According to the annual report of Conch Cement in 2025, Conch Cement has made an outlook for 2026 and the company's response measures. The details are as follows:
2026 is the first year of the Tenth Five-Year Plan. The central government will adhere to the general tone of steady progress, give full play to the integrated effect of stock policy and incremental policy, increase counter-cyclical and cross-cyclical adjustment, and enhance the effectiveness of macroeconomic governance. On the demand side, the state will better play the key role of investment in expanding domestic demand, optimizing supply and benefiting people's livelihood, continue to implement more active fiscal policies, continue to support the implementation of major national strategies and the construction of secur ity capacity projects in key areas, and key infrastructure projects are expected to accelerate their landing, urban renewal and renovation of old houses. It is expected to continue to form a core supporting force for cement demand. On the supply side, the state continues to strengthen industry control at the policy level, and clearly proposes to comprehensively use capacity regulation, standard guidance, price law enforcement, quality supervision and other means to thoroughly rectify the "involution" competition; The Work Program for Steady Growth of Building Materials Industry (2025-2026), issued by the Ministry of Industry and Information Technology and other six departments in September 2025, calls for the prohibition of new cement clinker production capacity, the promotion of the unification of actual production capacity and record production capacity, and the exploration of the establishment of a green low-carbon transformation fund. Accelerating the withdrawal of inefficient production capacity by market-oriented operation, coupled with the normalization of peak staggering production and the "double carbon" policy, is conducive to optimizing the supply pattern to a certain extent, but the industry will still face the pressure of overcapacity as a whole. In terms of
operation and management, Conch Cement will further cultivate the market, improve quality and efficiency, and continue to promote lean management. Firstly, we should study and judge the changes of market supply and demand trends, accurately formulate domestic and foreign business strategies, stabilize the stock and expand the increment, continuously promote the optimization of product structure, the extension of industrial chain and the improvement of service quality, and comprehensively lay a solid market foundation. Secondly, the Company will optimize the management of key costs such as fuel and power, adapt to the changes in the supply and demand of the coal market, reasonably grasp the procurement rhythm and consolidate the strategic cooperation procurement, continue to improve the refined operation level of production lines, and further reduce the coal and electricity consumption indicators. Thirdly, we should systematically carry out carbon reduction and efficiency management, scientifically increase the proportion of alternative fuels, optimize the adjustment of energy structure, actively distribute national certified voluntary emission reduction (CCER) trading, and strive to convert carbon assets into carbon benefits through trading.
In 2026, Conch Cement plans to sell 260 million tons of cement and clinker products in the whole year, and it is estimated that the cost per ton of products and the cost per ton of products will remain relatively stable. In terms of
investment and development, Conch Cement will uphold the concept of effective investment and make every effort to promote the landing of the project. Firstly, the development of the main cement industry adheres to both domestic and international efforts, seeks opportunities for mergers and acquisitions in the domestic dominant market and blank market, and actively develops overseas target markets, strives to accelerate the landing of projects, and constantly improves the layout of domestic and foreign markets. The second is to extend the industrial chain in depth, steadily expand the high-quality production capacity of aggregate and commercial mix, and improve the quality of operation; vigorously cultivate the consumer building materials industry, accelerate the realization of full coverage of major domestic market areas, and comprehensively utilize the advantages of the industrial chain to build a "one-stop" comprehensive building materials service solution provider. The new energy industry will focus on the positioning of "zero-carbon park solution provider and clean energy supplier" to promote the development of photovoltaic and other new energy projects and expand the scale of green power. The environmental protection industry will deepen the synergy with the main cement industry, focus on the development of mature industries such as fly ash disposal, and extend the chain of resource utilization business such as construction waste.
In 2026, Conch Cement plans to spend 11.820 billion yuan in capital expenditure, mainly with its own funds, which will be mainly used for the development of major projects, the extension of upstream and downstream industrial chains, energy-saving and environmental protection technological transformation and the cultivation of new quality productivity.
In terms of innovation and transformation, Conch Cement will take innovation-driven and green transformation as its core engine to actively shape its future-oriented competitive advantage. On the one hand, we will continue to increase investment in scientific and technological innovation, relying on the rich business scenarios of Conch Cement, expand the application scenarios of AI model in building materials industry, and promote the refinement and greening of digital industry enabling production; On the other hand, we should actively respond to the strategic goal of "double carbon", accelerate the R & D and promotion of low-carbon cement, operate demonstration projects such as all-green power plants with high standards, expand the achievements of green mines and green factories, and transform green development into core competitiveness.
In 2026, Conch Cement may face the following three risk factors:
1. Risk of demand fluctuation. The cement industry in which the Company is located is highly dependent on the construction industry and is highly related to the growth rate of fixed asset investment and real estate investment. The slowdown in the growth rate of fixed asset investment and the continuous decline in real estate investment often have a negative impact on the cement market demand.
In view of the above risks, Conch Cement will pay close attention to the changes in the national macro-economy, strengthen the analysis of market supply and demand trends, accurately and effectively position its business strategy according to the situation, give full play to the marketing advantages of the whole cement industry chain, strengthen channel layout and terminal penetration, and constantly improve its market competitiveness.
2. Risk of intensified competition. In the current situation that cement demand continues to decline and overcapacity exists for a long time, if the contradiction between supply and demand intensifies, it will easily lead to low-price competition in the industry, and the company may face the risk of further increasing profit pressure.
In view of the above risks, the company will actively respond to the national "anti-involution" policy, strictly implement industry self-discipline, actively promote industry capacity, and jointly maintain a good industry ecology.
3. Pressure of environmental protection policy. The state will adhere to the "double carbon" guidance, promote comprehensive green transformation, further promote energy-saving and carbon reduction transformation of key industries such as cement and the use of clean energy, and drive the green low-carbon transformation and high-quality development of cement enterprises, which is expected to increase the production and operation costs of enterprises. At the same time, the cement industry will be included in the management of the national carbon emission trading market, which will bring carbon compliance costs to enterprises.
In view of the above risks, Conch Cement has always adhered to the green development concept of low-carbon environmental protection, orderly promoted the transformation of ultra-low emissions and energy saving and carbon reduction, accelerated the development and application of green low-carbon technologies, effectively reduced pollutants and carbon dioxide emissions, optimized the management of carbon assets, and actively distributed the national certified voluntary emission reduction (CCER) market. Carbon assets are converted into carbon benefits through trading.
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