SunSirs: Building Material, Cement Industry Profit Up 19.6% in 2019

In 2019, the economic benefits of the building materials industry were significantly improved, the industrial structure was gradually optimized, and the overall operation of the industry was good.

Production keeps growing.

In 2019, the added value of building materials industry increased by 8.5% year-on-year, 2.8% higher than the growth rate of the whole industry, and the production of main building materials products overall maintained growth. Among them, the national cement output was 2.33 billion tons, up 6.1% year-on-year, the flat glass output was 930 million weight boxes, up 6.6% year-on-year, and the commercial concrete output was 2.55 billion m³, up 14.5% year-on-year. 

The price has increased.

In 2019, the price level of building materials increased by 3.3% year on year, of which the price index of building materials in December 2019 was 116.79, up 1.0% year on year. The average factory price of national general cement was 414.2 RMB/ ton, up 4.4% year on year, and the average factory price of flat glass was 75.5RMB/ weight box, up 0.2% year on year.

Benefits continue to improve.

In 2019, the main business income of the above designated enterprises in building materials industry was 5.3 trillion RMB, up 9.9% year on year, the total profit was 462.4 billion RMB, up 7.2% year on year, and the sales profit margin was 8.7%. Among them, the main business income of cement was 1.01 trillion RMB, up 12.5% year on year, and the profit was 186.7 billion RMB, up 19.6% year on year; the main business income of flat glass was 84.3 billion RMB, up 9.8% year on year, and the profit is 9.8 billion RMB, down 16.7% year on year. The total profits of cement products, special glass, sanitary ceramic products, waterproof building materials and glass fiber reinforced plastic products increased by 24.2%, 19.4%, 26.4%, 15.4% and 49.8% respectively year on year.

Investment growth is large.

In 2019, the fixed asset investment in non-metallic mining and beneficiation industry above the building materials quota increased by 30.9% year on year, and the fixed asset investment in non-metallic mineral products industry increased by 6.8% year on year. Investment growth in building materials industry was mainly concentrated in new building materials, energy conservation and environmental protection, technological transformation and other fields.

In general, in 2019, the building materials industry as a whole operated well, the emerging building materials industry accelerated development, and the industrial layout was gradually optimized. However, it couldn’t be ignored that the current problem of excess capacity of cement plate glass had not been fundamentally solved, the overall situation of oversupply had not changed, and the foundation for stable operation of the industry was not solid.

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