Mar. 15, 2019 – At present, the four refractory companies listed on the main board have released the 2018 performance report. All four companies achieved double growth in operating income and net profit. Ruitai Technology, Puyang Refractories and Beijing Lirr’s annual revenue in 2018 exceeded RMB 3 billion, with an annual growth rate of more than 20%.
Net profit attributable to shareholders of the listed company achieved year-on-year growth, net profit of Puyang Refractories increased by 919.55% YoY, and Beijing Lirr net profit increased by more than 102.47%. This shows that compared with 2017, the operation of refractory enterprises has improved.
The main reasons for the increase in revenue and net profit of refractory enterprises are analyzed as follows:
Firstly, under the macro conditions of the country’s continuous promotion of supply-side reform and environmental protection in 2018, the operation of downstream steel and other industries continues to improve, especially steel prices remain at a high level, and steel companies are generally in good profitability.
The operating environment faced by refractory companies has improved and double growth in revenue and net profit achieved. Secondly, due to the continuous increase of national environmental protection, some small refractory enterprises that fail to meet environmental protection standards have been shut down, and vicious competition pressure of refractory industry has been alleviated to a certain extent, which has made the environmentally advanced large-scale refractory enterprises have advantages, and prices of refractory products have increased, sales revenue has increased, leading to increased profits.
Finally, due to the devaluation of the RMB this year, income from overseas market was benefited from positive exchange rate. However, the current increase in the management of mineral resources and environmental protection in China has led to tight supply of refractory raw materials and prices are still at a high level, which has brought certain difficulties to the production of refractory enterprises. Refractory industry still has problems such as rising raw materials prices, overcapacity, and accounts receivable etc.
