Every 100 yuan/ton fluctuation of coal will affect the cost of cement by about 10 yuan/ton.

Recently, Tapai Group issued a notice disclosing its acceptance of a survey by investors such as Shanghai Pudong Development Bank Co., Ltd. on August 7, 2025. Lai Hongfei and Song Wenhua, directors of the company, participated in the reception and answered the questions raised by investors in detail. The survey focused on the company's business situation, future development plans and industry trends in the first half of 2025, fully demonstrating the company's operating results and coping strategies in a complex market environment.

Q: We are concerned about the recent signs that coal has stopped falling and rebounded. How long is the period from coal purchase to use, how long is the period of cost transmission, and whether the cost of coal can still contribute to the cost of the third quarter?

Answer: Our coal procurement cycle is about one and a half months. The impact of coal price changes on cement costs usually lags behind by 2-3 months, that is, the current coal price purchased will be reflected in the results of the next 2-3 months, and the coal purchased in early June will be reflected in the results of the third quarter. Every 100 yuan/ton fluctuation of coal will affect the cost of cement by about 10 yuan/ton. As the coal price is still relatively low in early June, this part of the coal purchased by the company will be put into use in the third quarter of production, which is expected to contribute to the cost reduction. We judge that the coal price is easy to rise and difficult to fall in the near future. Recently, the company has increased its purchases according to the fluctuation of the coal market to ensure the steady decline of the company's cost.