China Resources Cement Holdings Ltd said Friday it expects its first-half earnings this year to be "substantially worse" than in the year-earlier period because of high coal prices and a slowdown in demand following the government’s austerity measures.  The company didn’t give an estimate of the profit decline. 
 
In 2004, it reported first-half net profit of HK$45.2m and full-year earnings of HK$88.7m.  It said its business has been affected by tight supply and a marked increase in the price of coal. Its production costs of clinker and cement have risen significantly, it added.  In addition, government measures to cool the country’s economy have "markedly impaired the growth of capital expenditure," slowed demand and lowered the price of cement products in the southern part of China. 
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