Anhui Conch Cement reports 51% plunge in 1H profit

Anhui Conch Cement announced yesterday that its net profit in the first half fell 51.33% YoY to CNY2.92bn (US$462m) under Chinese accounting rules, due to sharp declines in cement prices amid weak demand.

Earnings per share were CNY0.55 during the period, down 51.33 per cent YoY, said the company in its interim report. Operating revenue dropped 8.22 per cent YoY to CNY20.3bn in the first half.

The company's gross profit margin declined 15.70 percentage points to 27.09 per cent in the period.

The sharp decline in net profit was mainly due to a macroeconomic downturn and shrinking demand for cement in the first half, the company said.

Anhui Conch Cement sold 80.55Mt of cement and clinker in the first six months, 13.7 per cent more than in the same period of last year.