Chia Hsin Cement Greater China Holding Corp announced its major operating subsidiary delivered first-quarter 2004 net profit of CNY51.0m – nearly as much as it made in the entire first half of 2003.
The unit, Chia Hsin Jingyang Cement Co., had net profit of US$6.80m in the first half of 2003.
Chia Hsin Chairman Robert Wang cited China’s rapid economic growth and the 43 per cent increase in investment in fixed assets in the first quarter as the main drivers of the strong earnings result.
"Thanks to robust increases in cement production and sales, prices remained at high levels," he said in a statement. "The group’s continuing implementation of effective cost control measures significantly enhanced its profitability." The company is pressing on to complete its cement mill and second production line. Wang said that while the first quarter is generally a time of slack demand for cement, demand in the period actually outstripped supply.