Displaying items by tag: Tianrui
China Tianrui Group’s sales drop in first half of 2023
21 August 2023China: China Tianrui Group recorded sales of US$554m during the first half of 2023, down by 25% year-on-year from US$737m in the first half of 2022. Reuters has reported that the producer’s net profit dropped by 67%, to US$20.9m from US$63.2m.
China: China Tianrui Group Cement recorded consolidated sales of US$1.87bn in 2020, up by 1% year-on-year. ET Net News has reported that consolidated profit attributable to the owners rose by 2% year-on-year to US$286m.
KHD shares test success with NOx emission reducer
02 December 2019China: KHD has reported NOx emissions consistently below 50mg/Nm3 at Tianrui’s 2.0Mt/yr Weihui integrated cement plant in Henan province, where its Pyroredox gasifying reactor has been installed between the kiln inlet chamber and preheater calciner. The NOx reduction after several months of operation was 66%, while reagent usage fell by 78% compared to with the plant’s selective non-catalytic reducer without a Pyroredox fitted. No extra power or fuel was used and production was unaffected. The Pyroredox requires two to four weeks’ downtime for its installation and is now operational at multiple cement plants across China.
China: Tianrui Cement’s revenue rose by 27.6% year-on-year to US$778m in the first half of 2018 from US$610m in the same period in 2017. Its profit grew by 63.9% to US$131m from US$80m. Its cement sales volumes rose by 9.8% to 14.6Mt. Sales increased faster in Central China than Northeastern China. It attributed the result to its market strategy and increased prices.
China: Tianrui Cement has entered into a clinker supply deal with Ruiping Shilong. It will buy clinker from Ruiping Shilong from 1 April 2019 until 31 December 2021. The price and quantity will be set following negotiations, although a cap of around US$74m/yr has been set. Tianrui Cement’s chairman and his wife hold a significant minority share in Ruiping Shilonga.
China in 2018
27 March 2019Cement price rises by the major Chinese cement producers boosted sales revenue and profits in 2018. This is quite a trick, given that overall cement sales in the country have fallen by 11% year-on-year to 2.17Bnt in 2018 from a high of 2.45Bnt in 2014.
Graph 1: Cement sales in China, 2009 – 2018. Source: National Bureau of Statistics China.
On the corporate side most of the major Chinese producers issued positive profit alerts towards the end of 2018 and this has been followed up by (mostly) glowing financial reports. Data from the National Development and Reform Commission in February 2019 showed that the profits of local cement companies more than doubled to US$64bn in 2018 compared to 2017. As mentioned above, this has been fueled by price rises. In December 2018 the average price of cement was 10.6% higher than in December 2017.
This has translated into a 19% year-on-year rise in sales revenue at China National Building Material Company (CNBM) to US$32.6bn in 2018 from US$27.4bn in 2017 and its profit grew by 44% to US$2.09bn from US$1.46bn. Anhui Conch’s performance was even better. Its revenue grew by 70.5% to US$19.1bn from US$11.2bn. However, differences emerge between the two companies in terms of cement sales volumes. CNBM’s sales volumes fell by 2.4% to 323Mt. However, Anhui Conch’s sales volumes increased by 25% to 368Mt. This may not be in line with the government’s plans to scale down production but it does fit the industry consolidation model, as the company acquired Guangdong Qingyuan Cement in 2018. The results from other producers such as China Shanshui Cement, West China Cement, Tianrui Cement and China Resources Cement all tell similar tales.
If the figures from the National Bureau of Statistics China (NBS) above are accurate then this is a drop of over 300Mt of cement sales over four years. This is more than the cement sales of every other country except India. Indeed, it’s more cement than some continents make! It marks the deceleration of the Chinese industry since 2014 and represents a major achievement. However, whether it is enough remains to be seen. After all, sales of over 1500kg/capita are still way above the consumption curve for developed Western-style economies. Yet, imports of cement to China from Vietnam rose in 2018, suggesting that the price rises are being driven by shortages of cement!
China is undoubtedly an exceptional case, as its economic star has blossomed in the last few decades and it has literally built itself into history. Yet one might expect its consumption to be around 1Bnt/yr, a per-capita level more similar to Spain and Italy prior to the financial crash. In other words, even if the recently observed 5% year-on-year contraction is maintained, the Chinese industry would only reach this (still very high) level by the mid 2030s. However, continued national development, mega-infrastructure projects, a shift to more exports and China’s unique market could hold the consumption per capita figure higher.
Meanwhile, Chinese producers are commissioning more and more projects outside of China. Notably, CNBM saw its cement sales everywhere except for the Middle East and China. Success abroad is not guaranteed. The story in the years to come will be the balance between projects at home and those abroad.
Tianrui Cement half-year revenue benefits from price rises
21 August 2018China: Tianrui Cement’s sales revenue rose in the first half of 2018 due to an average price rise year-on-year of 22%. Its revenue grew by 13.8% to US$629m from US$553m in the same period in 2017. Profit increased by 17% to US$82.6m from US$71.6m.
Cement sales volumes fell by 4.7% to 13.3Mt from 12.6Mt due to government imposed production limits in Henan province and a decrease in infrastructure and property investment. In Henan and Anhui the company’s cement sales fell by 7.1% to 10.3Mt but it Liaoning and Tianjin it rose by 4.5% to 3Mt. the cement producer also reported that its cost of sales rose by 12.3% to US$721m due to rising coal prices and other input costs.
China: Yang Yongzheng has resigned as a non-executive director of China Tianrui Group Cement Company due to a prison sentence. Yang has also resigned as a member of the group’s nomination committee. He has been replaced on the nomination committee by Li Liufa, the chairman of the company.
China: Tianrui Cement grew in sales revenue in 2017 due to higher sales prices. However, its sales volumes of cement fell slightly to 29.3Mt in 2017 from 29.5Mt in 2016. This followed government mandated supply side reform and environmental measures such as production suspension. Its sales revenue rose by 40% year-on-year to US$1.33bn from US$950m. Its profit nearly tripled to US$157m from US$39.5m.
The cement producer added that by the end of 2017 all of its clinker production lines were equipped with denitrification systems and bag filters. These upgrades brought the concentration of emitted nitrogen oxides and particulates below the national pollutant emission standards and the concentration of emitted sulphur dioxide also met national standards.
It also completed its acquisitions of majority stakes in Henan Yongan Cement and Tianrui Xindeng Zhengzhou Cement.
Shandong Shanshui Cement starts to tidy up debts
16 December 2016China: Shandong Shanshui Cement has entered into a debt investment framework agreement. Cinda Shandong will acquire the defaulted bonds issued by Shandong Shanshui. It will also loan Shandong Shanshui up to US$1.15bn. Deputy chairman Mi Jingtian told the Xinhua News Agency that his company had 'paid in full' all outstanding interest and regained a 'normal working relationship' with commercial banks. Earlier in December 2016 Shandong Shanshui said that it had settled with China Merchants Bank in a dispute over US$81m of loans. Shanshui Cement has faced financial problems since a shareholder battle for control of the company took place in late 2015.