On April 16, Conch Cement answered questions from investors on the interactive platform.
1. What is the sales volume of aggregate and concrete of your company in 2025? On a year-on-year basis? How to plan for the future?
Answer: In 2025, the sales volume of aggregate and commercial mix of the Company will maintain a year-on-year growth. The company will adhere to the effective investment orientation, consolidate the basic market of the main business, promote the coordinated development of the industry, extend the upstream and downstream industrial chain, optimize the layout of aggregate and commercial mixing projects, and steadily improve the level of comprehensive income.
2. The company's R & D expenditure in 2025 decreased by 32.59% compared with the same period last year, but the report emphasizes AI big model and intelligent factory innovation. Is there any contradiction between the two? In addition, trading financial assets increased by 2433% to 12.9 billion yuan, while cash flow from operating activities decreased by 9.92%. Please explain the capital allocation strategy and sustainability.
Answer: The research and development expenses of the Company in 2025 decreased by 32.59% as compared with the same period last year, which was mainly due to the year-on-year decrease in the investment and expenditure of various research and development projects included in the expenses. AI big model and intelligent factory innovation form assets, which are not included in R & D costs. The year-on-year increase in trading financial assets was mainly due to the appropriate allocation of bank wealth management, structured deposits and income certificates of securities companies in order to stabilize capital income under the background of market interest rate adjustment.
3. In view of the recent sharp rise in coal prices and production costs, how is the company going to deal with it? In view of the sharp decline in stock prices, does the company have a share repurchase plan?
Answer: The Company will thoroughly study the changes in the supply-demand relationship in the coal market, deepen the strategic cooperation with major coal enterprises, actively expand the direct supply cooperation mode, reasonably grasp the market rhythm, and reduce the cost of coal procurement. At the same time, the company will increase the use of alternative fuels, continue to promote energy-saving and consumption-reducing transformation of production lines, promote the use of energy-saving materials such as combustion promoters, and reduce production costs. With regard to share repurchase, if the company has relevant plans in the future, it will strictly fulfill its obligation of information disclosure in accordance with the regulations.
4. In the company's financial report for 2024, the management planned that the annual net sales of cement and clinker in 2025 would be only 268 million tons, but the company's production capacity in 2024 would be 274 million tons of clinker and 403 million tons of cement. Is there an obvious problem of overcapacity? In addition, in this case, the company has invested more than 10 billion yuan in 2024, including six new subsidiaries, mergers and acquisitions of five project companies, etc. How to understand this logic here?
Answer: Clinker is a semi-finished product in the cement production process. Most of the clinker of the Company is used for the production of cement products, and only a small amount is sold to the outside world. The operation rate of the Company's clinker and cement production capacity is maintained within a reasonable range. The Company has always adhered to the principle of effective investment. In recent years, capital expenditure has been mainly used for the development of main business projects, the extension of upstream and downstream industrial chains, energy-saving and environmental protection technological transformation and the cultivation of new quality productivity, so as to continuously improve the quality and efficiency of development and comprehensive competitiveness.
5. Controlling shareholders are increasing their holdings. Now the stock price is so low and the P/B ratio is 0.65. Why doesn't the company continue to buy back?
Answer: The Company has always attached great importance to market value management, and will continue to focus on production and operation, implement precise and effective investment, strengthen innovation drive, promote low-carbon green cycle development, actively promote market value management, respond to market concerns, and continue to create value for shareholders. If there is a subsequent share repurchase plan, the obligation of information disclosure will be strictly fulfilled in accordance with the regulations.
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