On October 24, Conch Cement answered a number of questions from investors on the interactive platform, as follows:
1
Q: Conch has fallen so much below net assets per share, and the company has nearly 100 billion cash on its books. Why not spend 10 billion yuan to buy back, demonstrating the company's confidence in development and looking forward to recovery!
Conch Cement: affected by macro factors, the demand for cement has declined in the past two years, and the overall performance of the plate is weak. The Company holds the stock capital mainly for the sustainable and high-quality development of the enterprise. At present, the Company is accelerating the industrial transformation and development, taking effective investment as the orientation, strengthening the main cement industry and the upstream and downstream industrial chain, promoting the development of environmental protection, new energy and digital industry, and there is still a certain demand for capital in industrial development. If the company has a subsequent share repurchase plan, it will fulfill its disclosure obligations in a timely manner. Question
2
: Does the company have accounts receivable in Evergrande and other real estate companies? What is the specific scale? Has the company made provision for impairment?
Conch Cement: The accounts receivable of the Company do not involve Evergrande and other real estate enterprises. At present, the company's accounts receivable balance is reasonable and the risk is controllable. The follow-up company will continue to strengthen the management and control of accounts receivable to prevent capital risks. Question
3
: The valuation of Conch Environmental Protection in Hong Kong stock market is extremely low, and the solid waste treatment is directly linked to the company's production. Has the company considered privatizing Conch Environmental Protection in Hong Kong stock market or returning to A-share listing?
Conch Cement: The Company will further exert the effect of resource integration and industrial integration, and support Conch Environmental Protection to become bigger, better and stronger under the condition of guaranteeing the full independent management right of Conch Environmental Protection. Question
4
: How much profit did the company contribute to the overseas market in the first half of the year? The company's production line is mainly in the south, the company proposed to enhance market share strategy, why not take joint venture, acquisition and other means to develop Hubei, Henan, Hebei and other central provinces?
Conch Cement: In the first half of the year, the Company continued to strengthen overseas market expansion, strengthened production and operation management, and further improved the operation quality of overseas projects. The sales volume, operating profit, EBITDA and other operating indicators of overseas projects increased by different margins as compared with the same period last year. In terms of the development of the main domestic cement industry, the company will follow the merger and acquisition standard of "market, resources and returns", in order to enhance market control, focus on building the long-term competitiveness of enterprises, and select high-quality projects in areas with low industry concentration and blank markets. Question
5
: Does the company have any research and reserve on the technology of producing cement by electrolysis? What do you think of the technological innovation of electrolytic cement production?
Conch Cement: It is understood that at present, the technology of cement production by electrolysis is only in the laboratory research stage, and the transformation of technological achievements and product verification are expected to take a long time. The company will continue to pay attention to the relevant progress. Question
6
: May I ask whether your company has formulated a corresponding plan to participate in the reconstruction project of urban villages in China's mega-cities?
Conch Cement: The company will continue to strengthen market construction, give full play to its advantages, expand incremental projects in various channels, and strive to improve product sales. Question
7
: In the last question, you replied that the accounts receivable did not include several leading private real estate enterprises, but how much is the amount of several leading private real estate enterprises in the notes receivable? Has early acceptance been considered? Has there been any failure to accept in advance? Cement prices have actually bottomed out. How much has the company's market share increased? Has it returned to more than 13.5%? Finally, from Huijin to the central enterprises, there are willingness and actions to boost the valuation of state-owned enterprises. Has Conch considered spending a small part of the money to buy back shares, so as to enhance the brand and image of Conch?
Conch Cement: At present, the bills receivable of the Company are mainly bank acceptance bills, and the acceptors are mainly banks, not involving real estate enterprises. When receiving bills, the Company will strictly review the credit status of the drawer and the acceptance bank to ensure that the risk is controllable. Since 2022, the company has steadily increased its market share by strengthening market construction and taking measures according to the differences of time and situation; In the later stage, the Company will continue to focus on production and operation, adhere to the established business strategy, strive to improve operating efficiency on the basis of stabilizing market share, implement precise and effective investment, strengthen innovation drive, promote low-carbon green cycle development, and continue to create value for the majority of shareholders. If there is a subsequent share repurchase plan, the disclosure obligation will be fulfilled in a timely manner.
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