinces, our endeavour in establishing the market presence in areas such as Inner Mongolia, Shanxi and Xinjiang appeared to achieve initial success, thus enabling the Group to realise leaping growth."

In view of the ideal market presence of the Group, the phasing-out of obsolete cement capacity, and the increasing demand for cement driven by the nationwide development of infrastructure and the property industry, the Group’s cement sales volume grew 33.8% year-on-year to 39.32Mt in 2010. Sales revenue from cement rose by 40.4% YoY to RMB9,275m, accounting for 78.2% of the Group’s total revenue. Clinker sales volume increased by 16.9% year-on-year to 9.84Mt with its sales revenue increased by 22.9% YoY to RMB1,941m, representing 16.4% of the Group’s total revenue. Due to the strong demand for high-quality cement by government infrastructure projects, sales of high-grade cement increased by 47.0% year-on-year to 21.83Mt, representing 55.5% of the Group’s total sales volume of cement (2009: 50.5%).