On October 31, Tianshan Co., Ltd. released a record of investor relations activities, the details of which are as follows:
1. Recent downstream demand and price trend of cement?
Answer: Since the middle and last ten days of September, the cement price has been in a slow repair trend. The current market demand has improved on the basis of the third quarter, which is a normal seasonal recovery. The overall demand remained basically stable, and the ring ratio increased, which was basically flat compared with last year.
2. The recent announcement of the issuance of 1 trillion yuan of special treasury bonds will have a major impact on cement demand activities?
Answer: The issuance of 1 trillion yuan of special treasury bonds will help improve the margin of infrastructure investment and boost the demand for cement. It will take some time for the policy to be transmitted to the physical demand for cement, so the impact on the demand for cement in the fourth quarter of this year remains to be observed, but it will create certain conditions for the demand stabilization and profit recovery of the cement industry in 2024.
3. In view of the sharp decline in cement prices this year, what measures does the company take on the supply side?
Answer: At present, the overcapacity situation of the cement industry is still grim, and the price depends on the relationship between supply and demand, which requires the industry to take multiple measures to implement supply-side structural reform. From the perspective of long-term development, it is necessary to reduce production capacity by reducing carbon and energy consumption in accordance with the guidance of the national dual-carbon policy, strictly control new production capacity and phase out inefficient production capacity in terms of supply. In the short term, we will continue to implement the peak-shifting production policy, avoid vicious competition at low prices through the strengthening of peak-shifting production policies in various regions, and ultimately realize the return of industry benefits to a reasonable range, promote green low-carbon and digital intelligent transformation, and realize the healthy and sustainable development of the industry.
4. The company's strategy to cope with the rising coal price?
Answer: As the coal price has risen recently, the Company has made efforts to reduce the fuel cost from three aspects: first, further strengthen the cooperation with large coal enterprises; second, expand new procurement channels and resources, and expand the procurement of imported coal; Thirdly, we should strengthen technological transformation, implement coal-saving measures in place, reduce coal costs, and reduce energy costs through fuel substitution and photovoltaic power generation plans.
5. The company's development strategy in industry guidance?
Answer: The industry is in a critical period of transformation and development. The company has always actively advocated that "the interests of the industry are higher than those of the enterprise, and the interests of the enterprise are bred in the interests of the industry", adhered to the implementation of various national industrial development policies, adhered to the business philosophy of "cost and profit", and promoted the return of industry benefits to a reasonable range. Focusing on the transformation of "high-end, intelligent and green", focusing on the three tail-warping factors of "double carbon, cement + and internationalization", the company continued to optimize and strengthen the industrial chain, promote integrated operation according to local conditions, and strive to increase profits and return shareholders through the coordinated development of the industrial chain.
6. How to balance market share and price?
Answer: As a fully competitive industry, operators value market share. The company advocates the business philosophy of "price, cost and profit" to maintain a reasonable profit level of the whole industry, so that employees can share the fruits of enterprise development, and the profits of enterprises can better repay shareholders and society, invest in upgrading and transformation, and realize the sustainable development and high-quality development of the industry.
7. Measures for regional companies to sell cement?
Answer: Measures for cement sales in different regions need to comprehensively consider the market, customers, competitors and other factors, and formulate targeted sales strategies. Through market research and analysis, products can meet the needs of different customers, which is the basis for achieving good sales performance in the regional market.
8. New progress of carbon trading in cement industry?
Answer: The industry has set up a "dual-carbon policy research working group", and the company is also actively participating in it. At present, it is carrying out the preliminary basic research on the preparation of the plan and the research on the quota allocation plan for the construction of the carbon market in the cement industry as planned.
9. Operation and future prospect of aggregate business of the Company?
Answer: From January to September 2023, the Company sold 102.85 million tons of aggregates, up 20.79% year-on-year. At present, the company still has some aggregate production capacity under construction, which will become the company's profit growth point. The aggregate industry has now entered the stage of transformation and upgrading, large-scale production and green environmental protection development. Large-scale aggregate investment enterprises with capital, technology and management advantages will dominate the development direction of the industry, and it is expected that the supply of aggregates will increase steadily in the future. The company has significant advantages in industrial chain layout, and has strong market competitiveness and risk resistance by promoting integrated operation. Due to the weakening of downstream demand in the first three quarters of this year, the sales volume of the national aggregate industry decreased slightly compared with the same period last year, and the price is facing downward pressure. In view of the large rigid investment in resource acquisition and production line construction, the investment development of the aggregate industry is more rational, and it is expected that the decline in the price of aggregate will be limited, and the industry will be in a benign development trend.
10. Capital expenditure plan of the Company?
Answer: In 2023, the capital expenditure of the Company was stable and declined compared with the same period last year. In general, the capital expenditure of the Company was arranged according to the operating conditions, and the investment expenditure was mainly concentrated in energy saving, consumption reduction, environmental protection expenditure and other fields.
With the decline of cement demand and the arrival of the peak of production capacity, the market competition is becoming increasingly fierce, and a cyclical industry shuffle is inevitable. Relying on digital and intelligent technology means, realizing technology and management upgrading, continuously reducing energy consumption, pollutant emissions and carbon emissions, and enhancing the comprehensive competitiveness of enterprises are the key for cement enterprises to meet the challenges. On November 29 ,
2023, the Fifth China Cement Intelligent Summit Forum will discuss the topic of "Development and Cases of Intelligent Logistics System in Cement Industry", inviting industry experts, scholars and representatives of relevant enterprises to attend the conference. To jointly explore and promote the intelligent process of the cement industry.
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