TCC INTERNATIONAL HOLDINGS LIMITED 
By Contact: Shiu Ka Yue/ Phoebe Leung/ Vivian Cheung/ Ruby Yeung/ Stella Gao | Date: | 22 March 2012 |
Tel: 28016239 (90291865/ 93393206/ 92376253/ 64389621/ 97909597) | Pages: | 4 |
TCC International Holdings Limited ("TCCIH" or the "Company",
stock code: 01136) together with its subsidiaries (the
"Group") reported a 38.6 per cent year-on-year surge in
revenue to HK$11,266.2 million for the year ended 31 December
2011, riding on the back of exceptionally strong demand
during the low season in the first half of 2011 and increase
in product average selling price ("ASP"). Profit attributable
to owners of the Company leaped by1.09 times to HK$1,637.9
million, with basic earnings per share of HK49.1 cents for
the year under review.
TCCIH's board of Directors is pleased to recommend the
payment of a final dividend of HK7.5 cents per share for the
year ended 31 December 2011.
The exceptionally strong demand during the low season in the
first half of 2011, and escalated closure of obsolete cement
facilities had pushed up cement ASP for the full year,
despite a retreat in the last quarter of the year. In the
second half of 2011, the heat of the State government's
austerity measures and stringent credit policies were felt in
both the public and private construction sectors, which
affected cement consumption. In spite of the moderation of
the Group's performance in the second half of the year, the
Group achieved a 20 per cent growth in sales volume,
amounting to 34.2 million metric tons, for the full year.
Following the consolidation of the Upper Value full year
accounts and the running in of various recently launched
facilities, the Group managed to enlarge its gross profit
margin to25.6 per cent. The positive impact of synergy and
economies of scale had contributed to the Group a full year
gross profit of HK$ 2,888.8 million.
The Group's aggressive expansion over the past few years,
through organic growth as well as merger and acquisition, has
established for it an operation portfolio spanning over nine
provinces and one municipality.
During the year, Southern China region remained a major
contributor to the Group's performance both in terms of sales
and profit. The sales volume of the Group's Southern China
operations amounted to approximately 22.1 million metric
tons, which remained basically the same as that of last year.
The Group's Southern China operations comprised production
plants in Guangdong and Guangxi provinces. The Group's two
major facilities in Yingde, Guangdong, namely TCC Yingde
Cement Co., Ltd. and Yingde Dragon Mountain Cement Co., Ltd.,
together generated a sales volume of 14.6 million metric
tons, or over 40 per cent of the Group's total sales volume.
The Group's 25 per cent minority interests in Prosperity
Conch Cement Co., Ltd. in Yingde continued to generate a
favourable return. Sales volume of the Group's Guangxi plant
amounted to approximately 7.5 million metric tons, which was
more or less the same level of
2010.
In the Eastern China region, despite minimal change in the
sales volume of the Group's Jurong plant, a 36 per cent
year-on-year increase in cement ASP and improved cost
efficiency have contributed to significant upsurge in the
Jurong plant's profit during the year. The rise in ASP was
supported by vibrant development of both public and private
sector projects and severe
restriction in electricity supply. Performance of the Fuzhou
plant also benefited from high
Page 1 of 4
PRESS RELEASE
cement ASP and favourable demand in the region. For 2011, the
Group's Eastern China operations generated a sales volume of
5.6 million metric tons.
The Group's operations in Southwestern region comprised
facilities in Chongqing, Sichuan and Guizhou provinces, as
well as minority interests in two Yunnan cement plants. The
two production lines in Chongqing, with one operating in full
for the year, and the other only start running in the last
quarter of 2011, generated a total sales volume of 2.4
million metric tons during the year under review. However,
the Chongqing plant's cement ASP was under pressure from new
capacity launched in Chongqing and Sichuan and influx of
excess supply from the surrounding areas. As a result, the
Chongqing plant reported an insignificant profit during the
year.
Since the production line of the Group's Guangan plant in
Sichuan province was inaugurated for less than six months and
suffered from price competition, the plant generated a total
sales volume of 830,000 metric tons and reported a minimal
loss for the year under review.
The Group's Guizhou operations, which comprised two
production lines in 2011, reported a total sales volume of
804,000 metric tons, as one production line became
operational only in July
2011, while the other one was still under construction during
the year. To entrench its position in Guizhou, the Group
acquired two additional production lines with annual
capacities of 1 million and 1.2 million metric tons
respectively during the year. Acquisition of the 1 million
metric tons production line was completed in late October
2011, while the other one only commenced operation at the end
of the year. These smaller plants are designed to service the
highly segregated local markets over the mountainous terrain
of the province.
