West China Cement net profit drops 65%, China

West China Cement has reported a 65 per cent drop in first-half profit as selling prices declined and production costs increased.

Net income dropped to CNY138.5m (US$23m) from CNY419m a year earlier, the cement producer said in a filing to the Hong Kong Stock Exchange yesterday. Sales were down 7.1 per cent to CNY1.59bn.

The Shaanxi cement market will gradually recover this year, with pricing power maintained and possibly improved, the company said in a statement.

Earlier this week, larger rival Anhui Conch reported a 51 per cent drop in net profit for the six months to June to CNY2.93bn.

Last week, West China Cement’s corporate governance and financial statements were questioned by a short seller which the cement producer deemed groundless and  based on inaccurate data.

Italian cement maker Italcementi agreed in May to acquire a 6.25 per cent stake in West China Cement as the group moved to strengthen its position in the world's largest building materials market.