Tapai Group announced on August 9 that the company had a conference call with several institutional investors on August 8. Tapai Group introduced to investors the basic situation of the 2023 semi-annual report, and asked "How does the company predict the cement market in the second half of this year?"
Tapai Group said that in the first half of this year, the GDP grew by 5.5% year-on-year, and the national fixed asset investment grew by 3.8% year-on-year. Among them, infrastructure investment increased by 7.2% year-on-year, while real estate development investment decreased by 7. In the first half of the year, the growth of national fixed assets investment slowed down steadily, and infrastructure investment maintained a relatively rapid growth, which is an important fulcrum to support cement demand; The real estate market is still in the bottom adjustment stage, the national real estate development investment, real estate new construction area and real estate construction area have increased year-on-year decline, which has a greater negative impact on cement demand. According to the same caliber data of the National Bureau of Statistics, the cumulative cement output of Enterprises above the national scale is 953 million tons, an increase of 1.3% over the same period last year, and the growth rate continues to decline month by month; In the first half of
this year, the Company achieved a cement sales volume of 8.194 million tons and a clinker sales volume of 434600 tons, representing an increase of 12.51% and 32% respectively as compared with the same period of last year. In the first half of
this year, the cement market maintained a weak trend, and the cement prices in the eastern Guangdong and Pearl River Delta markets continued the trend of weak rebound since the end of last year, but there has been a rapid decline since the middle and late May. Benefiting from the 20.07% year-on-year decrease in the purchase price of coal during the Reporting Period and the continuous effectiveness of a series of cost reduction and efficiency enhancement measures implemented by the Company since last year, the average cost of sales of cement of the Company decreased by 12.36% year-on-year, which was greater than decrease in the average price of cement. As a result, the consolidated gross profit margin of the Company increased from 20.44% in the same period of last year to 27.91%, representing an increase of 7.
Affected by the rebound of the stock index, the securities investment of the Company realized a floating profit during the reporting period, and the non-recurring profit and loss during the reporting period increased
significantly compared with the same period last year. The company realized business income of 2 billion 871 million yuan, an increase of 10.72% over the same period last year; Net profit attributable to shareholders of the listed company was RMB486 million, representing a significant increase of 178% as compared with the same period of last year.
The following are the main contents of the investor exchange activities:
1. In the first half of the year, the cement sales volume of the Company increased by 12% as compared with the same period of last year. Therefore, the cement output in Guangdong in the first half of this year increased by 0.5% compared with the same period last year, which was also better than national cement output in the first half of this year (full-caliber calculation), which decreased compared with the same period last year. 2. In addition, the company strengthened the market control and construction, scientific response, precise policy implementation, and further consolidated the company's market share.
2. We observed a substantial increase in the income from environmental disposal disclosed in the Company's interim report, and asked about the current progress and future planning of the project of co-processing solid waste in cement kilns? RMB100,000, achieving a significant increase over the same period last year 298.
The company closely followed the national environmental protection policy, responded to the call of the dual-carbon policy, laid out the carbon reduction path ahead of time, and actively promoted the co-disposal of solid waste in cement kilns.
Cement kiln co-processing project is an important measure to make full use of waste, turn waste into treasure and reduce carbon emissions. Divided into two main categories:
the first category is unable to generate operating income. It also costs money to purchase solid waste, such as alternative fuel projects, mainly to reduce the cost of cement production and energy saving, emission reduction and carbon reduction. Although the price of coal has dropped considerably this year, according to the current price of coal and the price of alternative fuels, the use of alternative fuels can still further reduce the cost of clinker manufacturing. The company has planned to build alternative fuel projects for each clinker production line of 5000 t/d and above to further reduce the cost of clinker production and reduce carbon emissions;
the second category is that it can directly generate business income. That is to say, the solid waste that needs to be charged for solid waste disposal can replace part of the auxiliary material consumption after entering the kiln, such as Huita Environmental Protection Disposal of Cement Sludge, Jiaoling Branch Disposal of Aluminum Ash, etc., also known as alternative raw material projects, which can not only optimize the ingredients, reduce part of the company's raw material procurement problems, but also increase the disposal cost income, which is the company's key development disposal category. In addition to alternative raw materials, the company will increase the categories of solid waste disposal in a way from easy to difficult, so as to maximize the income and benefits of co-disposal of solid waste in cement kilns. If
the above items meet the requirements of the letter, the company will fulfill the obligation of information disclosure in a timely manner.
3. We are concerned that the Company disclosed in the interim report that the securities investment realized floating profits, resulting in a significant increase in non-recurring gains and losses as compared with the same period last year. 1.
The Company will continue to maintain a cautious attitude in securities investment, one is to reduce the scale, the other is to select investment targets to improve performance flexibility. The Company has gradually reduced its investment scale since 2022, and the securities investment quota of the Company in 2023 will be reduced by 20% compared with that in 2022. The Company will strengthen investment risk management, optimize investment targets, continuously improve investment returns, and reduce the impact of securities investment fluctuations on the Company's performance.
