Shangfeng Cement: Have confidence in the development trend of the industry in the second half of the year

On July 1, Shangfeng Cement responded to investors'concerns about the industry market and aggregate business on the investor relations platform.

With regard to the future development, Shangfeng Cement said that the recent policy level requires the investment side to exert its strength, and the issuance of ultra-long-term treasury bonds and local bonds guarantees the capital demand of infrastructure projects; in terms of industry, the self-discipline consciousness of anti-involution is gradually enhanced and landed; in terms of cost, the price of coal and raw and auxiliary materials is gradually declining, which is conducive to the continuous optimization of cost; In addition, the resources, manufacturing and consumption terminals of the cement industry are mainly in the domestic market, which is basically not affected by the tariff trade war; therefore, we are generally confident about the development trend of the industry in the second half of the year. In terms of

aggregates, Shangfeng Cement said that the company's sand and gravel aggregates mainly rely on the limestone mine resources owned by the clinker bases. Since the large-scale development of the business in 2019, the annual production capacity has steadily increased to about 18 million tons. According to the company's five-year development plan, the total annual production capacity will be gradually increased in the future according to the market conditions and resource reserves of each district and city.