PDF《DONGWU CEMENT INTERNATIONAL》

2681 Grand Cayman KY1-1111 Cayman Islands Principal Place of Business in PRC Lili Town, Wujiang District Suzhou City, Jiangsu Province, PRC Principal Place of Business in Hong Kong Unit 8505B-06A, Level

85 International Commerce Centre

1 Austin Road West Kowloon, Hong Kong Share Registrar Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor Hopewell Centre

183 Queen'

s Road East Wanchai, Hong Kong Principal Bankers China Merchants Bank Wujiang Rural Commercial Bank Hong Kong Legal Advisors Li &

Partners 22nd Floor, World-Wide House Central, Hong Kong Contact Details Tel: (852)

2520 0978 Fax: (852)

2520 0696 Email: [email protected]

5 Statement of comprehensive income (expressed in RMB'

000, unless otherwise stated)

2014 2013 Revenue 340,093 359,007 Operating profit 11,488 28,659 Profit before income tax 9,978 25,216 Profit for the year 5,741 16,253 Basic and diluted earnings per share (expressed in RMB per Share) 0.011 0.032 Statement of financial position (expressed in RMB'

000)

2014 2013 Non-current assets 204,245 155,958 Current assets 230,682 277,201 Total assets 434,927 433.159 Total equity 334,932 329,191 Non-current liabilities 7,134 4,773 Current liabilities 92,861 99,195 Total liabilities 99,995 103,968 Total equity and liabilities 434,927 433,159 Statement of cash flows (expressed in RMB'

000)

2014 2013 Net cash flows from operating activities 15,189 22,026 Net cash flows from investing activities (107,174) (6,469) Net cash flows generated from/(used in) financing activities

0 0 Net (decrease)/increase in cash and cash equivalents (91,985) 13,557

6 Financial Highlights in Previous Years Results Year ended

31 December

2014 2013

2012 2011

2010 RMB'

000 RMB'

000 RMB'

000 RMB'

000 RMB'

000 (note 1) (note 1) Revenue 340,093 359,007 321,118 464,045 354,950 Cost of sales (321,677) (314,428) (298,895) (341,923) (305,619) Gross profit 18,416 44,579 22,123 122,122 49,331 Operating profit 11,488 28,659 10,388 116,567 44,364 Profit before tax 9,978 25,216 5,592 109,378 39,909 Income tax expense (4,237) (8,963) (4,554) (22,434) (8,123) Profit for the year 5,741 16,253 1,038 86,944 31,786 Assets and liabilities As at

31 December

2014 2013

2012 2011

2010 RMB'

000 RMB'

000 RMB'

000 RMB'

000 RMB'

000 (note 1) (note 1) Total assets 434,927 433,159 413,108 407,126 465,447 Total liabilities 99,995 103,968 100,170 167,184 186,469 Total equity 334,932 329,191 312,938 239,942 278,978 Note: 1. The figures for the two years ended

31 December

2011 have been extracted from the Company'

s Prospectus.

7 Confronting the adverse effects of growth slowdown in macro-economy, an increase in cement production in the region and a recessed real estate market in 2014, the Group proactively adjusted operating strategies, which included enhancing internal management, maintaining consistent product quality, expanding sales channels, and continuing to defend the overall competitiveness of the Group in the market and in the industry. The production volume, sales and operating income remained stable, while the profit lowered due to the increased production cost. During the Reporting Period, the Group strengthened the management in the procurement of raw and auxiliary materials, the consumption of each item and the production equipments and technologies, and strictly controlled the production cost. In 2014, the output for cement clinker amounted to 779,000 tonnes, and cement output amounted to 1,344,000 tonnes, among which, 621,000 tonnes were grade 32.5# cement and 723,000 tonnes were grade 42.5# cement. The production costs for grade 32.5 cement, grade 42.5 cement and cement clinker increased to some extent as compared to 2013. The supply of raw and auxiliary materials for the production, namely limestone, saw a significant price hike, pushing up production costs of the Company for 2014. The equipment operation were basically at normal levels, and the production safety were at normal levels throughout the year, and the quality acceptance rate of the outgoing cement reached 100% throughout the year. During the Reporting Period, under the influence of the growth slowdown in macro-economy, a recessed real estate market in the region and an increase in cement production in the region, the competition in the cement market became fiercer. Given the unfavorable situation, the Group timely adjusted the marketing strategies in response to the market. The Group proactively expanded sales in Suzhou District and entrepots, with product sales volume reaching 1,365,000 tonnes, among which, 628,000 tonnes were grade 32.5# cement and 732,000 tonnes were grade 42.5# cement, and the sales volume of cement clinker reaching 4,000 tonnes during the year. As a result, the income from principal business amounted to RMB340,093,000. The Group is determined to create the DONGWU Cement in order to gain enduring brand dominance. Since the founding of the Group, the path of building DONGWU Cement has been laid with unswerving resolution to implement the principle of high level of quality and high level of services. Currently, DONGWU Cement has been well recognized by customers in the markets of municipal engineering, transportation and construction in Suzhou City, which shapes a reputable brand image for DONGWU Cement. We will continue to consolidate the brand image of DONGWU Cement in the region to establish regional brand dominance, adding an edge in the brand of the Group. The Group continues to promote technology innovation and technological reform, enhance production efficiency and reduce production cost and improve overall competitiveness of the Group in the market. The Group has been paying assiduous attention to the development and application of new technologies and new manufacturing processes all along, and introduces them into the actual production in due course, so as to improve the quality and efficiency of production and lower production costs, adding another competitive edge to the Group in the course. The Group will make continuous progress in light of the actual circumstances of the Group and the social development needs. Internally, we will constantly enhance production management, lower production costs;