China Company Research ---- Huaxin Cement Co., Ltd

China Company Research ---- Huaxin Cement Co., Ltd

The total sales of cement and clinker of Huaxin Cement in 2007 was 22.67 million tons, among cement was 21.06 million tons and clinker was 1.61 million tons. The revenue of main business was 4,770,108,141 yuan, the total profit was 448,819,327 yuan and the net profit was 290,245,247 yuan, increased 34%, 94% and 90% year-on-year respectively.

The average price/pt of Huaxin‘s cement was 263.21 yuan in 2007, a 16.55 yuan/pt rising than 2006. But, on the other hand, the shortage of energy and the rising prices of coal , and other rising price of raw materials such as slag and fly ash , which have pushed the cost up.

In 2007, Huaxin has achieved a financial task, that is, increasing issues in stock of A share 7,520 million with the investment partner Holcim’s owned subsidiary Holchin BV, and in February of 2008, Huaxin has issued share of non-public offering of A shares, to raise funds of 2 billion Yuan. This plan has promoted the cooperation relationship with Holcim, and enhances the Huaxin’s management capacity, technology standards and the capacity of development.

In 2007, Huaxin has implemented its strategy which calls "cross development strategy” that is, developing an energy-saving and alternative energy (AFR) and a circular economy strategic planning. At the end of 2007, Huaxin has already had the capacity of cement production with an annual output of 18.5 million tons of clinker, 33.2 million tons of cement.

1. Brief of Huaxin cement
2. Business performance of 2007
3. Analysis of business strategy
3.1. The sales strategy in Hubei Province
3.2.The marketing development in other areas
3.3. The effects of capital issues on company’s development
3.4. Challenges of Company’s development
4. The issue share of non- public offering
4.1. The increasing share price has promoted company’s prospect
4.2. The improvement of financial circumstance
4.3. Promotion of management and operation conception

Chatrs
Figure: The cement demands of Central regional of China
Figure: The cement price in South part of China
Figure: The sales of cement and clinker
Figure: Products prices and gross profit ratio
Figure: The growth of fixed asset investment in Henan, Hunan, Hubei provinces in 2007
Chart: The rank of new-drying clinker capacity in 2007
Chart: The cement production lines in Hubei Province
Chart: The figure of sales in recent years
Chart: The conpany’s debts and balance sheet between 2005 and 2007
Chart: The planning of cement clinker production lines
Figure: Finance statement
Chart: Comparison of financial figures of the three major cement companies