In order to pursue growth and become one of the top ten cement companies in the world, TCC has recently stepped up its mergers and acquisitions. In addition to merging companies from southern and southwestern China, it is also expected to conduct mergers and acquisitions or build plants in overseas regions such as India and Europe in the future. It is reported that TCC's total annual cement production in China is currently 55 million tons, which will increase to 100 million tons by 2016.
Regarding the fact that the price of TCC’s purchase of TCC International is high, he pointed out that in terms of price-earnings ratio, TCC International has been 6 to 8 times in recent years, and its price-to-book ratio is 0.6 times. If the purchase price of 3.9 yuan per share is paid to the remaining shareholders, the price-earnings ratio is about 9 times, and the price-to-book ratio is 0.8 times. The price is lower than that of many cement companies listed in Hong Kong, such as Conch Cement (00914) and Sinoma International. (01893) and China Resources Cement (01313), but both are better than other listed cement companies. He believes that the above-mentioned three companies are all state-owned enterprises, so after estimation by TCC, the purchase price is considered reasonable.