Sunday, April 18, 2021
 
Columnist
Martin Hennecke
 
SHANSHUI CEMENT
HKEx Stock Code : 00691 
 
Corporate Profile
The Company focuses on developing the production and sales of various types of quality cements, and the production of commodity clinker necessary for various types of high grade cements.

Business Review - For the year ended December 31, 2012

In 2012, despite overall weak demand in domestic cement market, the Group reported moderate operating results, which were achieved because the Group followed the guidelines of ˇ§standardization, concentration, penetration and developmentˇ¨ to focus on fine-tuning its internal management and continuing to reduce its production and operating costs while attaching equal importance to selling price stabilization and sales volume expansion, and seized the policy opportunities arising from the launch of a batch of key projects by Chinese government under the policies of ˇ§giving more priority to stabilizing economic growthˇ¨.

During the Reporting Period, the Group's total sales volume of cement and clinker amounted to 56.86 million tonnes, representing a year-on-year increase of 3.5%. The Group's operation revenue reached RMB16,161 million, representing a year-on-year decrease of 4.2%. Net profit for the year amounted to RMB1,604 million, representing a year-on-year decrease of 30.6%.

Meanwhile, the Group continued to improve its expansion of cement business in Shandong, Liaoning, Inner Mongolia, Shanxi and Kashi region of Xinjiang, so as to further increase its market share and control over the cement markets where it has presence.

During the Reporting Period, the Group added new cement production capacity of 5.40 million tonnes (including those under trial operation) and new clinker production capacity of 1.60 million tonnes. 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. In addition, as at the end of the Reporting Period, the total installed capacity of the Group's commercial concrete production lines amounted to 14.60 million m3. Furthermore, a number of clinker production lines and ancillary cement grinding production lines were being under construction. With more new projects commencing operations, the Group will further strengthen its control over and stand out in the cement markets in Shandong, Liaoning, Shanxi provinces, eastern Inner Mongolia and Kashi region of Xinjiang.

Business Outlook - For the year ended December 31, 2012

In 2013, the Group will continue to adhere to its work guideline of ˇ§promoting development on one hand while strengthening management on the other handˇ¨ and make more efforts in the following key tasks:

1. Improve market presence to enhance regional control. For the two core operating regions namely Shandong and Northeastern China, the Group will further improve market presence to enhance regional control, and continue to play its leading role in stabilizing prices so as to maintain a reasonable profit margin for the Company. For Shanxi and Xinjiang regions, the Group will accelerate project construction, improve affiliated equipment of clinker and cement production lines, strive to commence operation as early as possible, let these two regions become our new profit-generating regions.

2. Accelerate transformation and upgrading to enhance competitiveness. In 2013, the Group will improve the layout for clinker production lines and cement grinding production lines. On top of that, the Group will also focus on the technical upgrade for existing operating subsidiaries, strive to accelerate the development of the vertical industrial product chain including aggregate and concrete, cut production costs further, enhance product quality, and gradually strengthen its competitive strength that treats cement as the dominant product and other relevant industries as complementary ones.

3. Improve network coverage to expand sales volume. The Company will further improve the coverage of its sales network, and strengthen market promotion, so as to seize business opportunities arising in the process of urbanization and construction of new rural areas. While fully leveraging on its strength in ports and sea transportation, the Group will proactively explore the international cement market, increase sales volume and maintain a supply-demand balance in the domestic market.

4. Lean internal management to enhance operational efficiency. The Company will continue to promote total budget management, strengthen auditing and supervision, implement more strict appraisal, reward and penalty system, and carry out ˇ§one-to-oneˇ¨ supervision for subsidiaries with relatively weak management. Meanwhile, the Company will promote the implementation of flattened and lean management, reduce internal friction, enhance internal control and increase operational efficiency.

The proven records show that Shanshui Group can deal with all kinds of complicated operating environment, and we are confident that we can achieve our performance targets set for 2013 and make fruitful returns to our investors for their continued trust and support.

Source: Shanshui Cement (00691) Annual Results Announcement
Chairman Zhang Bin Issued Capital (shares) 2,816M
Par Value USD 0.01 Market Capitalisation (HKD) 8,898M
 
Login
Password
Register  Forget Password
Advanced Search
© 2021 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend