Hit by an economic slowdown and a sluggish fixed-asset investment, China´s largest cement maker by market value has said that its net profit plunged nearly 30 per cent at $504.5 million in the first half of this year.
In a report filed to the Shanghai Stock Exchange, Anhui Conch Cement Co said its net profit stood at 3.36 billion yuan ($504.5 million), down 28.7 per cent year-on-year. Revenue fell 0.79 per cent year-on-year to 23.4 billion yuan, state-run Xinhua news agency reported.
Sales of cement and clinker rose to 128 million tonnes, up 11 per cent year-on-year. Market conditions remained tough for the cement sector, mainly due to lingering overcapacity, slower fixed-asset investment and fierce competition, the report said, adding that the industry is a low-growth and low-profitability business.