4. The sales volume of clinker disclosed in the Semi-annual Report of 2023 is 434600 tons, with a year-on-year increase of 32.42%. What is the reason for the company's sales of clinker? Is it a phased behavior or will it become a long-term plan? In the future, the company will continue to sell clinker according to the market supply and demand and the actual production of the company. According to the principle of maximizing economic benefits on the premise of consolidating market share, we should properly sell clinker to the outside world and establish good cooperative relations with downstream cement grinding enterprises.
5. We see that the on-grid revenue of photovoltaic power generation disclosed in the interim report has achieved a significant year-on-year growth. Please introduce the progress of photovoltaic power generation projects and whether the company plans to continue to expand the construction scale in the future? 2.3 billion yuan, making full use of idle land, building roofs and other resources in the enterprise. 36.
In the first half of this year, the distributed photovoltaic power generation project of "self-use and surplus electricity access to the grid" within the red line of the factory area of the company and its subordinate enterprises realized the income of surplus electricity access to the grid of 1.0996 million yuan, a substantial increase
over the same period of last year. The company will speed up the feasibility study progress of distributed photovoltaic power generation projects for raw material shed roof construction in cement production enterprises, further expand the installed capacity of photovoltaic power generation and increase the proportion of clean energy use.
a subordinate enterprise, was selected as the "leader" of energy efficiency in the national key energy-using industries in 2019, and was rated as the "leader" of energy efficiency in the cement industry of Guangdong Province in 2020; Jiaoling Branch has also been rated as an advanced enterprise in the cement industry of Guangdong Province for many times, and in 2021, it was rated as the "leader" of energy efficiency in the cement industry of Guangdong Province in 2021.
The company plans to make the energy efficiency of 5,000 t/d clinker production line reach the benchmark level as soon as possible through technical transformation and the use of alternative fuels.
7. What is the capital expenditure plan of the Company in the future? Will the dividend ratio continue to increase in the future?
On December 28, 2022, the Company held the first extraordinary shareholders' meeting in 2022 to consider and approve the shareholder return plan for the next three years (2022-2024). The company will strive to maintain a sustained and stable cash dividend policy in the future.
At the same time, the company also hopes to retain sufficient cash. First, the contradiction of excess capacity in the industry has not fundamentally changed. In order to continue to strengthen the main cement industry and cope with the "double carbon" policy and the intelligent and green development of the industry, the company needs to maintain a sufficient amount of cash reserves. Second, the Company hopes to retain a certain amount of cash as a reserve for the development of emerging industries, so as to grasp the limited and good investment opportunities and strive to form new growth points of performance. In the future, the company will maintain a sound dividend policy and improve the long-term return of shareholders on the premise of taking into account capital expenditure.
8. Does the company have a plan for aggregate? The aggregate currently involved by the company is mainly the aggregate business developed by relying on the advantages of its own limestone and waste rock resources. Guangdong Huaxinda Building Materials Technology Co., Ltd., a joint venture in which the company holds 45% of the shares, has a designed aggregate production capacity of 4 million tons per year. The raw material comes from the waste rock of Wenhua Mine, a wholly-owned subsidiary of the company.The company is preparing to build an aggregate production line with a planned capacity of 2 million tons per year, which is expected to be completed and put into operation by the end of this year.
9. What is the purpose for the Company to invest in the equity of an isostatic pressing graphite enterprise through the partnership?
In the past two years, we have noticed that the demand for cement has been turning point, which means that the ceiling for the development of the cement industry has come. In recent years, the Company has also made efforts to develop its second main business. It has intensified the investigation of relevant financial investment and industrial investment projects, and also hopes to find industrial investment projects suitable for the development of the company through financial investment projects.
10. How does the company predict the cement market in the second half of this year? On July 24, the meeting of the Political Bureau of the Central Committee also released positive signals on real estate and infrastructure construction.
From the supply side, in 2023, Guangdong, Guangxi and Fujian adhered to the principle of green, low-carbon and high-quality development of the cement industry, and continued to implement a strong action of normalized peak staggering production, which is conducive to further easing the contradiction between supply and demand.
From the demand side, according to relevant statistics, the pace of real estate recovery is still relatively slow, the cement market is still not prosperous, and the overall demand for cement tends to decline. From the perspective of Guangdong cement market price, since May, due to the increase of rainy weather, the market demand has been shrinking, the coal price has fallen rapidly, the cement price has accelerated downward, and the large influx of low-priced cement outside the province has led to the further deterioration of the contradiction between supply and demand in the market, and the cement price in Guangdong has further declined sharply in June. After the price reduction, the impact of low-price cement outside the province is not significant. According to the recent cement sales situation, there is little room and possibility for further reduction of cement prices.
To sum up, the cement market in the second half of the year mainly depends on the recovery of market demand, the implementation of peak staggering production and the level of cost control of enterprises.
For this reason, China Cement Net will hold a " meeting in Zhengzhou, Henan, and will also organize a visit to Jiyuan < a href="https://price.ccement.com/brandnewslist-1-1000121.
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