Asia Cement Corporation 2019 General Shareholders’ Meeting

        Asia Cement Corporation held its 2019 Annual General Shareholders’ Meeting on June 24 with Chairman Douglas Hsu presiding. The combined turnover of Asia Cement Corporation in 2018 is NT$82,741,004 and the combined operating profit is NT$18,153,110. The investment interests of affiliated enterprises such as Far Eastern New Century Corporation and U-Ming Marine Transport are recognized as NT$4,144,156 according to the equity law. The net profit after tax is 14,889,197 yuan, of which 11,117,094 yuan belongs to Asia Cement Corporation. The shareholders' meeting will allocate 2.8 yuan of cash dividend per share through the distribution of earnings.

Asia Cement Corporation (China) produced 24.8 million tons of clinker in 2018, an increase of 2.6% over the previous year; sales of cement, clinker and slag powder totalled 30.95 million tons, an increase of 2.5% over the same period last year; net profit after tax that belongs to parent company was NT$11.63 billion, and Asia Cement Corporation and its subsidiaries recognized a total of NT$7.92 billion.

Respond to recycled economy and fulfill corporate social responsibility
According to Douglas Hsu, rotary kiln furniture in cement plant has the characteristics of high temperature combustion, long residence time and large disturbance, which is the best equipment for recycling waste, and can convert industrial or industrial waste into resources for reuse. In mainland China, Jiangxi Yadong Cement has signed a contract with Lee & Man Paper Manufacturing Limited to dispose of solid waste in cement kilns, and will continue to promote the cooperative disposal of hazardous waste in cement kilns in the future. In Taiwan, the Asian Cement Corporation Hualien Factory is planning to effectively reuse waste as alternative raw materials or fuels in cement production in line with the government's "recycled economy" policy to promote recycled economy, reduce environmental burden, and fulfill corporate social responsibility and finally achieve the goal of "harmlessness, reduction and resource utilization".

At the same time, Asia Cement Corporation is also committed to expanding the "Asia Cement Corporation Eco-Park" which covers more than three hectares beside Hualien Plant. Apart from providing free visits to the public and adding learning areas for environmental and ecological education, more than 250 plants, 35 butterflies and 10 species of Phasmida have been successfully planted which proves that the environmental quality and air quality around the factory are excellent. Over the past six months, it has attracted more than 10,000 tourists and set a record for the first time in Taiwan's cement industry to win the Green Leadership Award of the Asian Corporate Social Responsibility Award sponsored by the Asian Chamber of Commerce and Industry for two consecutive years.
Diversified Management Considering Green Energy and Digital Transformation
Chiahui Power Corporation, which is invested by Asia Cement Corporation, plans to expand its plant by 500,000 kilowatts in the second phase. After completion, the total power generation capacity will reach 1.17 million kilowatts so that the revenue and profit will be greatly increased. Fu Ming Transport integrates the group's land transportation and logistics business and constructs automated warehousing, AI Internet of Vehicles and Taipe and Taichung Port Logistics Center are actively transforming into science and technology logistics companies, while Yuan Long Stainless Steel Corporation is increasing the number and revenue of its own production and trade, marketing in 50 countries around the world, and the diversification of Asia Cement Corporation will generate another wave of growth momentum.

Looking into the cross-strait cement market, in order to achieve the policy priorities of strengthening domestic demands, the government in Taiwan strengthens public construction and expands investment, the overall budget for 2019 plus special budgets such as comprehensive river basin management plan and future-oriented infrastructure construction, as well as special operating and non-operating funds, can reach 392.7 billion yuan. The annual increase is 7.7% compared with 2018. Correspondingly, economic growth is estimated to be around 6% in the mainland of China, and cement demand is expected to decline slightly compared with 2.21 billion metric tons in 2018, which will be 2.1 billion metric tons. However, China's cement industry is expected to continue its high price and profitability level.

Adhere to Quality, Efficiency, Environmental Protection and Pursue Sustainable Management
Chairman Douglas Hsu said that regardless of the business environment, Asia Cement Corporation will try its best to adhere to the existing production and marketing strategy, and the consistent policy of "high quality, high efficiency, high environmental protection, low cost" as a response.

The combined operating revenue of Asia Cement Corporation in the first quarter of 2019 was 19,385,675,000 yuan, 17% higher than that of 16,573,882,000 yuan in the same period of 2018, and its net profit after tax was 3,810,086,000 yuan, 58% higher than that of 2,415,347,000 yuan in the same period of last year. The net profit after tax of Asia Cement Corporation was 2,929,272,000 yuan.