China’s Anhui Conch Cement Co Ltd said its 2003 net profit surged 180.4 per cent to 739.57 mln yuan, under Chinese accounting standards, on the back of increased cement sales, higher government subsidies and cost cutting measures. Under international accounting standards, the company posted 743.40 mln yuan in net profit in 2003, up 177.8 pct from a year earlier. Core revenue increased 89.7 pct to 5.65 bln yuan under international accounting standards and rose 89.9 pct to 5.7 bln yuan under Chinese accounting standards.
As of the end of 2003, the company had cement production capacity of 30Mt and 23Mt of clinker capacity. The company sold 25.6Mt of cement products last year, up 74.38 per cent from a year earlier, with the average selling price up 10 per cent. The company expects its 2004 capital expenditure to fall to 2.7 bln yuan, which will finance the expansion of cement clinker production. It aims to grab more market share this year through the expansion of production facilities and the strengthening of management and cost cutting. The company plans to build a 1.5Mt cement clinker production base in Shuangfeng in the central province of Hunan and a 3Mt cement grinding facility in Jiangmen in the southern province of Guangdong this year.