Sino Cement announced that it completed the acquisition of Shaanxi Shehui Cement Co Ltd as of 21 February 2011.
Mr Shehui Shi, Chairman and CEO of Sino Cement said, "We are very pleased to announce the completion of our acquisition of Shaanxi Shehui Cement Co Ltd and the appointments to our Board of Directors. We are very positive about the growth potential of the cement industry in China and our company’s growth prospects as we continue to strive to become a market leader. We have reached a major goal with having our company’s shares quoted on the OTC Bulletin Board in the United States which will allow us to broaden our investor base, create a liquid market for our stock, and financially support the accelerated growth of our business as we strive to become a leader in the cement industry in China.”
Shehui Cement is the market leader in Shaanxi province where it sells its cement under the tradename "Shehui". Its product is mainly used in the construction of infrastructure projects as well as residential buildings. The company operates two cement production lines with a total production capacity of 1.6Mta in Shaanxi, making it the sixth largest producer in the province. Its primary production line uses NSP technology.
Shehui Cement has achieved significant growth in revenue, gross profit and net profit in recent years. For example, its revenue increased from US$34,301,000 for the year ended 30 April 2008, to US$54,573,000 for the year ended 30 April 2009, and to US$55,948,000 for the year ended 30April 2010. Its net profit increased from US$4,049,000 for the year ended 30 April 2008, to US$11,245,000 for the year ended 30 April 2009, and to US$12,379,000 for the year ended 30 April 2010.
The acquisition was accompanied by several board appointments. The board of directors appointed Mr Shehui Shi to serve as its CEO, Mr Lei Shi as its president and Mr Qingyan Wang as its CFO.