Tianshan Stock issued a record of investor relations activities on November 6. The company received a survey from 10 institutions on November 6, 2023. The types of institutions are other, fund companies and securities companies. Questions and answers on investor relations activities are mainly as follows:
1. Recent production and operation of the Company?
Answer: The recent production and operation of the company is normal, the sales volume of cement has increased on a month-on-month basis, the current market demand has improved on the basis of the third quarter, which is a normal seasonal recovery, and the cement price is in a slow recovery trend.
2. What is the impact of the issuance of one trillion yuan of special treasury bonds on cement demand?
Answer: The issuance of one 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: The Company will focus on reducing fuel costs from three aspects: first, further strengthen cooperation with large coal enterprises; second, continue to increase centralized procurement efforts and expand procurement channels and resources; third, strengthen technical transformation, implement coal-saving measures in place, reduce coal costs, and carry out fuel substitution and photovoltaic power generation plans to reduce energy costs.
5, the company's business development philosophy?
Answer: The company always actively advocates that "the interests of the industry are higher than interests of the enterprise, and the interests of the enterprise are bred in the interests of the industry", adheres to the implementation of various national industrial development policies, adheres to the business philosophy of "price, cost and profit", and promotes the return of industry benefits to a reasonable range. Focusing on the transformation of "high-end, intelligent and green", focusing on the three factors of "double carbon, cement + and internationalization", the company continued to improve 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.
8. Prospect of aggregate business?
Answer: The aggregate industry has 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. 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.
9. Introduction to the Company's Market in Xinjiang?
Answer: The cement market in Xinjiang is relatively stable at present. Compared with last year, the demand has improved slightly. Xinjiang Cement, a regional company, is currently the cement enterprise with the largest production capacity in Xinjiang, and is in the leading position in product brand, technology level, equipment capacity and other aspects.
10. Advantages of special cement and market prospect of high-end cement?
Answer: Jiahua Special Cement Co., Ltd., a subsidiary of the Company, is the largest special cement production and R & D enterprise in China at present. The oil well cement, hydraulic cement and marine cement produced by Jiahua Special Cement Co., Ltd. have good reputation in the market. At present, the output of special cement in China accounts for a low proportion of the total output of cement, and the company will further increase the research and application of high-end and special cement.
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.
To this end, China Cement Network will hold the Fifth China Cement Intelligence Summit Forum in Hangzhou on November 29, 2023, with the theme of "Data-Driven Decision-Making Intelligence Leads the Future", inviting industry experts, scholars and representatives of relevant enterprises. To jointly explore and promote the intelligent process of the cement industry.
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