On August 30, Jidong Cement (000401) released the Investor Relations Activity Record Form, and 19 people from several institutions participated in the specific object survey. The main contents are as follows:
1. Operation
of the Company in the first half of 2023 In the first half of 2023, the comprehensive sales volume of cement and clinker of the Company was 43.96 million tons, representing a year-on-year increase of 14.39%, and the sales revenue was RMB12.361 billion, representing a year-on-year decrease of 11.87%; The sales volume of aggregates was 15.95 million tonnes, representing a year-on-year increase of 15.41%, and the sales revenue was RMB589 million, representing a year-on-year increase of 11.81%. Affected by the weak market demand, the production capacity in the northern region is insufficient, the cement price in the core regional market of the company continues to decline, the comprehensive gross profit rate of cement and clinker is 10.58%, down 12.40 percentage points from the same period last year, and the gross profit rate of aggregate is 47.91%. The operating income of the Company was RMB14.486 billion, representing a year-on-year decrease of 14%. The unit cost of products decreased but failed to compensate for the adverse impact of the price decline. The net profit attributable to the shareholders of the listed company was RMB-369 million.
2. What is the year-on-year change in the sales volume of the Company's products in the first quarter of 2023 and the second quarter of 2023 and what are the reasons for the change? In the first half of
2023, the comprehensive sales volume of cement clinker was 43.96 million tonnes, representing a year-on-year increase of 5.53 million tonnes or 14.39%, of which, the comprehensive sales volume of cement clinker in the first quarter increased by 29% year-on-year, and the comprehensive sales volume of cement clinker in the second quarter increased by 8% year-on-year. The above changes were mainly due to the decrease in sales volume in Northeast China in the first quarter of last year, which was seriously affected by specific events. In addition, the demand was partially suppressed in the fourth quarter of last year due to the impact of specific events and major political activities, which was released in the first quarter of this year, resulting in a year-on-year increase in sales volume this year.
3. In the first half of 2023, the aggregate sales volume of the Company was 15.95 million tons, representing a year-on-year increase of 15.41%. Is it from the production of new production capacity? How much is the net profit of aggregates? What is the expected production and sales of aggregates in the next year or so?
In the first half of the year, the sales volume of aggregates was 15.95 million tons, representing a year-on-year increase of 15.41%; the selling price decreased by RMB3.03 per ton, and the cost increased by RMB1.37 per ton as compared with the corresponding period, resulting in a year-on-year decrease of 7.27 percentage points in gross profit margin to 47.91%. The increase in aggregate sales
in the first half of the year was mainly due to the further release of aggregate production capacity in Guanzhong area of Shaanxi Province, which affected the year-on-year increase of 1.8 million tons in aggregate sales.
At present, the aggregate production capacity of the Company is 62 million tons. According to the market demand and the acquisition of mineral resources, the Company has a certain plan to increase the aggregate production capacity every year. There are two aggregate production lines under construction this year, with a production capacity of about 5 million tons.
4. Does the company consider merger and expansion, how to balance the relationship between expenditure expansion and dividends, and whether cash flow is stable?
At present, the cement industry has entered a major adjustment period of reduction, differentiation and integration, which is an opportunity for industrial integration. We will continue to adhere to the general tone of steady progress, adhere to the linkage between investment and profitability, and pay attention to the effective improvement of quality and the reasonable growth of quantity. Actively and prudently select enterprises with high asset quality, resource advantages and obvious regional synergy effect to merge.
Up to now, the company's net operating cash flow has increased year on year, and the average financing cost is at the best level in the company's history.
5. Does the post-disaster reconstruction of Beijing, Tianjin and Hebei stimulate the demand for cement?
This summer's rainstorm caused floods in Beijing, Tianjin, Hebei, Jilin, Heilongjiang and Chongqing, and the above areas are facing different degrees of post-disaster reconstruction. In addition, municipal governments in some areas have proposed to strengthen the construction of road network and pipeline network to enhance the risk resistance of infrastructure. Therefore, under the dual drive of reconstruction and strengthening construction, the demand for cement has been supported to a certain extent.
6. What is the cost of limestone purchased by the company?
In 2022, the cost of limestone purchased by the company was about 51 yuan per ton, which decreased slightly this year. It should be noted that the limestone resource tax in Hebei is at the highest level in the country, about 10 yuan per ton, and the control of limestone resources is particularly strict. The company attaches great importance to the cost of limestone, through optimizing the procurement mode, reducing the proportion of external mining and other measures, the cost of limestone will be reduced in the future.
7. Is the off-peak production tightened or loosened compared with last year?
Previously, peak staggering production was concentrated in the northern region, and now the southern region has begun to implement peak staggering. Staggered production is not only a way to adjust production capacity, but also a measure for the state to control pollution and protect the environment. Up to now, the number of peak staggering days this year is higher than that of the same period last year.
8. Is the company involved in the field of new energy?
At present, the photovoltaic projects of 17 subsidiaries of the company (with a total installed capacity of more than 100MW) have completed the government filing work, of which, the photovoltaic projects of 2 subsidiaries are under construction, and the rest are making preliminary preparations.
9. What is the impact of the integration progress of Liaoning market and the cooperation of Tianshan on the market? After the establishment of
Liaoning Jinzhong Joint Venture Company, in accordance with the strategic requirements of both shareholders, based on Liaoning, the cement industry integration work has been carried out, and the due diligence and audit evaluation work of both parties in Liaoning enterprises has been completed, and other preparatory work is steadily advancing.
In the future, with the gradual implementation of national economic and macroeconomic policies, and through a series of measures such as internal integration of the two groups, external mergers and acquisitions, and guiding the industry to reduce production capacity, the market will tend to stabilize and gradually recover.
In order to actively respond to the national environmental protection policy and implement the concept of green and low-carbon development, China Cement Network will hold the "2023 Cement'Double Carbon 'Conference and the 10th China Cement Energy Conservation and Environmental Protection Technology Exchange Conference" in Zhengzhou, Henan Province, from September 12 to 13, 2023. The cement industry is moving towards a low-carbon, more energy-saving and greener high-quality development.
At the same time, the medal ceremony of "2023 Advanced Enterprises of Double Carbon" in Cement Industry and the "Double Carbon" Equipment Exhibition will be held. After the meeting, we will also organize a visit to Jiyuan Zhonglian Cement Co., Ltd. "The world's first production line of carbon sequestration auxiliary cementitious materials and low-carbon cement from flue gas CO2 of steel slag capture cement kiln".
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