(Hong Kong, 10 August 2014) – China Resources Cement Holdings Limited ("China Resources Cement" or the "Company", SEHK stock code: 1313, and together with its subsidiaries, the "Group"), one of the leading cement and concrete producers in Southern China, announced its interim results for the six months ended 30 June 2014.
The Company's consolidated turnover rose to HK$15.16 billion for the six months of 2014, representing an increase of 17.9% over the corresponding period of 2013. Profit attributable to owners of the Company achieved a growth of 79.5% to HK$2.1 billion. Consolidated gross margin grew 8.8 ppt from 23.1% to 31.9%. Basic earnings per share reached HK$0.315. The Board has resolved to declare the payment of interim dividend of HK$0.07 per share for the six months ended 30 June 2014 (30 June 2013: HK$0.035 per share).
Mr. Zhou Longshan, Chairman and Executive Director of China Resources Cement, said, "In the first half of the year, in order to cope with the pressure of domestic economic downturn, the Chinese government launched a series of measures to ensure steady economic growth, promote reform and restructuring, and improve people's livelihood. FAI and consumption are the key drivers of economic growth. During this period, the Chinese government has increased the annual target of FAI in railways three times, from RMB600 billion to RMB800 billion. A total of over 7,000 km of new railways is expected to be put into operation by end of the year. The FAI in highways and waterways reached RMB656.3 billion, representing an increase of 9.4% over the corresponding period last year. The construction of 5.3 million units of urban social housing has newly commenced and 2.8 million units have been completed, with a total investment of RMB720.0 billion. In the first half of the year, there was a downward adjustment trend in the real estate market in China. Whilst the adjustment of the real estate market will bring pressure to the economy in short term, it will help restrain excessive increase in property prices. In the long term, it will be beneficial for the healthy development of the real estate market and result in sustainable demand for the cement industry."
In the first half of 2014, China maintained stable economic growth. According to the National Bureau of Statistics of China, in the first half of the year, China's GDP reached RMB26.9 trillion, representing an increase of 7.4% over the corresponding period last year. FAI, consumption and net export contributed 3.6, 4.0 and -0.2 percentage points respectively to the GDP growth. The total cement production increased by 3.6% to 1.14 billion tons. According to the statistics of Digital Cement, nationwide clinker production capacity increased by 31.1 million tons, representing a decrease of 20.0% over the corresponding period last year. Of which more than half of new capacities are located in the south-western and north-western regions. In Southern China, only one production line commenced operation in Guangdong, which increased clinker production capacity by 1.6 million tons, representing a decrease of 60.0% over the corresponding period last year.
