On August 29, China National Building Material Company Limited (HK.03323) (“CNBM” or the “Company”) held the 2022 interim results conference. Zhou Yuxian, Secretary of the Party Committee and chairman of the board of directors of the CNBM Group and CNBM, Chang Zhangli, deputy Secretary of the Party Committee of the CNBM Group, and deputy Secretary of the Party Committee, President and executive director of CNBM, the Company’s management, and Chairman, general manager, chief financial officer and secretary of the board of directors of the listed companies under CNBM attended the conference and talked with investors and analysts. The conference was held via on-site meeting, video and teleconference.

Zhou Yuxian delivered a speech on behalf of the Group and the board of directors of CNBM expressing heartfelt thanks to shareholders, investors, analysts and other parties who have supported the development of CNBM, as well as business teams of the Company and the business segments for their hard work. Zhou Yuxian said that China National Building Material Group became a state-owned capital investment company in June. With a focus on the materials industry, the investment company will help improve the investment strategy of CNBM in terms of investment philosophy, investment system and investment tools, promote professional integration, divert more high-quality resources to the listed companies, and implement measures to drive high-quality development of listed companies. He shared his thoughts on the development of the three major business segments. First, the basic building materials segment should optimize its path. China’s economic development is known for its resilience. Cement, as the important basic material, plays an irreplaceable and indispensable role in stabilizing growth and economy. The cement industry has reached a consensus with regard to capacity reduction. To address overcapacity, we should solve the short-term supply and demand problem through staggered production, reduce production capacity and eliminate outdated production capacity through market and technical methods, and implement “dual carbon” policy to solve overcapacity in terms of technology and standards. CNBM will continue to deepen the three carryover effects of “cement +”, “internationalization” and “double carbon”, and promote the long-term development of the basic building materials segment. Second, the new materials segment should optimize the structure. CNBM will continue to develop new materials which promise application and growth possibilities while ensuring the existing new materials business maintain its competitiveness and generate sales revenue and net profit. The new materials segment should be developed step by step. The first echelon includes products with relatively mature development, large scale advantages and revenues of over 10 billion yuan. The second echelon includes products which are ready to generate more than 5 billion yuan in revenue. The third echelon includes emerging products which are currently the focus of CNBM’s development plan. The step-by-step layout may promote the development of the new materials segment, and increase its revenue. Third, the engineering technology service segment should improve quality. The segment has started integration process, and will increase the proportion of operation/maintenance and equipment business on the basis of the existing EPC business. In the future, we expect to drive the development of the new materials segment through equipment manufacturing, and go beyond the building materials industry to pursue market share and sales revenue on the high-end manufacturing market.

Chang Zhangli talked about the Company’s business performance. During the first half of 2022, the situation at home and abroad was complicated and challenging, downward pressure on the economy continued to increase, demand shrank, supply was affected, and expectations were lowered. Both the Company and the entire industry faced severe challenges. In the face of the unexpected situation, the Company’s management and all the employees made tremendous efforts to overcome difficulties, forge ahead and strive for steady progress. The basic building materials segment continued to be optimized and upgraded. Efforts were made to develop “cement +”, and the proportion of aggregate profits continued to increase. The new materials segment was strengthened. Mature products were launched to support global layout, and the market leading position was consolidated. The engineering technology service segment grew steadily, and the “dual carbon” policy facilitated development. Business integration was conducted in an orderly manner. The management integration of Xinjiang Tianshan Cement Company was deepened. The second phase of business integration, digital transformation integration and equipment business integration of basic building materials were implemented in an orderly manner. During the first half of 2022, the Company’s operating income is 109 billion yuan, net profit attributable to the parent is 5.45 billion yuan, total assets are 485.9 billion yuan, net assets attributable to the parent are 103.1 billion yuan, and basic earnings per share are 0.646 yuan. From January to June, the sales volume of cement clinker was 146 million tons, the sales volume of commercial mixed products was 39 million cubic meters, the sales volume of aggregate was 58 million tons, the sales volume of glass fiber yarn was 1.4062 million tons, the sales volume of gypsum board was 1.092 billion square meters, the sales volume of wind power blades was 7.54 GW, the sales volume of battery diaphragm was 497 million square meters, the sales volume of carbon fiber was 3,888 tons, the sales volume of waterproof membrane was 74 million square meters, and the engineering service revenue was 18.121 billion yuan.

Before the press conference, the Company initiated exhibition hall visit to allow investors and analysts to gain more information about the Company. CNBM will continue to increase communication channels, enhance multi-level and three-dimensional interactions with investors and analysts, and jointly create a benign ecology for investor relationship management.

Investors and analysts praised the performance of CNBM, and the Company’s achievements in high-quality development, internal quality improvement and efficiency enhancement. They also expressed confidence in the industry prospects and the Company’s future development.