CNBM keeps borrowing and financing to acquire and grow its business.
On April 15, according to Hong Kong's Apple Daily, the most heavily indebted companies in the H-share index, in order, are China National Building Materials, Huaneng Guodian and Chinalco, with net debt ratios of 434, 279 and 218 respectively, with China National Building Materials being the most serious. Competition in the cement industry is fierce. CNBM has been acquiring and expanding its business through borrowing and financing in the past. Naturally, the expansion speed is higher than that of Conch, which emphasizes the development of its own construction capacity. However, the debt is getting bigger and bigger. As of the end of last year, the net debt ratio has reached 434, that is, after deducting cash, the interest-bearing debt is 4. 5% of the equity.