Margins Squeezed, Sinoma’s Profit Falls 39%

HONG KONG (Yosefardi) – China National Materials Co Ltd, one of the largest companies in China, booked net profit of RMB101 million only in the first half of 2013, slashed by 38.8% from the corresponding period of 2012.
The company’s sales revenue actually grew 6.86% to RMB21.8 billion or about US$3.48 billion in the period. Higher operational expenses and income tax, however, cut substantially its net profit.
Revenues from cement equipment and engineering services slipped to RMB8.59 billion in the period, while revenues from cement sales grew substantially to RMB10.3 billion.
Other than cement and equipments, Sinoma produces glass fiber, specialty fiber, reinforcement composite materials, and advance ceramics.