Revenue Reaches RMB16,161 Million
Profit Attributable to Equity Shareholders of the Company Is RMB1,519 million
Captures Opportunities Arising from Industry Adjustment and Optimises Business Strategy
Enhances Internal Management and Production and Operational Efficiencies
HONG KONG, March 19, 2013 /PRNewswire/ --
Financial Highlights (Audited)
| (RMB Million) | For the 12 Months Ended 31 December 2012 |
| Revenue | 16,161 |
| Gross Profit | 4,111 |
| Net Profit for the Year | 1,604 |
| Profit from Operations | 3,099 |
| Profit Attributable to Equity Shareholders of the Company | 1,519 |
| Basic Earnings per Share (RMB) | 0.54 |
| Proposed Dividend per Share (HKD) | 0.233 |
China Shanshui Cement Group Limited ("Shanshui Cement" or the "Group"; HKEx: 00691), the largest cement enterprise in Shandong and Liaoning Provinces in China, announced its audited annual results for the twelve months ended 31 December 2012, prepared in accordance with International Financial Reporting Standards.
During the reporting period, the Group's revenue reached RMB16,161 million. Profit from operations was RMB3,099 million. Gross profit was RMB4,111 million. Profit attributable to equity shareholders of the Company was RMB1,519 million. Basic earnings per share reached RMB0.54. The Board recommended the payment of a final dividend of HKD0.233 per share for the year ended 31 December 2012.
Mr. Zhang Bin, Chairman and General Manager of Shanshui Cement, said "The year 2012 saw a quarterly downward trend of China's economic growth. Dragged by declining exports and weak investment in infrastructure and real estate sectors, the country's industrial production output continued to slow down. Growth rate of real estate development, a sector integrally linked to the cement industry, was also down by 11.9 percentage points. Hindered by an oversupply in the domestic market, the cement industry in China is expected to record a profit of approximately RMB65.7 billion in 2012, a decrease of 32.8% as compared with 2011. Nevertheless, by adhering to its guidelines of 'standardisation, concentration, penetration and development', the Group managed to achieve better operating results despite the generally weaker demand within China's cement market. While constantly streamlining internal management and lowering the production and operating costs, the Group has attached equal importance to stabilising its selling price and boosting sales volume at the same time. To seize the opportunities created by favourable policies, the Group has continued to optimise its business presence in selected regions, thereby further increasing its market share and dominance in all of its markets."
During the reporting period, the sales volume of cement of the Group recorded a year-on-year decline of 0.2% to 47.83 million tonnes, due to the slowdown in both economy growth and fixed assets investments in China, while the sales volume of commercial clinker increased to 9.02 million tonnes, a year-on-year growth of 28.9%. The unit selling price of cement decreased by 5.9% to RMB277.2 per tonne, while the unit selling price of clinker decreased by 21.7% to RMB211.0 per tonne. The sales volume of concrete increased to 1.66 million m3, representing a year-on-year growth of 77.3%, while its unit selling price increased by 8.1% to RMB280.0 per m3. The average unit selling price of cement of the Group's operating companies in the Shandong Region was RMB268.3 per tonne, a year-on-year decrease of 10.3%; that in the Northeastern Region was RMB303.8 per tonne, a year-on-year increase of 7.5%; that in the Shanxi Region was RMB239.9 per tonne, a year-on-year decrease of 19.6%; and that in the Xinjiang Region was at RMB200.0 per tonne.
During the reporting period, the Group added 5.4 million tonnes of new cement production capacity (including those under trial operation) and 1.6 million tonnes of new clinker capacity. As at the end of the reporting period, all suitable clinker production lines had been equipped with residual heat generation facilities, and the total installed capacity amounted to 209.5 MW. As at the end of the reporting period, the total installed capacity of the Group's commercial concrete production lines amounted to 14.6 million m3. Furthermore, a number of clinker production lines and ancillary cement grinding production lines were under construction. With more new projects commencing operations, the Group is further strengthening its control over cement markets and stands out as a leader in Shandong, Liaoning and Shanxi provinces, eastern Inner Mongolia and Kashi region of Xinjiang.
As for its cost reduction efforts, the output of residual heat power generation was 1,021 million KWH in 2012, thus reducing the cost of clinker by RMB344.34 million. Besides, by enhancing internal management continuously, the proportion of administrative expenses to sales revenue declined by 0.87 percentage points as compared with that of 2011.
Mr. Zhang concluded, "Looking ahead, the cement industry will face both opportunities and challenges. The comprehensive advantages attained by large enterprises will become greater, and corporate profitability will increasingly depend on dominant market share and the internal management control of the enterprise itself. The Group will continue to adhere to its work guideline of 'promoting development on the one hand while strengthening management on the other hand'. It will do so by improving its market presence to enhance regional domination, accelerating transformation and upgrading to enhance competitiveness, improving its network coverage to expand sales volume and implementing a leaner internal management to enhance operational efficiency, with an aim to achieve our performance targets set for 2013."
About China Shanshui Cement Group Limited
Shanshui Cement is the largest producer of cement in Shandong and Liaoning Provinces and ranks among the top three cement producers in China. The Group operates production lines and cement grinding lines that adopt the most advanced suspension pre-heater dry process. The Group will continue to expand its business through acquisitions and construction of its production lines. As of 31 December 2012, the Group's total production capacity of cement and clinker reached 89.64 million tonnes and 38.95 million tonnes respectively. Shanshui Cement is currently a constituent stock of the Hang Seng Composite Index Series, Hang Seng Composite MidCap Index Series and Properties & Construction Industry Index Series. It has also been included in the MSCI Global Standard Indices - MSCI China Index in November 2011 and the Hang Seng Mainland 100 on 5 March 2012, marking the capital market's recognition of the Group's performance, including its positioning, business and financial strength. The inclusion of the Group in this index series reaffirms the Group's reputation and position in the international capital markets.
For more information, please visit www.shanshuigroup.com.
