Public company info - Zhejiang Glass Co. Ltd. - H Shares , 00739.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Zhejiang Glass Co. Ltd. - H Shares, 00739.HK - Company Profile
Chairman Feng Guangcheng
Share Issued (share) 385,000,000
Par Currency Renminbi
Par Value 1.0
Industry Industrial Goods
Corporate Profile Business Summary: The Group is principally engaged in the manufacturing and selling of glass and soda ash products. Business Review: Soda ash business The industry weathered much volatility in the second half of 2008 with the economic downturn curtailing demand from our upstream customer base cut their output in the year. The impact became most visible by the second half of the year with activities across the industries slowing down as the global economy plunged into a recession. Market price averages for heavy soda ash and light soda ash soared to a respective high of RMB1,700 and RMB1,500 per tonne (inclusive of VAT) in the first eight months of the year before plummeting to respective lows of RMB1,300 and RMB1,100 per tonne (inclusive of VAT) by September 2008 due to the slowing down of the local economy, according to data from the China Building Material Industry Association. China meanwhile retained its position as the world’s largest soda ash producer with an annual output of 18.8 million tonnes, 6.45% higher than the level in 2007. The nation exported two million tonnes of net soda ash in the year, at an average price of US$267.7 per tonne, 24.7% more than the volume exported in 2007. The Group contributed to China’s robust soda ash production with the Group’s soda plant in Qinghai Province operating at full capacity. The strategic geographic location of the plant, coupled with the infrastructure of a conveniently linked sales network and the accessibility of the Qinghai-Tibet railway and government-supported highway networks, allowed us to keep down transport and logistical costs and enabled customers to enjoy the relatively competitive prices. In 2008, phase one of the Qinghai Soda Ash Company Limited (QSAC), a 71.47% owned subsidiary of the Group produced a total of 1.02 million tonnes of soda ash. 677,000 tonnes were sold to the Group’s external customers and 276,000 tonnes were used for the Group’s own glass business. High density dense soda ash, mainly used in the production of glass, accounted for 75% of the Group’s entire sales volume. Low density light soda ash, used widely in the production of detergent, alumina and monosodium glutamate, contributed to the remaining 25%. The Group’s average selling price of soda ash (inclusive of VAT) was RMB1,520 per tonne, 22.6% higher than RMB1,240 per tonne in 2007. Revenue from external customers for the soda ash business accounted for 31.7% of the Group’s total revenue, at RMB873.9 million, an increase of 10.0% as compared to RMB794.7 million in 2007. Glass business Flat glass: The economic downturn has posed some tough hurdles for the nation flat glass industry. Prices, which were already pressured down by overcapacity in the market dipped further in the year due to laggard activities in the real estate and auto industries, the glass industry’s primary customers. In December 2008, glass prices slid with the average for 5mm float glass plummeting to RMB1.25 per square metre, translating into a 1.64% year-on-year dip, in most major cities in China. The unit cost of flat glass was RMB68 per weight case, in contrast to RMB66 per weight case in 2007. During the year, actual output of flat glass in China was at 520 million weight cases, with a growth rate of 4.4%, half the pace of growth in 2007, according to the National Bureau of Statistics of China. Glass output, however, took a dive of 18% in December 2008 as the financial crisis reached a crescendo, forcing some of the country’s glass manufacturers to halt operations (45 production lines nationwide) in a bid to avert overcapacity. The average sales/production ratio of the 42 major flat glass manufacturers in China was at 95%, compared with 96% in 2007. The Group, throughout 2008, focused on the development and production of higher margin premium glass. The Group launched two new glass production lines in the second half of 2008, dedicated to the production of ultra-thick glass (12 mm or above in thickness) for the exterior walls of buildings. Additional efforts will be devoted on the development of new technologies for the production of ultra thin glass for the electronics industry. As of 31 December 2008, the Group operated a total of ten flat glass production lines with an aggregate daily melting capacity of 5,000 tonnes. During the year, the Group produced about 24.3 million weight cases (2007: 19.0 million weight cases) or 1,212,500 tonnes (2007: 950,000 tonnes) of flat glass. The sales production ratio reached 97% (2007: 95%). Flat glass sales reached RMB1,660 million in 2008 (2007: RMB1,307 million), accounting for about 60.2% (2007: 56.3%) of the Group’s total revenue. The unit price of flat glass was RMB73 per weight case, RMB3 per weight case lower than in 2007. Automotive grade glass meanwhile accounted for 89% of the Group’s flat glass output (2007: 90%) during the year, while