SMM Survey of Chinese Construction Enterprises in June

1. A large construction company in east China: It has been raining frequently in Shanghai recently, which has some impact on the construction. The heavy rains disrupted construction and water had to be pumped. The foundation is being laid now. Water accumulated due to the potholes. Our project has been delayed a bit, and bidding has started and preparations are underway. Construction is expected to start in mid-July. This is a underground project, bids for above-ground projects are underway. If we win all the bids, it may take three or four years to complete those projects. Our construction is progressing as scheduled, and there are no cash flow issues. But in fact, the real estate industry is still relatively poor, and some data may not be so good.

2. A large construction company in central China: The overall production and operation were normal this month. The output value met expectations. The company consists of five branches. As the funds were affected by the COVID-19 pandemic, only two branches can maintain normal operations. We received new projects this month, and the hot weather had an impact on the construction. In order to ensure the safety of workers, we work in irregular time periods, and the work efficiency was reduced to a certain extent. The output value could not reach the levels in autumn and winter. We purchased steel materials as needed.

3. A medium-sized construction company in east China: At present, we mainly undertake projects such as hospitals and office buildings. There are still relatively few residential housing projects, so the impact is relatively small. We have quite a lot of new projects. In terms of funds, there is some delay in the payment collections. The payment time and payment method underperformed previous years. We still have quite a lot of projects in hand.

4. A small construction company in east China: In June, we were mainly making preliminary preparations. The construction started last week. There are not many personnel now, and they will gradually increase in the future. This project is not big. We bought some steel pipes and aluminium plates and will restock as needed in the near term.  We currently have no other projects. Some projects will be completed by the end of the year, but none in the near future. The weather has little effect on our construction, and we adjust operations according to the temperature. Besides, the project has just started, and there is no need to rush to work.

5. A medium-sized construction company in north China: We did not receive new projects in June, and are working for the existing projects. Production and capital are normal. The market is still sluggish. We mainly rely on previous government projects.