56.55% Gross Margin Supports Profitability, China's Zhejiang Jianfeng Group's Sand and Aggregate Business Becomes Key Growth Driver for 2025
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en.Wedoany.com Reported - Recently, China's Zhejiang Jianfeng Group Co., Ltd. (Jianfeng Group) released its 2025 annual report. During the reporting period, the company's building materials segment achieved operating revenue of 11.97 billion yuan, of which the manufactured sand and aggregate business generated operating revenue of 186 million yuan, a year-on-year increase of 4.39%. The gross profit margin reached 56.55%, becoming a key pillar of profitability for the company's building materials segment.

According to data from China's National Bureau of Statistics, the total annual cement output of large-scale cement enterprises in China in 2025 was 1.693 billion tons, a year-on-year decrease of 6.9%, marking the lowest output level since 2010. Affected by factors such as the continued contraction in real estate investment and the shift to negative growth in fixed asset investment, the national cement market overall exhibited a trend of "decreasing volume, weakening prices, and pressured profitability." Against this backdrop, Jianfeng Group's annual cement sales volume was 5.2736 million tons, remaining largely flat compared to the previous year.

Jianfeng Group is headquartered in Jinhua City, Zhejiang Province, China, with its building materials business primarily located in the four provinces of Hubei, Yunnan, Guizhou, and Zhejiang. Facing market pressures, the company's various cement enterprises implemented a "cost leadership" strategy. They enhanced labor productivity and reduced operational costs through three-dimensional efforts in management innovation, process innovation, and equipment upgrades, while simultaneously advancing the green production concepts of energy saving, emission reduction, and carbon reduction.

In terms of project construction, Jianfeng Group is steadily advancing two major key projects. The first is the Jianfeng Dazhan 4,000-ton-per-day clinker cement production line project. The second is the Yunnan Jianfeng Building Materials 3-million-ton-per-year aggregate and sand production line project. Among these, the 3-million-ton-per-year aggregate and sand production line located in Simao District, Pu'er City, Yunnan Province, is invested in and constructed by the controlling subsidiary Yunnan Jianfeng New Building Materials Co., Ltd., with an investment amount of approximately 298.85 million yuan. The Jianfeng Dazhan 4,000-ton-per-day clinker cement production line is located in Mengla County, Xishuangbanna, Yunnan Province, with an investment amount of approximately 997.48 million yuan. Upon completion, the project is expected to have an annual clinker production capacity of 1.24 million tons and generate approximately 400 million yuan in additional annual operating revenue.

Notably, the manufactured sand and aggregate business has become key to improving the profitability of Jianfeng Group's building materials segment. In 2025, the gross profit margin of this business reached 56.55%. Although it slightly declined compared to the previous year, it remains one of the company's highest gross margin sub-businesses. Since 2025, the company has successively established Hubei Jianfeng Building Materials and Yunnan Jianfeng Building Materials, extending into the building materials industry such as manufactured sand and aggregates. The manufactured sand and aggregate production lines of Hubei Jianfeng Building Materials have already been completed and put into operation.

According to an industry report released by the China Sand & Gravel Association, China's sand and gravel industry entered a period of deep adjustment in 2025, with annual sand and gravel output of 13.9 billion tons, a year-on-year decrease of 8.9%, and a comprehensive price index down 9.2% year-on-year. The industry's overall gross profit margins generally declined. For example, China Resources Cement Technology's aggregate business gross margin in 2025 was 23.8%, down 11 percentage points from the previous year. Jianfeng Group's 56.55% gross profit margin for its aggregate business is at a relatively high level within this industry context.

Looking ahead to 2026, Jianfeng Group's building materials segment will focus on advancing the commissioning and effectiveness of the Yunnan Jianfeng Dazhan 4,000-ton-per-day clinker cement production line and the 3-million-ton-per-year aggregate and sand production line. It aims to accelerate the transformation from a single cement producer to a comprehensive building materials service provider with a full industry chain of "cement + aggregates + commercial concrete + mortar."

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