In a published report in the July 16th edition of Marketwatch, China’s GDP is growing slightly faster than anticipated. Gross Domestic Product for the second quarter of ’09 grew 7.9% compared to the same quarter last year. This is as a result of a government-led stimulus package and strong bank lending which gave a jump start to domestic consumption and industrial activity.
The article went on to say: “The acceleration was higher than the 7.8% expansion anticipated by economists polled in a survey by FactSet Research and higher than the 7.7% tipped in a Dow Jones Newswires survey. It came after a string of declines, which slowed the nation's GDP growth rate to 6.1% in the first quarter.”
The higher than anticipated GDP numbers are good news for China Advanced Construction Materials (CADC: OTCBB). The company is a leading producer of construction materials for large scale commercial, residential, and infrastructure developments. It has already announced a number of railway contracts from the People’s Republic of China. In the first six months of this year, China ACM has been awarded three separate contracts valued at $7.5 Million. In May, the company reported Q3 fiscal revenues of $9.8 Million, an increase of 116% in Gross Profit, and reported net income of $2.3 Million (an increase of over $1 Million for the same time last year).
While there has been a world wide recession, the article states that China’s GDP numbers remain strong and should get stronger for the balance of the year. It states: “Economic growth in the first six months of the year was lifted to 7.1%, according to the data released by the National Bureau of Statistics, sustaining the economic rebound and keeping China on track to achieve its targeted growth rate of 8% this year.”
China ACM’s performance is expected to remain strong for the foreseeable future as that country continues to post solid GDP growth figures.
To access the article in its entirety, simply go to: http://www.marketwatch.com/story/chinas-economy-rebounds-though-prices-weaken
AGORACOM Investor Relations is pleased to bring you this Industry Report pertaining to China ACM (CADC: OTCBB). Feel free to comment on this report or any other facet of the company’s business on the discussion forum within the China ACM IR hub with AGORACOM ( http://agoracom.com/ir/chinaacm/forums/discussion ).
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