A few days ago, Sinoma International issued the Announcement on the Convening of the 2025 Annual Performance Presentation, which showed that from 15:00 p.m. to 17:00 p.m. on March 30, 2026, the company held the 2025 Annual Performance Presentation at the Shanghai Roadshow Center and Panoramic Roadshow of the Shanghai Stock Exchange. The issues of general concern to investors and the main points of the Company's reply are summarized as follows:
Question 1: Please introduce the upgrading and development direction of the Company's "15th Five-Year Plan" strategic plan?
On the one hand, we should actively grasp the tail-warping factors of the first curve of cement engineering and equipment, continuously optimize the business structure, further enhance the added value of business, and increase the proportion of sustained income and profits. On the other hand, relying on the domestic and Group's advantageous industries, we will accelerate the large-scale development of new businesses such as green energy, environmental protection, new materials and equipment, integrate and utilize the superior resources of the industrial chain of the company and its brothers in the field of non-metallic mining, focus on upgrading the supply chain and meeting the needs of new industries, and promote the extension of the whole industrial chain of the mining industry. We will make full use of endogenous growth, mergers and acquisitions, capital operation and other ways to accelerate the breakthrough of the "second curve", continuously improve the proportion of revenue and profit of the second curve business, help the company to enhance its value creation ability and expand in multiple fields, and realize the new pattern of transformation and development driven by the dual engines of "stock quality improvement + incremental breakthrough".
Question 2: What are the company's plans for the future development of the equipment business? First, in terms of new lines, market demand changes dynamically with social development. Taking Africa as an example, the steady growth of GDP in recent years, the demographic dividend, the acceleration of urbanization and the acceleration of localization of manufacturing industry have formed a strong support for the new production line. Second, the demand for technological transformation, about 2400 cement production lines abroad, more than 20 years of production lines accounted for more than 70%, these technological transformation demand will gradually emerge.
From the perspective of incremental factors, the first is the pressure of carbon reduction, with the focus on Europe. From the demand side, with the reduction of free carbon quotas year by year since 2026, the price of carbon trading is high, and the demand and pressure for carbon reduction are very high. The second is the support of the European Innovation Fund, such as a German factory in Heidelberg, which has received 200 million euros to plan a new carbon reduction production line. From the technology supply side, the company has continuously increased investment in scientific and technological research and development, and has achieved a number of results. For example, RDF (alternative fuel), CCUS (carbon capture, carbon utilization), clay calcination and other technologies have gradually matured, and many demonstration lines have been built, which has a significant driving effect on the industry.
Second, environmental pressure. For example, phosphogypsum has the characteristics of large storage, difficult disposal, large land occupation and great pollution. The company has carried out targeted research and development and successfully built a demonstration line for phosphogypsum to produce sulfuric acid and co-produce cement, and the project is running well. For example, the stock of coal gangue is higher, and the application of high value has been subject to technological breakthroughs. Through R & D and innovation, the company has realized the high-value utilization and engineering application of coal gangue, and built a comprehensive utilization project of 10 million tons/year of coal gangue in Wu'an, Hebei Province. "Fifteenth Five-Year Plan", the company will further expand related fields and create more market performance.
Third, due to the impact of regional conflicts, the demand for cement for post-war reconstruction exists objectively and will be gradually released. On the whole, there are many incremental factors in the future, including investment, mergers and acquisitions, and industry expansion outside the existing business.
Question 3: Please look forward to the future development of the mine related business. Key points of
reply: According to the new contracts signed in the past 25 years, cement engineering, equipment, operation and maintenance accounted for 47%, mining engineering, equipment, operation and maintenance accounted for 27%, and the proportion of the company's mining industry continued to increase. From the perspective of trend, the future space of cement engineering, equipment and operation and maintenance is relatively small, while the future growth space of mining engineering, equipment and operation and maintenance is huge, which is also the key source of the company's future increment. The key aspects of
future development are as follows: First, the "two foreign strategies". That is, to speed up the development of "industries other than cement and overseas". Since its implementation in 2023, it has achieved remarkable results. At present, from the perspective of mining operation and maintenance services, the company continues to expand new countries and minerals. The development of metal mining related business has more extraordinary significance, which opens up more incremental space for the company's development. The second is to do "big mining". Along the industrial chain, it integrates the company's territorial resources, geological exploration resources, engineering, equipment, operation and maintenance, logistics and other businesses, and establishes long-term and stable cooperative relations with large enterprises in the industry. Third, strengthen the coordination of internal business and resources. On the one hand, in terms of market and project implementation, they promote each other and develop together. Equipment Group and HAZEMAG have achieved deep cooperation in mining engineering + equipment on the OCP phosphate project in Morocco. On the other hand, overseas territorial companies rely on the advantages of market perception and customer resources, give full play to the advantages of systematization, establish cooperation mechanisms, and break through the wall between market and service capabilities. The Indonesian bauxite mining service project is a model of cooperation between Indonesian localization companies and mining service units. Internal synergy is the effect of "1 + 1 > 2".
