[Special Topic] Comprehensive Review of Three Quarterly Reports of Listed Companies in Cement Industry in 2023

In the first three quarters of

2023, affected by the continuous adjustment of real estate, the demand for cement was weak and the industry was in a downturn. In the first quarter, the downstream resumption of work was still good, and the overall demand was better than same period. In the second and third quarters, "the peak season was not strong, and the off-season was weaker", the demand weakened significantly, coupled with the fierce market competition, the cement price continued to decline. In the first three quarters, the national cement output was 1.495 billion tons, down 4.32% year-on-year, and the output hit a new low in the past 13 years. In terms of benefits, due to the deep decline in cement prices and the decline in demand, the benefits of the industry have shrunk dramatically, and the loss of cement enterprises has exceeded half. In terms of terminal downstream infrastructure projects and real estate in the

cement industry, the investment in fixed assets (excluding farmers) in the first three quarters of 2023 amounted to 37.5 trillion yuan, an increase of 3.1% over the same period last year, of which the investment in real estate amounted to 8.73 trillion yuan, a decrease of 9.1% over the same period last year. The continuous decline in real estate investment has caused a greater drag on the demand for cement.

At present, there are 22 cement listed companies in Hong Kong and Shanghai and Shenzhen, of which 7 are in Hong Kong, 15 are in Shanghai and Shenzhen, and 19 have announced their business performance in the third quarter.