HONG KONG (Yosefardi) – China Shanshui Cement Group Ltd, one of the largest cement producers in the region, booked net profit of RMB348 million in the first half of 2013, dropped by 52.2% from the corresponding period of 2012.
Shanshui generated sales revenue of RMB7.07 billion in the first half, down slightly by 4.2% from the same period of 2012, but operating profit dropped substantially by 28.8% to RMB1.035 billion.
The company sold 22.98 million tons of cement at average price of RMB250 per ton in the period. While sales volume increased from 21 million tons, average selling price declined from RMB284.3/ton in the first half of 2012.
“The major profit-generating regions of Shanshui Group, Shandong and Northeast Regions, suffered from the slowdown in growth as well as fluctuations of national cement industry, in particular the impact of cement overcapacity of neighboring provinces,” Shanshui argued.