According to the annual report and ESG report of Conch Cement in 2023, the comprehensive cost of cement clinker in 2023 is 204.97 yuan. Decreased by RMB25.43 from RMB230.4 in 2022, representing a year-on-year decrease of 11.04%, mainly due to the decrease in coal purchase price and coal consumption, as well as the use of green electricity and alternative fuels.
The comprehensive energy consumption of the clinker process in 2023 is 102.63 kg standard coal/ton of clinker. If the electricity consumption per ton of clinker is calculated as 50 kwh, the standard coal consumption per ton of clinker is only 96.5kg. In recent years
, Conch Cement has vigorously developed photovoltaic power generation, wind power generation and biomass power generation to save costs; In terms of the use of alternative fuels, as of the end of the reporting period, the Company completed the construction of alternative fuel projects of 10 subsidiaries, and the technological transformation of alternative fuels of 17 companies is progressing in an orderly manner. A total of 53 companies of Conch Cement used alternative fuels, and the total use of alternative fuels reached 2.42 million tons, accounting for about 8% of coal use; In addition, the company has set a target for the use of alternative fuels, and plans to use 15% of raw coal by 2030.
At the same time, the cost of the three expenses of Conch Cement is very low, especially the financial cost. In 23 years, the financial deposit and interest income was more than 2.5 billion yuan, and the total financial cost was 2.48 billion yuan.
According to the accounting standards of mainland China, the net profit of financial expenses is 1.119 billion yuan, and the four expenses (including R & D expenses) are all converted to 293 million tons of cement clinker sales, which is 33.5 yuan/ton. Considering that there are aggregates, commercial mixing, hazardous waste, new materials, trade and other businesses, the cost of cement per ton will be far less than 30 yuan.
Summary: Conch Cement has always been known for its strict management and advanced technology in the industry. In recent years, it has vigorously developed green electricity and alternative fuels, continuously carried out energy-saving technological upgrading of cement production lines, coupled with the extremely low cost of its own limestone mines, the decline in coal prices and other factors, resulting in a larger decline in cement costs in 2023, so it has the courage to grab market share. Only in the environment of serious decline in industry profits, it still maintains a high proportion of industry profits.
At present, the demand for cement is declining and the market competition is fierce. In the future, the competition of cement enterprises will eventually be the cost competition. We can reduce the cost and increase the efficiency of standard conch cement, so as to occupy a favorable position in the market competition and avoid being eliminated by the market.
Cement industry has serious overcapacity, the impact of peak staggering production on the supply side has declined significantly, the "competition and cooperation relationship" formed over the years has broken down, and the pressure of industry operation has doubled. On March 28-29, China Cement Network will hold the " 13th China Cement Industry Summit and TOP100 Award Ceremony " in Hangzhou, during which the top 100 cement and supplier enterprises will be awarded. At the same time, we invite experts and scholars, China Railway and other construction units to discuss the new development trend of the cement industry in the future, cohesion and create the future together!
