Allied Cement issues profit warning, China

China-based Allied Cement said it expects to record a significant decline in net profit by about 40 per cent for the year ended 31 December 2014 as compared to the audited net profit of around HK$46.2m for the previous financial year.

The decline is primarily attributed to the significant increase in finance cost incurred in connection with additional bank and other borrowings drawn by the group in the second half of the year to support business expansion, and the maturity of its investment in exchange rate-linked structured deposits during the year.