A subsidiary of China National Building Materials Group held a collective performance briefing

On the afternoon of April 16, China National Building Materials Group organized 11 A-share listed companies to hold the 2023 annual collective performance briefing. The senior management of relevant listed companies interacted and exchanged views with investors on issues such as the operation situation, dual carbon strategy, industry trends, and plans for this year.

Explain the implications of inclusion in the carbon market in detail

On April 3, the Ministry of Ecology and Environment (MEE) solicited public comments on the Guidelines for Greenhouse Gas Emissions Accounting and Reporting for Enterprises for Cement Clinker Production and the Technical Guidelines for Verification of Greenhouse Gas Emissions for Enterprises for Cement Clinker Production, which became another important signal for the expansion of the national carbon market.

The industry believes that the cement industry, as the main supplier of bulk building materials, accounts for 13.5% of the total emissions, about 1.2 billion tons, which shows the significant impact of the industry on carbon emissions. Therefore, it is urgent to include the cement industry in the carbon market.

In this context, what is the impact of the cement industry on the industry after its inclusion in the carbon market, and what preparations have the relevant companies made?

In this regard, Li Xueqin, secretary of the board of directors and general counsel of Tianshan Co., Ltd., said at the performance meeting that the cement industry will be officially included in the national carbon market in 2024, which will have a significant impact on production and operation, data control, transaction costs, etc. The inclusion of carbon indicators in carbon trading and the promotion of supply-side structural reform through carbon emission reduction are conducive to the improvement of industry value and efficiency. In the medium term, cement demand continues to decline, and at the same time, the longer and longer peak staggering days expose the potential oversupply problem, and the promotion of carbon trading is expected to accelerate the clearance of rich production capacity in the long run.

Li Xueqin introduced that the company attaches great importance to the work related to "double carbon", and has made many preparations for this: first, it attaches great importance to comprehensively doing a good job in carbon reduction and carbon management deployment, improving carbon reduction awareness, and effectively doing a good job in carbon reduction actions. The second is to improve the organizational structure, set up a dual carbon management department, establish a headquarters and regional dual carbon management structure, and strengthen system construction, mainly including carbon trading management system, data and carbon emission reduction project management system. The third is to formulate and implement the "Implementation Plan for Carbon Peak and Carbon Neutrality". The plan follows the systematic idea of carbon reduction at the source, carbon reduction in the process, carbon sequestration at the end and carbon management in the whole process. Fourth, actively participate in the policy research of the cement industry into the national carbon trading market, explore the informatization and digitization of carbon management, and actively carry out the promotion and application of online monitoring technology.

What are the industry trends?

At the same time, some companies are actively laying out opportunities in the field of carbon peaking and carbon neutrality. Song Kaisen, deputy general manager and secretary of the board of directors of Guojian Group, elaborated that the company has always been committed to building a third-party service organization with the best comprehensive strength and the strongest service ability in China in the field of carbon peaking and carbon neutrality.

"We are very optimistic and confident that we will achieve substantial growth in the field of carbon peaking and carbon neutrality. With the implementation of dual carbon-related policies, the company will take this opportunity to continue to give full play to the company's technical service advantages in the low-carbon field, expand market share, and provide better comprehensive services under the current macro background of promoting the comprehensive green transformation of economic and social development and promoting the realization of high-quality development. Song Kaisen said.

How do you view the short- and medium-term trends of the industry, and what is the position of the relevant companies in the industry? These are also topics that investors are concerned about.

Qiu Suhao, independent director of Sinoma Energy Conservation, introduced that the company has rich experience in the field of clean energy, with R&D and design, project construction, production and operation and maintenance, investment and operation "integration" service capabilities; The market share of new building materials and equipment and other segments is in the forefront, and it has leading service capabilities in the whole industry chain such as technology research and development, core equipment manufacturing, engineering general contracting, and product production represented by calcium silicate board.

