On May 30, Jidong Cement received an inquiry letter from Shenzhen Stock Exchange on its annual report. Jidong Cement replied on June 5, with regard to the measures to be taken in the follow-up of the sharp decline in performance in 2023, Jidong Cement replied as follows:
Since 2024, the company has focused on "efficiency improvement" as its core work, focusing on marketing, operation management and strategic development empowerment. The main measures are as follows:
1. Accelerate the strategic integration of key markets, focus on Beijing-Tianjin-Hebei, Northeast and Shanxi regions, accelerate the efficiency of regional mergers and reorganizations, enhance market control and voice, and build a new pattern of coordinated development of "Beijing-Tianjin-Hebei + Northeast + Northwest".
Focusing on the company's industrial layout and in line with the local mine policy, some enterprises with short service life of mine resources will be upgraded to more than 20 years in 2-3 years, so as to consolidate the core resource guarantee for the company's development.
Accelerate the promotion of aggregate and other "cement plus" industrial layout, strive to increase aggregate production capacity by 10 million tons in the year, enhance the resilience of the industrial chain, and further enhance the profitability of the company. In the first half of the year
, it completed the acquisition of 100% equity of China-Africa Jidong Building Materials Investment Co., Ltd. and indirectly held 51% equity of South Africa Mamba Cement Co., Ltd., achieving "zero breakthrough" in overseas layout. In recent years, the gross profit margin of South Africa Mamba Cement Co., Ltd. has stabilized at about 40%, which will become a new profit growth point of the company.
At the same time , the company is actively promoting the new clinker cement production line project in Mamba, South Africa, and seeking cooperation and development opportunities for cement and related industries in Africa and other regions.
3. Give full play to the leading role of large enterprises, promote the industry ecology to achieve a balanced win-win situation, deepen the reform of marketing management system, optimize market convergence, strengthen overall coordination, and intensively cultivate the local market. At present, prices have stabilized and increased, especially in Northeast China.
Strengthen the concept of "customer-oriented, energy-gathering upgrade", start from customer needs, tap the market potential of special cement and customized products, accelerate the development of high-end and special products such as nuclear power and oil wells, meet the personalized requirements of customers, and achieve an increase of about 90% in sales of customized and special cement from January to May.
4. The Company has always been committed to building low-cost core competitiveness and adopted various measures to reduce costs and increase efficiency. From January to May, the unit cost of cement production of the Company decreased by 17% compared with the same period last year. In terms of
production, the comprehensive energy consumption per unit product of clinker from January to May decreased by 4.4% compared with the same period last year through technology upgrading, equipment upgrading and transformation, energy saving, substitution of raw materials and fuels, and promotion and application of green emission reduction technologies to reduce and control production costs. In terms of
procurement, by giving full play to the advantages of headquarters centralized procurement and regional unified procurement, promoting direct procurement at the source, and carrying out multi-variety collocation and fuel substitution, the procurement cost continued to be reduced, with coal reduced by about 20% and other raw materials reduced by more than 25% from January to May.
5. In order to promote the fine dynamic management of funds, the company has always focused on ensuring the safety of operating funds and controlling and reducing financing costs, and optimized the debt structure through the combination of bank loans and direct market financing. In April this year, the company successfully issued five-year corporate bonds of 1 billion yuan, with interest rates as low as 2.44%. The company's financing cost decreased by about 15 BP compared with the same period, further controlling and reducing financial expenses.
