CNBM reports 10% YoY revenue drop

CNBM has reported revenue of CNY210.2bn (US$29.1bn) in 2023, down 10.1 per cent on the previous year. This was primarily attributed to a fall in the group’s basic building materials segment, which was partially offset by an increase in revenue in its engineering technical services segment and an uptick in its new materials segment. Profit attributable to equity holders of the company contracted 52.5 per cent over the same period to CNY3.86bn, while EBITDA declined 14.3 per cent to CNY33.8bn. 

In 2023 the company sold 279.1Mt of cement, marking a 0.9 per cent fall on the previous year. Clinker sales volumes over the same timeframe were down 15.3 per cent to 29.7Mt, while concrete sales volumes fell 4.6 per cent to 80.8Mm³ and aggregates volumes improved 18.9 per cent to 156Mt. In terms of average selling prices, cement prices declined 18 per cent YoY in 2023 to CNY274.5/t, clinker prices fell 22.2 per cent to CNY242.7/t, concrete prices contracted 16.3 per cent to CNY357.3/m³, and aggregates average selling prices dropped 12.3 per cent to CNY39.1/t.

According to the company, 2023 saw China’s cement industry facing insufficient demand, weakening expectations and weakening off-peak season characteristics, coupled with the impact of aggravating surplus and high costs. Cement production in China fell 0.7 per cent YoY to 2.02bnt, down 18 per cent from its peak in 2014. Meanwhile, the industry’s profit came in at CNY32bn last year, representing a drop of around 50 per cent YoY and its lowest level for 16 years.