Recently, Tianshan Materials Co., Ltd. has launched investor relations activities in the form of teleconference. The main content of the interactive session introduced the company's business situation in the first three quarters of this year and answered questions from investors.
1. Operation of the Company in the first three quarters of this year?
Answer: Recently, the company disclosed the third quarter report of 2024. As of the end of the reporting period, the company realized operating income of 61.460 billion yuan, and the net profit attributable to the shareholders of the listed company was -3.748 billion yuan. Among them, the third quarter of 2024 realized operating income of 21.760 billion yuan, and the degree of loss was narrowed. From January to September
in 2024, the Company sold 165.3 million tons of cement clinker , with a year-on-year decrease of 15.52%; sold 53.15 million cubic meters of mixed cement, with a year-on-year decrease of 0.73%; sold 93.36 million tons of aggregate, with a year-on-year decrease of 9.22%; From January to September 2024, the Company paid close attention to meticulous management, cost reduction and cost control, and the cost of cement and commercial concrete decreased to varying degrees compared with the same period last year. However, due to the significant decrease in market sales price, the operating efficiency decreased year on year. The gross profit margin of cement clinker in the third quarter of this year has improved compared with the third quarter of last year and the second quarter of this year.
The company adheres to the general tone of steady progress, continuously and thoroughly promotes the "cost-benefit" business philosophy and the "three-fine management" model, and promotes cost reduction, optimization and upgrading, energy saving and emission reduction, digital intelligence transformation, party building and other work.
2. Introduce policies to promote the healthy development of the industry?
Answer: The policy documents issued this year, such as the Special Action Plan for Energy Conservation and Carbon Reduction in the Cement Industry, the Action Plan for Energy Conservation and Carbon Reduction from 2024 to 2025, and the Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development, clearly require that the production capacity of cement clinker should be controlled at about 1.8 billion tons by the end of 2025. The production capacity above the benchmark level of energy efficiency will account for 30%, and the production capacity below the benchmark level of energy efficiency will complete technological transformation or be eliminated and withdrawn. The cement industry capacity replacement policy will be strictly implemented, backward production capacity will be eliminated in accordance with the law and regulations, and new production capacity in violation of regulations will be strictly prohibited.
Strictly verify the production capacity of cement projects on record, and prohibit arbitrary expansion of production capacity in the name of transformation and upgrading. Local resource endowment, regional supply and demand balance, carrying capacity of resources and environment and other factors should be
coordinated to promote the agglomeration development of cement industry.
It calls for strengthening the regulation and control of production capacity and output of building materials industry, promoting the normalization of peak staggering production, strict access to new projects, promoting green and low-carbon transformation and upgrading of traditional industries, and establishing and improving the withdrawal mechanism of production capacity.
Strengthening industry self-discipline, preventing "involution" vicious competition, strengthening the market mechanism of survival of the fittest, and smoothing the exit channels of backward and inefficient production capacity are all conducive to alleviating the contradiction between supply and demand in the cement market, maintaining the industry ecology and promoting the healthy development of the industry.
3. Introduction to the international development of the Company? Progress of M & A project in Tunisia?
Answer: In the face of the new development trend of the domestic cement industry, the company has accelerated the pace of structural adjustment, transformation and upgrading, actively responded to the call of "going out" and accelerated the pace of international development. As an overseas investment and operation platform of the company
, Sinoma Cement introduced Sinoma International as a shareholder in 2023, which can give full play to its advantages of international development experience, global localization operation, international talent and market frontier information. As well as engineering, transformation, operation and maintenance, spare parts, logistics and other comprehensive service advantages, combined with Tianshan's management advantages, talent advantages, mechanism advantages, etc., to ensure the quality of overseas development.
At present, the company has signed a contract for the merger and acquisition project in Tunisia, and the company is accelerating the registration of SPV companies, investment filing and other related work. See the relevant announcements for details.
4. Cost reduction of the Company in the first three quarters and further cost reduction space in the future?
Answer: In the first three quarters, the Company achieved a year-on-year decrease in the comprehensive cost of cement, which was mainly due to the effective measures such as optimizing the allocation of resources, centralized procurement, technological transformation, cost saving and cost control. The Company has formulated a detailed action plan for cost saving and index improvement, with fine benchmarking and maximum cost reduction. There is still room for cost reduction in the future, but the decline will be reduced, through the continuous deepening of the comprehensive cost reduction action plan and technological innovation and other measures to strengthen the foundation.
5. What is the impact of the incorporation of the cement industry into the carbon trading market on the company and the industry?
Answer: The low-carbon development of the cement industry is the core of green development, responsible development and high-quality development. The incorporation of the
cement industry into the national carbon market will have a significant impact on cement enterprises in terms of production and operation, data control, transaction costs, energy saving and carbon reduction investment. With the carbon quota from basic satisfaction to tight reduction, it will effectively promote production reduction, thereby affecting competitiveness and supply and demand pattern.
Relevant institutions and enterprises are actively studying technologies and methods such as big data accounting and online measurement, strengthening the authenticity and scientificity of double-carbon data, and promoting standardized trading. Promoting supply-side structural reform
through carbon emission reduction and reducing the total amount and intensity of carbon emissions in industries with serious excess is not only conducive to the development of the industry and the economy, but also in response to the requirements of the national "double carbon" goal.
The company's dual carbon management department is specifically responsible for the company's carbon asset management related work, and through the application of production line technology upgrading, energy-saving technology transformation, fuel substitution, carbon capture and carbon digital management and control technology to reduce carbon emissions.
6. Capital expenditure plan of the Company?
Answer: The capital expenditure of the company in 2024 is planned to be about 17 billion yuan, with a steady decline compared with the same period last year. The capital expenditure of the company is based on the overall principle of operation arrangement, and the investment expenditure is mainly concentrated in overseas business, resource optimization, project construction, energy saving and consumption reduction, environmental protection expenditure and other fields.
7. The idea of company market value management?
Answer: Market value management is the company's long-term important work, on the one hand, the company will strive to do a good job, standardize operation, improve performance, return investors; On the other hand, the Company will strengthen communication with investors and actively deliver the value of the Company. At the same time, the Company will study ways and measures to increase the market value based on its own development needs and actual conditions.
