Analysis On The Change And Influence Of Profit Model Of Building Materials Industry Under Supply Side Reform

Since the supply side reform was put forward at the end of 2015,the building materials industry has become the top priority of the supply side reform due to many problems such as vicious competition,overcapacity,imbalance between supply and demand,etc.the change of profit model under the supply side reform has profound practical significance for the building materials industry,but at present,for the building materials industry in China,especially for the cement business sector in the supply side reform There are few researches on the change of profit model.This paper will provide some reference for other companies in the same industry.This paper takes China Building Materials Co.,Ltd.as the research object,under the guidance of supply side reform,profit model and Harvard analysis,analyzes the change of profit model of China building materials under the demand of supply side reform according to the four elements of profit model,further analyzes the impact of the change of profit model by using the framework of Harvard analysis,and focuses on the analysis At the level of financial analysis,through the horizontal and vertical analysis of a number of financial indicators to clarify the impact of the reform.Through the analysis of the change and influence of the profit model of China building materials,it is found that the main change of the profit model is the expansion of the new materials and engineering services business,the combination of the two materials in the joint restructuring,and the business strategy of reducing cost and increasing efficiency through capacity replacement.Through its impact analysis,it can be found that after the change of the company’s profit model,the profitability has been improved and the capital structure has been improved.Although the company still faces the problems of excessive goodwill and large amount of backward production capacity,on the whole,the change of the company’s profit model is leading the company to a better direction.