Financial Performance Evaluation Of Cement Industry Under The Background Of Supply-side Reform

The cement industry has long been an upstream industry that provides basic raw materials in the national economic construction industry.Affected by the rising prices of factors such as labor,raw materials and logistics costs,the production costs and financial costs of enterprises in the cement industry have continuously increased.At the same time,due to the shrinking business of downstream industries such as infrastructure and construction,the cement industry has suffered from serious problems such as overcapacity,structural contradictions and sharp decline in business performance.In early 2016,the Supply-side structural reform became a new direction of China’s macroeconomic policy,and the cement industry was also listed as an important industry for supply-side reform.This paper selects the annual reports of 15 A-share listed companies in the cement industry from 2013 to 2018.Combined with the characteristics and effect of Supply-side reform,through the summary of previous research literature,15 financial indicators that can represent financial performance are selected for factor analysis of industry financial performance before or after the reform.By comparing the financial performance scores before and after the reform,it can be concluded that the Supply-side reform has a significant positive effect on the financial performance of listed companies in the cement industry,among which the profitability and growth ability increase the most.Also,the comprehensive financial performance of 14 companies in the industry is higher than before the reform,which shows that the reform has benefited most companies in the industry.After the reform,the gap between the financial performance level among companies has increased.The comprehensive performance scores of leading companies in the industry are greater than those of other companies.Conch Cement Co.,Ltd.,a leading company in the cement industry,selected as a case to analyze the specific measures taken during the Supply-side reform,changes in various financial indicators before and after the reform and horizontal comparison with other companies are analyzed.Finally,the experience of Supply-side reform of Conch Cement Co.,Ltd.and the cement industry is summarized,and suggestions are put forward for improving the financial performance of the cement industry in the Supply-side reform as follows: implement de-capacity and maintain industry profitability;implement cost-leading strategies to reduce production and operating costs in all directions;maintain a safe asset-liability ratio and rational use of debt Leverage;improve scientific and technological innovation to accumulate energy for development;seize development opportunities and expand overseas markets.