Asia Cement (China) Announces 2008 Annual Results; Profit for the Year Grew 43% to RMB438 million |
| 2009. április 17. péntek | |
 Commenting on the 2008 annual results, Mr Hsu Shu-tong, Chairman of Asia Cement (China), said, "I am pleased that the Group was able to achieve satisfactory results in spite of the global financial turmoil in the second half of 2008. The RMB4 trillion government investment package put forward by the Chinese government, which focuses on public housing, rural infrastructure, transport infrastructure, environmental development and post-earthquake reconstruction, has served to sustain the Group's growing momentum. Sichuan region, in particular, possesses immense market potential with its cement price maintaining a relatively high level as opposed to other regions and its demand for cement is set to grow substantially following the post-quake infrastructure projects. The closing down of 44 small vertical kilns by the Chengdu municipal government in the fourth quarter of 2007 caused the undersupply of cement products, and the enormous devastation brought by the earthquake in Sichuan in May 2008 has further tightened the intense demand and supply situation in the Sichuan cement market, leading to a high cement price in the region. During the year under view, revenue in Sichuan region increased by 77% to RMB1,143 million. Apart from the post-earthquake reconstruction, some major infrastructure projects (projects of water and electricity, express railway, expressway, airport extension, metro, and ethylene plant projects) in Chengdu and its surrounding areas are in progress. Total cement product consumption of these key projects comes to 3,500,000 tonnes and orders taken up by the Group is expected to reach over 2,000,000 tonnes. For the year ended 31 December 2008, the sales volume of the Groups products increased by 20% to 9,870,000 tonnes while its average selling price also grew by approximately 17% to RMB286 per tonne (exclude VAT). In addition, the rapid development of industrialization and urbanization in the Central Yangtze River Region as well as the increasing infrastructure projects has driven the demand for cement products, which had offset the impact of slowdown in property development projects. As a result, prices of cement products in the region remained stable. As at the end of 2008, the Group took up the cement supply of various projects including Hanyi Express Railway Wuhan Section and Shiwu Express Railway Hubei Section. Orders taken up from these two key projects have reached over 1,700,000 tonnes. The commencement of operation of No. 1 rotary kilns at Hubei Yadong Plant of the Group matches with the increasing demand brought by the major infrastructure projects in the region. The Group strived to enhance its operational efficiency during the year under review. At present, the Group's production plants are all equipped with new dry process (NDP) facilities. The newly-built production line is designed to apply both high calorie coal and low calorie coal in different parts of kiln, which enable the Group to obtain a much greater flexibility in controlling its production cost. The utilization rate of clinker production was 122% for year 2008 with the operation days reached to 344 on average (China's average: 302), demonstrating that Asia Cement (China) enjoys economies of scale and higher operational efficiency by fully utilizing its production facilities. With the commencement of No. 2 rotary kilns at Sichuan Yadong Plant in December 2008, the Group's total rated capacity of clinker reached 6,930,000 tonnes (actual production capacity of clinker reaches 10,000,000 tonnes) and will further increase to 8,320,000 tonnes (actual production capacity of clinker reaches 12,000,000 tonnes) following No. 1 rotary kilns at Hubei Yadong Plant commenced its operation in the first quarter of 2009. No. 2 rotary kiln at Hubei Yadong Plant, No. 4 rotary kiln at Jiangxi Yadong Plant, No. 3 rotary kiln at Sichuan Yadong Plant and No. 1 rotary kiln at Huanggang Yadong Plant are scheduled to commence operation in 2010. The Group's total rated capacity of clinker will be increased by 5,540,000 tonnes to 13,860,000 tonnes (actual production capacity of clinker reaches 20,000,000 tonnes) by then. Mr Hsu concluded, "Looking ahead, the Group will adopt a prudent and steady development strategy in response to market changes on a timely manner. With the aims of strengthening its competitive edges and market position, and broadening its market share, the Group will strive for capacity expansion, stringent cost control as well as enhancing its distribution network and improving operational efficiency. The Group will also continue to upgrade product quality through further product and process development in order to increase market shares." Results Highlights (RMB'000) ------------------------------------------------------------- About Asia Cement (China) Holdings Corporation Listed on 20 May 2008, Asia Cement (China) is one of the leading integrated cement producers in the Central Yangtze River Region (which includes the provinces of Jiangxi and Hubei) and a major integrated cement producer in the Sichuan Region (which comprises Sichuan province), both in terms of production volume. The Group's integrated operations range from the excavation of principal raw materials, to the production, sale and distribution of clinker and different types of cement and RMC products through a well-established road and riverway transportation network to its principal markets. The Group’s cement and RMC products are sold in Shanghai and the provinces of Jiangxi, Hubei, Sichuan, Zhejiang, Anhui and Fujian. The Group's NDP (new dry process) cement products are sold under the brand name "skyscraper", which is recognized as a premium-quality cement product with high environmental protection and energy saving levels. The Group's existing principal production facilities are located in the provinces of Jiangxi, Sichuan and Hubei while the RMC mixing facilities are situated in Shanghai and the provinces of Sichuan, Hubei, Jiangsu and Jiangxi, enabling the Group to produce and supply its products in close proximity to its customers. www.achc.com.cn Issued by Porda International (Finance) PR Group for and on behalf of Asia Cement (China) Holdings Corporation. Contact: Ms. Helen Chung Apr 16, 2009 Source: Asia Cement (China) Holdings Corporation Topic: Corporate Announcement Sectors: Metals & Mining, Chemicals http://www.acnnewswire.net From the Asia Corporate News Network |
