banner
Home » News » Content
Product Categories

Problems In The Refractory Industry

- Jan 16, 2019 -

1.  Although the quality of operation has reached the national industrial enterprise average, the company is still operating at a low profit.

In the first half of the year, the profit margin of sales of key refractory companies was 8.38%, an increase of 5.95 percentage points over the same period of the previous year; it was 1.87 percentage points higher than the national average of industrial enterprises. However, the profit margin of sales of key refractory products manufacturing enterprises was 6.57%, which was only 0.06 percentage points higher than the national average of industrial enterprises.

The profit of 71 key refractory production enterprises increased by 188.43% year-on-year, which was a considerable increase. However, the main factors for achieving high profit growth were as follows: First, the growth of refractory raw material production enterprises was large, especially for magnesium refractory raw material production enterprises. Second, among the refractory products manufacturers, some manufacturers also have refractory raw materials, and the profits from refractory raw materials are included in the products enterprises.

At the same time, the overall contracted business model has been adopted more generally. The overall design of the construction, kiln masonry and daily maintenance, etc., should also be included in the profit of the product manufacturing enterprises.

If the construction design, kiln masonry and daily maintenance in the refractory raw materials and overall contracting are deducted, the profit margin of the refractory products will increase, but it is far below the national average and is still operating at a low profit.

2.  Losses and losses of loss-making enterprises have fallen sharply.

Among the key enterprises, there were 6 loss-making enterprises, which decreased by 8 compared with the same period of last year. The loss was 8.45%, a decrease of 14.55 percentage points over the same period of the previous year. The loss of loss-making enterprises was 15.56 million yuan, a decrease of 99.44 million yuan over the same period of the previous year and a year-on-year decrease of 86.47%.

3 . Receivables are showing an upward trend

As of the end of June, the total amount of goods receivable from key enterprises was 14.914 billion yuan, a year-on-year increase of 0.84%, an increase of 124 million yuan.

Among the key enterprises, 36 receivables increased year-on-year, with an increase of 50.7%, of which 15 companies received more than 30% year-on-year increase in goods, accounting for 46.88% of the rising companies, and 10 refractory manufacturers. The increase in receivables was above 50%, and several companies increased by more than 100%. This not only significantly increases the capital occupation and financial costs of the production enterprises, but also seriously threatens the operational safety of the production enterprises.