Shangfeng Cement: Net profit of 173 million yuan in the first quarter, down 49.4% year-on-year

Shangfeng Cement disclosed a quarterly report on the evening of April 19. In the first quarter, it achieved operating income of 1.39 billion yuan, down 7.02% year-on-year; net profit of 173 million yuan, down 49.4% year-on-year; basic earnings per share of 0.18 yuan. Breakdown of

profit items:

1. During the period, the sales volume of the main products of cement building materials increased as compared with the same period last year. Among them, the production of Du'an Shangfeng in the southwest region increased the production capacity of cement, the sales volume of aggregates in the northwest region increased, and the selling price of cement products in the period was lower than that in the same period last year. The year-on-year increase in sales volume and the year-on-year decrease in selling price affected the change in total operating revenue. The unit manufacturing cost of cement products was basically the same as that of the same period last year, and the operating cost increased year on year due to the increase in sales volume of products.

2. The selling expenses, administrative expenses and financial expenses for the current period remained basically stable as compared with the same period last year, of which the selling expenses increased slightly, mainly due to the increase in sales volume of packaged cement, the packaging expenses were included in the impact, the administrative expenses were basically the same as the previous period, the total amount of financing for the current period increased, the interest expenses increased, but the interest income of the stock funds also increased. Total financial costs remained stable.

3. Other income was mainly composed of tax rebates for comprehensive utilization of resources and special government subsidies, both of which decreased year on year during the period.

4. Investment income and income from changes in fair value increased as compared with the same period last year, of which, investment income is the dividend income from investment activities, and income from changes in fair value is the floating profit of stock investment in the secondary market.