BRIEF: Conch Cement’s profit drops on weak demand, price declines
Anhui Conch Cement Co. Ltd. (0914.HK) announced on Monday its revenue fell 35.51% year-on-year to 91.03 billion yuan ($12.55 billion) last year, as it came under pressure from China’s economic slowdown and property downturn. As revenue fell, the company also reported its annual net profit dropped 24.65% to 8.05 billion yuan.
The company attributed the declines to weaker demand and falling prices. Its cement and clinker sales fell 7.46% year-on-year to 271 million tons, while revenue from its core operations declined 14.18% to 74.16 billion yuan. Its gross profit margin dipped slightly by 0.52 percentage points to 24.51%.
Looking ahead, Conch Cement said it was targeting net cement and clinker sales of 268 million tons this year, with production and cost levels expected to remain relatively stable. It also proposed a dividend policy for 2025 to 2027, pledging to distribute 50% or more of its net profit annually in cash.
Conch Cement shares fell in Tuesday morning trading, closing down 5.75% at HK$21.3 by the midday break.
By Lee Shih Ta
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