Tapai Group: Some Enterprises in Guangdong Have Large Overproduction in the First Three Quarters and Limited Output in the Fourth Quarter

Recently, in response to questions from investors, Tapai Group said that according to the feedback from the Central Environmental Protection Supervision Group and the rectification requirements of Guangdong Province, the annual output of cement clinker production lines in the province should not exceed the annual record capacity. At the beginning of each month, enterprises should report data to the Bureau of Industry and Information Technology, and finally collect them to the Provincial Office of Industry and Information Technology, which is more strictly enforced. In the first three quarters, some leading enterprises overproduced by a large margin, which reduced the production margin in the fourth quarter and improved the supply-demand relationship in stages.

The company has two complementary capacity projects (Huizhou Tapai from 2.7 million tons to 3.2 million tons; The two 10,000-ton lines of Jiaoling Branch are supplemented from 6 million tons to 7 million tons, totaling 1.5 million tons). According to the policy, the enterprise can only be put into operation after the transformation of ultra-low emission and the achievement of A-level environmental protection performance. It is estimated that the A-level environmental protection performance will be achieved in early 2028, and the company will speed up the bidding efficiency. Considering the Company's existing registered production capacity and the continuous decline in cement demand next year, the registered production capacity of the existing production line is 11.4 million tons of clinker per year, which can produce about 15.2 million tons of cement. With the normal inventory, it is estimated that it can basically meet the market demand and will not affect the sales volume. The Company will strive to achieve the goal of outperforming the market in terms of sales volume.