Profile: China Advanced Construction Materials Group Inc (CADC.O)
24 May 2013
China Advanced Construction Materials Group, Inc., incorporated on February 15, 2007,is a holding company. The Company’s business operations are conducted through its wholly-owned subsidiaries BVI-ACM and China-ACMH, and its variable interest entity Xin Ao. The Company engages in the production of construction materials for infrastructure, commercial and residential developments. The Company is primarily focused on engineering, producing, servicing, delivering and pumping a range of ready-mix concrete materials for construction projects. During the fiscal year ended June 30, 2012 (fiscal 2012), the Company operate in four segments: selling concrete, manufacturing concrete, providing technical support services and other services, which include mixer rental, sales of materials and marketing cooperation.
The Company owns one concrete plant and its related equipment, and the Company leases three additional plants in Beijing. In addition, the Company has technical and preferred procurement agreements with three owned concrete mixture stations. Two of the technically serviced plants are located in Datong, Shaanxi and one in Mianyang, Sichuan. The Company also produces ready-mix concrete at portable plants, which can be dismantled and moved to new sites for new projects.
Concrete Sales Business
The Company's concrete sales business segment is consists of the formulation, production and delivery of the Company’s line of C10-C100 concrete mixtures primarily through the Company's fixed plant network of four ready mix concrete batching plants in Beijing. For this segment of the Company's business, the Company procures all of its own raw materials, mix them according to its measured mixing formula, ship the final product in mounted transit mixers to the destination work site, and, for structures, will pump the mixture and set it into structural frame molds as per structural design parameters.
Manufacturing Services Business
The Company's manufacturing services business segment is consists of the formulation, production and delivery of project-specific concrete mixtures primarily through the Company's portable plant network of 15 rapid assembly and deployment batching plants, located in various provinces throughout China. The Company's manufacturing services business segment is focused on various rail projects in China.
Technical Services Business
The Company's technical services business segment is consists of the Company's party production management services, including chemical engineering and ready-mix consulting services for independently owned concrete plants and their associated projects. The Company manages the production and receives a percentage of its client contractors’ profits.
The Company's other business segment is consists of other services, which the Company engages in from time to time, including marketing cooperation and mixer rentals. The Company also generates revenues by renting its mixing trucks to other mixer stations.
The Company competes with Jiangong Shanggong Center, Jinyu Group Concrete, Zhuzong Shanggong Center and Zhonghang Konggang Concrete.
China Advanced Construction Materials Group Inc
Yingu Mansion Suite 1708
9 North West Fourth Ring Road
BEIJING BEJ 100190