Friday, November 27, 2020
 
Columnist
Martin Hennecke
 
DONGWU CEMENT
HKEx Stock Code : 00695 
 
Corporate Profile
The Group is a cement and clinker producer in Wujiang City, Suzhou Prefecture, which is situated in south Jiangsu Province. The Group is also the only cement producer in Suzhou Prefecture that employs NSP technology in its production process.

Business Review - For the year ended December 31, 2012

In 2012, the Group's turnover amounted to approximately RMB321,11 8,000, representing a decrease of approximately RMB142,927,000 or 30.8% from approximately RMB464,045,000 in 2011 . The decrease was primarily attributable to the decline in sales volume and selling price of cement in 2012, especially the average selling price of cement which decreased by approximately 24.4%.

By product, the sales volume of the Group's cement products in 2012 amounted to approximately 1,214.5 thousand tonnes, representing a decrease of approximately 13.7% from 2011 , while the sales revenue of the Group's cement products decreased by approximately 34.8% from 2011 to approximately RMB300,600,000. A small portion of clinker was sold to ease the pressure on the Group's clinker's inventory due to the decrease in the sales volume of cement in 2012. The sales revenue of clinker was approximately RMB20,518,000 in 2012, compared to only approximately RMB3,309,000 in 2011 .

In 2012, the market demand for cement decreased due to a slowdown in domestic fixed-asset investment in China, resulting in a significant decrease in both sales volume and the selling price of the Group's cement products. Primarily influenced by these two factors, the sales revenue of other regions, with the exception of Wujiang, experienced a decrease of over 40% compared to 2011 .

Business Outlook - For the year ended December 31, 2012

In 2013, the Group will seek to continue to effectively reduce and control the Group's production costs by enhancing internal controls, seeking new markets and expanding its market share and enhancing the profitability of the Group's products through dedicated customer service. The Group shall also continue to identify and consider suitable investment opportunities through mergers and acquisitions in the industry, should the same arise, and make an effort to enhance the Group's operational efficiency and improve its competitiveness by capital operation.

Source: Dongwu Cement (00695) Annual Results Announcement
Chairman Xie Yingxia Issued Capital (shares) 512M
Par Value HKD 0.01 Market Capitalisation (HKD) 650M
 
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