The principal activities of the Group consist of the import and distribution of cement in Hong Kong, the manufacture and distribution of cement, clinker and slag powder in other areas of the People's Republic of China (the "PRC"). Through its associates, the Group is also engaged in the production and distribution of ready-mixed concrete in Hong Kong and the PRC. There were no significant changes in the nature of the Group's principal activities during the year.
Business Review
During the year 2009, we witnessed a steady but healthy improvement in the Mainland China's economy. The recovery in the overall business environment was supported by reinforced confidence in the domestic market's development. The gradual implementation of the State's RMB4 trillion economic revitalisation programme began to drive up consumption of cement in the second quarter of the year.
The Group experienced a 58 per cent growth in sales volume for the year ended 31 December 2009 to approximately 17 million metric tonnes. This was achieved through close to optimum utilisation of the Group's Yingde plant and the incorporation of sales contribution from TCC (Gui Gang) into the Group's accounts in the last quarter of the year. The Group reported a favourable upsurge in revenue, which stood at HK$3,953.9 million.
The strong sales performance, improved average selling price ("ASP") in the last quarter of the year along with lower energy costs, enabled the Group to resume profitability in the second half of the year and report a profit attributable to owners of the Company of HK$120.3 million for the year under review, as compared to a loss of HK$155.5 million in the previous year.
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