Huaxin Cement: We Should Pursue Income and Price When Market Demand Declines

Recently, Huaxin Cement released the Record of Investor Relations Activities of Huaxin Cement Co., Ltd. to answer questions of concern to investors.

Question: In the fourth quarter of last year, the industry resumed price smoothly. How can industry maintain the price when the demand continues to decline this year?

Huaxin Cement: Huaxin has always adhered to the concept of "profit is the goal, income is the foundation". When the market demand increases, it is understandable to pursue share, but when the market demand declines, we should pursue income and price, otherwise the loss of both volume and price will be more. In

this year's Report on the Work of the Government, it is clearly mentioned again that the involution competition should be rectified, and the relevant ministries and commissions of the state also require strict regulation of the operation of cement production capacity. In addition, the new industrial policy has begun to dilute the off-peak production, which is more about regulating production capacity, energy consumption and emissions.

In 1999, there were about 10,000 cement enterprises with different legal persons in China. At present, there are about 300 enterprises with cement clinker production lines under the same legal person. In the future, the number of enterprises with cement clinker production lines in China may be merged to about 30, or even less.