Question 4: There is a certain gap between the company's net cash from operating activities this year and the same period last year, and the scale of accounts receivable and contract assets is also growing. What are the main reasons? Will it affect future dividends? At present, the main business of the company is still cement engineering. Affected by the continuous downturn of the cement industry, the overall payment ability and settlement rhythm of downstream owners have slowed down, which has increased the funds occupied by accounts receivable and contract assets. Second, the transformation of overseas and external markets has brought about phased capital investment. The company is vigorously promoting the transformation and expansion of the "two foreign" market. In the initial stage of business development, it is necessary to support reasonable production stock and appropriate credit policies to ensure project performance and cultivate high-quality customers, which will have a certain impact on short-term operating cash flow.
Cash flow quality and "two funds" pressure reduction management measures
Although the net operating cash flow fluctuated year-on-year, the Company's cash acquisition ability continued to improve, and the cash flow quality steadily improved: in 2025, the Company's cash sales ratio reached 83%, an increase of 3 percentage points over the previous year; The cash purchase ratio was 80%, an increase of 7 percentage points over the previous year, reflecting the continuous optimization of the company's revenue liquidity and the level of purchase payment control.
In order to effectively improve the cash flow, the company has established a linkage management and control mechanism for business, legal affairs and finance, and formulated special objectives and implementation plans for "two funds" pressure reduction: focusing on key customers, implementing inventory management for major projects, and tailor-made collection plans; Strengthen the full-cycle settlement management of projects, strengthen internal and external coordination and communication, and make every effort to speed up the progress of settlement and the recovery of funds, so as to ensure the safety and stability of the company's cash flow.
Future dividend distribution
The periodic fluctuations in the cash flow of the Company will not affect the implementation of the established dividend distribution policy. The Company has always placed the return to investors in an important position and strictly fulfilled its dividend distribution commitment. In the action plan of "improving quality, increasing efficiency and emphasizing returns in 2024" issued by the company, it has been made clear that under the premise of guaranteeing the company's sustainable operation and long-term development, there is no major investment plan or major cash expenditure. In 2025 and 2026, the proportion of cash dividends is not less than 48.40% of the distributable profits in that year, and 53.2025 is also based on this dividend plan. In 2026, the company will actively implement the plan commitment to effectively protect shareholders'returns.
The Company is committed to maintaining the stability and sustainability of the dividend policy. Upon the expiry of the existing dividend commitment, the Company will take into account multiple factors such as development strategic planning, operating performance, future capital needs and the interests of all shareholders, and scientifically formulate subsequent profit distribution plans to strive to create sustainable and good returns for investors.
Question 5: Please introduce the future development plan of overseas business. Key points of
reply: Internationalization is one of the most important characteristics of Sinoma International, and also the most important resource advantage. Since its establishment in 2001, Sinoma International has begun its internationalization. In the early stage, it was the internationalization of business, market and brand, and carried out mergers and acquisitions between German and Indian enterprises. In recent years, on this basis, it has gone deep into the stage of localization development. In the future, the focus of international development is: First, the internationalization of the whole business, including cement, mining, green energy and environmental protection engineering, equipment, operation and maintenance. The cement business will become better and stronger, and the strategic focus of mining and green energy related businesses will be to become better and bigger. The two is the internationalization of all elements. In the future, focusing on comparative advantages, we should further strengthen the construction of local employment, R & D, procurement and other elements, optimize the allocation of transnational resources, including the internationalization of capital and capital elements such as investment and financing, as well as the design of global organizational structure. Third, deepen the development of localization. At present, the company has set up localized companies in dozens of countries, with different business development, mainly focusing on diversified engineering, operation and maintenance services, and light building materials manufacturing. In the future, the company should further strengthen the allocation of territorial resources according to local conditions, increase development efforts, and build territorial brand and international corporate image in line with the principles of integration into the territory, service to the territory and construction of the territory. Fourthly, we should build a mechanism for the integration and development of localized companies and specialized companies, and vigorously build national companies. Localized companies have market resources, and specialized companies related to engineering, equipment and operation and maintenance have professional capabilities. In the future, the two should be better integrated to promote the market with a unified image, a unified brand and a unified market interface, so as to bring more value to customers with system solutions. Through organization, management and business process reengineering, the national company will gradually become a new momentum for the development of the company and a new source of profit growth. At the same time, we will serve China Building Materials Group and Chinese-funded enterprises to go out and achieve win-win, win-win and win-win results through the coordinated development of all of us.
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