Shanshui Cement issues first-half profit warning, China

Shanshui Cement on Friday said it expects to record a loss in net profit for the six months ended 30 June 2015 compared to the net profit of the same corresponding period in 2014, adding that the loss is expected to be "relatively significant."

Management attributes the loss to two main factors. Firstly, the group has seen sluggish cement demand in the regions where it operates, particularly in the northeastern and Shanxi regions. Secondly, severe overcapacity led to a "substantial" decrease in the volume and prices of cement in various regions compared to the corresponding period of last year.

Various challenges are expected to remain through the second half, according to the group. It further added that: "...management will continue to make the best efforts to adopt all feasible measures and methods and use the best endeavours to restore the business back to normal level."