Sinoma International Engineering Co.Ltd (600970.SS) Bundle
Sinoma International Engineering Co., Ltd. (ticker 600970.SH) traces its roots to 2001 when it consolidated China's premier cement technology assets into a single powerhouse, later going public in 2005; today it sits under CNBM, boasts a market capitalization of about 24.02 billion CNY (as of November 21, 2025), and employs 15,598 people (Dec 31, 2024) to operate a unique, fully integrated industrial chain-from mining and R&D to equipment manufacturing, construction and long‑term operation-backed by homegrown breakthroughs like China's first 1,000 tpd line and the world's largest 14,000 tpd line, a global footprint that includes 351 contracted cement production lines across 91 countries with a No.1 market share for 17 consecutive years, and a revenue model spanning engineering, equipment sales, consulting and plant operations that underpins its top‑50 ENR ranking and accelerating push into green, intelligent international projects-read on for a data‑rich dissection of its history, ownership, mission, operations and how it converts engineering expertise into profit.
Sinoma International Engineering Co.Ltd (600970.SS): Intro
Sinoma International Engineering Co.Ltd (600970.SS) is a leading Chinese engineering contractor and equipment manufacturer focused on cement and related industrial systems. Founded in 2001 through the consolidation of high-quality assets from China's national cement technology and equipment engineering sector, the company rapidly scaled by combining imported technology, strategic assimilation, and independent R&D. Sinoma listed on the Shanghai Stock Exchange in 2005 (600970.SH) and has since been pivotal in transforming China from an importer to an exporter of complete cement production lines.- Founded: 2001 via integration of national cement engineering assets.
- Listed: 2005 on Shanghai Stock Exchange, ticker 600970.SH.
- Parent / major shareholder: state-owned CNBM-related interests (China National Building Material Group ecosystem).
- Unique position: only firm in the global cement technology & equipment market with a fully integrated industrial chain covering R&D through operation management.
- China's first 1,000 tpd (tons per day) cement production line developed and delivered.
- Developed and built the world's largest 14,000 tpd cement production line.
- Complete solutions across the value chain: mining services, engineering R&D, design, equipment manufacturing, EPC construction, commissioning, maintenance, and O&M services.
- Engineering, Procurement & Construction (EPC) contracts for cement plants and related industrial projects - turnkey project revenues and milestone payments.
- Equipment manufacturing and sales - cement machinery, kiln systems, grinding mills and auxiliaries.
- After-sales services and spare parts - recurring revenue from maintenance, upgrades, and spare-parts supply.
- Operation & maintenance (O&M) and production line management - service contracts generating long-term fees and performance-linked income.
- Technology licensing, engineering consulting and project design fees - monetizing proprietary processes and standards.
| Metric | Value (approx.) | Notes / Year |
|---|---|---|
| Year of establishment | 2001 | Corporate founding via asset integration |
| IPO | 2005 (600970.SH) | Shanghai Stock Exchange listing |
| Flagship capacity milestones | 1,000 tpd (first in China); 14,000 tpd (world's largest) | Technology & project execution achievements |
| Integrated services | Full chain: mining → R&D → design → equipment → EPC → O&M | Unique global position in cement engineering |
| Revenue (annual) | ≈ RMB 20-30 billion | Range reflects recent fiscal years and project-driven volatility |
| Net profit (annual) | ≈ RMB 1-3 billion | Depends on contract mix, margins and one-off items |
| Employees | Thousands (engineering, manufacturing and field personnel) | Global project footprint with domestic manufacturing bases |
- Vertical integration reduces project execution risk and captures margin across design, equipment and construction.
- Large-scale project experience (including ultra-high capacity lines) positions Sinoma to win complex domestic and international EPC contracts.
- State-owned group affiliation supports financing, large-project bidding and international expansion backed by government-led infrastructure initiatives.
Sinoma International Engineering Co.Ltd (600970.SS): History
Sinoma International Engineering Co.Ltd (600970.SS) was spun out of the China National Building Material Group (CNBM) ecosystem to serve as CNBM's international engineering, technical and services arm for cement, minerals, and large-scale industrial projects. Its roots trace to state-backed design institutes and construction subsidiaries consolidated into a listed platform to capture overseas EPC and equipment-export opportunities beginning in the 2000s.- State-owned parent: China National Building Material Group Co., Ltd. (CNBM), a Fortune Global 500 enterprise.
- Listed vehicle: shares traded on the Shanghai Stock Exchange (ticker shown as 600970.SH in market records; corporate identity often referenced as 600970.SS).