Jin Liang, deputy general manager and secretary of the board of directors of Zhongfu Shenying, said that under the background of the rapid growth of production capacity and the demand of the carbon fiber industry is less than expected, the company will closely focus on the "14th Five-Year Plan" strategic plan, layout projects and capacity planning according to the market environment and its own situation, and continuously expand its market share in various downstream application fields, so as to maintain long-term competitive advantages and achieve the growth trend of operating income. At the same time, we will continue to carry out energy conservation and consumption reduction work, make full use of low-grade energy to reduce the unit consumption of various energy, and scientifically configure the product structure of the "7+10" production lines in the two places, continue to expand the weight of differentiated products, reduce costs and increase efficiency, and build a solid cost moat for the company.

Talking about industry trends, Liu Yan, chairman of Tianshan Co., Ltd., believes that the current domestic cement industry is in a complex, severe and difficult period, and the demand is declining year by year, but there will still be a large volume of about 2 billion tons in 2023. As per capita consumption is benchmarked against international standards, it will decline to the next demand platform in the medium and long term. Industry practitioners have experienced a decline in performance in recent years, and hope to get out of the predicament and enter a stage of stable and healthy development of rational competition, price recovery, profit improvement and reasonable profit margins. The company is cautiously optimistic that the domestic cement demand in 2024 will decline slightly year-on-year, and the operating situation will be low and high, and the second half of the year will be better than the first half of the year.

How to achieve high-quality development?

Looking to the future, a number of companies have given the latest development plans. Qin Yonghui, an independent director of Guojian Group, said that the company's management has full confidence in the company's sustainable and stable development in the future. In 2024, Guojian Group will gather strength to transform to mid-to-high-end business, matrix management model, and intensive development, increase the layout of new industries, and accelerate the realization of high-quality development.

Jin Liang, deputy general manager and secretary of the board of directors of Zhongfu Shenying, made an outlook on the company's performance prospects this year. He elaborated that in 2023, after the company's 25,000-ton high-performance carbon fiber project in Xining is fully put into operation, the company's production technology, refined management and intelligent level will enter a new level, production efficiency will be improved, raw material loss and energy consumption will continue to be reduced, the unit cost of carbon fiber will be reduced by more than 20%, and the competitiveness of products will be significantly improved. In 2024, on the basis of the full release of production capacity and the emergence of cost advantages, the company will continue to improve the level of carbon fiber manufacturing under the scale of 10,000 tons, build a solid cost moat, accelerate digital upgrading, and realize the integration of data and reality, focus on "high-performance" and "low-cost" products, adhere to product differentiation and broaden the track, firmly build a "dual circulation" in domestic and foreign markets, and continue to promote the layout of industrial development, industrial chain coordination, management and control improvement, governance innovation, Talent incentives and other work to stimulate the vitality of reform and improve the quality and efficiency of enterprise management.

For the future focus of the company's business, Zheng Zhigang, independent director of Ruitai Technology, introduced that the company's products and services have basically covered major downstream application fields, including steel, building materials, nonferrous metals, petrochemicals, electric power, hazardous waste treatment and other industries. In recent years, the company's business mainly focuses on the high-end, green and low-carbon and functional products, in addition to the traditional business of steel, cement and glass, it will also actively develop composite energy-saving and carbon-reducing refractories, thin strip continuous casting refractories, high-performance refractories for nuclear waste disposal and other products, so as to provide customers with customized services to meet the requirements of national policies and downstream industrial carbon emission reduction, new process needs and new application scenarios.

"The company not only lays out high-end products, but also actively promotes the process of digital intelligence and green construction, and applies our 'boutique manufacturing' and 'meticulous service' to more emerging high-temperature industries. At the same time, the company will further actively explore the international market, accelerate the process of internationalization, continue to practice the strategy of going out, increase the company's international market revenue, and strengthen the company's international influence. Zheng Zhigang said.