China’s largest cement maker reports profit slump

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Beijing | Published: August 23, 2016 1:58:37 PM

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 (4.5 million) down 28.7 percent year-on-year. (Reuters)In a report filed to the Shanghai Stock Exchange, Anhui Conch Cement Co said its net profit stood at 3.36 billion yuan (4.5 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.

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