Shao Jun, Founder and Chairman of China Cement Network, Visited Red Lion Group

On April 18, Shao Jun, founder and chairman of China Cement Network, visited Red Lion Holding Group Co., Ltd. and was warmly received by Zhang Xiaohua, chairman of Red Lion Group.

Zhang Xiaohua warmly welcomed Shao Jun and his delegation, thanked China Cement Network for its long-term support to Red Lion Group, and the two sides conducted in-depth discussions on the development trend of the cement industry. During the

exchange, Zheng Jianhui, the head and senior analyst of the Cement Big Data Research Institute, first shared the relevant data and research results of the cement industry, pointing out that investment is still an important driving force for the economic recovery in 2023, and that the fluctuation of cement demand has narrowed throughout the year. It is expected that the cement price in the fourth quarter will turn positive year on year, the annual average price will be lower than level in 2022, and the cost of cement per ton is expected to fall again, and the profit of the whole industry is expected to improve.

Zhang Xiaohua agrees with the research results of China Cement Network. He believes that it is optimistic to predict that cement sales will be flat to 5% year-on-year growth this year. Cautiously, cement sales will fall by 3% -5% year-on-year this year. On the market side, the second quarter will be better than first quarter, and the second half will be better than first half. It is hoped that the profits of the whole industry will increase by more than 50% year on year this year. Zhang Xiaohua, chairman of

Red Lion Group, Shao Junzhang

Xiaohua, founder and chairman of

China Cement Network, said that in the future, when the demand for cement is gradually declining, how to achieve the reduction without reducing profits requires the joint efforts of the whole industry. In this regard, he mentioned three measures: the first is to increase the intensity of peak staggering and effectively change the supply relationship; the second is to promote the "docking of large and small kilns", improve the efficiency of large and small kilns, and achieve a win-win situation; the third is to do a good job in the cancellation of production capacity, and speed up the withdrawal of small and medium-sized enterprises.

In addition, Zhang Xiaohua also introduced the development and objectives of Red Lion Group in detail during the exchange. The development strategy of Hongshi Group is to enter the polysilicon industry based on the main cement industry. The main business of cement should focus on strengthening, supplemented by expanding, looking inward, practicing internal skills, technology-driven, achieving endogenous growth, creating sufficient cash flow, and providing sufficient financial support for crossing the cement industry cycle and entering the polysilicon industry. The polysilicon industry has accelerated its layout, formed its scale, and constructed a dual-industry pattern of "cement + polysilicon".

Shao Jun expressed his appreciation for the rapid growth of Red Lion Group, and both sides expressed that they should strengthen cooperation in the future to jointly promote the high-quality development of the cement industry. Also

participating in the exchange were Zhang Jian, General Manager of Marketing Department of Red Lion Group, Guo Zhanghua, General Manager of Technical Center, Li Ping, Deputy General Manager of Administration and Personnel Department, Guo Yi, Assistant General Manager of Marketing Department, Jin Lizhen, Deputy Director of Management Research and Marketing Department of Marketing Department, and Jiang Xun, General Manager of China Cement Network.