Tianshan Stock: Actively and Steadily Reduce Leverage and Improve Financial Situation

On January 20, Tianshan shares disclosed the 2022 annual performance forecast, predicting that the net profit attributable to the parent company in 2022 would be 4 billion to 5.2 billion yuan, down 58.5% to 68.08% year-on-year; the net profit deducted from non-profits would be 2.2 billion to 3.3 billion yuan, down 33.31% to 55.54% year-on-year; Basic earnings per share is 0.4631 yuan per share-0.602 yuan per share. Based on the closing price on January 20, the current P/E ratio of Tianshan shares is about 15.19 to 19.75 times.

The announcement said that the main reason for the performance change was that during the reporting period, the market demand decreased due to the repeated COVID-19 epidemic and the decline in the growth rate of investment in real estate development, which led to the sales and prices of cement clinker and commercial concrete, the company's main products, declining to varying degrees year on year. In addition, affected by the rising prices of coal and other major raw materials, the cost of cement clinker increased year on year.

On January 30, an investor asked Tianshan Stock on the interactive platform for investors: "Hello, the demographic dividend has passed, there are more houses than people, where is the cement growth?"? Does the company issue 10 billion bond financing to guarantee management compensation? Tianshan shares recently replied that, with the gradual implementation of the support policy of the real estate end and the effective promotion of "guaranteed delivery of buildings", the circulation link of the real estate end is expected to improve, and the decline of the demand for new real estate construction and construction is expected to narrow. The infrastructure projects that failed to land due to the disturbance of the epidemic and the lack of project funds are expected to gradually form a physical workload in the future, which will support and stimulate the demand for cement. By issuing convertible bonds, the company intends to enhance its capital strength, actively and steadily reduce leverage, improve its financial situation , further expand and strengthen its main business, increase investment in sand and gravel aggregates, promote the company's green and intelligent level, and accelerate the construction of a world-class cement company with Chinese characteristics.