Shandong Shanshui Cement has managed to turn its losses into profit following a year of defaulting on debts after a battle for control of the company.
Deputy Chairman, Mi Jingtian, said that solutions to the CNY4.6bn (US$661.1m) of defaulted debt are now in place and the company has paid in full all outstanding interest. It has since regained a “normal working relationship” with commercial banks. A disclosure issued on 5 December stated that the company has settled a dispute with China Merchants Bank regarding a CNY564m loan.
As well as being sued by commercial banks, Shandong Shanshui’s defaults included a CNY2bn bond in November 2015 and a CNY1.8bn bond in January 2016. These defaults were a result of a drawn out battle for control of China Shanshui Cement and its subsidiary Shandong Shanshui. When boardroom troubles mounted, China Shanshui saw its profits which has previously been in the hundreds of millions collapse to a CNY6.7bn loss in 2015.
Mr Mi Jingtian said that much has been done to lower business costs since, including the more effective sourcing of raw materials. He went of to say that Shandong Shanshui has significantly outperformed last year and the company is once again operating at a profit.
