Cement maker Chia Hsin Cement Greater China Holding Corp saw net profit jump 80.73 per cent to US$12.29m in the first six months of this year, its first interim results since going public last year.
Executive director Elizabeth Wang Li-shin said yesterday the group’s cement prices were 30 per cent higher in the first half.
"Higher cement prices in the second half of last year spilled into the first half of this year," chief executive Jason Chang said. "Despite the prices going down sharply in May and June, we have seen signs of rebound since last month and expect the momentum will gain pace in the coming months."
Mr Chang said the country’s investment in fixed assets remained robust in the first half, growing 28.6 per cent to 2.6 trillion yuan, despite official efforts to cool the economy.
Investment in property development was also strong, with 28.7 per cent growth to 492 billion yuan, he added.
Ms Wang said that in the first half, Chia Hsin felt the impact of the nationwide supply crisis of electricity and coal as its fuel costs soared 13 per cent. "We overcame sharp increases in coal prices by allocating resources more efficiently, which helped lift our profit margin," she said.
The company’s net profit margin improved 8.6 percentage points to 27.9 per cent and its gross profit margin was up 9.3 percentage points at 43.2 per cent.
