Recently, Tianshan shares disclosed the record of investor relations activities, which showed that in 2023, the company's three main businesses were facing a severe situation. The company promoted optimization and upgrading, cost reduction and consolidation, reform and innovation, business integration and other work as a whole, and the cost continued to decline, of which the comprehensive cost of cement decreased by about 50 yuan/ton year on year; Cash flow from operating activities remained stable, and the "two funds" pressure dropped by about 6.4 billion yuan; the contribution of "cement +" business increased, and the sales volume of aggregates increased by 23.55% year-on-year. In
2024, the company will firmly grasp the opportunities of supply-side structural reform, new industrialization, digitalization transformation and dual-carbon policy, continue to deepen cost reduction and quality improvement, "cement plus" business development and overseas market development, consolidate its comprehensive strength and strive to improve its performance.
Subsequently, in the question-and-answer session, Tianshan shares exchanged views on industry prospects, company development and planning. Short and medium term outlook of
1、 companies for domestic cement?
Answer: At present, the domestic cement industry is in a complex, severe and difficult period, and the demand is declining year by year, but there is still a large volume of about 2 billion tons in 2023. As per capita consumption matches the international level, it will decline to the next demand platform in the medium and long term.
Industry practitioners have experienced a decline in performance in recent years, hoping to get out of the predicament and enter a stable and healthy development stage of rational competition, price recovery, profit improvement and reasonable profit margin.
The company cautiously and optimistically predicts that the domestic cement demand in 2024 will decline slightly compared with the same period last year, and the business situation will be low before and high after, and the second half of the year will be better than the first half. An introduction to the international development of
2、 companies?
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. In
2023, the demand and price of overseas cement are relatively stable, and the operating efficiency is good. 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.
Specific projects will design investment paths and schemes according to local conditions through the preferential investment mode of mergers and acquisitions, the operation mode of combining light and heavy assets, and the development mode of extending upstream and downstream industries.
3、 the development plan of the company's business sector?
Answer: The company strives to strengthen and optimize the three main businesses of cement, commercial mixing and aggregate. In terms of development planning, there are advances and retreats. Focusing on the advantageous regions and regions with development potential, the company adjusts the layout of production capacity and products, and improves the quality of products and services through professional management. Strengthen the industrial chain as a whole, strengthen the supply chain, enhance market competitiveness, profitability and sustainable development ability.
4、 why the cost of main products decreased this year? Space for subsequent decline?
Answer: The cost reduction is mainly due to the integration advantages after the reorganization. The measures such as resource allocation, centralized procurement and technological transformation are effective. The company has formulated a detailed action plan for cost saving and index improvement, fine benchmarking, in-depth assistance, vigorous promotion of best practices, and strengthening monthly tracking to reduce costs as much as possible.
In the future, there is still room for cost reduction, and the range will be reduced. Through continuous deepening of the comprehensive cost reduction action plan and technological innovation, we will actively strengthen the foundation and consolidate the foundation. How do
5、 companies view the impact of cement industry's inclusion in the carbon trading market on companies and industries?
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 has established a dual carbon management department, which is specifically responsible for the company's carbon asset management related work, and reduces carbon emissions through the application of production line technology upgrading, energy-saving technology transformation, fuel substitution, carbon capture and carbon digital management and control technologies. Is the renaming of the
6、 company a change in its main business?
Answer: The main business of the company has not changed significantly. The main reason for renaming is to better reflect the company's current business scope and international development strategy, remove the words with prominent regional characteristics in the company's name, and adjust "cement" to "material" to reflect the characteristics of the company's industrial chain extension and development. After the
company changes its name, 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.
7、, how about the introduction and progress of the company's acquisition of Bohai Cement?
Answer: In the past, the company had no distribution in Bozhou. Bohai Cement has good geographical advantages and limestone resource advantages, which can consolidate the company's resource distribution in the northern Xinjiang region and enhance its comprehensive strength. At present, the joint venture company as the main body of acquisition has been registered and carried out related follow-up business in an orderly manner.
