China Shuangji Cement, Ltd announces 1Q10 results

China Shuangji Cement, Ltd announces 1Q10 results
Published: 24 May 2010

China Shuangji Cement, Ltd, a leading producer of high-quality Portland cement in Shandong and Hainan Provinces in the People’s Republic of China , has announced its financial results for the first quarter ended March 31, 2010.

First Quarter 2010 Highlights
Total revenue increased 4.1 per cent to approximately US$12m from approximately US$11.5m a year ago.

• Gross profit increased 13 per cent to approximately US$1.8m from approximately US$1.6m a year ago.
• Gross margin increased to 15.5 per cent from 14.2 per cent in the same period last year.
• Operating expenses were US$643,095, up from US$409,892 in the same period last year.
• Operating income declined slightly to approximately US$1.21m from approximately US$1.23m a year ago.
• Working capital increased 9.3 per cent to approximately US$11.7m at March 31, 2010, from approximately US$10.7 million at December 31, 2009.

Mr Wenji Song, Chairman and President of China Shuangji Cement Ltd, commented, "We experienced a rise in sales in the first quarter of 2010 primarily due to increased production from our new facility in Longkou and continued strong demand for our high-grade bulk cement. This drove a 13 per cent increase in gross profit as China’s economy expanded rapidly in the first quarter, resulting in strong demand for new buildings and infrastructure that we see continuing for the remainder of 2010 and beyond.

"We are very confident about our prospects in 2010 based on strong demand from China’s construction industry and significant growth in infrastructure projects that we are observing," said Mr Wenji Song, chairman and president of China Shuangji Cement, Ltd.

"This is supported by a surging economy and the government’s US$586bn stimulus programme, which calls for substantial investments in cement-intensive projects for years to come." Added Mr. Song, "We have moved past a challenging economic period and are now on a course for sustained improvement in 2010, supported by the rebound in China’s economy and its prospects for significant future growth.

Once our new Zhaoyuan Cement Production Facility becomes fully operational, which we expect to occur this year, we will be able to increase our production capacity by 1Mt to an estimated 2.5Mt. We believe this, combined with consolidation in our industry and the growth of China’s cement market, will drive significant increases in sales and profits for many years to come."