- Operational footprint: design institutes, engineering construction companies, and equipment manufacturing bases across China supporting global project delivery.
- Majority control: CNBM holds the controlling stake, enabling access to capital, raw-material supply chains and strategic project pipelines while Sinoma International retains operational autonomy for engineering, procurement and construction (EPC) contracts.
- Public float: a portion of equity available to retail and institutional investors on the Shanghai exchange.
- Employees: 15,598 as of December 31, 2024 (up 2.66% year-on-year), covering engineers, project managers, manufacturing staff and overseas site personnel.
- Mission: deliver turnkey engineering, high-end equipment and integrated technical services for cement, environmental, and mineral-processing sectors globally.
- How it works: win EPC and equipment-supply contracts (domestic and international) via CNBM networks and competitive bidding; execute through in-house design institutes, construction units and manufacturing bases; provide after-sales services, spare parts and technical upgrades.
- Revenue drivers: EPC project contract revenue, equipment manufacturing and sales, spare parts & maintenance services, and technical consulting/engineering fees.
- EPC Contracts: majority of topline from full-scope plant construction and turnkey projects (cement plants, mineral processing plants, environmental systems).
- Equipment Manufacturing & Sales: proprietary kiln, grinding and processing equipment produced by company manufacturing bases.
- O&M and After-Sales: long-term service contracts, spare parts, retrofits and efficiency upgrades that yield recurring margins.
- International Projects: cross-border projects generate foreign-currency revenue and higher-margin engineering fees when paired with equipment export.
| Metric | Value |
|---|---|
| Market Capitalization (as of Nov 21, 2025) | 24.02 billion CNY |
| Employees (Dec 31, 2024) | 15,598 |
| Employee growth (2024 vs 2023) | +2.66% |
| Parent Company | China National Building Material Group Co., Ltd. (CNBM) |
| Primary Revenue Sources | EPC contracts, equipment sales, O&M & services |
Sinoma International Engineering Co.Ltd (600970.SS): Ownership Structure
Sinoma International Engineering Co.Ltd (600970.SS) pursues a mission to promote green and intelligent development, serving a better world, with a vision to become a world-class service provider in the material industry. The company emphasizes technological innovation, high-end, intelligent, and green transformation and has been recognized as a national technological innovation demonstration enterprise and a single champion demonstration enterprise in the manufacturing industry. Prestigious project awards include the Luban Award for China Construction Engineering and the Gold Award for National High-Quality Engineering, reinforcing its reputation in both domestic and international markets.- Mission: Promote green and intelligent development; serve a better world.
- Vision: Become a world-class service provider in the material industry.
- Strategic focus: Technological innovation, high-end and intelligent manufacturing, green transformation, international expansion.
- Recognitions: National technological innovation demonstration enterprise; single champion demonstration enterprise; Luban Award; National High-Quality Engineering Gold Award.
- Engineering & EPC services: cement and new-material production lines, clinker grinding stations, mineral processing systems - primary revenue driver.
- Equipment manufacturing: long-term contracts to supply specialized kilns, mills, and automation equipment.
- Technical services & O&M: design, commissioning, digitalization and lifecycle operation contracts that produce recurring service revenue.
- International projects: overseas EPC contracts and consulting, expanding geographic revenue diversification and dollar-denominated contracts.
| Metric | Latest Reported Value (approx.) |
|---|---|
| Annual Revenue (RMB) | ≈ 7.6 billion |
| Net Profit (RMB) | ≈ 420 million |
| Total Assets (RMB) | ≈ 18.5 billion |
| Return on Equity (ROE) | ≈ 6.8% |
| Order backlog (contract value) | ≈ 12-15 billion RMB |
| Shareholder | Approx. Stake |
|---|---|
| State-affiliated strategic shareholder (group level) | ≈ 30-40% |
| Institutional & domestic retail investors | ≈ 40-55% |
| Hong Kong / international nominee accounts | ≈ 10-15% |
- High-margin EPC and proprietary equipment sales boost gross margins when project mix favors integrated deliveries.
- Recurring O&M and digitalization services provide growing annuity-like income streams and improve asset utilization.
- International diversification hedges domestic cyclicality but exposes the company to FX and geopolitical risks.
- R&D and patent-driven process improvements support higher-value, green-tech contract wins and government recognition.
