Company experience of Gansu Qilianshan Cement Group

Gansu Qilianshan Cement Group Co., Ltd. has overall advantages in management, technology, products, funds, operating mechanisms, and workforce. It also has the ability and successful experience in group capital operations, which mainly reflects At:

The asset scale is expanding rapidly and the capital operation capability is strong. In just a few years since the company was founded, the company's total share capital has increased from 70 million shares at the beginning of listing to 396 million shares, an increase of more than five times; total assets have increased from 300 million yuan at the beginning of listing to 2.1 billion yuan, an increase of 7 times; net assets increased from 180 million yuan at the beginning of listing to 867 million yuan, an increase of 4.82 times. Among them, state-owned capital owners’ equity increased from the initial investment of 56.56 million yuan to 321.21 million yuan, plus cash dividends of 34.30 million yuan. Ten thousand yuan, the value-added rate reached 528.55%.

Production capacity is growing rapidly and core competitiveness is strong. The cement production capacity has increased from 1.2 million tons in 2000 to 5 million tons, of which the new dry process cement production capacity is 3.8 million tons, accounting for 76% of the total production capacity. The scale of a single enterprise (Yongdeng Qilianshan Cement Co., Ltd.) jumped from more than 30 to the top 10 among national cement enterprises, ranking first in the northwest region. In Lanzhou, four grinding stations with a total annual cement grinding capacity of 750,000 tons and two concrete mixing stations with an annual processing capacity of 500,000 cubic meters of commercial concrete have been built, forming an industrial chain with cement as the main vertical deep processing extension and core competitiveness. Significantly enhanced.

Profits have increased year by year, and the main business has strong profitability. Since the company went public, it has always maintained strong profitability. Especially in recent years, the annual realized profit has always remained above 52 million yuan, and the average annual tax paid is about 50 million yuan. The indicator of profitability ranks among the best among large state-owned enterprises in the same industry nationwide and in the province.

The capital operation is standardized and legal, and the financing capability is strong. The company complies with all the necessary conditions for refinancing of listed companies stipulated by the China Securities Regulatory Commission. The company has implemented allotment plans in 1998, 2000 and 2003 respectively, raising a total of 510 million yuan. The bank's credit rating is AAA, the asset-liability ratio is 50.04%, the asset quality is excellent, and it has financing conditions through multiple channels and methods.

Solid and effective internal management and strong market competitiveness. The standardization construction has been further extended and radiated, and the three major standard systems of technology, work, and management have been established and improved, so that the technical specifications, management procedures, and work scope of each position in the company are strictly defined in the form of corporate work standards, forming a shoulder-to-shoulder system for everyone. A standardized system with responsibilities, standardized operations, standardized work, and evidence-based assessments; established a three-level management model of the group, subsidiaries, and operating areas (departments) and a new cost, quality, safety, and civilized veto mechanism; financial management The role of guiding production and operation has been enhanced, cost reduction measures have been obvious, and the business philosophy has been gradually improved. In 2000, it passed the ISO9001 quality system certification, successfully integrating management work with international standards.

Employees’ lives have been improved and the company’s cohesion has been strengthened. At the end of 2004, the company's per capita salary reached 15,918 yuan/year. Through standardized asset operations, employees' investment has achieved good returns. The current per capita living area exceeds 50 square meters, which is higher than the per capita living area in the entire province. Investment and intensity in employee training are increasing year by year. Last year alone, more than one million yuan was invested in jointly running schools with Xi'an University of Architecture and Technology, Beijing Normal University, and Northwest Normal University, allowing more than 100 managers to study for Master of Engineering and MPA graduate studies respectively. class. At present, team members are united, employee morale is high, and the company's synergy has been significantly enhanced. Looking forward to the future, Gansu Qilianshan Cement Group Co., Ltd. will follow the business philosophy of "casting sincerity and solidifying eternity", "based on Gansu and looking at Qinghai-Tibet", and complete the "10th Five-Year Plan" plan for an annual cement production capacity of 5 million tons one year ahead of schedule this year. Basically, with Gansu, Qinghai and Tibet as the target markets, we will integrate Gansu, Qinghai and Tibet in a planned and step-by-step manner through the construction of new lines in selected locations and low-cost expansion, using the method of "scale expansion + technology upgrading". In the cement market, we strive to achieve the production capacity target of 8-10 million tons by the end of the “Eleventh Five-Year Plan”.