China Shanshui Cement Group has issued a profit warning for the first half of 2022. Profit attributable to equity holders of the company for the six-month period will decrease by no less than 60 per cent compared the same period a year earlier, according to a report on Dow Jones Newswire.
The fall is being blamed on the pandemic, climatic factors, and market demand, which fell in the opening half of the year, resulting in a contraction in both cement sales and operating revenue versus the first half of 2021. Operating costs have also expanded over the same period, on the back of rising prices of raw materials, coal and electricity, putting a squeeze on profit margins.
The announcement has been made based on the preliminary assessment by the company management according to the unaudited consolidated management accounts, which have neither been audited or reviewed by the group's independent auditors, as well as the group's operating performance. The group's interim announcement for the 1H22 is expected in early August.
