April 8. Zhou Yuxian, Secretary and Chairman of the Party Committee of China Building Material Group, Secretary, Executive Director and Chairman of the Party Committee of China Building Material Group, Standing Committee and Vice General Manager of the Party Committee of China Building Material Group, Wei Rushan, Vice S ecretary, Executive Director and President of the Party Committee of China Building Material Group, Standing Committee and Vice President of the Party Committee of China Building Material Group, Xue Zhongmin, Chairman of Beixin Building Material Co., Ltd. Zhao Xinjun, Party Secretary, Director and President of Tianshan Building Material Co., Ltd., Chen Xuean, Vice President and Chief Financial Officer of China National Building Material Co., Ltd., Pei Hongyan, Secretary of the Board of Directors and Chief Accountant, and Huang Zaiman, Party Secretary, Chairman and President of Sinoma Science and Technology Co., Ltd. attended the meeting, communicated with investors and analysts on the spot, and gave detailed answers to issues of concern to the capital market.
Zhou Yuxian expressed his heartfelt thanks to investors and analysts who have long cared about and supported the development of China Building Materials Co., Ltd.
Zhou Yuxian emphasized that the basic building materials sector should accelerate transformation and upgrading and consolidate the profit base. The cement industry will continue to promote the supply-side structural reform, strengthen the consensus of maintaining the ecological construction of the industry, and gradually return to order; build the integration advantage with "cement +", and continue to play the role of "ballast stone". The new material sector will accelerate the development of strategic emerging industries and improve profit support. Further develop the advantages of technology, scale, cost, brand and channel of the existing products to enhance the core competitiveness; strengthen scientific and technological innovation, enhance the transformation of scientific and technological achievements, and enrich the product structure of new materials; Flexible use of mergers and acquisitions and other means to promote strategic emerging industries to accelerate the rational distribution and achieve rapid development, and attach importance to the management integration after mergers and acquisitions, giving full play to synergies. Engineering technology service sector, engineering, equipment and service "trinity" coordinated development. Sinoma International has the advantage of the world's leading cement technology. After the reorganization and integration of the equipment business, Sinoma International realized the transformation from EPC-driven equipment to EPC-driven equipment, and continued to improve the level of revenue and profitability.
Zhou Yuxian pointed out that in 2024, China Building Materials Co., Ltd. will accelerate its international development and promote the internationalization of the whole business, the whole process and all elements. Basic building materials expand the market space by internationalization; new materials go to sea at the right time to increase the global influence.
At the same time, CNBM will pay full attention to the interests of shareholders, insist on giving consideration to both value creation and value realization, emphasize efficiency around "one profit and five rates", rationally arrange capital expenditure, actively explore market value management means such as increase in holdings, repurchase and cash dividends, and enhance shareholder returns.
Wei Rushan introduced the company's business development. In 2023, the Company actively responded to difficulties and challenges and realized operating income of RMB210.2 billion and net profit attributable to the parent company of RMB3.86 billion. Specific performance, the first is to increase efforts to continue to reduce costs. Basic building materials continued to optimize energy consumption indicators, and the cost of gypsum board, glass fiber and waterproofing continued to decrease on the basis of industry-leading cost. Wind power blades completed business integration, and continued to improve management, promoting large-scale products, and the scale and technological advantages of lithium film and carbon fiber gradually emerged. Second, the status of the industry continues to consolidate. The integrated management of basic building materials was strengthened, the sales strategy of gypsum board and glass fiber was strengthened, and the scale of aggregate, lithium film and carbon fiber was increased. Third, we should attach importance to the net cash flow of business activities. In 2023, the net cash flow from operating activities was 29 billion yuan, an increase of 8.1% over the same period last year. Fourth, continue to improve shareholder returns. The dividend rate increased to 50%, an increase of 10 percentage points over the same period last year. Fifth, the international layout has initially taken shape. In 2023, the company formulated the "14th Five-Year Plan" international development plan and 10-year development goals, Sinoma International increased its capital and invested in Sinoma Cement , Zambia Industrial Park broke through the net profit of 100 million yuan, Uzbekistan gypsum board project realized production and profit in that year, and Uzbekistan gypsum board project realized production and profit in that year. The Brazilian wind turbine blade project has achieved zero breakthrough in overseas blade manufacturing. Sixth, the sustained efforts of greening. In 2023, the implementation plan of carbon neutralization was formulated, the installed capacity of photovoltaic power generation increased to 282 MW, the number of intelligent production lines increased to 108, the number of cement kiln co-disposal production lines increased to 48, with an annual disposal capacity of 4.83 million tons, and the 200,000-ton carbon capture project of Qingzhou Zhonglian was successfully ignited. In
2024, CNBM will make every effort to promote the recovery of its performance. We will comprehensively promote the ten-year plan of action for international development, promote development through reform, promote high-end development through scientific and technological innovation, and continue to promote greening. For the basic building materials sector, the "three tail-warping factors" shall be grasped to accelerate the transformation of cement +, "double carbon" and internationalization; and the high-end, intelligent and green upgrading shall be accelerated through continuous innovation. In the new materials segment, the glass fiber, gypsum board and wind power blade businesses continued to consolidate the advantages of leading enterprises, the lithium film, carbon fiber and waterproof businesses continued to expand market share, the coatings business did a good job in management integration with Carbury, and the graphite and hydrogen cylinder businesses increased their contribution to incremental benefits. In the engineering technology service sector, the Group will deepen the integration and optimization of cement engineering equipment and operation and maintenance, and continue to increase the overseas market share of engineering technology, high-end equipment and operation and maintenance services.
The company's management has conducted in-depth exchanges with investors and analysts on industry trends, business strategy and business development, internationalization, dividends, capital expenditure and other aspects. About 70 people
from Morgan Stanley, Citigroup, Goldman Sachs, Furui, CICC, Guotai Junan, Zhongtai and other well-known investment banks, institutional investors and analysts attended the conference.
