Tianshan shares issued 2025 annual performance forecast

Tianshan shares issued a performance forecast on the evening of January 30, predicting a net profit loss of 6 billion to 7.5 billion yuan attributable to shareholders of listed companies in 2025. The net profit loss attributable to shareholders of listed companies in the same period last year was about 598 million yuan. The main reasons for the changes in

performance are as follows:

1. Main business: In 2025, the national cement market showed a trend of "weak price reduction and pressure on efficiency". Affected by the reduction of real estate investment and the growth rate of fixed asset investment from positive to negative, the demand for cement continued to decline. In 2025, the cement output of enterprises above the national scale was 1.693 billion tons, down 6.9% from the same period last year. During the

reporting period, the Company continued to focus on the development of the main business, optimized the production organization mode, improved the technical and economic indicators, comprehensively promoted the optimization and upgrading, reform and innovation, and actively promoted the international development layout, resulting in an increase in both international revenue and profit. Deepening and strengthening cost control, the price of coal and other major raw materials decreased year-on-year, the comprehensive cost of cement clinker decreased year-on-year, the sales volume decreased, and the comprehensive gross profit of cement clinker increased year-on-year; Affected by the decrease in raw material prices, the cost of commercial concrete decreased, the decrease in unit cost was higher than decrease in unit selling price, and the gross profit increased year-on-year. Affected by the decrease in sales volume and selling price of aggregates, the gross profit decreased year-on-year.

2. Impact of provision for impairment: According to relevant policy documents such as the "Work Plan for Steady Growth of Building Materials Industry (2025-2026)" in 2025 and the actual situation of the Company, the Company carried out capacity replacement of its production lines, involving the withdrawal of production capacity of some production lines. The Company engaged an appraisal agency to conduct an impairment test on the above assets with capacity withdrawal and other non-current assets with possible signs of impairment, and is currently carrying out relevant work. According to preliminary estimation, the estimated amount of impairment is between 4.2 billion yuan and 5.7 billion yuan, and the final amount is subject to the 2025 annual report officially disclosed by the Company.