During 2011, the Group's Liaoning plant in North eastern
China sold a total of approximately 1.9 million metric tons
of cement and clinker, and generated a handsome profit, as
opposed to a minimal loss in the previous year. The
satisfactory results were mainly attributable to high cost
efficiency, an over 50 per cent increase in cement ASP and
effective regulation of supply in response to a stable market
demand.
The Group's Hong Kong operations capitalized on the boom of
the domestic construction sector to deliver a sales volume of
470,000 metric tons of cement. Strong demand and hiked ASP
for cement and ready-mixed concrete had translated into
favourable profit contribution to the Hong Kong operations
during the year.
In addition to production of cement and clinker, the Group
has strategic interests in two slag powder joint ventures.
The two companies continued to perform satisfactorily and
generated an aggregated sales volume of 1.3 million metric
tons of slag powder.
Commenting on the outlook for 2012 business performance, Mr
Koo, Cheng-Yun, Leslie, Chairman of TCCIH, said: "Certain of
the Group's newly completed/acquired production lines are
going to book their first full year results into the Group's
consolidated accounts in the current financial year, and will
thus further reinforce the Group's income base. On top of
these additional facilities, the Group has completed the
acquisition of controlling interests in six cement plants
spreading over Guizhou and Sichuan provinces in January
2012."
To consolidate its forefront position among top-tier cement
manufacturers, the Group will continue to maintain its pace
of expansion, both horizontally and vertically. On the front
of
Page 2 of 4
PRESS RELEASE
organic growth, the Group has entered into an agreement with
the local government for the development of a large scale
cement production base at Shaoguan city in the northern part
of Guangdong province. The plan, which is subject to relevant
authority approval, is aimed to complement the Group's
existing facilities in Guangdong and thus further consolidate
its dominant position in the province.
To achieve vertical integration, the Group announced the
acquisition of three companies providing limestone quarrying
service to its subsidiaries in Yingde, Guigang and Jurong
respectively. The transaction allows the Group to lower raw
material costs through extending its operation to limestone
quarrying.
"The Group will continue to intensify its market penetration
by fully utilising its existing production bases and
leveraging additional capacity from newly acquired facilities
to improve its market dominance on a broader geographical
portfolio," Mr Koo remarked.
About TCCIH
TCCIH is principally engaged in the manufacture and supply of
cement, clinker and slag powder, with a dominant market
presence in Southern China, through a network of advanced and
efficient production and handling facilities spanning from
Guangxi, Guangdong, Fujian, Anhui to Jiangsu. In recent
years, in addition to its organic growth, the Company has
been expediting its expansion in operation and market
coverage to fast growing markets such as Liaoning, Yunnan,
Guizhou, Chongqing, and Sichuan through mergers and
acquisitions of companies that possess advanced capacity and
create synergy with the Group's existing operations.
- End - Issued by: TCC International Holdings Limited
Through: CorporateLink Limited
(Attached please find the audited consolidated statement of
comprehensive income of TCCIH
for the year ended 31 December 2011)
Page 3 of 4
PRESS RELEASE TCC INTERNATIONAL HOLDINGS LIMITED (Stock Code: 1136) Audited Consolidated Statement of Comprehensive Income For The Year Ended 31 December 20112011 HK$'000 | 2010 HK$'000 | ||
Revenue | 11,266,196 | 8,125,854 | |
Cost of sales | (8,377,409) | (6,596,337) | |
Gross profit | 2,888,787 | 1,529,517 | |
Investment income | 33,750 | 33,688 | |
Other income, gains and losses | 291,806 | 148,790 | |
Selling and distribution expenses | (437,098) | (319,756) | |
General and administrative expenses | (555,117) | (342,496) | |
Finance costs | (428,995) | (318,028) | |
1,793,133 | 731,715 | ||
Share of results of associates | 242,352 | 224,086 | |
Profit before tax | 2,035,485 | 955,801 | |
Income tax expense | (349,552) | (116,774) | |
Profit for the year | 1,685,933 | 839,027 | |
Profit for the year attributable to: Owners of the Company | 1,637,880 | 784,053 | |
Non-controlling interests | 48,053 | 54,974 | |
1,685,933 | 839,027 |
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© Publicnow - 2012
TCC International Holdings Limited is principally engaged in the cement related business. The Company operates through three business segments. The Import and Distribution and Handing of Cement segment is engaged in the import, distribution and handing of cement in Hong Kong. The Manufacture and Distribution of Cement, Clinker, Concrete and Other Cement Related Products segment is engaged in the manufacture and distribution of cement, clinker, concrete and other cement related products in Mainland China. The Investment Holding segment is engaged in the investment in listed and unlisted equity securities. The Company is also engaged in the property holding, the production and distribution of ready-mixed concrete, as well as the provision of port facility services through its subsidiaries.
Sector
Construction Materials
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