China Comapny Report -- Anhui Conch Cement Company Limited

China Comapny Report -- Anhui Conch Cement Company Limited

Anhui Conch Cement is a leading cement and clinker manufacturer and seller in China, as well as the largest one in Asia at present.

The total income of Conch cement was RMB18.776 billion in 2007, an increase of 23.15 per cent year-on-year; the net profit was RMB2.494 billion, an increase of 74.67 percent year-on-year.

In 2007, the sales of Conch have increased 5% in southern China and central China regions, and the sales in South-central region have grown faster than the growth of the national average. This indicates that Conch are gradually from a regional cement producer becomes a national cement supplier.

The strategies of Conch are, the first phase is more investment on new production capacity, the second phase is the improvement of efficiency and the third phase is merge to expand national market share. The second phase will be completed in 2008. And the third phase has been started from the purchase of Qilianshan’s share.

In terms of the increasing size of Conch (at the end of 2007, clinker production capacity was 69 million tons, an increase of 15 percent year-on-year, and the capacity of cement was 81 million tons), the strategy that focus on the expansion of capacity has exposed its weakness, and the new growth point is endogenetic mode, such as, the growth of the gross profit depends on the cement market rebounds, prices rise steadily, and the energy saving technology, improving the internal management effective to reduce the costs and expenses.

1. Brief of Conch Cement
2. Analysis of annual operating data of 2003-2007
2.1. Analysis of annual operating data
2.2. Analysis of quarter operating data
3. Analysis of the profitability
3.1. The measures of the growth of Capacity
3.1.1. The pace of newly built capacity will gradually slow down
3.1.2. Merger will be a new measure for business growth
3.2. The Effective control of costs
3.3. The advantage of large scales on company’s business
4. Expansion of Conch: From a regional cement manufacturers to a national cement supplier
4.1. The changes of the regional sales
4.2. The growth of regional cement demand of 2004-2007
4.3. The circumstance of current cement industry
4.3.1. Cement price in east and south China 2004-2007
4.3.2 Monthly cement price of provinces in east and south China 2007" "Figure: The annual operating data of 2003-2007

Charts
Figure: The quarter operating data of 2004-2007
Figure: The clinker production capacity of 2003-2006
Figure: the comprehensive costs of Conch cement production
Figure: The price of Qinhuangdao coal
Figure: The three expenses ratios of Conch
Figure: The changes of sales in the main regional markets
Figure: The cement demand growth in southern China between 2004 and 2007
Figure: The cement demand growth in eastern China between 2004 and 2007
Figure: The price of cement in eastern China between 2004 and 2007
Figure: The price of cement in southern China between 2004 and 2007
Figure: The price of cement in Shanghai market between January and December in 2007
Figure: The price of cement in Jiangsu Province between January and December in 2007
Figure: The price of cement in Zhejiang Province between January and December in 2007
Figure: The price of cement in Anhui Province between January and December in 2007
Figure: The price of cement in Fujian Province between January and December in 2007
Figure: The price of cement in Jiangxi Province between January and December in 2007
Figure: The price of cement in Hubei Province between January and December in 2007
Figure: The price of cement in Hunan Province between January and December in 2007
Figure: The price of cement in Guangdong Province between January and December in 2007
Figure: The price of cement in Guangxi Province between January and December in 2007
Table: The operation of Conch 2006-2007
Table: The figure of profitability between 2003-2007