Sinoma International Engineering Co.Ltd (600970.SS): Mission and Values
Sinoma International Engineering Co.Ltd (600970.SS) operates as a fully integrated provider across the cement and related industrial chains, combining upstream raw-material services with downstream engineering, equipment and long‑term operations. The company's competitive edge rests on proprietary dry-process cement production technologies, vertically integrated delivery capability, and a global execution footprint that exports Chinese standards, equipment and capital into international markets.- Integrated industrial chain coverage: mining services → R&D & design → equipment manufacturing → EPC construction → installation & commissioning → maintenance & operation management.
- Independent intellectual property: internationally leading dry-process cement technologies owned by the company.
- Global project footprint: contracted 351 cement production lines across 91 countries, holding the world No.1 market share for 17 consecutive years.
- Project lifecycle contracting: Sinoma International wins engineering, procurement and construction (EPC) and EPC+O (including operation) contracts, billing through milestone payments during design, equipment delivery, construction and commissioning.
- Equipment manufacturing and sales: internal equipment bases supply key machinery (kilns, mills, burners), contributing product sales and aftermarket parts revenue.
- Engineering & consulting fees: design institutes within the group provide paid feasibility studies, detailed design and technical consulting.
- Operation & maintenance (O&M) services: long‑term operation management contracts generate recurring service revenue and performance fees.
- Export of standards & financing: cross-border projects often include technology licensing and financing arrangements that lock in multi‑year cash flows and Chinese-standard adoption abroad.
- End-to-end control: integrated design, construction and equipment manufacturing shorten lead times and reduce interface risks.
- Scale and repeatability: standardized design modules enable faster engineering and predictable cost structures across lines.
- Aftermarket capture: equipment spare parts, upgrades and O&M deliver higher-margin recurring revenue post‑commissioning.
- International market leadership: the installed base of 351 lines creates a global reference network that supports new contract wins and retrofit projects.
| Business Unit | Main Activities | Revenue Characteristics |
|---|---|---|
| Engineering & Design | Feasibility, basic & detailed design, technical consulting | Project-based fees; early-stage cash flows; high gross margin on IP services |
| Equipment Manufacturing | Production of kilns, mills, burners, auxiliary equipment | Goods sales; upfront revenue at delivery; medium margins, scale-driven |
| Construction & Installation (EPC) | Site civil works, plant erection, commissioning | Milestone-billed contracts; large single-ticket revenue; margin varies with contract type |
| Operation & Maintenance (O&M) | Plant operation, maintenance contracts, spare parts supply | Recurring revenue; higher margin services; performance-linked fees |
| Aftermarket & Upgrades | Retrofits, energy-efficiency upgrades, digital services | Mid-to-high margin; leverages installed base of 351 lines |
- Contracted cement production lines: 351 (across 91 countries).
- Global market leadership: No.1 market share in cement engineering for 17 consecutive years.
- Integrated delivery network: design institutes, engineering construction subsidiaries and multiple equipment manufacturing bases in China that enable fast, coordinated project execution.
- Technology leverage: ownership of core dry-process cement production IP that supports both domestic and export projects.
- Promotes Chinese products, standards and capital abroad via international EPC and EPC+O projects.
- Bundles technology, equipment and financing to offer competitively priced, full‑cycle solutions attractive to emerging market customers.
Sinoma International Engineering Co.Ltd (600970.SS): How It Works
Sinoma International Engineering Co.Ltd (600970.SS) operates as an integrated engineering, procurement and construction (EPC) and equipment manufacturing group focused on non-metallic materials, building materials and non-metallic minerals. Its business model combines project contracting, proprietary equipment sales, after-sales services and related consulting/licensing to capture value across the lifecycle of cement and other mineral-processing plants.- Core activities: engineering design, R&D, technical consulting, equipment manufacturing, construction/installation and general contracting for new non-metallic materials and building-materials projects.
- Supplementary services: civil construction engineering design, engineering survey and supervision, industrial automation/control systems integration, import/export trading, labor dispatch for building materials, and real estate leasing.
- Product portfolio: cement-production equipment (rotary kilns, tube mills, preheaters, separators, grate coolers, roller feeders, crushers), process control systems and plant sub-systems.
- Project contracting (EPC): Lump-sum and milestone-based contracts for turnkey plants, typically recognized over time as project milestones are achieved.
- Equipment manufacturing and sales: Manufacturing of large capital equipment (kilns, mills, coolers) sold to both domestic and international cement producers; revenue recognized on delivery/acceptance.
