Reporter Huang Qun
The Securities Daily reporter learned that on the afternoon of March 31, Conch Group held a general meeting of all cadres at the middle level and above. Anhui Provincial Party Committee Organization Department Deputy Minister He Chunkuan at the meeting read out the provincial party committee on the appointment and dismissal of the main person in charge of the Conch Group decision: by the Bengbu Municipal Party Committee Deputy Secretary, Mayor Wang Cheng to replace Gao Dengbang, as the Conch Group Party Committee Secretary, Chairman of the Board of Directors.
Sources familiar with the industry told the Securities Daily reporter that Gao Dengbang stepped down, mainly due to the retirement age. "After Gao Dengbang stepped down, although he is no longer involved in the leadership of Conch Group, he is still the president of the China Cement Association and a member of the Standing Committee of the Anhui Provincial People's Congress." The source further said.
Wang Cheng's resume shows that he served as deputy secretary of the Bengbu municipal party committee, mayor and party secretary of the municipal government before taking up his new post at Conch Group. A person familiar with Wang Cheng introduced to the "Securities Daily" reporter said, "work seriously, persistent" is the mayor of Wang left a deep impression.
Market Competition vs Harmony and Self-Discipline
Two former helmsmen with different styles
It is reported that the March 31st meeting lasted about an hour, and Conch Group's mid-level and above cadres attended. At the meeting, Gao Dengbang made a speech at the meeting and expressed his gratitude to all the employees of Conch Group. After that, Wang Cheng made a special speech around the "five major development" to create a better Anhui construction. Mr. Ren Yong, general manager of Conch Group, also made a statement on behalf of the members of the management team.
According to the introduction, Gao Dengbang stepped down as secretary of Wuhu Municipal Committee, director of Wuhu Municipal People's Congress Standing Committee and secretary of the party group in November 2015, and succeeded Guo Wensan as secretary of the party committee and chairman of the board of directors of Conch Group. From 2017 to now, the cement industry has been on fire for four years, and Conch Group has become a star enterprise in the industry, and its stock price has rocketed to become a veritable "cement Mao".
"Gordon's biggest contribution is to make the cement industry's competitive ecological conservation better. The competition when the competition, the cooperation when the cooperation." The above industry insiders pointed out that in recent years, the cement industry profits continue to hit new highs, 2020 has been close to 190 billion yuan.
"Securities Daily" reporter noted that in the period of Gao Dengbang at the helm of Conch Group, in the context of the high boom of the cement industry, the market value of Conch Group has also risen, from more than 60 billion yuan in November 2015 to the current more than 270 billion yuan.
"In the past, Conch Group is just a leading enterprise in the domestic cement industry, has now entered the world's top 500 and China's top 100, the social influence is great." The above source said.
Some cement industry analysts told the Securities Daily reporter that the Conch Group at the helm of Guo Wen-san was more revered for pure market competition, for example, in terms of cost, market strategy and other aspects of fierce competition, especially in the new market there will be a price war. However, during the period when Gao Dengbang was in charge, Conch Group emphasized more on market tacit understanding and industry self-discipline with other enterprises, and the most typical case is the cooperation between Conch Group and CNBM in recent years.
"During his tenure, Gao Dengbang has changed the tension between Conch Group and CNBM's Southern Cement, which used to be purely competitive and fight on their own, and guided the cement industry towards harmony and self-discipline. Similar cooperation among large enterprises in the industry has promoted a moderation of competitive relations in the cement market, pushing the overall price of the cement industry gradually out of the 2016 trough and ushering in a round of prosperous development period. This is inextricably linked to Gao Dengbang's experience in politics and his view of the big picture." The cement industry analyst commented.
Product transformation + cadre echelon construction
The new chairman is facing two major responsibilities
The current Conch Group is in a critical period of transformation.
The 2020 annual report of Conch Cement shows that as of the end of the reporting period, the listed company's annual clinker production capacity was 262 million tons, annual cement production capacity was 369 million tons, annual aggregate production capacity was 58.3 million tons, and annual commercial concrete production capacity was 4.2 million cubic meters.
The aforementioned cement industry analysts believe that Conch Cement's aggregate production capacity still has some room for improvement, but commercial concrete is still in the groping stage. "The cement industry is highly dependent on the construction industry, and with the further tightening of national real estate regulation, the real estate industry is facing downward pressure, which may adversely affect the cement market demand. The output value of the field of commercial concrete to be greater than the cement market potential, once the control of the commercial concrete market, Conch Cement's control of the downstream construction industry is also stronger.2017, the company began to test the commercial concrete market, but to date for the production capacity is still relatively small, Conch Cement still need to accelerate the pace of expansion of the commercial concrete market."
In addition to the main business of cement to transform, Conch Group is also expanding new business areas. It is understood that Conch Group's business has been involved in the field of energy saving and environmental protection, with the world's leading garbage disposal, solid waste and hazardous waste disposal, waste heat utilization, equipment manufacturing and other aspects of technology, and is now accelerating to the new energy-saving chemical materials such as cement and concrete admixtures, as well as photovoltaic, wind power generation and storage of new energy areas to expand.
It is worth noting that the current key leaders of Conch Group and Conch Cement are generally older, and many of them will face retirement after Wang Cheng's new appointment. 2020 annual report shows that most of the executive team of Conch Group is over 55 years old. For example, Conch Group general manager Ren Yong is 58 years old, Conch Group deputy general manager, Conch Cement vice chairman and executive director Wang Jianchao is 57 years old, Conch Group deputy general manager Wang Pengfei is 59 years old, the general manager of Conch Cement, executive director Wu Bin is 56 years old, Conch Cement deputy general manager Ke Qiubi is 58 years old, the Conch Cement chief engineer of the process is happy to 59 years old.
In this regard, the aforementioned industry sources said: "Within five years, the main leaders of the Conch Group and Conch Cement are basically retiring, and these people are the company's founding elders. In the future, how to build the cadres of the old, middle and young cadres, will be the new leader of the problem of urgent consideration."