construction grade glass comprised 11% (2007: 10%). Processed glass: The Group’s 13 processed glass production lines for mirror glass, tempered glass, insulating glass, laminated glass and low e-glass operated normally in the year. Around 3% of the Group’s flat glass output was processed into higher margin products (2007: 5%). The Group sold about 2.8 million square meters of processed glass at an average selling price of RMB72 per square metre (2007: RMB48 per square metre). The processed glass business segment reported a revenue of RMB199 million (2007: RMB215 million), representing 7.2% of the Group’s entire revenue (2007: 9.3%). Prospects: Soda ash business China’s unprecedented stimulus packages aimed at reviving economic growth amid the global downturn is expected to kick start the sluggish local economy by the second half of 2009. The demand for soda ash in China are expected to increase amid a backdrop of diminishing supply as a growing number of industry players have been forced to shut down or remove their facilities following failure to comply with the nation more stringent environmental regulations. This demand/supply imbalance is favourable for the development of our soda ash business. By leveraging on our rights to exploit the natural reserves surrounding our soda ash plant in Qinghai province, the Group can ensure the security of steady raw material supply for its soda ash production, be protected simultaneously from the price volatility in the market and maintain a low cost competitive edge. Further, our soda ash plant, which meets the applicable environmental requirements in China and has been approved by the State Environmental Protection Administration of China to manufacture soda ash, provides us with a significant advantage considering the tremendous upheaval and consolidation occurring in the industry at this time. To further strengthen the existing synergies of our vertically integrated business model and to meet the anticipated pick up in market demand, phase two of the soda ash plant in Qinghai province, expected to double annual production capacity to 2.4 million tonnes per annum, is slated for timely completion to meet growing market demand. Going forward, the operating profit margin of our soda ash business will improve further on better economies of scale and an enhancement in market conditions. We plan to focus primarily on the growth of the soda ash business and expect it to remain a major contributor to the Group’s profits. Glass business The glass industry expects to see some recovery by the second half of 2009 given the government’s plans to resuscitate the ailing real estate and construction sectors. The above government’s plans include making the purchase of second homes more affordable through the provision of more loan options and a reduction in taxes and fees. The launch of the low-income home ownership scheme, designed to provide low and moderate income families with cheaper housing, is also expected to kick start the sector, laying the groundwork for the development of more property projects which is expected to benefit the glass industry in the future. Meanwhile, the auto sector’s equally ambitious plan is expected to have a positive knock-on effect for the glass industry too. The government plans to boost the sales and production of automobiles to ten million units in 2009, with average annual growth of 10% maintained over the next few years. Demand for China’s float glass output is therefore expected to rebound as these initiatives take effect. In 2009, the Group’s flat glass production lines will maintain at a total daily melting capacity of 4,100 tonnes after considering the relining of two production lines. To meet the diverse needs of the market and supply products that are in line with the country’s flat glass standards, the Group is committed to further broadening its product range to focus on the development of value-added glass products. These include ultra thick glass, ultra thin glass and energy saving low-e glass; the latter being an increasingly popular product given China’s stringent environmental policies targeted at reducing the country’s electricity consumption. Flat glass: Market conditions for the low margin flat glass industry are expected to remain difficult for much of 2009 given the soaring raw material costs. The profit margin for flat glass is expected to remain flat despite the product’s steady increasing price trend. Flat glass will, however, likely benefit from a rebound in the market, particularly ultra-thick and ultra-thin glass, as activities in the property and construction, automotive and electronics industries pick up pace towards the end of the year. Processed glass: Processed glass with energy efficient and conserving features is well poised to meet a demand niche in the market, as China grows more environmentally conscious. As one of the country’s leading energy saving low e-glass manufacturers, the Group anticipates the development of its processed glass product range to yield significant revenue contribution in the future.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2026Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.