Anhui Conch Cement, the mainland's largest maker of the material, said profit rose sharply last year as the country's fast economic growth helped it rebound from an industry slump in 2005.
Net income rose to 1.48 billion yuan from 385.83 million yuan in 2005, while earnings per share increased to 1.14 yuan from 32 fen. Sales jumped 40.83 per cent to 15.25 billion yuan.
'China's economy will continue to have robust growth this year but it is believed that the government will keep implementing financial and currency policies in order to facilitate economic structural adjustment and massive investment,' said chairman Guo Wensen.
Anhui Conch suffered a 60 per cent slump in full-year profit in 2005 amid the government's austerity measures begun in 2004 to curb growth in several industrial sectors including cement.
High coal prices also increased the company's costs in 2005.
However, the strong growth in the property sector and continued urbanisation last year fuelled demand for cement. Anhui Conch increased annual production capacity by about 30 per cent to 75.51 million tonnes last year, and plans to add another 50 million tonnes of capacity this year.
Earnings were also boosted by a 6.2 per cent increase in average selling price to 201.9 yuan per tonne. Mr Guo estimated the price would grow 3 per cent this year. The company has budgeted 5.3 billion yuan as capital expenditure for this year, including three billion yuan to expand its production facilities.