Leading Cement-Maker’s Sales Plunge 24% in First Quarter
What’s new: Two major Chinese cement-makers reported major revenue declines in the first quarter, including a 24% drop to 23.2 billion yuan ($3.3 billion) for industry leader Anhui Conch Cement Co. Ltd.
The smaller Tangshan Jidong Cement Co. Ltd. reported an even bigger 38% decline in first-quarter revenue to about 3 billion yuan.
Background: The construction industry is just one of many in China that took major hits during the quarter as much activity came to halt during the months of February and March at the height of the country’s Covid-19 outbreak.
China’s National Bureau of Statistics previously reported the nation’s total cement production fell 24% in the first quarter to 300 million tons.
Industry observers pointed out that the first quarter is typically a weak one for cement-makers, accounting for about 18% of annual sales, because many construction workers go home for the Lunar New Year that falls in January or February.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Contact reporter Yang Ge (firstname.lastname@example.org; twitter: @youngchinabiz)
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