8 million ton technological transformation project breaks the “bottleneck” of production capacity Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) deepen industrial layout and welcome the release of performance

Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) is ushering in a period of accelerated performance release. On the evening of April 18, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) released the annual report of 2021. According to the financial report, the company’s revenue and net profit during the reporting period increased significantly compared with the same period last year. In particular, the deduction of non net profit not only doubled, but also reached a record high.

In recent years, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) through focusing on its main business and continuous intensive cultivation, closely focusing on limestone ore mining and the production and sales of downstream related products. Last year, the 8 million ton technical transformation project of limestone mine has been completed and officially entered the production stage in December 2021. Benefiting from the continuous release of production capacity, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) performance is also expected to achieve “acceleration”.

supply side – improve the 8 million ton technical transformation project

Ledu Town, Emeishan City is an important cement production base in Sichuan Province. Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) successfully landed in the capital market in 1993.

As a veteran of the capital market, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) closely follows the advanced pace of the industry and knows the way of sustainable development. At the end of 2012, since the completion of the reorganization, the company has stripped off the cement business. Based on the advantages of limestone mine resources and railway dedicated lines, the company has successively completed the additional planning of limestone mine resources, the construction of active calcium oxide production line with an annual output of Shanghai Pudong Development Bank Co.Ltd(600000) tons and the construction of modern logistics park projects.

Today, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) has become one of the large limestone mines in Sichuan Province, a large bulk cargo distribution center in Leshan and a large calcium oxide production enterprise in Southwest China, forming an industrial chain of limestone mining, processing, product sales and warehousing logistics.

Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) mined limestone can meet the demand of calcium oxide production and supply the surrounding large cement plants. In 2021, the company completed a total of 7243400 tons of limestone mining, an increase of 2233400 tons year-on-year, with an increase rate of 44.58%.

It is worth mentioning that in December last year, the 8 million ton technical transformation project of Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) limestone mine, which attracted much attention, has been completed and entered the production stage smoothly. This is a deliberate move of Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) breaking through the “ceiling” of production capacity and a wise move of supply side reform.

The completion of the 8 million ton limestone mine technical transformation project is of great importance to Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) itself. Especially in the face of the national integration of mining enterprises, the implementation of access system management of mining rights and the restriction on the development of small mines, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) ‘s advantageous endowment will be fully highlighted.

Because the limestone mine owned by Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) has large reserves, high grade, short transportation distance and low mining cost. After the completion of the technical transformation project, the annual production capacity of ore will reach 8 million tons. On the one hand, it is not difficult to understand the expansion of production scale, on the other hand, the reduction of mining costs and the improvement of profitability.

This is actually a beneficial practice of Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) in improving the supply side of production capacity. Based on the advantages of existing limestone mine resources and special railway lines, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) after successfully completing the 8 million ton / year technical transformation project of limestone mine, it is also promoting the project of building materials series with an annual output of 5 million tons of waste rock comprehensive utilization.

After the completion of the project, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) will form a business layout focusing on limestone ore mining and sales, active calcium oxide and subsequent deep-processing products and other ore production industrial chain layout and warehousing and transportation services.

It is worth mentioning that Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) also has the courage to innovate and explore in optimizing the industrial layout and creating Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) technology operation mode. In 2021, the company completed 5g network deployment through the implementation of phase I construction of 5g smart mine, and started the construction of mining Lala applet version transportation management information platform to provide comprehensive energy efficiency management solutions and application landing for the mine.

In 2022, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) while continuing to promote the construction of 5g smart mine, started the upgrading and replacement of mine green mine card, and implemented 5g smart mine upgrading in the mine with 5g, artificial intelligence and industrial Internet of things technology, so as to improve the operation efficiency and management ability of the mine.

demand side – booming production and marketing, deducting non net profit to a new high

Through the supply side reform, we can realize the optimal allocation of factors, stimulate production vitality and improve the quality and efficiency of the company’s growth Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) in the optimization of technological transformation projects, it undoubtedly shows extraordinary insight.

A basic fact is that downstream demand is strong. If it is subject to its own capacity bottleneck, it will miss the opportunity even in the face of great market prospects. Once the capacity optimization is released and the downstream demand is accurately connected, the company’s performance will have a positive cycle and enjoy the bargaining power of the market and brand.

Therefore, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) improving the industrialization practice path of supply side optimization is also being verified by the market.

Last year, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) completed a total production of 7.6278 million tons in the whole year, with a year-on-year increase of 2.2596 million tons, an increase of 42.09%, including 7.2434 million tons of limestone, a year-on-year increase of 2.2234 million tons, an increase of 44.58%; The production of calcium oxide was 384400 tons, an increase of 26200 tons year-on-year, with an increase rate of 7.31%.

So what is the performance of the demand side? In 2021, Sichuan completed a total of 6.9314 million tons of sales, with a year-on-year increase of 2.1529 million tons, an increase of 45.06%, including 6.5482 million tons of limestone, a year-on-year increase of 2.218 million tons, an increase of 48.14%; The sales of calcium oxide were 383200 tons, with a year-on-year increase of 25000 tons, an increase of 6.97%.

With the booming production and marketing, the Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) performance is expected to usher in an accelerated release.

According to the financial report, in 2021, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) achieved a revenue of 373 million yuan, a year-on-year increase of 43.69%, and realized a net profit attributable to shareholders of listed companies of 677848 million yuan, a year-on-year increase of 77.28%. The net profit deducted from the main business was 620271 million yuan, a year-on-year increase of 106.31%, a record high.

Superimposed with advantageous resources and optimization of industrial structure, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) also predicts that 7 million tons of ore will be mined and 400000 tons of calcium oxide will be produced in 2022, with an annual revenue of about 450 million yuan.

In Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) opinion, the strategic development direction of the company is in line with the national industrial policy and has a good market prospect. In the future, Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) will form a business layout from mining to limestone processing, product sales, warehousing and logistics, focusing on the main business and strengthening management, so as to achieve stable growth expectation and development butterfly change.

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