China’s largest cement maker reports profit slump

Hit by an economic slowdown and a sluggish fixed-asset investment, China's largest cement maker by market value today said its net profit plunged nearly 30 percent at $504.5 million in the first half of this year.

Written by PTI

Beijing

August 23, 2016 13:58 IST

In a report filed to the Shanghai Stock Exchange, Anhui Conch Cement Co said its net profit stood at 3.36 billion yuan ($504.5 million) down 28.7 percent year-on-year. (Reuters)

Hit by an economic slowdown and a sluggish fixed-asset investment, China’s largest cement maker by market value today said its net profit plunged nearly 30 percent at $504.5 million in the first half of this year.

In a report filed to the Shanghai Stock Exchange, Anhui Conch Cement Co said its net profit stood at 3.36 billion yuan ($504.5 million) down 28.7 percent year-on-year.

Revenue fell 0.79 percent year-on-year to 23.4 billion yuan. Earnings per share was 0.63 yuan, compared with 0.89 yuan a year earlier, state-run Xinhua news agency reported.

Sales of cement and clinker rose to 128 million tonnes, up 11 percent year-on-year.

Market conditions remained tough for the cement sector, mainly due to lingering overcapacity, slower fixed-asset investment and fierce competition, the report said, adding that the industry is a low-growth and low-profitability business.

China’s fixed-asset investment rose 9 percent in H1, slower than a 11.4-percent gain during the same period last year, official data showed.

Shares of the company opened 1.14 percent higher at 16.86 yuan today.

This article was first uploaded on August twenty-three, twenty sixteen, at fifty-eight minutes past one in the afternoon.