Liu Yan Investigates Zhongnan Cement and Speaks: Stabilize Market Share and Resist Vicious Competition

2024-04-24 09:10:06

While doing a good job of peak staggering production in the industry, we should change our strategies, optimize the production structure, balance the relationship between quantity and price, stabilize market share, resist vicious competition and maintain the industry ecology.

Recently, Liu Yan, Deputy Secretary of the Party Committee of China Building Material Co., Ltd. and Chairman of Tianshan Material Co., Ltd., and his delegation went to Zhongnan Cement for investigation and guidance. At the

survey meeting, Liu Yan, after listening to the reports on the production and operation of Zhongnan Cement in the first quarter, the construction of the platform of "I'm looking for a car" and "Jucaitong", fully affirmed the achievements of Zhongnan Cement since this year, and encouraged the cadres and staff of Zhongnan Cement to strengthen their confidence as the more difficult it is. And put forward four requirements for the next stage of work: First, while doing a good job of peak staggering production in the industry, we should change the strategy, optimize the production structure, balance the relationship between quantity and price, stabilize the market share, resist vicious competition and maintain the industry ecology. The second is to strengthen the promotion of alternative fuels, fully consider the sources and characteristics of raw materials in the region, strictly control capital expenditure, select appropriate processes, and maximize the role of alternative fuels in reducing costs and increasing efficiency. Thirdly, we should pay close attention to the implementation of the national "double carbon" policy, especially the "carbon tax", and do a good job in the disposal of inefficient and ineffective assets, reduce production costs and labor costs, and improve production efficiency. Fourthly, we should attach great importance to the construction of "Jucaitong" platform, innovate the business sales model, give full play to the advantages of new media platforms such as e-commerce, expand the network sales channels, establish and improve the incentive mechanism, increase the "push" efforts, and improve sales performance. Lv Wenbin, Party Secretary, Chairman and President

of Zhongnan Cement, Wang Jun, General Manager of Tianshan Material Finance Department and He Bailing, General Manager of Investment Development Department participated in the survey.

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Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.