China’s Anhui Conch Q1 net profit surges on sales, prices; sees big rise in H1

China’s Anhui Conch Q1 net profit surges on sales, prices; sees big rise in H1
Published: 28 April 2004

Anhui Conch Cement Co, China’s leading cement producer, said its first quarter net profit surged 443 pct YoY to 443.20m yuan, on the back of strong sales and an average YoY price increase of 44.86 per cent for its products. The company expects a "substantial" YoY increase in net profit for the first half, on strong cement sales and price hikes.

It also said the central government’s decision to curb irrational investment in some sectors, such as cement production, will strengthen the industry’s structure and provide a favorable external environment for the company’s development. Revenue from its cement production rose 112 per cent from a year earlier to 1.87bn.

Earnings per share rose to 0.35 yuan in the first quarter, up from 0.07 yuan a year earlier. Gross profit margin was 52.75 pct between January and March, up from 41.97 pct in full-year 2003. Total assets stood at 13.6 bln yuan as of the end of March, up from 13.33 bln yuan at the end of last year, while total liabilities fell to 7.5 bln yuan from 7.63 bln. Accounts receivable totaled 74.41 mln yuan at the end of March, up from 41 mln at the end of 2003, while accounts payable stood at 686.22m yuan, down from 870.38m. The company’s 2003 net profit surged 180.4 per cent to 739.57m yuan, under Chinese accounting standards, on the back of increased cement sales, higher government subsidies and cost-cutting measures.