China Shanshui Cement Group posted a record net profit of 702 million yuan (HK$796.9 million) for the year ended December 31, 2009 - up 30.2 per cent from the 539 million yuan reported in 2008.
'The policies launched by the central government effectively reduced the oversupply in the industry and promoted its healthy development,' says company chairman Zhang Caikui.
For this year, Zhang adds, a combination of the economic stimulus packages introduced by the government, rapid urbanisation on the mainland and new rural construction projects will further boost demand for cement.
'To grasp the lucrative opportunities within the industry, we will speed up construction projects, optimise the network in Shandong and Liaoning provinces and accelerate our expansion in other provinces and regions such as Shanxi and Inner Mongolia,' Zhang says.
The group also has plans to expand its marketing network, strengthen the market influence of its 'Shanshui Dongyue' brand and further develop its regional presence through expanding its market share.
The group experienced difficulties in the fourth quarter as severe weather conditions on the mainland led to the suspension of construction and infrastructure, resulting in a drop in sales of cement and clinker.