I. Development Background
of the Cement Industry during the "14th Five-Year Plan" Period During the "14th Five-Year Plan" period, the development of China's cement industry entered a new cycle, the demand for cement declined year by year, the contradiction of excess capacity in the industry was acute, the rate of excess capacity continued to hit new lows, and profits continued to shrink substantially. In 2024, the output of cement was 1.825 billion tons, 23.8% lower than that in 2020; the total profit of the industry was 26 billion yuan, 85.8% lower than that in 2020, a 17-year low. In 2025, the situation will further deteriorate, and it is expected that cement production and industry efficiency will continue to decline. At the same time, the state has put forward more requirements for the green, low-carbon and high-quality development of the industry. Under the background of great changes in the industry, transformation and development is a historical choice that every cement enterprise, especially large cement groups, has to face.
Figure 1: Cement demand and profit fell
sharply during the "14th Five-Year Plan" period Data source: Cement Big Data (https://data.ccement.com/)
II. Strategic Evolution and Business Layout Reshaping
in the "14th Five-Year Plan" Period Huarun Building Material Science and Technology started late, but developed rapidly. During the "Tenth Five-Year Plan" period, China Resources Building Materials Science and Technology was formally established and entered the Guangxi market through the "two points and one line" market strategy. During the "Eleventh Five-Year Plan" period, while continuing to promote the construction of the original projects, China Resources Building Materials Technology actively adjusted its development strategy, established the "3 + 2" strategy, rapidly expanded the market layout of Guangxi and entered Guangdong and Fujian. During the "Twelfth Five-Year Plan" period, Huarun Building Material Science and Technology jumped out of the original market and began to "March westward, northward and southward", touching the markets of Yunnan, Guizhou, Shanxi and Hainan. During the "13th Five-Year Plan" period, the demand of the industry entered a platform period. China Resources Building Materials Technology bid farewell to large-scale expansion, began to focus on fine management, improve the quality and efficiency of operation, and tried to expand the industrial chain, test water aggregates, environmental protection and other "cement plus" industries. During the "14th Five-Year Plan" period, profound changes have taken place in the development of the industry, Huarun Building Material Science and Technology has undergone strategic transformation, focusing on the four major industries of cement, aggregate, concrete and artificial stone and new materials business, and in 2023, the company was renamed "Huarun Building Material Science and Technology Holding Co., Ltd.", highlighting the expansion of the industrial scope and the use of science and technology. The determination to transform from traditional building materials enterprises to building materials science and technology enterprises.
Table 1: Information
on development strategies of China Resources Building Materials Technology in different periods Source: Cement Big Data Research Institute
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