2024, China's economy as a whole continued to recover, with GDP growing by 5% year-on-year. Among them, infrastructure investment grew by 4.4% year-on-year, slowing down by 1.5 percentage points compared with 2023; real estate investment fell by 10.6% year-on-year, still in deep adjustment. Affected by insufficient infrastructure support and the continuous downturn of real estate, the demand of cement industry continued to be weak throughout the year. In 2024, the national cement output was 1.825 billion tons, down 9.8% from the same period last year. Under the influence of the decline in demand, the contradiction of excess capacity was further intensified, the market competition was extremely fierce, the focus of cement price continued to decline, the industry profit shrank again, the annual profit was 26 billion yuan, the development of the cement industry entered an unprecedented difficult period, and many companies suffered heavy losses. Nevertheless, some leading companies actively seek transformation and upgrading, speed up the pace of going to sea, extend the industrial chain, and achieve good results beyond the cycle in the downward period of the industry. According to the statistics and analysis of
Cement Big Data Research Institute, there are 22 listed companies in the cement industry in Shanghai, Shenzhen and Hong Kong, including 15 in Shanghai and Shenzhen and 7 in Hong Kong.
First, the performance of listed companies: Most of the profits fell and some of the losses were relatively large
. From the perspective of revenue, one of the 22 listed companies achieved revenue growth, while 21 companies are now declining. There is only one Chinese building material company with a revenue of over 100 billion yuan. Huaxin Cement adheres to the development strategy of "integrated transformation development, overseas development, new building materials business expansion, traditional industry + digital innovation", in which integrated transformation development and overseas development are the strategic focus, especially new breakthroughs have been made in overseas development. By the end of 2024, Huaxin Cement's overseas clinker production capacity is nearly 17 million tons, surpassing conch and second only to Taiwan mud. Overseas cement sales of 16.2 million tons, an increase of 37% over the same period last year, driven by the increase in sales, overseas business income of 7.984 billion yuan, an increase of 47% over the same period last year, the company's annual revenue rose against the market. Among the 21 declining companies, there are 9 companies with a decline of more than 20%, of which the leading conch has a decline of nearly 36%, which is quite large, mainly due to the substantial reduction of other businesses; the largest decline is Ningbo Fidelity, which has reached 46%, and the transfer of fuel oil business equity has greatly reduced the company's revenue; There are 4 companies with a revenue decline of less than 10%, especially Qingsong Jianhua and Jianfeng Group, which have a smaller decline of less than 4%. Supported by key projects, the demand in Xinjiang region was stable, coupled with better peak staggering and stable prices, the main business of Qingsong Jianhua Cement was basically flat in the same period; although the cement business of Jianfeng Group declined, the pharmaceutical industry was relatively stable, and the overall decline was relatively small.
Table 1: Profitability
of Listed Cement Companies in 2024 Data Source: Cement Big Data (https://data.ccement.com/>)
From the perspective of net profit attributable to parent company, 14 companies made profits and 8 companies made losses. Among them, only two profitable companies achieved growth, while 12 companies declined; one loss-making company continued to expand its loss margin, two companies turned to loss, and five companies reduced their losses. Specifically, profitable companies Midwest Cement and Jianfeng Group achieved growth, while Western Cement achieved growth mainly due to the increase in other income, the decrease in loss from changes in equity included in profit and loss, and the decrease in impairment loss recognized by goodwill, which increased by 460 million yuan year on year; Jianfeng Group achieved a small increase, mainly due to the contribution of investment income from joint ventures. Among the loss-making enterprises, Yatai Group suffered a huge loss of nearly 3 billion yuan, mainly due to the drag of the real estate sector, of which only the company's goodwill impairment and asset impairment exceeded 1.3 billion yuan; Yatai and Tianshan turned from profit to loss; Jidong suffered a loss of nearly 1 billion yuan, although the amount is relatively large, the loss margin has been greatly reduced.
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