China National Building Materials net profit soars

China National Building Materials net profit soars
Published: 01 September 2008

Hong Kong-listed China National Building Material Co, Ltd (CNBM), one of China’s largest building material manufacturers, announced its net profit reached RMB545.6m, a significant increase of 112.8% over the same period last year.

According to the company’s statement filed with the Hong Kong Stock Exchange, during the reporting period its revenue was RMB 9.82bn, an increase of 169.6% year-on-year, with earnings of RMB 0.24 per share, up from RMB 0.12 per share. CNBM said the sharp rise in the first half was mainly attributable to its four business segments, namely cement, lightweight building materials, glass fiber and FRP products, and engineering services. Among them, cement business contributed the most.

The company’s cement business contributed 81% to CNBM’s total net profit. It largest cement production arm, South Cement, has generated a net profit of RMB 255m, accounting for over 46% of the company’s total net profit.
 
 The company said it would put forward the restructuring of its cement business, aiming to maintain its leading position in China’s cement market.