On July 17, Shangfeng Cement received research from Oriental Securities Asset Management and other institutions. The main contents are as follows:
1. Recently, the price of cement in all regions of the country is gradually rising. Is the price increase of cement sustainable?
Answer: With the gradual stabilization of real estate, the accelerated issuance of special bonds, the renovation of old residential areas in cities and towns, and the continuous efforts of policies such as trillion treasury bonds, cement prices have gradually stabilized and rebounded recently, and we remain optimistic and confident about the arrival of the peak season in the second half of the year.
2、 that the total demand of cement industry will continue to decrease in the future, how does the company view and respond?
Answer: The company will continue to focus on the main business of cement, improve operational efficiency, strengthen the company's internal management, promote the overall high-quality development by accelerating upgrading and extending the industrial chain, continue to carry out energy-saving and consumption-reducing activities such as equipment and process transformation, reduce production costs, and continuously enhance the company's market competitiveness. What is the follow-up scale of the environmental protection and aggregate of
3、 companies as a high-margin industry?
Answer: In addition to the main business of cement and clinker , the aggregate and environmental protection business in the extension wing of the industrial chain has developed rapidly in recent years. Based on the asset structure and development of the Company, the main advantage of the Company lies in the location layout. The Company has sufficient backup resources in all major bases, which can not only meet the long-term production and operation of the main business of cement clinker, but also support the continuous growth and development of the aggregate business of the Company. In respect of
environmental protection, the Company has established cement kilns in two bases in Anhui and Ningxia to co-dispose of hazardous waste and solid waste, and the annual disposal of 150,000 tons of solid waste in Huaining Base is under construction. In the future, the Company will continue to promote the growth of environmental protection business in other qualified bases based on market demand. How will the future dividend policy of
4、 companies be considered?
Answer: The company's dividend ratio is relatively stable, and has always maintained a dividend rate of more than 30% in recent years. Since the reorganization and listing in 2013, the company has not raised funds from the capital market, and has accumulated about 3.719 billion yuan of dividends to investors (including repurchase, etc.). Among them, cash dividends have reached 3.345 billion yuan; in 2023, the company has paid cash dividends of 382 million yuan, accounting for 51.38% of the net profit attributable to the parent company in that year, and the dividend rate is about 5.5%; the company has recently launched a repurchase plan of 100-200 million yuan again. The sustainable development of the company can not be separated from the strong support of shareholders, so while maintaining its healthy and sustainable development, the company pays attention to the interests of shareholders and continues to create value returns for shareholders. How will the total amount and structure of future investment of
5、 companies change? What is the reason for the reduction of investment quota in the new economy?
Answer: In terms of future investment, we will always focus on the company's "one main and two wings" development strategy, focusing on the main business of cement building materials, deep cultivation of industrial chain extension wing and new economic equity investment wing, forming a stable triangular form. According to the current overall internal and external environment, the company adheres to the principle of "strict control of quota, strict control of risk and strict selection", properly grasps the rhythm of investment development, and focuses on reducing costs, increasing efficiency and controlling costs, improving the level of fine operation, effectively enhancing its resilience to risks and comprehensive competitiveness, and steadily responding to market cycles. To ensure the smooth operation of the company in the environment of intensified competition in the industry. The announcement of
6、 shows that the pledge ratio of controlling shareholders'equity of listed companies is gradually declining, and will it further decline in the future?
Answer: Up to now, Zhejiang Shangfeng Holding Group Co., Ltd., the controlling shareholder of the Company, and the persons acting in concert with it have pledged a total of 99,100,000 shares of the Company, accounting for 30.83% of the shares of the Company held by them and 10.22% of the total share capital of the Company. The pledge price and pledge ratio of the company's controlling shareholder's equity are within a reasonable range. What are the practices and effectiveness of
7、 companies in cost control? Is there room for improvement?
Answer: One of the important business strategies of the company has always been to achieve the ultimate cost. At present, the company's cost control level maintains a strong competitiveness in the industry. In 2023, when the price of raw materials is relatively high, the manufacturing cost of the company's main products has dropped by 15-16%, and the gross profit rate currently ranks first among the listed companies in the industry. The energy consumption control of
specific products maintained the leading level in the industry. In 2023, the average clinker standard coal consumption of the core indicators of the main products continued to decline to 102.57 kg/ton, and the electricity consumption also continued to decline. With the adjustment of industry policy, it is expected that the control of energy consumption and carbon emissions will be one of the core means for the whole industry to reduce production capacity. At present,
the company has laid out new energy businesses such as photovoltaic energy storage and established an efficient carbon asset management system, which is also ready to reduce the cost of enterprises and improve their comprehensive competitiveness in the future. At present, there is still room for further reduction of process energy consumption indicators, and the application of new technologies such as raw material substitution and fuel substitution is further promoting the cost reduction of the company, which still has a large space for optimization. Is there any room and possibility for
8、 companies to improve their production lines in Guangxi and Guizhou in the past two years?
Answer: The production lines in Guangxi and Guizhou are affected by the overcapacity and periodicity in the surrounding areas in recent years. At present, the market price is still at a low level. However, the production line projects in the region have advanced equipment and technology, excellent operation indicators, and are gradually accumulating advantages and competitiveness.
9、, what are the ideas and directions of the company in maintaining the market value?
Answer: At present, the overall market value of the cement industry is in a relatively low state, but in general, we have firm confidence in the long-term value. In order to maintain the Company's value and shareholders' rights and interests, based on the Company's long-term sustainable development and value growth, enhance investors' investment confidence in the Company, and in combination with the Company's financial status, operating conditions, future profitability and development prospects, the Company repurchased the Company's shares with its own funds of not less than RMB100 million and not more than RMB200 million, and the repurchase is currently under implementation.
In addition, Shangfeng Cement has unique advantages in cost control, operational efficiency and industrial structure. We hope to gain the recognition of investors and shareholders through a series of practical actions to improve quality and efficiency through efforts to enhance our own capabilities and competitiveness, and promote the steady and sustained growth of the company's comprehensive value.
