Sinoma International (600970) released a record of investor relations activities on February 26, and the company was surveyed by seven institutions on February 23, 2024, including insurance companies, fund companies and securities companies. Introduction to the main contents of investor relations activities:
Q: Introduction to the operating results of the Company in 2023, capital increase of Sinoma Cement and related transactions, and shareholder return plan
for the next three years A: 1. The total value of new contracts signed by the Company was RMB61.644 billion, representing a year-on-year increase of 18%, of which, the value of new domestic contracts was RMB28.337 billion and the value of new overseas contracts was RMB33.33. By the end of 2023, the value of outstanding contracts of the Company was RMB59.33. From January to September 2023, the Company realized an operating income of RMB31.510 billion, representing a year-on-year increase of 5.06%; The net profit attributable to the shareholders of the listed company was 2.002 billion yuan, an increase of 7.2 over the previous year. On December 20, 2023, the fourth provisional shareholders'meeting of the company in 2023 deliberated and passed the Bill on the Company's Capital Increase of Sinoma Cement Co., Ltd. and Related Transactions. It is agreed that the Company, together with the related party Tianshan Cement Co., Ltd. (000877), will increase the capital of Sinoma Cement by a total of RMB 8,232,393,900 in cash; Upon completion of the capital increase, the registered capital of Sinoma Cement will be increased from RMB1,853.28 million to RMB100 million. The Company holds 40% equity interest in Sinoma Cement and Tianshan Cement holds 60% equity interest in Sinoma Cement. 3. The specific shareholders' return plan of the Company for the next three years (2024-2026) includes: on the premise of ensuring the sustainable operation and long-term development of the Company, if the Company has no major investment plan or major cash expenditure, the Company will withdraw the statutory reserve fund and discretionary reserve fund in full. The profit distributed by the Company in cash each year shall not be less than 40% of the distributable profit realized in that year.
Ask: Please introduce the company's performance outlook for 2024.
Answer: In recent years, the international environment has undergone profound and complex changes, and the company continues to promote industrial transformation and upgrading with its leading technological advantages. Looking forward to the future, the company will adhere to the general tone of steady progress, highlight the primary task of high-quality development, firmly promote the steady growth of quality and efficiency, and strive to achieve the goal of equity incentive performance appraisal. First, keep a close eye on the market, give full play to SINOMA's brand value and customer stickiness, actively communicate with the owners, and promote the project to take effect as soon as possible. Second, coordinated development, unswervingly implement the concept of "price, cost and profit", strengthen the coordinated development of engineering sector, engineering sector and equipment, digital intelligence, production, operation and maintenance, green energy and environmental protection business, so that the company's industrial chain to the ecological chain development, and further enhance the project gross profit rate and equipment self-sufficiency rate. The third is to strengthen management, comprehensively strengthen the fine management of the whole process of the project, continuously optimize cost control and resource allocation, and consolidate and improve the operation quality of global cement engineering and equipment services.
Ask: What are the main considerations for the company to increase capital and participate in Sinoma Cement?
Answer: In order to actively respond to the national "Belt and Road" initiative, further promote the company's internationalization strategy, and give full play to the company's advantages in the integration of the whole industrial chain of engineering and technical services, high-end equipment manufacturing, production and operation services, as well as its core advantages in internationalization and localization. The Company, together with its related party Tianshan Cement, increased the capital of Sinoma Cement in cash in a total amount of 823,239. As the international business platform of basic building materials of China National Building Material Group, Sinoma Cement currently has three overseas basic building materials investment projects, and will subsequently carry out overseas basic building materials investment under the principle of "competitive advantage, regional leadership and controllable risk". On the one hand, Sinoma Cement's development process involves technology, equipment, engineering, operation and maintenance services, and the Company is preferred to provide services under the same conditions, which will further deepen the international development of the Company's cement technology equipment and engineering services; on the other hand, as a shareholder of Sinoma Cement, the Company will enjoy the benefits of Sinoma Cement's overseas basic building materials investment in proportion to its shares in the future.
