Securities code: Sinoma International Engineering Co.Ltd(600970) securities abbreviation: Sinoma International Engineering Co.Ltd(600970) Announcement No.: pro 2022038 bond Code: 188717 bond abbreviation: 21 Guogong 01
Sinoma International Engineering Co.Ltd(600970)
Announcement on the holding of 2021 annual performance description meeting
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents Sinoma International Engineering Co.Ltd(600970) (hereinafter referred to as “the company” and ” Sinoma International Engineering Co.Ltd(600970) “) was held at the Shanghai Stock Exchange roadshow center in the afternoon of March 28, 2022 in the form of live video and online interaction（ http://roadshow.sseinfo.com. ）And panorama investor relations interactive platform（ http://ir.p5w.net. ）Held the company’s 2021 annual performance presentation meeting. The relevant information is hereby announced as follows:
1、 Explain the holding of the meeting
The company’s statement on the matters held on the website of Shanghai Stock Exchange on February 19, 2023（ http://www.sse.com.cn. ）And disclosed in Shanghai Securities Journal and China Securities Journal. For details, see the company’s announcement on holding the 2021 annual performance presentation meeting (Announcement No.: 2022026).
From 15:00 to 17:30 p.m. on March 28, 2022, the company held the 2021 annual performance presentation at the Shanghai Stock Exchange roadshow center and panorama investor relations interactive platform. Mr. Liu Yan, chairman and party secretary of the company, Mr. Yin Zhisong, director and President, Mr. Zhou Xiaoming, independent director, Mr. Sui Tongbo, vice president, Ms. Wang Yuan, vice president and chief financial officer, Mr. He Xiaolong, vice president, Secretary of the board of directors Ms. fan Liting, the general legal adviser, and Mr. Guo Yun, the company’s independent financial adviser, attended the performance briefing. The company had interactive exchanges and communication with investors and replied to the problems generally concerned by investors.
2、 Main questions raised by investors and replies of the company
The performance presentation has received positive response and active participation from the majority of investors. The issues generally concerned by investors and the key points of the company’s reply are summarized as follows. If investors need to fully understand the relevant issues and replies, they can watch the live broadcast and replay of the performance presentation through the relevant Roadshow platform.
Question 1: Sinoma International Engineering Co.Ltd(600970) has maintained a leading market position in the field of cement technology, equipment and engineering for many years. Last year, it completed the reorganization and integration of Sinoma mining, Nanjing Kaisheng and Beijing Kaisheng. The company’s outlook on the development trend of cement and mining technical equipment and engineering services
reply:
In terms of business type, in the field of Engineering EPC, although China has excess cement capacity, the reduction and replacement projects have been promoted rapidly in recent years, and the transformation demand has continued to increase. Affected by energy conservation and environmental protection policies, the improvement of energy efficiency standards and other factors, it is expected that the demand for cement EPC will continue to release in the next few years. Foreign cement EPC market has entered the platform stage, but there is still room for development in new production capacity and technological transformation in some regions.
The equipment market has great potential. The indicators of old production lines outside China are relatively backward, and there is a large demand for optimization and upgrading and equipment technological transformation. The company’s independent equipment has reached the global leading level in terms of energy consumption index, emission index, operation rate and product quality. With the transformation of the global cement industry to green and intelligent direction, foreign owners will also adopt more Chinese equipment. It is expected that the development potential of the equipment business is expected to exceed that of the cement engineering EPC business.
The operation and maintenance service market is expected to maintain steady growth. In terms of mine operation and maintenance services, the policy of China’s green mines promotes industry integration. Large-scale production and standardized operation of large mines and green mines put forward higher requirements for cement and aggregate mines. Out of consideration of safety and ecological environmental protection, owners prefer to outsource mines to professional companies, which is safer, more environmentally friendly, lower cost and more efficient. The operation and maintenance services of Sinoma mines have achieved rapid growth, There is still a large market space in the future. In terms of operation and maintenance services of cement production line, with the promotion of digitization and intelligence and the increase of the share of the company’s core equipment, the customer stickiness will be further improved. In the future, the company will mainly rely on equipment to drive the post market business of spare parts sales and operation and maintenance.
Green intelligence is not only the development direction of the building materials industry, but also the development opportunity of Sinoma International Engineering Co.Ltd(600970) . Based on this, we continue to increase the intensity and investment in R & D. in the long run, if our main business development is to win with “new” and green intelligence.
Question 2: the repeated overseas epidemic has had some impact on China’s foreign contracted engineering industry, but the company achieved good anti epidemic results and business performance in 2021. How does the company overcome the impact of overseas epidemic on the company’s production and operation? What measures will be taken in the future to further ensure the stability of the company’s production and operation
Reply: in 2021, covid-19 pneumonia was still spreading, which had a wide and far-reaching impact. The company has taken many measures to ensure the steady performance of all projects under implementation around the world, and the overall newly signed contract amount, operating revenue and net profit attributable to the parent company have achieved good growth.
