1. Overview of the annual results for 2013:

During the period, the income was 7.331 billion yuan, up 10% from the same period last year; the gross profit was 1.617 billion yuan, up 44% from the same period last year; the profit attributable to the owners of the company was 823 million yuan, up 108% from the same period last year; earnings per share were 0.529 yuan, compared with 0.254 yuan in 2012; the annual dividend was 0.15 yuan, and the dividend payout ratio was 28%.

2. Operation in the first quarter of 2014:

The company released a positive profit forecast for the first quarter on April 14, and it is expected that the profit attributable to owners of the company in the first quarter will increase by 1300% compared with the same period last year. The main reasons are: 1) cement prices have risen sharply compared with the same period last year; 2) coal prices have fallen sharply compared with the same period last year.

3. The company's future production capacity planning objectives:

The company aims to achieve a production capacity of 40 million tons in 2015 and 50 million tons in 2016, making it the 11th place in China's cement industry (the company has secured 12th position in 2013).

4. Cement industry outlook for 2014:

The cement industry has the best supply and demand situation among the six industries with limited excess capacity. due to national regulatory factors, there is very little new capacity this year, but the annual market demand is still rising steadily. It is expected that the new capacity in 2014 will not be enough to cover the new demand, so the supply and demand situation will be greatly improved, and the upward trend of cement prices since the second half of last year is expected to further stabilize and continue. In addition, the concentration of the cement industry is relatively high, coupled with the strong regional cement industry, regional market oligopoly market, the price can be protected to a large extent. .

5. The company's latest acquisitions:

The company announced on April 3 that Sichuan Yadong cement Co., Ltd., a non-wholly-owned subsidiary of Sichuan Yadong cement Co., Ltd. had acquired Sichuan Lanfeng cement Co., Ltd. at a cost of about 2 billion yuan. The target company has a production capacity of 5 million tons, and a formal agreement is to be signed in the future.

6. The financial situation and capital expenditure of the company:

At present, the company's net debt ratio is about 50%, the cash on hand is 2 billion yuan, and the available credit line is about 3 billion yuan. The company's overall cash flow is good at present. More importantly, the overall capital cost of the company is about 2.5%. It is far lower than the average level of peers and the market, and has a great advantage in capital cost. In the future, we will consider acquiring the right target production capacity at the right time.

7. The main considerations for the company to establish a supporting transfer station in Taizhou, Jiangsu Province:

Yangzhou, Jiangsu has a market of 3 million tons, while there is no cement plant in northern Jiangsu. The company set up Taizhou transfer station mainly to improve comprehensive efficiency, so that the cover can transport coal and water to Jiangxi in Taizhou, and the return trip can transport Jiangxi cement to Taizhou, Jiangsu. In the off-season of the market, export can be used to regulate the market. The company expects to be completed and put into use in August 2014.

8. The company's new production capacity in the past 14 years:

The company's No. 5 kiln has been put into production at the end of September, and the 14-year increase in production capacity is mainly No. 6 kiln in Yadong, Jiangxi Province (6000 tons of clinker per day), which was put into production in January 14.

9. The company will continue to choose suitable targets for mergers and acquisitions in the future:

Company executives said they would conscientiously choose suitable targets for further extension, taking into account factors such as geographical location, mineral resources, and the plasticity of the target company.

Comprehensive comments:

As a Taiwan enterprise with excellent management, operating cost control is in the leading level in the cement industry, and the company's profit margin is also much higher than that of its peers, the company is further integrating internal resources and tapping its own potential. in order to achieve endogenous growth and epitaxial M & A growth two-wheel drive, it is suggested that active attention should be paid to.