Recently, Tianshan Materials released its semi-annual report for 2024, which elaborated on the risks and countermeasures that Tianshan Materials will face in the second half of 2024. According to
the report, in the second half of 2024, the external environment is still complex and severe, and the operation and development still face many risks and challenges. From the perspective of the industry, in the second half of the year, the marginal demand for cement improved, the supply compression continued to increase, and the contradiction between supply and demand in the industry was prominent. From the company's point of view, strategic opportunities and risks coexist, uncertainties increase, the complexity and severity of the business situation, the heavy and arduous tasks continue to intensify.
1. The risk
of demand fluctuation brought by the macroeconomic slowdown The Company is mainly engaged in the production and sales of cement, clinker , commercial concrete and aggregates, and the industry is closely related to the macroeconomic operation. The scale of fixed asset investment, urbanization process, infrastructure construction, real estate market and other factors have a far-reaching and significant impact on the Company's development strategy. Changes in macroeconomic policies and the slowdown in economic growth have a far-reaching impact on the Company's development. Facing the complex and severe international situation, the arduous and arduous task of domestic reform, development and stability, the slowdown of economic growth, coupled with the downward growth of fixed asset investment and the real estate market is still in the stage of deep adjustment, which has a greater impact on the demand of cement market, the contradiction between supply and demand is intensified, and the future competition situation in the industry is still complex, which will have an impact on the operating results of enterprises.
Response measures: The Company will firmly grasp the opportunities of the times such as supply-side structural reform, new industrialization, digitalization transformation and dual-carbon policy, make full use of the advantages of scale, industrial chain and group resources, strive to develop new quality productivity and comprehensively promote high-quality development. The Company will further implement the supply-side structural reform to promote the healthy development of the enterprise and the industry; adhere to the business philosophy of "price, cost and profit", strive to promote the repair of product prices and promote the return of industry efficiency to a reasonable range; seize market opportunities through centralized marketing and innovative marketing, optimize customer structure and enhance profitability; Strengthen the analysis of business environment, innovate the business development model, and provide strategic guarantee for the sustainable and healthy development of the company's business. Promote the integration of internal resources of the enterprise through management innovation; improve the level of fine management through deepening benchmarking, and achieve cost reduction and efficiency enhancement through technological innovation and operation optimization; upgrade the Company's cement e-commerce platform "Jucaitong" through continuous iteration, and gradually build it into a building materials e-commerce platform with strong influence; We will promote the "cement plus" business and the development of special cement to seek new business growth points; promote production and research projects such as suspension calcination pilot projects and lithium ore calcination in cement kilns, and enhance differentiated competitiveness through scientific and technological innovation; actively and steadily lay out international development and expand business space.
2. Carbon peaking and carbon neutralization brought about extensive and profound economic and social systemic changes, promoted the gradual transformation from energy consumption control to carbon emission control, accelerated the incorporation of the cement industry into the national carbon trading market, put forward higher requirements for the green and low-carbon development of the cement industry, and increased the rigid investment of enterprises in environmental protection and climate change.
Response measures: The Company promotes the implementation of the low-carbon development strategy, establishes the concept of carbon reduction in the whole industry chain and the whole life cycle, cultivates the awareness of carbon reduction of the whole staff, makes preparations for being included in the national carbon market, actively establishes and improves the dual-carbon planning system, management system, system system, innovation system, trading system and capacity system, and completes the dual-carbon policy research. Find out the family background, compact the data quality, decompose and implement the carbon reduction target, continuously and thoroughly promote the substitution of raw materials, transform the energy structure, accelerate technological innovation, promote green manufacturing and intelligent leadership, and coordinate the promotion of carbon reduction, pollution reduction, green expansion and growth.
3. Risk
of international operation The Company focuses on the goal of being a world-class basic materials manufacturing service provider and steadily promotes international development. There are many uncertainties, such as international professionals, exchange rate fluctuations, trade frictions, regional security instability and so on, which bring risks and challenges to the development of international operations.
Response measures: The company will maintain the unity of strategic rationality and economic rationality, establish a development strategy and business model adapted to overseas markets, and actively and steadily carry out international development. Take Sinoma Cement , the international development platform , as the main body, do a good job in the top-level design and resource allocation of international development; strengthen the cultivation and introduction of compound talents to provide a strong guarantee for "going out"; do a good job in industry research and do a good job in the research and analysis of country risks; We should attach importance to risk identification and risk provention and control, strengthen internal and external coordination, scientific management and control, and operate in compliance with regulations to deal with related risks.
4. Fluctuations in the prices of raw materials and fuels, increases in unit fixed costs, and increases
the risk of enterprise cost control. Influenced by factors such as environmental protection and safety, coal prices fluctuate at a high level, which is transmitted to the power system and affects the price of power. The fluctuation of coal price and the expectation of rising electricity price make the company's profitability uncertain. Due to the continuous improvement of energy consumption, safety and environmental protection requirements and the decline of cement demand, the utilization rate of production capacity and the output will decrease, and the unit depreciation and other manufacturing costs will increase to a certain extent.
Response measures: The company implements centralized procurement through resource integration, establishes strategic cooperation with leading enterprises in the industry, establishes diversified supply channels, optimizes inventory management, implements information sharing, and establishes an emergency response mechanism. Establish strategic partnership with major coal producers, with headquarters and regional direct mining as the core, supplemented by market bidding, to achieve diversification of coal supply channels and reduce the risk of dependence on a single supplier; establish and improve the supply chain management system of bulk raw materials to ensure the stable supply of raw materials. Establish long-term and stable cooperative relationship with suppliers, and evaluate and select suppliers. At the same time, we should actively expand the diversified development of raw material resources, reduce the dependence on a single resource, enhance the anti-risk ability of the supply chain, and improve the stability of the supply chain. Through the "I am looking for a car" platform, we should establish an efficient logistics transportation network, optimize the logistics transportation path and mode, improve the efficiency and accuracy of logistics transportation, and reduce the logistics cost.