Last year, the company’s epidemic prevention expenditure cost was 670 million yuan, mainly including logistics cost, air ticket visa cost, slowdown cost, epidemic prevention materials, isolation and testing cost, among which the logistics cost accounted for the highest proportion. In terms of measures, first, the company has formulated perfect epidemic prevention measures to ensure the safety and stability of overseas employees, including: upgrading 19 standardized clinics abroad and increasing the number of resident medical staff to 48; Continuously improve the closed-loop control of the whole process of personnel returning home to ensure the orderly and safe flow of personnel; The vaccination rate of overseas employees is 100%; Continue to strengthen emergency drills to ensure that emergency resources are matched in place. Second, increase the proportion of localized employment, benefiting from the company’s localization business strategic deployment. At present, the proportion of localized employment of the company has reached 60%. Third, in view of the rise of commodity prices and shipping prices, the company timely tracked and analyzed the situation and market changes at home and abroad, and comprehensively considered the epidemic situation, the rise of raw material and logistics prices and other factors when bidding for new projects; Timely communicate and negotiate with the owner and agree on the relevant price adjustment mechanism in the newly signed contract; By optimizing the supplier structure, centralized procurement, international and localized procurement, maintaining good cooperation with shipping companies and ports, optimizing packaging schemes and other measures, control procurement and logistics transportation costs and try to reduce the impact of upstream price rise.
In the future, the company’s management will persistently implement the normalization mechanism of epidemic prevention and control, ensure that epidemic prevention and control measures are in place, and strive to minimize the impact of the epidemic.
Question 3: we are very concerned about the impact of the “double carbon” policy on the cement industry and the company. Please introduce what technical reserves and projects the company has in terms of carbon emission reduction in the cement industry and how to view the development opportunities brought by carbon emission reduction in the cement industry under the background of “double carbon”
Reply: for “carbon peak and carbon neutralization”, the company has determined the “three-step” plan of carbon management, carbon reduction and carbon use: the first step is to realize accurate measurement and actively participate in the establishment of industry standards; The second step is to apply carbon reduction technologies on a large scale, including energy efficiency improvement technology, clinker substitution technology, raw fuel substitution technology and low-carbon clinker cement technology; The third step is to develop carbon capture and utilization technology, and the key is to reduce costs.
In view of the environmental problems caused by a large amount of CO2 produced in the production process of cement industry, the company has formulated a whole chain low-carbon development technology route, and made full use of its advantages in improving the energy utilization efficiency of cement production, alternative fuels, low-carbon clinker and low-carbon cement, carbon capture and purification, resource utilization and other carbon emission reduction technologies to provide all-round services for carbon reduction and decarbonization of customers and industries, Provide Sinoma International Engineering Co.Ltd(600970) the wisdom and scheme for realizing zero net emission.
The company’s carbon emission reduction technical scheme mainly includes four aspects:
(1) Energy efficiency improvement technology: the company’s new generation of low-carbon energy-saving technology has been successfully applied in Shanya south, Yunnan Ailanthus, Gansu Qilianshan Cement Group Co.Ltd(600720) Shannan, Haiyan South and other projects. The main indicators are superior to the first-class standard of energy consumption, and the main technical and economic indicators have reached the international advanced level.
(2) Clinker replacement technology: that is, slag, fly ash and other pozzolanic admixture are used to replace clinker without adverse impact on cement quality and performance. This technical route of China’s cement industry has the fastest application and development in the world. At present, the average clinker coefficient of China’s cement (the proportion of clinker in cement) is 0.66.
(3) Alternative raw fuel technology: it mainly includes the replacement of calcium raw materials for cement production and the collaborative disposal of various wastes in cement kiln. The company has independent intellectual property rights and related technologies. At present, China’s cement industry has just started in the collaborative disposal of cement kilns and the utilization of alternative fossil energy. The proportion of alternative fuels is less than 2%, and there is great potential for emission reduction in the future. The fuel substitution rate of MK3 project in France, which has been put into operation, is 85%.
(4) Low carbon clinker cement technology: including sulphoaluminate cement, high belite cement, belite sulphoaluminate cement, etc Sinoma International Engineering Co.Ltd(600970) has successfully developed a complete set of kaolin suspension calcination technology and equipment with independent intellectual property rights, and will realize the industrial application of this technology in China in the near future. At the same time, the company is also actively cooperating with large international cement groups to promote the industrial application of this technology in the international market.
In addition, the global research on cement carbon capture and storage and resource utilization is in the ascendant, and it is expected to start large-scale application in the industry after 2030. By the end of 2021, the company had applied for 24 patents related to carbon emission reduction technology, including 4 PCT international invention patents and 10 Chinese invention patents, and built a carbon emission reduction technology patent pool.
