Asia Cement Corporation

07/29/2021 | Press release | Distributed by Public on 07/28/2021 22:04

Asia Cement Profit Hits 10 Billion for Three Consecutive Years Dedication to Environmental Friendly and Energy Efficiency for Excellence in ESG

Asia Cement Corporation held its 2021 Annual Shareholders' meeting on the 23rd. Chairman Mr. HSU, Shu-Tong emphasized to the shareholders Asia Cement leads in the industry with its excellent profitability by generating profit more than 10 Billion for three consecutive years. It was adopted in the shareholders' meeting to distribute a cash dividend of NTD 3.55(Note) with its shareholder this year. In addition, the yielding exceeds 6.5%, which is higher than average of companies publicly listed in Taiwan. Asia Cement also put great effort in the promotion of environmental friendly and energy efficiency as well as ESG by transforming cement industry, of its traditional nature, to green industry. This not only brings profits to the shareholders but also reciprocates to the community and ensures protection of the environment and thus makes Asia Cement the worthy target of investment.

Asia Cement generates consolidated revenue of NTD 78 Billion 240 Million and 880 Thousand along with a consolidated profit of NTD 19 Billion 670 Million and 138 Thousand. Furthermore, investments recognized under equity method, Far Eastern New Century, U-Ming Marine and Chian Shan-Shui Cement also performed splendidly with a total profit NTD 4 Billion 639 Million and 504 Thousand and leads to consolidated net profit of NTD 18 Billion 773 Million and 807 Thousand of which NTD 14 Billion 710 Million and 486 Thousand is attributable to the Company.

Asia Cement China also excelled equally in 2020 performance with production of cement clinker of 239.1 Million metric ton and sales of cement, clinker and slag powder of 291.1 Million metric ton. The Net Profit After Tax attributable to the parent company amounts to NTD 11 Billion 392 Million and 945 Thousand among which the Company and subsidiaries recognized investment profit of NTD 8 Billion 229 Million and 20 Thousand.

Looking forward to the cement markets on the island and the mainland, Chairman HSU, HSU-TUNG said that Taiwan's cement industry has been filled with uncertainties due to the government's regulation of the housing market, severe shortage of construction workers and the continued impact of the COVID-19. However, with the government's efforts to speed up the implementation of public projects, the total demand for cement across the country is still expected to grow compared to last year. Economy in China has shown resilience and growth momentum due to the establishment of a normalized epidemic prevention and control mechanism and market demand is expected to fully recover.

In light of above, the profit of Asia Cement has grown significantly in Q1 of 2021 with consolidated operating revenue of NTD 17 Billion 877 Million 389 Thousand, representing an increase of 36% from NTD 13 Billion 138 Million and 882 Thousand in the same period in 2020, and the consolidated Net Profit After Tax was NTD 3 Billion 849 Million and 242 Thousand, which was 2.4 times higher than the revenue of NTD 1 Billion 130 Million and 599 Thousand in the same period in 2020. The net profit after tax of attributable to the company is NTD 3 Billion 200 Million and 39 Thousand.

In addition to growth of profit, according to Chairman HSU, Shu-Tong, Asia Cement expects to become a green leader in the cement industry by introducing circular economy featuring 'resource sustainability'. The Company uses recycled waste to replace raw materials used for production of cement and thus assists local communities, the government, and related industries in meeting the need for waste treatment and creates a three-win situation for the environment, society and economy.

Asia Cement endeavors to develop AI technologies and promote low-carbon production. Intelligent computing is introduced in application from mining, kiln brick temperature, limestone analysis, to production, work safety, and delivery for optimization of operations. Internal and external information is integrated through cloud monitoring platform while high-end green products are being developed to reduce emission of greenhouse gas.

As a member of the Global Cement and Concrete Association (GCCA), Asia Cement proactively committed to achieve carbon neutrality by 2050 and has become the first company in the cement industry globally to obtain three international certifications: circular economy standards, cement product carbon footprint and water footprint. It is also the first domestic cement manufacturer to keep comprehensive track of the carbon footprint of its products from raw materials, processes, throughout its entire life cycle. It is also the only company in the industry to complete the 'full shore power' energy-saving operations. The Company even passed the world's most stringent review by SBTi to become the fourth cement company in the world to complete the carbon reduction target setting and specifically respond to the global warming by controlling the rise of temperature well below 2°C.

With its unique quarry revegetation and rehabilitation techniques, Asia Cement Hualien Plant has created the first ecological classroom in the cement industry, the 'Asia Cement Ecological Park,' which has attracted more than 200,000 visitors, who have come to receive ecological education.

Chairman HSU, Shu-Tong emphasized that the recognitions of 'the only company' and 'the first company' earned by Asia Cement can be attributed to the Company's smart production, promotion of circular economy, realizing ESG goals and corporate governance. It has gradually become a model of net zero carbon emissions in Taiwan and even the world.

Phase II project of ChiaHui Power, subsidiary of Asia Cement, has been completed. Chiahui Power could produce totally 4.3 billion kWh per year and become Taiwan's largest LNG IPP. This will contribute to the power supply stabilization for the country.

Note: It was adopted in the shareholders' meeting that the cash dividend distributable to be NTD 3.55 per share. Nevertheless, there is change to number of outstanding shares as of the record date for dividend allotment, and hence the dividend payout ratio is adjusted to NTD 3.46283787 per share.