Anhui Conch Cement Co., China's largest cement maker by market value, said Tuesday that its net profits plunged nearly 30 percent year on year in the first half (H1) of the year, pinched by a slowing economy and slower fixed-asset investment.
In a report filed to the Shanghai Stock Exchange, the company said its net profits stood at 3.36 billion yuan (504.5 million U.S. dollars), down 28.7 percent year on year. Revenue fell 0.79 percent year on year to 23.4 billion yuan. Earnings per share was 0.63 yuan, compared with 0.89 yuan a year earlier.
Sales of cement and clinker rose to 128 million tonnes, up 11 percent 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.
China's fixed-asset investment rose 9 percent in H1, slower than a 11.4-percent gain during the same period last year, official data showed. Shares of the company opened 1.14 percent higher at 16.86 yuan on Tuesday morning.
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