March 26, Tianshan Stock (000877) issued its annual report for 2023. Under the background of the severe contradiction of excess capacity in the cement industry and the overall weakening of demand, the company realized business income of 107.380 billion yuan during the reporting period, down 19.01% from the same period last year. Net profit attributable to shareholders of the listed company was RMB1.965 billion; however, total assets amounted to RMB294.722 billion, representing an increase of 2.04% over the same period last year, accounts receivable amounted to RMB27.717 billion, representing a decrease of 12.49%, and the asset-liability ratio was 65.89%, representing a decrease of more than 0.42 percentage point.
The data show that during the reporting period, Tianshan shares sold 10000 tons of cement 23553, 27.79 million tons of clinker , 76.74 million cubic meters of commercial concrete and 142.16 million tons of aggregate. As of the end of the reporting period, Tianshan Cement has a clinker production capacity of 320 million tons, a commercial concrete production capacity of 370 million cubic meters and an aggregate production capacity of 220 million tons, which is the largest cement company in China with a complete industrial chain and a nationwide layout. In
2023, although China's GDP increased by 5.2% over the previous year, investment in real estate development decreased by 9.6% over the previous year; The construction area of real estate decreased by 7.2% year-on-year, and the new construction area of real estate decreased by 20.4% year-on-year. The real estate industry has entered a deep adjustment stage. As the drag of the real estate industry on the demand for cement is still very obvious, the total demand for cement is still declining. The overall performance of cement demand is "insufficient demand, expected to weaken, weakening the characteristics of off-peak season", and cement production is the lowest level since 2011.
While the cement industry is sluggish, the company strives to promote high-quality development through lean operation, refined management and refined organization. During the reporting period, the company's sales expenses decreased by 26.35%, administrative expenses decreased by 5.94%, financial expenses decreased by 15.52%, and inventory decreased by 0.89% compared with the same period last year. In terms of specific products, the inventory of cement and clinker decreased by 27.61% and 22.26% respectively compared with the same period last year, and the cash increased by 1.24% compared with the same period last year.
For scientific and technological innovation, Tianshan shares in the 2023 annual report said that the company attaches great importance to the driving role of technological innovation and the synergy of the combination of industry, education and research, technological innovation has become a new driving force for high-quality development of enterprises; The Company actively implements the digitalization, intelligentization and service-oriented transformation of its business, implements the digitalization management of the whole process of the factory and the intelligentization of production control on a pilot basis, and builds intelligent manufacturing through the standardized platform for data acquisition, production management platform and supply chain management platform, so as to continuously consolidate and enhance various competitive advantages, comprehensively enhance its competitiveness and promote the sustainable development of the Company.
During the reporting period, the company spent 2.384 billion yuan on R & D, mainly for projects such as complete technology and key equipment for coupling carbon capture with oxy-fuel combustion in cement, R & D and demonstration application of intelligent laboratory system in digital mines and cement plants, and digital platform for carbon management in cement plate. The above-mentioned scientific research projects will not only further enhance the intellectual property creation ability and transformation and application effect of the original technology source, but also improve the digital ability and optimize the level of carbon intelligent monitoring and evaluation.
It is worth mentioning that during the reporting period, Tianshan Stock Company held more than ten large-scale investor exchanges on cement demand and price outlook, strategic development plan, recent industrial layout, international development path and performance in Xinjiang in 2023. Hundreds of investment institutions, such as CICC, Jinglin Assets, Bank of China Fund and China Reinsurance, participated in the exchange activities.
In 2024, the situation facing the basic building materials industry is still complex and grim. Tianshan Stock Company said in its annual report in 2023 that it will firmly grasp the opportunities of the times such as supply-side structural reform, new industrialization, digital and intelligent transformation, and double-carbon policy, make full use of the advantages of scale, industrial chain and group resources, and strive to develop new qualities. Promote high-quality development in an all-round way.
On the same day, Tianshan shares also announced that the company intends to distribute a cash dividend of 1.14 yuan (including tax) per 10 shares to all shareholders.
In addition, the company also responded positively to the suggestion that Tianshan shares should change its name on the interactive trading platform. After the completion of the reorganization in 2021, Tianshan Stock Company has become a company with large-scale cement, commercial mixing and aggregate business, relatively complete industrial chain and national layout. In order to further reflect the development characteristics of national layout and industrial chain extension, it is more conducive to highlighting the company's main business advantages, matching with the company's development strategy, and helping to enhance the company's image. Tianshan intends to change the company's current full name of "Xinjiang Tianshan Cement Co., Ltd." To "Tianshan Material Co., Ltd.".
At present, the 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. How should the cement industry get out of the predicament and face the new cycle? On March 28-29, China Cement Network will hold the "13th China Cement Industry Summit and TOP100 Award Ceremony" in Hangzhou, during which awards will be given to top 100 cement and supplier enterprises, and experts and scholars will be invited. China Railway and other construction units jointly discuss the new development trend of the cement industry in the future, and work together to create the future!
