Asia Cement net profit up 64% to RMB301m

Asia Cement net profit up 64% to RMB301m
Published: 22 October 2008

Asia Cement today announced its unaudited third quarter results for the nine months ended 30 September 2008.

In the period under review, the Group recorded a revenue of approximately RMB2,201.4m, representing an increase of 46% over the corresponding period in the previous year. The strong growth was attributable to the increase in average selling prices of the Group’s products and enhanced production capacity. Net profit was increased by 64% to approximately RMB301m while the gross margin amounted to 29%.

Mr. Hsu Shu-tong, Chairman of Asia Cement, was satisfied with the results and said, "Sichuan remained the best-performing region in the third quarter of 2008 with the price of cement products in Sichuan being maintained in the same level that was recorded in the first half of 2008. We expect the demand in the region will increase substantially once the rebuilding is moving in full gear. In response to the challenging market environment, we will continue to place our emphasis on the cost control and production efficiency, thus further enhancing our profitability. "

In the period under review, industrialization and urbanization continued to be the growth drivers for the cement industry in the Central Yangtze River Region. Despite the slowdown in property development resulting from the Chinese government*s macroeconomic austerity measures and the reserved market sentiment, prices of cement products in the region remained stable because of the strong consumption from accelerated urbanization and infrastructure development in the region.

"With the increase in production capacity following the completion of No.2 rotary kiln at Sichuan Yadong Plant by the end of 2008, the Group is confident to solidify its leading market position and capture the immense opportunities ahead," Mr Hsu concluded.