TSC(SZ:000877)2022-12-08 05:16Company Overview - The company, originally established as Xinjiang Cement Plant, was restructured in 1998 and listed in 1999. Its cement production capacity has grown from 450,000 tons to approximately 38 million tons, with commercial concrete capacity around 14 million cubic meters [2]. Production Capacity and Utilization - The current production capacity utilization rate is about 60%, affected by the long winter season in Xinjiang [3]. - The company has established a network of 12 locations across Xinjiang, covering strategic and economically significant areas [3]. Customer Base - The customer base is divided into three segments: 1. Key engineering and projects (railways, highways, airports) 2. Industrial projects (major investments) 3. Residential construction and others [3]. Financial Performance - The gross profit margin for cement last year was 24.43% [3]. - In the first half of the year, the company incurred losses exceeding 19 million due to market conditions and pricing factors in Xinjiang [3]. Market Conditions - The overall demand for cement in Xinjiang has decreased compared to last year due to market environment impacts [3]. - The company noted that coal prices in Xinjiang have remained stable, while a decrease in coal prices in East China has slightly reduced costs [4]. Strategic Insights - The major shareholder, China National Materials Group, currently has no plans to increase its stake in the company [4]. - The company has implemented refined management practices, leading to a reduction in overall costs compared to the previous year [4].