China's cement industry that "the world's cement looks at China, and China's cement looks at conch".
This sentence reflects the great influence and importance of China in the field of cement production. As the largest cement producer and consumer in the world, China's cement output has been ranked first in the world for a long time. It also vividly depicts the leading position of Conch Cement in China and even in the global cement industry.
According to the estimates of China Cement Network Cement Big Data Research Institute, the revenue of China's cement industry in 2023 is about 743 billion yuan, and the total profit is about 32 billion yuan. Conch Cement's 2023 annual report shows that Conch Cement's revenue is 141 billion yuan and its total profit is about 13.6 billion yuan. Under the
current severe industry situation in China, Conch Cement not only accounts for nearly 1/5 of the total revenue of China's cement industry, but also takes more than 40% of the total profit of the national cement industry! The powerful strength of Conch Cement is evident, and China's cement really depends on Conch!
From the perspective of industrial scale, the phrase "world cement looks at China" is also beyond doubt. Recently, China Cement released the list of global and major national cement output in 2023. According to the list, the global cement output in 2023 was 4.072 billion tons; China ranked first for 38 consecutive years with 2.023 billion tons of cement output since 1985.
However, looking at the top cement companies in the world by revenue, the performance of Chinese cement companies does not fully match their huge production scale.
According to incomplete statistics, in the first three quarters of 2023 (as of press release, some enterprises have not yet released the annual results of 2023), the total revenue of the top ten cement listed companies in the world (in January 2024) is about 105.1 billion yuan in US dollars. Among them, the total income of three Chinese cement enterprises, Conch Cement, Tianshan Cement and Taiwan Cement, is about 27.3 billion yuan. The total revenue of Chinese cement enterprises, which
is close to 1/3 of the total number of statistical lists, is only 1/4 of the total revenue of the list. In China, where cement production accounts for half of the world's cement production, the world's largest market scale and the world's largest industry scale, Conch Cement, which has the strongest profitability, ranks third in the global revenue list, and its revenue is just over half of Holcim's. Although
China's listed cement enterprises have their own strength, compared with most mature foreign cement enterprises, they have more or less problems such as over-reliance on the main cement industry and relatively over-centralized industrial layout. This makes the downward cycle of the industry have a particularly significant impact on the performance of China's cement enterprises. The reason why large multinational cement groups such
as Holcim and Heidelberg can stand out among many cement enterprises in the world is due to their global industrial layout and advanced management concepts. These enterprises have not only established a wide range of production bases around the world, but also achieved the coverage of the whole upstream and downstream industrial chain and the optimization of asset structure through mergers and acquisitions, and consolidated their ability to resist market fluctuations; At the same time, we will actively develop new formats on the basis of the traditional main business of cement, continue to strengthen our efforts in the fields of low-carbon materials, engineering construction, value-added products and services, and constantly tap new revenue points.
It is worth noting that in the 2023 annual report released recently by Conch Cement, the growth of new industries such as aggregates in the proportion of profit structure is specifically pointed out . This growth has played an important role in the relatively strong performance of Conch Cement, while the development prospects of the new industry are also the focus of attention of overseas outstanding cement enterprises. The scale of
China's cement industry is the largest in the world, but China's cement listed companies are not as prominent as the scale of the industry in the competition of global cement enterprises. Although this is the reason why China's cement industry is facing difficulties as a whole, in the predicament, Chinese cement practitioners should show the hard power and softness of China's cement industry together, and turn over from the "quagmire" as soon as possible, so that China's cement industry can return to the track of healthy and high-quality development. Otherwise, can we still confidently say that "the world's cement looks at China"? How should
China's cement industry get out of the predicament and face the new cycle? On March 28-29, China Cement Network will hold the "13th China Cement Industry Summit and TOP100 Award Ceremony" in Hangzhou, during which awards will be given to top 100 cement and supplier enterprises, and experts and scholars will be invited. China Railway and other construction units jointly discuss the new development trend of the cement industry in the future, and work together to create the future!
