Chia Hsin Cement Greater China Holding, a Taiwanese-run cement maker in the mainland, said profit surged on robust export growth last year.
Net profit soared to US$6.52 million from US$103,000 in 2005 as turnover jumped 39 per cent to US$127.23 million. No final dividend was declared.
Chia Hsin increased its exports after mainland government measures in 2004 aimed at cooling the economy hit the cement industry. Net profit plunged 99 per cent in 2005 as the policies took effect.
Exports contributed 62.1 per cent of turnover, up 33.2 percentage points from 2005, helping the firm to account for 11 per cent of the country’s overseas sales of cement.
Chia Hsin said the mainland cement industry started to rebound last year and prices in the east of the country showed a significant increase in the fourth quarter.
Gross profit climbed 66.75 per cent to US$22.94 million last year while gross margin rose three percentage points to 18.03 per cent.
North America contributed the largest proportion of exports with 26.5 per cent, followed by Japan’s 15.7 per cent and Europe’s 14.4 per cent. The company last year moved into new markets such as Australia, which accounted for 5.5 per cent of its export business.