China's building materials market restructuring materials accelerate efforts

According to industry insiders, China Building Materials Group has achieved preliminary results in the reform of mixed ownership, and becoming a pilot enterprise for the “four reforms” will help the company to open up the future growth space and further invigorate the four business segments.

After years of development, China National Building Materials has laid a good foundation for the company's development in the four major areas of cement, building materials, glass fiber and composite materials, and engineering services. In 2013, China Building Materials achieved a net profit of 5.762 billion yuan attributable to the shareholders of the parent company, an increase of 3.27% over the same period last year. In the first quarter of 2014, China National Building Materials realized operating income of 22.125 billion yuan, an increase of 11.76% year-on-year; net profit attributable to shareholders of the parent company was 556 million yuan, a year-on-year increase of 78.45%. Judging from the information disclosed on the company’s website, the total assets of China’s building materials amounted to more than 360 billion yuan, 17 wholly-owned and controlled companies directly managed, and six listed controlling companies, including two overseas listed companies.

According to industry insiders, China National Building Materials Group's China United Cement, Northern Cement, Southern Cement and Southwest Cement have restructured more than 900 cement and concrete companies. As of the end of 2013, the number of mixed-ownership enterprises was more than 85% at all levels of CNBM. In fact, the successful listing of China National Building Materials Co., Ltd. has absorbed a large amount of social capital for CNBM. The industry expects that after becoming a mixed ownership pilot company, China National Building Materials will promote market-based restructuring and accelerate industry consolidation.

Experts said that in the process of market-oriented management, central enterprises not only diversify their property rights, but also form a standardized corporate governance structure, establish a board of directors with a majority of external directors, and form a separation between government and enterprise, and separate ownership and operating rights. Governance structure. At the same time, a professional manager system should be established, the internal mechanism of the company should be marketized, and an effective compensation and incentive system should be formed. In the course of business, it is necessary to carry out business operations in accordance with market rules and create a fair and healthy industry environment.

People in the industry believe that after becoming a pilot enterprise of “four reforms”, China National Building Materials will gain more room for development during the reform process, which will help accelerate the consolidation within the industry and realize “better performance and stronger performance” of the company.