Shangfeng Cement: the gross profit of cement in the first three quarters is about 55 yuan/ton

On October 28, Shangfeng Cement released a record of investor relations activities. In terms of

main business, Shangfeng Cement said that the company produced 11.0862 million tons of clinker and 11.1708 million tons of cement in the first three quarters; In the first three quarters, the total sales volume of cement and clinker was 14.15 million tonnes, representing a year-on-year decrease of 6.21%. In terms of the selling price of major products, the average unit selling price of clinker increased by 1.14% as compared with the same period last year, while the average unit selling price of cement products decreased by 3.50% as compared with the same period last year. In the first three quarters, the Company continued to promote the construction of cost control capacity and effectively implemented various cost control measures, resulting in a year-on-year decrease in controllable manufacturing costs, of which, the controllable cost of clinker decreased by 5.59 yuan/ton and the controllable cost of cement products decreased by about 2.97 yuan/ton.

As for the impact of the conference on the steady growth of the cement industry, Shangfeng Cement said that it would clearly take the Work Program for the Steady Growth of the Building Materials Industry (2025-2026) as the guide, take marketization and legalization as the direction, and solve the industry problems through three measures:

First, strictly prohibit new production capacity and curb excess supply from the source;

Second, standardize the existing production capacity, requiring key enterprises to formulate a replacement plan for excess production capacity by the end of 2025, so as to achieve the unification of actual and registered production capacity;

third, eliminate backward production capacity, optimize the industrial structure, improve the quality and efficiency of the industry, and promote the smooth operation and upgrading of the industry.

With regard to the gross profit per ton of cement, the company's gross profit per ton of cement in the first three quarters was about 55 yuan/ton , which continued to maintain a good level in the industry. This year, the company continued to promote "increasing income, reducing costs, controlling costs and increasing efficiency", focusing on both operation and management, doing a good job of fine operation, and continuing technological innovation. Especially the benchmarking of energy consumption, the substitution of fuel and raw materials, the optimization of production system and the technical transformation of equipment. At present, the company's cost competitiveness and gross margin remain at the leading level in the industry.

As for the target of cement cost reduction in 2026, Shangfeng Cement said that the target of 2026 has not yet been set . Overall, it will continue to optimize production cost management, reduce sales costs and control financial costs . In the first three quarters of 2025, the controllable cost of clinker decreased by 5.59 yuan/ton compared with the same period last year, and the controllable cost of cement products decreased by 2.97 yuan/ton. In terms of

future strategic planning, Shangfeng Cement said that at the current stage, the company will moderately increase the investment accumulation of equity investment business to form a new business development platform; At the same time, based on the improvement of the efficiency and competitiveness of the existing industrial chain of the main and auxiliary industries, the Company will form a two-wheel-driven, complementary and balanced business pattern of the building materials industry chain and the equity investment business chain.

In the future, the Company will continue to focus on improving the quality and efficiency of the main industry while steadily deepening the equity investment in accordance with the guidance of the new round of five-year plan. Choose the opportunity to enhance the overall scale strength, competitiveness and influence of the existing two major businesses by combining industry and capital, and at the same time accumulate resources and make full preparations to focus on cultivating and promoting the formation and growth of new business transformation. Through about five years of resource accumulation and efforts, we strive to cultivate new businesses that support the second growth curve of Shangfeng. To form a "troika" composed of new material growth business, building material cornerstone business and equity investment capital business, to coordinate and complement the sharing of comprehensive resources, and to maintain the overall pattern of stable growth and development.