1. Strategic transformation and business layout remodeling
during the "14th Five-Year Plan" period In 1994, Lanxi No.6 Cement Plant was established, which opened the prelude to the development of Red Lion Holding Group. From 1995 to 2000, it mainly focused on project construction, operation, management and capital accumulation. After entering the new century, Red Lion has started a large-scale expansion. During the "Tenth Five-Year Plan" period, with Jinhua Lanxi as its base, it began to penetrate the Zhejiang market, expand its production bases in Hangzhou, Lishui, Quzhou and other places, and set up the Red Lion Holding Group during this period to effectively integrate resources and lay the organizational foundation for further expansion. During the "Eleventh Five-Year Plan" period, Red Lion gradually established the strategy of "going out of Zhejiang and developing across provinces", and successively acquired and established clinker production lines in East China, Jiangxi, Fujian and Southwest Yunnan, Guizhou and Sichuan, and became the tenth largest cement enterprise in China. After entering the "Twelfth Five-Year Plan", the contradiction of domestic overcapacity has become increasingly prominent, Red Lion slowed down the pace of domestic expansion, and began to implement the "going out" strategy. China will open up markets in Guangxi and Hunan in the central and southern regions, and in Xinjiang and Gansu in the northwest. It will also investigate the markets in Southeast Asia and carry out preparatory work. During the "13th Five-Year Plan" period, the demand for cement entered a plateau period, and the domestic market was basically developed. Red Lion built a closed-loop value chain around its main business, created a "cement ecosphere", promoted the construction of overseas projects, and did a good job in financial asset allocation. In the overseas market, the production lines in Laos, Nepal, Indonesia and other places were constructed and put into operation successively. In the domestic market, the main cement business continued to expand, and the asset allocation, environmental protection business and trading business developed simultaneously. During the "14th Five-Year Plan" period, the demand for cement entered a downward period. After two years of exploration, Red Lion finally established the dual main business pattern of "cement + polysilicon" in 2023, created the development direction of the group's "second growth curve", and realized the transformation of development strategy.
Table 1: Evolution
of Red Lion's Development Strategy in Different Periods Source: Cement Big Data Research Institute
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