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Huaxin Cement Co., Ltd.Announcement on Operating Results for the First Half of 2

2010-07-1726828次
Stock Codes: 600801, 900933  Stock Abbreviations: Huaxin Cement, Huaxin B Share  Ref: Lin 2010-012
 
Huaxin Cement Co., Ltd.
Announcement on Operating Results for the First Half of 2010
 
The Board of Directors of the Company and its members guarantee that there is no false or misleading statement or material omission in this announcement and shall be severally and jointly liable for the truthfulness, accuracy and completeness of its contents.
 
I. Estimated performance for this period:
 
1.      Time of the performance forenotice: from January 1 to June 30, 2010
 
2. Performance forenotice: According to the preliminary estimation of the Financial Department of the Company, the net profit attributable to the Parent Company for the first half of 2010 reduced by more than 50% over the same period of last year.
 
3. The estimated performance has not been audited by the CPAs.
 
II. Performance for the same period of last year
 
The net profit attributable to the owners of the Parent Company for the first half of 2009 is 199,667,534 Yuan.
 
III. Reason for the decrease
 
During the first half of 2010, concentrated release of new capacity, serious overcapacity and great decrease of cement price in Hubei Area (the dominant market of the Company) are the main reasons for the drop of the operating results.  In addition, though waste heat power generation (WHPG) projects partly lowered the power cost, ascending coal price, coal consumption and plant maintenance control failed to meet internal control targets have contributed to higher cost in comparison with the same period of last year, which is also one of the reasons for the drop of the operating results.
 
IV. Other relevant explanation
 
The detailed financial figures will be disclosed in the Half Year Report 2010 of the Company, Investors are hereby sincerely asked to mind investment risk.

It is herewith announced.
 
Huaxin Cement Co. Ltd.
Board of Directors
 
July 17, 2010

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