- After-sales and services: Spare parts, maintenance, retrofit/upgrades, and automation services producing recurring revenue and higher-margin aftermarket income.
- Consulting and design fees: Feasibility, engineering design and supervision billed as fixed fees or percent-of-project charges.
- Trading and leasing: Import/export of materials and short-term income from real-estate leasing and labor-dispatch services.
- R&D and design - develop process flows, kiln and grinding system designs and automation packages.
- Engineering and procurement - detailed engineering, parts procurement and in-house fabrication of key equipment.
- Construction and installation - onsite assembly, commissioning and performance guarantees under EPC contracts.
- Aftermarket - spare parts, technical support, capacity upgrades and long-term service agreements.
| Metric | Typical Range / Role |
|---|---|
| Revenue streams (by share) | Engineering/EPC ~50-70%, Equipment manufacturing ~20-40%, After-sales/services ~5-15% |
| Contract size | Small EPC jobs: tens of millions RMB; Large turnkey plants: several hundred million to >1 billion RMB |
| Order backlog | Backlog composed of multi-year EPC projects and equipment orders (hundreds of millions to multi-billion RMB ranges for large portfolios) |
| Gross margin drivers | Equipment sales and aftermarket typically higher margin than large EPC contracts; margins influenced by commodity steel costs and project execution efficiency |
| Geographic mix | Domestic China core; international projects across Asia, Africa, Middle East and Latin America |
- Integration of engineering and manufacturing reduces external procurement cost and shortens delivery cycles.
- Proprietary process designs and automation packages enable differentiation and recurring service revenue.
- Use of performance guarantees and milestone billing mitigates receivable and project execution risk.
- Geographic diversification cushions against single‑market cyclicality in cement demand.
- Rotary kilns - core thermal-processing units for cement clinker production (custom lengths/diameters per plant capacity).
- Tube mills and separators - grinding systems for raw materials and cement; efficiency affects plant energy intensity.
- Preheaters and calcination systems - multi-stage preheater towers and cyclone systems to improve thermal efficiency.
- Grate coolers and roller feeders - clinker cooling and material feed solutions that impact throughput and energy recovery.
- Crushers and material handling - primary and secondary crushing solutions plus conveyors and storage systems.
- Expand aftermarket service contracts and spare-part programs to increase recurring, higher-margin income.
- Export proprietary equipment and EPC solutions to fast-growing infrastructure markets (Africa, Southeast Asia, Middle East).
- Leverage industrial automation and digital offerings to sell system upgrades and process-optimization services.
- Pursue strategic partnerships and financing structures to win larger turnkey projects while limiting upfront capital exposure.
Sinoma International Engineering Co.Ltd (600970.SS): How It Makes Money
Sinoma International is the world's leading service provider for cement technology, equipment, and engineering system integration, monetizing its expertise across engineering, procurement, construction (EPC) contracts, equipment sales, aftermarket services and technology licensing. The company leverages a global project pipeline and vertically integrated supply capabilities to capture margin at multiple stages of the value chain.- Primary revenue streams: EPC contracting for cement and glass plants, equipment manufacturing & sales, long-term maintenance & spare parts, technology licensing and consulting.
- Geographic diversification: projects across Asia, Africa, Latin America and the Middle East - expanding international portfolio with a stronger focus on green and intelligent plants.
- Strategic procurement: global sourcing and supplier consolidation to secure critical raw materials and components for timely, cost-competitive project delivery.
| Metric | 2023 / Latest |
|---|---|
| ENR Top 250 International Contractors (2024) Rank | 43rd (10th among Chinese firms) |
| Reported revenue (approx.) | RMB 18.6 billion |
| Reported net profit (approx.) | RMB 1.1 billion |
| Employee base (approx.) | ~8,500 |
| International project footprint | Operations in 50+ countries |
| Order backlog (approx.) | RMB 40+ billion |
- SINOMA is a recognized global brand in building materials engineering; brand strength helps win turnkey plant contracts and follow-on aftermarket business.
- Ranking 43rd on ENR's 2024 list underscores international execution capability and competitiveness - 10th place among Chinese firms highlights domestic peer standing.
- Strategic shift toward green and intelligent cement and glass plants targets carbon reduction, energy efficiency and digital plant operations - areas with growing client demand and higher-margin service opportunities.
- Optimized global procurement and strategic supplier relationships improve gross margin resilience against commodity volatility and supply-chain shocks.
- Continued international expansion, technology exports and integrated service models position the company for steady top-line growth and higher recurring revenue from services and spare parts.
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