Anhui Conch issues profit warning, China

Anhui Conch warned on Thursday that it expects net profit for the six months ending June to decrease "considerably" YoY because of weaker demand for cement.

The company estimated the net-profit fall for the first half to be "more than 50%."

The company said demand growth for cement has been declining since the beginning of 2012 and selling prices for cement products have dropped significantly from a year earlier owing to slower growth in China's fixed-asset investment.

"Since the second quarter of 2012--despite a rebound in cement demand in China's cement market--cement prices have remained at low levels," the company said in the statement.

Net profit for the six months ended June 2011 was CNY5.99bn. Net profit for the first quarter this year fell 43.6% to CNY1.25bn, the company said.