Company Key Information
The following investor information is disclosed for the purposes of Rule 26 of the AIM Rules for Companies.
● The Company was incorporated and registered in Jersey on 16 October 2006 under the Jersey Act as a company limited by shares with the name West China Cement Limited and with registration number 94796. Accordingly, the rights of shareholders may be different from the rights of shareholders in the UK.
● West China Cement is a producer and distributor of cement, operated in Shaanxi Province in the Peoples’ Republic of China and headquartered in Xi’an, the provincial capital of Shaanxi Province.
● The Group operates three cement production lines in the Pucheng area, approximately 150km to the North East of Xi’an, with a combined annual capacity of 1.5 million tonnes. The production lines are currently operating at full capacity being approximately 300 days of operations per year.
● The company's first new production line at Lantian, 35km from Xi'an commenced production in March 2007 with a capacity for producing one million tonnes of cement per annum. The second production line, of an additional one million tonnes, commenced production at the end of July 2007.
●The Lantian plant will be the nearest large-scale NCPP cement production facility to Xi'an and is situated next to the new Xikang Expressway, facilitating the efficient transport of cement to the Xi'an market.
● The project to build a plant with a 1.8 million tonnes per annum production capacity serving a new market in the Southern Shaanxi region was approved by the Board in 2007 and construction work is targeted for completion in the first quarter of 2009, bringing all of the West China Cement plants to 5.8 million tonnes in 2009.
● The PRC Government is actively promoting the restructuring of the Chinese cement industry with a shift away from small-scale and environmentally harmful producers towards large, modern production plants.
● The Group’s plants utilise modern and environmentally friendly production processes and it therefore receives favourable taxation treatment.
● The Directors believe that the Shaanxi Province 11th Five Year Development Plan coupled with the PRC Government policy of “Western Development” will lead to the continued growth in demand for cement. Reflecting the large infrastructural development envisaged by these policies, it is anticipated that the Group’s sales will be increasingly focussed on infrastructure related projects.
● The Group is profitable and has grown both turnover and profits in recent years. In the year ended December 2005 Yaobai Cement achieved a net profit after tax of RMB44.4 million on sales of RMB238.2 million. In the first six months of 2006, it achieved a profit after taxation of RMB27.6 million on sales of RMB138.0 million. In the year ended December 2007, the group achieved their highest recorded post tax profit of RMB 150 million, on the back of increased production and an improved cement price. The Directors anticipate that continued growth in demand for cement coupled with the restructuring of the cement industry will enable the Group to continue to grow turnover as expanded capacity comes on stream.
The information in this website was last updated for the purposes of Rule 26 of the AIM Rules for Companies on July 24 2008.
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