On April 22, with the release of the first quarterly report of the leading western construction of the concrete industry, the deep predicament of the concrete industry was thoroughly exposed.
As one of the largest professional ready-mixed concrete listed companies in China, the revenue of Western Construction in the first quarter was 3.18 billion yuan, down nearly 15% from the same period last year, with a net profit loss of 225 million yuan. This report card is not only the pressure of the enterprise itself, but also the epitome of the whole industry's "falling volume and price, expanding losses".
The previously disclosed "annual report card" of 2025 is even more tragic. The annual revenue of Western Construction was 18.108 billion yuan, a year-on-year decrease of 11.01%; the net profit loss attributable to the parent company was 730 million yuan, a year-on-year increase of 177.96%. Chongqing Sifang New Material is expected to lose 300 million yuan in 2025 and Hainan Ruize 215 million yuan in 2025. Yunnan Construction and Investment Concrete lost 154 million yuan in 2025.. Large enterprises collectively fell into a loss quagmire, indicating that the concrete industry is in a deep "cold winter".
Table: 2023-2025 Main Operating Data of Western Construction (Unit: 100 million yuan,%)
Data Source: Cement Big Data (https://data.ccement.com/)
The root cause of the cold winter in the industry. It lies in the continuous decline of demand side and the sharp decline of price side.
In 2025, the two traditional demand engines will stall at the same time: in terms of infrastructure, special debt funds will be diverted, existing projects will be closed, and new projects will be cut off, which will lose strong support for concrete demand; the real estate market will continue to decline, the scale of new construction will be far lower than scale of sales, and the total amount of construction will continue to shrink, which will seriously drag down the industry. Under the
double blow, the market supply and demand are seriously unbalanced, and the price war is becoming more and more intense. In 2025, the output of ready-mixed concrete in China decreased by 8.7% compared with the same period last year, and the average price fell below the lowest value in nearly ten years. What is more fatal is that the price of raw materials is much lower than price of products, and the gross profit of enterprises is continuously squeezed. The gross profit rate of western construction was only 4.83%, a sharp decline of nearly 3 percentage points compared with the same period last year, the price difference space of the industry almost disappeared, and the loss area continued to expand.
In 2026, the decline of the industry has not eased. The leading loss in the first quarter is still continuing, which means that the industry trough is still deepening. Under the background that the demand has not seen a significant recovery and the price war continues, the concrete industry is experiencing an unprecedented test of survival. Even so, a large number of small and medium-sized enterprises may face elimination, and the deep shuffling of the industry is inevitable.
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