Building Materials Revenue Growth Over 50% in the First Half of 2010

China National Building Materials Co., Ltd. 2010 Interim Results Announcement

The announcement showed that the performance was very good. The operating income was 21.37 billion yuan, and the net profit attributable to the parent company was 1.07 billion yuan, and the earnings per share was 0.431 yuan.

On August 24, China National Building Materials Co., Ltd. (abbreviated as China Building Materials) issued its 2010 interim results announcement. Immediately afterwards, the board of directors** Song Zhiping led the management team to hold a performance press conference in Hong Kong to fully report to the capital market and investors on the business situation in the first half of the year.

This year, according to the established development strategy, China National Building Materials continues to increase joint reorganization within the region, deeply implements effective management integration, and achieves a substantial increase in various business indicators. Once again, it has handed over to shareholders and investors. Perfect answer sheet. In the first half of this year, China Building Materials achieved an operating income of 21.368 billion yuan, a year-on-year increase of 51.7%; a net profit of 1.47 billion yuan, a year-on-year increase of 33.8%, of which net profit attributable to parent company was 1.07 billion yuan, a year-on-year increase of 25.7%; earnings per share was 0.431 Yuan, a year-on-year increase of 22.4%.

For the main work in the first half of the year, Cao Jianglin, president of China Building Materials, summed it up as "Four Catch." He said that in the first half of this year, the central government accelerated the transformation of economic development mode and structural adjustment, vigorously promoted energy conservation and emission reduction, and eliminated backwardness. Benefited from these policies, the business environment of the company has been further improved and market demand has been growing steadily and rapidly. China National Building Materials firmly seizes opportunities for development and strives to do a good job of “Four Catchments”: First, it is closely following the market, and through market synergy to promote the pressure of cost increase brought about by effective conduction of raw materials. The second is to pay close attention to management, through the promotion of management integration to achieve cost reduction and efficiency. The third is to focus on technological transformation, so that the company's operating efficiency continues to increase. Fourth, we must pay close attention to culture and continue to enhance the internal synergies.

As of June 30, 2010, the company's total assets amounted to nearly 100 billion yuan. The performance of various business segments was excellent, and all indicators including production capacity, production, sales, and revenue of the main business continued to grow.

The cement business segment continued to steadily advance the joint restructuring and technological transformation of the three strategic regions in the Huaihai Economic Zone, the Southeast Economic Zone, and the northern region. The scale of production capacity has reached 170 million tons; sales volume reached 70 million tons, an increase of 48.3% year-on-year. While expanding the scale and sales volume, the cement segment further promoted the management integration with the “3rd Five-Year” management model as the core and promoted integrated management; followed the market, price, cost, and expense, exerted scale advantages, and actively promoted market synergy and construction. , Improve and expand the core profit zone and synergy profit zone to increase market share. Through the establishment of an operation and management zone, China United Cement has achieved unified management of marketing, procurement and production technologies in major regions. By strengthening the centralized management of marketing, Southern Cement has greatly increased the market share of multiple core regions such as Jiaxing, Huzhou and Hangzhou, and the regional market control and overall profitability have gradually increased. North Cement will continue to push forward the joint reorganization in accordance with the established development strategy, accelerate the progress of projects under construction, and continuously increase its business scale.

The scale of the light building materials segment saw a substantial increase, with a production capacity of 800 million square meters of gypsum board. Production and sales volume continued to grow. In the first half of the year, the output was 273 million square meters, an increase of 37.8% year-on-year; the sales volume was 264 million square meters, a year-on-year increase of 33.9%. Beixin Building Materials further strengthened its marketing channel construction, winning a number of key projects and increasing market coverage and market share.

The wind turbine blade business continued to grow, with sales volume of 2612 pieces, a year-on-year increase of 58.9%. Sales volume, revenue, and gross profit rate continued to maintain China's leading position. R&D and innovation capabilities are continuously increasing. 3MW and 3.6MW wind turbine blades have been released. The world-leading 5MW wind turbine blade design project has been fully started.

In the fiberglass business, benefiting from the increase in market applications driven by global economic recovery and technological advancement, while integrating and deepening the domestic market, China Fiberglass vigorously explored the international market, and its glass fiber output steadily rebounded, with sales up 64.7 percent year-on-year. %, revenue, gross profit, and net profit also all increased significantly. In addition, through continuous technological transformation, the production capacity reached 935,000 tons.

In the engineering services sector, revenue and profitability increased substantially. Focusing on industrial structure adjustment policies and vigorously developing new energy material strategies, we have increased the research and development of high-end technology projects and achieved initial results. In the domestic technology market, the rapid transformation from the traditional building materials engineering and technology market to the solar and optoelectronics industry engineering technology market has begun to take a leading position in China in TFT, LCD glass, solar glass and so on.

Regarding the macro situation and the company's future development, China National Building Material Management has a very positive and optimistic attitude. The management believes that with the acceleration of urbanization, the commencement of large-scale infrastructure projects and the acceleration of affordable housing construction, the demand for building materials products will continue to grow. The country's restrictions on new construction, elimination of outdated policies and pressures for energy conservation and emission reduction will slow down the growth of supply of building materials products. The balance of supply and demand will drive cement prices and other major business prices up, which will drive the continued growth of the company's earnings.

In the second half of the year, according to the established development strategy, China National Building Materials will continue to focus on “Four Steps” to implement it, steadily promote joint reorganization and capital operations, deepen management integration, strengthen technological innovation and capital expenditure management, and continuously improve profitability and achieve new development of. In particular, in the cement business, it will firmly seize the opportunity for the transformation of economic growth by the state to limit new and eliminated backward policies to large enterprises, steadily advance joint restructuring and technological transformation in the three strategic regions, and further increase market share. The rate will increase the profitability of the cement sector and ensure the rapid growth of the cement business.

The excellent performance of CNBM has received great attention and full recognition from professional investment agencies and Hong Kong media. Nearly 100 investment institutions and more than 20 news media have participated in the conference. At the meeting, management responded to questions raised by analysts and media reporters one by one, and communicated and communicated on issues such as the macro environment, industry trends, and company development.