2025-11-16 15:36Summary of Conference Call for Conch Cement Industry Overview - In the first three quarters of 2023, national cement production decreased by 5.2% year-on-year, with cement prices showing a trend of high at the beginning and low later on. The average market price for PO 42.5 cement was 372 RMB/ton, a decrease of 0.5% year-on-year, indicating a market environment characterized by declining demand and increasing supply-demand contradictions [2][3]. Company Performance - Conch Cement achieved a non-tax revenue of 61.3 billion RMB in the first three quarters, a decline of 10.1% year-on-year. However, the net profit attributable to shareholders was 6.304 billion RMB, an increase of 21.3%, primarily due to cost control and improved gross margin [2][5]. - Despite a 0.4% year-on-year decrease in net sales volume of self-produced cement clinker, Conch Cement managed to reduce the comprehensive cost of cement clinker by 18 RMB/ton (a decrease of 9.7%), leading to a gross margin increase of 5.8 percentage points [2][5]. Business Expansion and Strategy - Conch Cement is actively expanding its domestic and international business layout, including the successful delivery and consolidation of the Xinjiang Yaobo project, steady expansion of aggregate and ready-mixed concrete businesses, and advancement of new energy projects to enhance market layout and achieve industrial chain synergy [2][6]. - The company is focusing on digital industrial development to improve overall operational efficiency and competitiveness, while accelerating the implementation and expansion of overseas projects [4][6]. Market Challenges and Future Outlook - The demand for cement is expected to continue declining in the fourth quarter, although it is anticipated to be better than the third quarter, with an overall demand decrease projected at around 7% for the year. The industry faces challenges in profitability, necessitating measures such as staggered production to stabilize prices [2][7]. - Conch Cement plans to focus on policy guidance, leverage opportunities from industry self-discipline and capacity replacement, enhance market cultivation, and continue cost reduction efforts to strengthen competitiveness in response to market challenges [4][7].