Impact: the world produces 3.5 billion tons of ordinary portland cement every year. For each ton of cement, 561622kg of carbon dioxide is emitted. The cement industry as a whole contributes about 8% of the global carbon dioxide emissions. In 2021, China’s cement output is about 2.4 billion tons, accounting for about 60% of the world’s total output. The carbon emission of China’s cement industry accounts for about 14% of the country’s total carbon emission. Therefore, the low-carbon transformation of traditional cement industry is of great significance to China and the world. According to the overall design of the national carbon market, in addition to the power industry, several other high energy consuming industries such as petrochemical, chemical and building materials will be gradually included during the 14th Five Year Plan period, and the cement industry will also be included in the carbon quota trading system in the future. At present, some cement enterprises have also formulated a carbon emission reduction roadmap, increased investment in technological transformation, and actively carried out optimization and upgrading, energy conservation and emission reduction. In order to achieve carbon emission reduction in the future, we need a variety of ways in parallel, among which energy efficiency improvement and alternative fuels have the greatest potential, and CCUs is expected to become the main focus in the future.
Question 4: at present, intellectualization has become the general trend of the development of the cement industry, and Sinoma International Engineering Co.Ltd(600970) is the main force to promote the transformation and upgrading of the cement industry. What are the advantages of the company in this field and how to develop digital intelligence business in the future
Reply: with the further promotion of the “carbon emission reduction, carbon neutralization” of the country and industry and the “three modernizations” transformation of the cement industry, the new lines in the future should meet the intelligent and green standards.
The company independently develops a digital design platform based on industrial Internet architecture, explores the construction of intelligent production control and intelligent operation and maintenance system, and creates a new generation of green intelligent factory characterized by “intelligence, coordination, green and safety”. Through the implementation and application of intelligent technology, greatly improve the working conditions, reduce the manual intervention of the production line, reduce the energy consumption and emission indicators, improve the controllability of the production process, improve the product quality, and bring better economic and social benefits to the owner.
The “factory digital delivery platform” independently developed by the company was successfully listed in the “list of excellent scenes of Intelligent Manufacturing in 2021” by the Ministry of industry and information technology. “Factory digital delivery platform” realizes the automatic and accurate integration of all data files in the process of project construction into the three-dimensional digital model. When the factory construction is completed, it can automatically form a digital twin factory completely consistent with the physical factory, including three-dimensional model, design data, construction quality inspection data, equipment manufacturing quality inspection data, equipment parts list, operation and maintenance data, etc, Provide visual platform and sufficient data support for plant production, operation and maintenance.
The operating cost of the intelligent manufacturing demonstration production line contracted by the company has decreased significantly, and the demonstration effect is significant. Huaikan Nanfang intelligent cement factory was selected into the list of industrial Internet pilot demonstration projects of the Ministry of industry and information technology in 2021, Yunnan Yimen Ailanthus altissima cement clinker production line project with a daily output of 4000 tons was rated as the first batch of intelligent manufacturing benchmark projects in Yunnan Province, and Wuzhong horse racing was selected into the intelligent manufacturing demonstration factory in 2021. By the end of 2021, the company has completed 122 smart cement plant projects, including 25 new smart plants and 97 smart plants.
Question 5: we understand that China building materials group should vigorously promote international development during the 14th Five Year Plan period Sinoma International Engineering Co.Ltd(600970) is a leading cement EPC service provider in the world. It has rich customer resources and project experience in many overseas countries and regions. It is a benchmark enterprise for “going global”. How can the company give full play to its international advantages and achieve a breakthrough in localized operation
Reply: Sinoma International Engineering Co.Ltd(600970) since 2002, it has entered the international market on a large scale. In 2008, it became the world’s largest cement engineering service provider, and its international market share has ranked first in the world for 14 consecutive years. According to the company’s development strategy, in the future, the company will promote industrial development around “one core and two breakthroughs”, and territorial operation is one of the two breakthroughs.
As one of the two major breakthroughs, one is to give full play to Sinoma International Engineering Co.Ltd(600970) ‘s international advantages. The company’s performance covers 84 countries around the world, is familiar with the market, economic and political environment of these countries, has established extensive political and business cooperation, allocated institutions and personnel, has established a good brand, and has the foundation for local development. Second, we are familiar with a large number of Asian, African and Latin American countries. At present, the economic foundation is relatively weak, but the economic development momentum is good and there are huge development opportunities. China achieved rapid development after its per capita GDP exceeded the $1000 mark in 2001; A large number of our territorial countries have also reached the $1000 mark, and are ready to go in the future, including projects related to our business, light building materials, production services, logistics, new energy and so on.
To deepen territorial development breakthroughs in the future, first, further improve the territorial development layout. At present, there are more than 360000 dependent countries with a per capita GDP of more than US $10 million. The next step is to further optimize the organizational control and business layout in combination with the local political and economic environment, market and resources. Second, we should increase the allocation of resources. At present, we have nearly 1800 foreign employees. In the future, we will further strengthen the staffing and select a large number of local excellent personnel. Third, give local companies special operation and incentive mechanisms to effectively stimulate the vitality of local development. Fourth, in close combination with territorial resources and market demand, and in combination with the dual cycle development advantages of territorial and China, vigorously develop the combination of production services, warehousing and logistics, related diversified projects, light building materials and green energy
