Wannianqing released its semi-annual report for 2024 on the evening of August 27. During the reporting period, it achieved an operating income of 2.588 billion yuan. Under the background that the downstream demand is still weak, the prosperity of the cement industry continues to bottom out, and the price of cement products is running at a low level, the company still achieves a small profit operation, demonstrating its ability and resilience to cross the industry cycle. In the first half of
2024, the national cement output was 850 million tons, down 10% from the same period last year, showing the overall operational characteristics of "weak demand, price fluctuations, and sustained losses in the industry". Influenced by factors such as the continuous bottoming of real estate investment, the slowdown of infrastructure investment and the increase of seasonal rainfall in Jiangxi and the surrounding areas, the demand for cement in the market areas covered by Evergreen continued to be weak, the contradiction between supply and demand intensified competition, and the low price led to the continuous decline of industry efficiency.
Faced with the complex and severe market competition environment, the management team of Evergreen strengthened the overall planning of operation, formulated monthly production plans based on market demand after in-depth study and careful study of macroeconomic policies, and combined with its own production capacity to stagger peak production, at the same time, according to the off-peak season of sales and the requirements of energy saving and production restriction, arranged for kiln shutdown and maintenance. The production cost of
cement industry is greatly affected by the cost of limestone mining, coal and electricity prices. Evergreen said that all the limestone used by the company came from its own mines, and the mining cost was relatively low, which had little impact on the operating results. During the same period, the overall price of thermal coal fluctuated downward, and the average price was lower than that of the same period last year, which led to a year-on-year decline in operating costs.
Crossing the industry cycle depends on the advantage of production cost, but the perfect enterprise value chain is also the core competitiveness. According to the Evergreen Announcement, through the organic combination of resource orientation and market regional characteristics, the company has achieved the integration of upstream and downstream development of the industrial chain. The upstream is committed to the effective integration of limestone resources, while the downstream commercial concrete mixing station is market-oriented for industrial layout. At present, the company has a number of limestone mines in Jiangxi region, providing a stable source of raw materials for the company's cement clinker production. At the same time, it has also established a relatively complete integrated layout of the cement industry chain, covering limestone, aggregate mine resources, clinker, cement production, as well as downstream commercial concrete, new wall materials, kiln co-disposal of solid waste, photovoltaic power generation and other related diversified industries. In addition, Evergreen also actively develops the modern logistics industry. Ganzhou Logistics Company has obtained the first network freight platform in Ganzhou City, the qualification of non-vessel carrier and on-line operation, which can effectively improve the transportation and supply of raw materials and products and reduce logistics costs. In the first half of
2024, the cement industry as a whole is facing substantial profit pressure. The consolidated statement shows that by the end of June, Evergreen still has 3.793 billion yuan of monetary funds, which provides sufficient financial guarantee for Evergreen to coordinate green development and innovative research and development, and accelerate the transformation and application of intelligent construction achievements. In the first half of 2024, Evergreen adhered to the concept of management and technological innovation, gave full play to the role of "innovation-driven", actively promoted the application of new technologies, new equipment and new materials, enhanced the innovation and competitiveness of enterprises, strengthened innovation leadership, and accelerated digital empowerment. By increasing R & D investment in energy saving and carbon reduction, green building materials recycling and other fields, the company's Wannian Factory was selected as the intelligent factory of the Ministry of Industry and Information Technology's "typical case of digital transformation of intelligent manufacturing in building materials industry".
