Anhui Conch Cement net profit fell 38.2 per cent to 105.02 million yuan (about HK$97.66 million) for the year to December 31, with a jump in sales failing to offset falling cement prices.
Chairman Guo Wensan said a significant decline in exports was attributable to the regional financial crisis, which had resulted in intense competition and price drops.
Turnover at the mainland's largest cement-maker rose 9.1 per cent to 831.5 million yuan, despite sales volume rising 37 per cent to 4.09 million tonnes of cement.
Earnings per share were 11 fen against 24 fen. A final dividend of 0.021 fen per share will be paid.
'Last year, intensified domestic competition resulting from shrunken exports and reduced local demand forced the average price of cement to drop to its lowest level in five years,' Mr Guo said.
Declining product prices led to a six percentage point decrease in the company's gross margin, he said.
The H share's profit margin was further trimmed by higher depreciation charges and taxes.
