Comprehensive review: In the first half of 2025, CNBM achieved an operating income of 83.28 billion yuan, a slight decrease of 0.23%, basically the same as the same period last year; the net profit attributable to the parent company was 1.36 billion yuan, turning losses into profits by a large margin. In the first half of this year, according to the annual work plan, China Building Materials has made new progress in high-quality development by grasping the task of "expanding increment, optimizing stock, grasping variables and strengthening quality". Specifically, the basic building materials sector has substantially reduced losses, the revenue and profit of new materials business have increased, and the revenue of engineering and technical services has increased steadily.
Figures 1 and 2: Trend
of China's building materials revenue and profit in the first half of 2025 Data source: Cement Big Data (https://data.ccement.com/)
Basic building materials recovered and reduced losses by a
large margin in the first half of this year. Affected by the slowdown of domestic infrastructure investment and the continuous deep decline of real estate, the demand for cement is under downward pressure, and the price of cement is falling. CNBM, as a large state-owned enterprise with responsibility and commitment, has made greater sacrifice of market share to maintain the stability of the industry. In the first half of the year, the Company's sales volume of cement clinker was 97.779 million tons, with a year-on-year decrease of 14.1%, which was far greater than that of the industry as a whole; the average selling price of cement clinker products was 249.8 yuan/ton, with a year-on-year increase of 3.6%. Despite the sharp drop in sales of cement products, thanks to the rising average price and the falling coal price, the effect of cost reduction and efficiency enhancement was remarkable, and the loss of cement products was greatly reduced. Figure
3 and Figure 4: Price reduction and increase
of cement products in the first half of 2025 Source: Cement Big Data (https://data.ccement.com/)
CNBM has implemented the "cement plus" development strategy in depth. Concrete and aggregate business is an important part of the company's basic building materials sector. Affected by the overall downturn of the cement industry, the company's concrete and aggregate business revenue has declined to a certain extent. In the first half of the year, the sales volume of concrete was 35.133 million cubic meters, representing a slight decrease of 0.2% as compared with the same period of last year, and the revenue was RMB10.47 billion, representing a decrease of 4.4% as compared with the same period of last year; the sales volume of aggregate was 62.965 million tons, representing a decrease of 2%, and the revenue was RMB2.29 billion, representing a decrease of 3%. Due to the loss reduction of cement products and concrete and the profit of aggregate business, the net profit of basic building materials business in the first half of the year was reduced to-960 million yuan.
Figure 5 and 6: Concrete in the first half of the year Aggregate Sales Trend
Data Source: Cement Big Data (https://data.ccement.com/)
New Materials Double Growth in Profitability Steady Growth in
Engineering and Technical Services CNBM actively coordinates the development of basic building materials, new materials, The three major business segments of engineering and technical services, while continuing to do a good job in basic building materials business, have intensified efforts to develop new materials and engineering and technical services market. In the first half of this year, the new material business realized business income of 26.68 billion yuan, an increase of 14.2% over the previous year, net profit of 1.98 billion yuan, an increase of 43.2% over the previous year, the proportion of new material revenue reached 32%, exceeding cement (31.8%) for the first time, and profit contribution exceeded 100%, which became the company's main source of profit, especially glass fiber. Volume and price have risen simultaneously, becoming the backbone of the new material plate. In terms of engineering and technical services, in the first half of 2025, the operating income was 17.36 billion yuan, an increase of 7.7% over the previous year, the proportion of revenue increased to 20.9%, and the net profit returned to the mother was about 700 million yuan, showing a steady development as a whole.
Figure 7: Revenue and Proportion
of CNBM's Main Businesses Source: Cement Big Data (https://data.ccement.com/)
Financial Indicators Improved The
new materials business achieved breakthrough development, the engineering and technical services business steadily improved, coupled with a substantial turnaround in the basic building materials business, a number of financial indicators of CNBM improved significantly. In terms of major profit indicators, the consolidated gross profit margin for the first half of the year was 19.19%, representing an increase of 3.31 percentage points as compared with the same period of last year; the return on equity turned positive and reached 1.34%. The Company continued to optimize its financial structure and streamline its organizational structure, resulting in a decrease in both financial and management costs. Benefiting from this, the rate of three fees in the first half of the year was 15.79%, down 1.28 percentage points from the same period in 2024.
Table 1: Main financial indicators
of CNBM in the first half of 2025 Data source: Cement big data (https://data.ccement.com/)
Outlook for the second half of the year: Basic building materials will be under great pressure Non-cement business continued to improve
the basic building materials sector, cement demand continued to decline in the second half of the year, under the pressure of serious overcapacity, the price rise space is limited, the company's basic building materials business profit downward pressure is expected to be greater; In terms of new materials and engineering technology services, while consolidating the domestic market, the company continued to accelerate the development of the international market, the sales of glass fiber, wind power blades and other products maintained a good trend, and the equipment business vigorously promoted the "two foreign" expansion. To sum up, in the second half of the year, the company's basic building materials business is facing greater operational pressure, new materials, engineering and technical services continue to improve, and will hedge the adverse impact of the decline in basic building materials to a certain extent. (This article does not constitute investment advice)
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