Anhui Conch Cement Co Ltd, the biggest cement producer in Asia by output, said its net profit declined to RMB 1.28bn in the first half of this year, down 2% YoY.
Under international financial reporting standards, its first-half revenue jumped 10% from a year earlier to RMB 11.24bn. Net income declined to RMB 1.27bn from RMB 1.3bn during the same period of last year. Operating profit was RMB 1.5bn, up 6.29% YoY. Capital expenditure amounted to RMB3.57bn, according to the cement maker’s interim financial report,
Anhui Conch attributed the net profit drop to the lower cement prices and decreased gross margins.
The global financial crisis has impacted the country’s exports and the growth of domestic demand. However, the company has seen growing demand for cement since the central government launched the RMB4trn stimulus package, said Chairman Guo Wensan.