Shanshui Cement
China Shanshui Cement Group Limited is a holding company. Through its subsidiaries, the Company produces clinker and cement in China. The Company markets and sells most of its products under its Shanshui Dongyue brand name. Its cement products are classified into high-grade products and low-grade products. As of June 20, 2008, the Company had 14 clinker production lines and 53 cement grinding lines located in Shandong Province, and eight clinker production lines and 24 cement grinding lines located in Liaoning Province.
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Shanshui Cement profits double
Shanshui Group, the largest cement producer in Shandong and Liaoning Provinces, has released its annual results for 2008, revealing a more than doubled net profit. Profits were RMB549.21m, up 156 percent from RMB214.58m in 2007. Basic earnings per share rose from 0.11 to 0.23.
The company’s dominant market position has allowed the company to leverage Beijing’s economic stimulus plan, where it claims to have taken advantage of growth opportunities in construction and infrastructure. As one of 12 large cement companies receiving support from the government, Shanshui has carried out market consolidation, via acquisitions in Shandong and Liaoning, increasing its market share.
In 2008, with positive growth prospects, Shanshui Group listed in Hong Kong and by 4 July 2008 it was over-subscribed. After listing, the price rose continuously, and remained above the offer price until September 2008.
The proportion of sales revenue from cement was 78.7 percent, up from 76.2 percent in 2007, while the proportion of sales from clinker was 15.6 percent, down from 18.1 percent in 2007.
