Gansu Qilianshan Cement Group expected its first-half net profit to fall at least 50 per cent YoY and follows warnings from other industry peers.
According to reports in China Knowledge, the company said in a statement filed with the Shanghai Stock Exchange that the sharp decrease in net profit was due to a significant YoY decline in cement price amid weak demand.
Anhui Conch has also issued a similar profit warning, expecting a 50 per cent drop in first-half profit. China Resources Cement also warned last week of a sharp fall in first half earnings as companies feel the pinch of a slowdown in consumer demand and the overall economy.
Latest data from the National Development and Research Commission showed that China's cement output growth dropped considerably in the first five months of 2012. Output grew five per cent from a year earlier to 793.98Mt representing a sharp decrease of 14.3 percentage points from the same period of last year.