China: West China Cement's net profit has fallen by 64.6% to US$23.4m in the first half of 2012. The cement producer's revenue dropped by 7.2% to US$250m in the same period.

Yet West China Cement expects better profits and revenue in the second half of 2012 as production capacity rises by up to 50%. "Our production costs will go down as our scale increases," said company chairman Zhang Jimin. "Our gross margin will rise in the second half. With selling prices and sales volume rising, our profits and revenue will increase." Zhang added that the company's cement sales would be boosted by infrastructure projects in Shaanxi province, including the Datong-Xian high-speed-rail project and the second Xian-Ankang rail project.

On 8 August 2012 US 'short seller' Glaucus Research Group accused West China Cement of fraud, inflated profits and suspicious acquisitions. West China Cement executive director Low Po Ling said that her company was consulting its lawyers and that is had reserved the right to take legal action against Glaucus. Low said that since the Glaucus report came out, Italcementi Group, West China Cement's third-biggest shareholder, had held discussions three or four times with the mainland company. "Italcementi was very unhappy. It will issue a statement," said Low.