Displaying items by tag: China
China: Anhui Conch Cement’s net profit has dropped by 45% year-on-year to US$123m in the first quarter of 2016 from US$233m in the same period in 2015. Its revenue fell by 5.5% to US$1.63bn from US$1.73bn. It attributed the decreases in profit and sales revenue to falling prices.
China Resources Cement revenue falls by 24% to US$609m
25 April 2016China: China Resources Cement’s revenue has fallen by 24% year-on-year to US$609m in the first quarter of 2016 from US$800m in the same period in 2015. Its gross profit fell by 39% to US$126m from US$207m. However, its profit attributable to the owners of the company fell by 99% to US$0.85m from US$85.1m. It blamed the drop in gross profit on lower selling prices in the quarter compared to 2015.
The cement producer reported that its sales volumes of cement grew by 6% to 15.8Mt in the quarter. Rises in sales volumes were reported in Guangxi, Yunnan and Guizhou.
China: Asia Cement’s revenue has fallen by 11% year-on-year to US$185m in the first quarter of 2016. Its gross profit fell by 45% to US$18m. The Chinese cement producer blamed the result on falling sales prices.
Taiwan Cement pins hopes on stronger second half of 2016
14 April 2016Taiwan: Taiwan Cement Corp has conceded that its business has remained weak since 2015. It hopes to see rise in sales in the second half of 2016 said Taiwan Cement chairman Leslie Koo in comments reported by the Tapei Times.
Cement shipments to China grew by 18% year-on-year to 10.8Mt in the first quarter of 2016 from 9.2Mt in the same period in 2015. Taiwan Cement senior vice-president Edward Huang said that overall demand for cement and clinker in 2016 should remain the same or improve from 2015. He citied transportation infrastructure projects in Taiwan and potential demand in China as measures for growth.
It expects cement production overcapacity to end in 2016 as the Chinese government continues to close cement plants. It also expects cement prices to start to grow again throughout the year based on price rises in the first quarter of 2016. The company plans to build four production lines in 2016. A new cement plant in Shaoguan, China, is expected to start production in the first half of 2017.
Taiwan Cement’s net income fell by 47% to US$178m in 2015 from US$334m in 2014. Sales dropped by 21% to US$2.89bn from US$3.65bn. It blamed the result on falling prices and demand in China due to oversupply of cement.
China: Courts have ordered Shandong Shanshui Cement Group to pay back its creditors US$372m, the company said in a statement reported by Reuters. Shandong Shanshui Cement said it was unlikely to be able to make the required payments due to financial troubles. The courts will now start to auction off the company’s assets.
Bond defaults by a subsidiary of Shanshui Cement Group had led creditors to seek legal redress. Shandong Shanshui Cement's statement to the Shanghai Clearing House described almost 100 lawsuits against the company. The total amount sought is around US$764m.
China: Yang Luyu, the mayor of Jinan in Shangdong province, is being investigated for corruption by the Communist Party of China Central Commission for Discipline Inspection (CCDI). Yang has been accused of ‘serious disciplinary violations’ according to Xinhua news agency. He is also the city's Communist Party deputy secretary.
Yang was named in a writ filed with a Hong Kong court in March 2016 according to the South China Morning Post. Two companies, China Pioneer Cement (Hong Kong) and Shandong Shanshui Cement Group, allege that Yang and his deputy mayor, Su Shuwei, conspired with former company directors to take control of the Jinan plant on 7 December 2016. The ex-directors were named as Zhang Caikui and his son Zhang Bin.
China Pioneer Cement (Hong Kong) and Shandong Shanshui Cement Group are subsidiaries of China Shanshui Cement Group. Shanshui Cement has faced financial troubles since a battle for control of the company that took place in late 2015 between Tianrui Cement, its biggest shareholder, and the Zhang family, its second-largest shareholder and former owners.
China: China Resources Cement has issued a profit warning for the first quarter of 2016. It expects its profit for the three-month period to drop ‘significantly’ year-on-year due to lower prices of cement and clinker in China. The Chinese cement producer reported a profit of US$85.1m for the first quarter of 2015.
China Shanshui Cement reports loss of US$998m in 2015
31 March 2016China: China Shanshui Cement Group has reported a loss of US$998m in 2015 compared to a net profit US$53.9m in 2014. Its revenue fell by 28% year-on-year to US$1.73bn. The loss was blamed on a write-down of goodwill assets and an increase in administrative expenses, following a prolonged power struggle between shareholders and management, according to Dow Jones. The Chinese cement producer reported a US$364m write-down of goodwill assets due to forecasted poor results and over-payments for cement plant acquisitions. Administrative expenses increased by 86% to US$359m.
Chad starts construction of second cement plant
30 March 2016Chad: Prime Minister Albert Pahimi Padacké has laid the first stone for the construction for a cement plant in Ngara. The initial production capacity of the new plant will be 0.5Mt/yr and this is planned to increase to 3Mt/yr, according to local press.
The plant is a joint project between Chad and China. The cost of construction will be US$52m and the building should be completed by April 2017. The project will create 300 jobs initially and this may rise to up to 1000 if the plant reaches its higher production capacity.
Ciment du Tchad, a subsidiary of government-owned SONaCIM, opened the country’s first cement plant at Baore in 2011. The 0.2Mt/yr plant reached its full capacity output in 2012.
CNBM net profit falls by 83% to US$157m
30 March 2016China: China National Building Material Company's (CNBM) net profit has fallen by 83% year-on-year to US$157m in 2015. Its revenue fell by 17.8% to US$15.4bn. China's largest cement producer has blamed the loss of profits on a steep drop in cement sales due to a national slowdown in fixed-asset investments, infrastructure construction and real estate investments.
Two of CNBM's cement subsidiaries also reported falling financial results. China United saw its sales fall by 28% and South Cement reported that its revenue fell by 21%.
The state-owned building materials company also produces gypsum wallboard, insulation materials and ceiling systems. Revenue from the sale of lightweight building materials fell by 7.6% to US$1.09bn as the price of gypsum wallboard fell. However, revenue from mineral wool insulation sales and composite materials rose by 25.3% to US$501m due to increased sales of pipes, tanks and rotor blades.