Ask: How does the company view the development of overseas business? Which countries or regions have the greatest potential for development? Unbalanced development of global cement industry. The cement industry in some developing countries is still in the stage of rapid development due to rapid economic growth, low infrastructure level and strong demand for cement. In the European market, due to the impact of decarbonization policy, the demand for green low-carbon transformation continues to release, which will bring new opportunities for the development of the company.
Ask: What measures does the company plan to take to further promote the development of equipment business? In view of the development of equipment business, we have made the following plans: First, in accordance with the "Four Ones" principle of "unified platform, integrated management, one type of equipment, one main body", we will accelerate the professional integration and integration of equipment business, achieve professional focus in the subsidiaries of the equipment platform, and create a number of invisible champions of "specialized, special and new" equipment. The second is to promote the transformation of equipment manufacturing to manufacturing services, accelerate the building of global spare parts processing, procurement and warehousing service centers, comprehensively promote digital design + intelligent manufacturing + intelligent installation + agile services, and fundamentally improve the quality and reputation of equipment products. Thirdly, we should strengthen the coordinated development with the engineering sector and local companies, increase the proportion of overseas income, and continuously improve the self-sufficiency rate and market share of equipment. Fourthly, through professional development, we will continue to increase the proportion of equipment business in foreign industries and realize the transformation of industry products to professional products. 5. Relying on < a href = "https://price.ccement.com/pricenewslist-1-120000-0." At present, Sinoma International is fully capable of independently completing the R & D and manufacturing of the core equipment of all cement production lines, and the manufacturing level of some equipment has reached the world's first-class level. It can compete with the top European equipment enterprises. Our goal is not only to be the world champion in scale, but also in equipment quality and service level.
Q: In 2023, the company's production and operation service business will continue to grow. What measures will the company take for the future development of the production and operation service business? In the future, the Company will continue to promote the transformation from EPC general contracting to technical transformation, operation and maintenance and spare parts services. The main measures are as follows: (1) In terms of cement production line operation and maintenance, when undertaking new cement production line projects, the Company will strive to sign later operation and maintenance business and explore innovative business models to leverage the operation and maintenance needs of existing production lines; (2) In respect of mine operation and maintenance, actively expand the overall operation mode of the whole process of the mine, and promote the transformation of the mine business to outside the industry and overseas; (3) accelerate the promotion and empowerment of digital intelligence to the production and operation management business; (4) Construct a new operation and maintenance mode with competitive advantages and a global linkage resource sharing mechanism, and vigorously promote the pilot construction of overseas spare parts bases. The future production and operation service mode may be to build regional service centers equivalent to 4S stores in various regions as a support to provide services for owners, and the company's business will develop from the industrial chain to the ecological chain.
Q: What progress has been made in the company's digital intelligence business? How to look forward to the future? In 2023, Sinoma International Intelligent Technology Co., Ltd., a collection of resources and businesses related to Sinoma International Digital Intelligence, was established. The company has independently developed an Internet platform for the cement industry and developed an intelligent optimization control system for the whole process of the new dry-process cement production line. At present, it has basically built a digital product system covering six business areas, namely, intelligent design, intelligent construction, intelligent manufacturing, intelligent factory and intelligent operation and maintenance, intelligent mine and digital "double carbon". The intelligent operation and maintenance platform independently developed by the company integrates the application of AI algorithm + big data, realizes the digitalization of factory management, automation of quality control, visualization of production operation and maintenance, and remote expert diagnosis, greatly improves the efficiency and quality of factory operation, and helps global customers transform from experience management to intelligent management. The digital transformation of cement industry is the trend of the times and has broad prospects in the future. First, the policy actively guides the report of the 20th National Congress of the Communist Party of China to "build a modern industrial system, promote new industrialization, promote high-end, intelligent and green development of manufacturing industry", "accelerate the development of digital economy, promote the deep integration of digital economy and real economy, and build a digital industrial cluster with international competitiveness". Second, the continuous progress and application of intelligent technology, to solve practical problems of production and operation for customers, to achieve efficiency improvement, intelligent technology is increasingly valued by the industry, become an indispensable grasp of its transformation and upgrading.
