On September 15, Conch Cement (600585) held a semi-annual performance presentation in 2026. Several senior executives of the company exchanged views with investors on the company's repurchase plan, how to deal with exchange losses, and future merger and acquisition plans. According to
public information, the company's main business is the production and sale of cement, commercial clinker , aggregate and commercial concrete. In the first half of 2026, due to weak cement market demand, intensified market competition and other factors, the overall operating pressure of the industry further increased. On the evening of August
26, Conch Cement disclosed its semi-annual report that in the first half of 2026, the company realized operating income of 36.927 billion yuan, a year-on-year decrease of 10.88%; net profit attributable to parent company of 2.527 billion yuan, a year-on-year decrease of 42.76%; net profit deducted from non-parent company of 1.902 billion yuan, a year-on-year decrease of 54.69%. The company intends to distribute a cash dividend of 0.13 yuan per share (including tax). Main points of the
interactive question-and-answer session:
Some investors asked: Conch Cement Company originally planned to repurchase 600 million to 1 billion, but actually repurchased more than 600 million. What is the reason for the repurchase at the lower limit? Capital problem or feel that the current stock price is not very appropriate?
The company replied that the actual completion of the repurchase was in line with the announcement of the repurchase plan issued by the company. In addition to the repurchase of a shares, the Company continued to carry out the repurchase of H shares. In addition, in August this year, the board of directors of the company deliberated and approved the "Dividend Return Plan for Shareholders in the Next Three Years (2025-2027)" (revised draft), which will be submitted to the shareholders'meeting of the company for consideration, so as to further enhance the transparency of the profit distribution policy and enhance the dividend expectation of investors.
Some investors asked: The semi-annual report showed that the net profit of the company in the first half of the year fell by 42.76% compared with the same period last year, but the company still issued a medium-term dividend plan of 0.13 yuan per share, and promised that the cash dividend plus repurchase in 2026-2027 would not be less than 50% of the net profit, and the minimum price per share would be 0.9 yuan. When considering this "counter-cyclical" high dividend plan, how does the independent director team balance the company's future capital expenditure needs (such as the capital expenditure plan of 11.8 billion yuan) with the current cash return demands of minority shareholders? In addition, in the first half of the year, the company obtained the ESG'A 'rating in the cement industry. In the process of promoting green low-carbon and ultra-low emission transformation, how does the Independent Board of Directors supervise the real transformation of these ESG investments into long-term enterprise value, rather than just compliance costs?
The company replied: When reviewing the shareholder return plan, the independent directors focused on the company's earnings, cash flow, capital reserves and future capital expenditure arrangements, taking into account the reasonable return of shareholders and the long-term development of the company, and safeguarding the interests of all shareholders, especially minority shareholders. For the investment in green low-carbon and ultra-low emission transformation, we will pay attention to the necessity, investment budget and implementation effect of the project, and continue to monitor the indicators such as energy saving and consumption reduction, operating cost and risk reduction, so as to promote the relevant investment to meet the compliance requirements while improving the long-term operating efficiency. Investors
have asked: How does the management of the company view the opportunities of national mergers and acquisitions, and which market segments will it focus on? What kind of valuation will the company use to consider the acquisition target, so as to protect the company's overall ROE? The
company replied: The company will seize the opportunity of industry integration, insist on precise and effective investment, and select the best to promote mergers and acquisitions projects. The Company always pays attention to investment quality and efficiency, comprehensively considers the regional market, resource conditions, asset quality and synergy potential, fully carries out project demonstration, coordinates investment costs and long-term returns, and improves operating efficiency through post-investment integration, so as to safeguard the interests of the Company and all shareholders.
An investor asked: There is a very eye-catching data in the semi-annual report: the company's financial expenses in the first half of the year changed from -497 million yuan in the same period last year to 232 million yuan, from negative to positive, of which the net exchange loss was as high as 606 million yuan, which directly ate up a lot of real gold and silver. What specific financial instruments or fund pool management measures have been taken by the Ministry of Finance to reduce such exchange losses for overseas foreign currency assets and cross-border fund receipts and payments? On the other hand, although the comprehensive cost of cement clinker decreased by 6.33% compared with the same period last year, the gross profit per ton still shrank by 24 yuan. In the context of fluctuations in coal and other energy prices, what specific cost reduction and efficiency enhancement space can be tapped in the second half of the year in terms of procurement strategy and alternative fuel application?
The company replied: In the first half of the year, the company's exchange losses increased year-on-year, mainly affected by exchange rate changes such as the appreciation of the RMB. Exchange gains and losses do not all correspond to current cash outflows. The company will reduce exchange rate risk exposure by optimizing the currency and debt structure of overseas financing, strengthening the management of capital revenue and expenditure and reflux. In terms of cost reduction, the company will continue to optimize the management of procurement and production links, promote energy-saving technological transformation, expand the application of alternative fuels, and further tap the space for cost reduction.
An investor asked: Why did the company eliminate the production capacity at a low price while buying the cement pushed away by Wanwei Hi-tech at a high price? It was because the group increased its capital to control Wanwei, so it needed to help Wanwei buy the cement that was withdrawn?
The Company replied: The Company's acquisition of the cement assets of Wanwei Hi-Tech and its subsidiary Mengwei Technology is not only to solve the problem of potential competition in the same industry, but also based on its own development needs such as optimizing the layout of regional production capacity and obtaining supporting resource indicators. For the pricing of the transaction and its basis, please refer to the interim announcement disclosed by the Company on 3 July 2026. Questions raised
by investors: In the first half of the year, under the background of weak demand in the industry, the company's cement clinker sales decreased by -3.96%, which was better than average level of the industry, and the overseas business and export revenue achieved a high growth of 20.98% and 77.37% respectively, which showed strong operational resilience. However, we have also noticed that there is a huge risk of exchange rate fluctuation behind the high gross profit overseas. In the second half of the year, what are the specific hedging or management measures for the quality of operation and exchange rate risk exposure of overseas projects (such as Indonesia, Myanmar, etc.)? In addition, the Company is accelerating its transformation into an integrated building materials service provider. In the first half of the year, 26 commercial mixing projects were launched and 4 aggregate projects were put into operation. Can these "cement +" industrial chain extension businesses effectively hedge the pressure of the decline in gross profit margin of the main domestic cement industry (down 6.4 percentage points) in the second half of the year?
The company replied: In the first half of the year, the company's exchange losses increased year-on-year, mainly affected by exchange rate changes such as the appreciation of the RMB. Exchange gains and losses do not all correspond to current cash outflows. The company will reduce exchange rate risk exposure by optimizing the currency and debt structure of overseas financing, strengthening the management of capital revenue and expenditure and reflux. In terms of industrial chain extension, the company extends the upstream and downstream industrial chains such as aggregates and commercial mixing, exerts the synergistic effect of "cement plus" industry, enhances profit contribution, and further enhances the comprehensive competitiveness of the company.
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