Improve the layout of the main business and seek opportunities for mergers and acquisitions! Conch Cement Second Half Plan Announced

Conch Cement disclosed its semi-annual report on the evening of August 26. In the first half of 2025, the company realized business income of 41.292 billion yuan, down 9.38% from the same period last year; In the first half of

2025, facing the severe and complicated market environment, Conch Cement adhered to the goal of leading, actively responded to the adverse effects of insufficient demand, intensified competition and repeated market, strengthened overall management, strived to open up the market, and promoted the operation to reduce costs. In terms of the

main cement business, the Company successfully signed the contract for the Yaobai Project in Xinjiang, which further improved the regional market layout. The development of overseas projects has been steadily promoted, and the acquisition of West Papua Conch has effectively enhanced the company's market competitiveness in Indonesia. Cambodia's Conch Phnom Penh produces 5,000 tons of cement per day industry chain development." Build and expand 4 aggregate (machine-made sand) projects, and add 8 commercial concrete projects through leasing and commissioned processing; At the same time, we accelerated the development of consumer building materials business and clean energy development, completed three dry-mixed mortar and ceramic tile glue projects, grid-connected Pingliang New Energy 100 MW Wind Power Project and Changjiang Plastic Products and other photovoltaic projects, and successfully started the new energy storage project in Naiman Banner, Tongliao City, Inner Mongolia. In terms of

new production capacity, in the first half of the year, the new clinker production capacity was 1.8 million tons (overseas), the new cement production capacity was 4 million tons, the new aggregate production capacity was 3.5 million tons, the commercial concrete production capacity was 5.25 million cubic meters, and the new energy power generation installed capacity was 200 MW.

First, strengthen the study and judgment of the relationship between supply and demand in the market." Implement the marketing strategy of "one district, one enterprise, one policy, differential policy" , implement the policy requirements of "anti-involution", and actively respond to industry self-discipline; And actively promote the "cement +" integrated sales , through optimizing sales services, providing systematic solutions and other ways to enhance the advantages of non-price competitive means, to create the preferred brand of customers.

Second, we should persist in tapping potential and increasing efficiency, give full play to the comparative advantages of procurement, make overall use of domestic and foreign coal resources, and continuously increase the proportion of direct supply of raw materials and the proportion of alternative fuels.

Thirdly, we should strengthen the management and control of all aspects of production and operation, focus on key indicators, optimize process parameters, and promote the quality and efficiency of production and operation.

Fourth, promote technological upgrading and transformation, development and application of new technologies and transformation of innovative achievements, comprehensively improve the level of safety and environmental protection management, further strengthen the construction of compliance management system, optimize and improve the decision-making mechanism, and continue to promote the smooth and orderly operation of enterprises. In terms of

investment and development, the Group will focus on effective investment and strengthen its core business.

Firstly, we should focus on the main business, seize the opportunity period of market integration in the domestic cement industry, seek opportunities for mergers and acquisitions from the perspective of improving the layout of the main business and enhancing market control, accelerate the pace of oversea s development, actively seek high-quality project carriers, speed up the demonstration of the feasibility of potential project development, and promote the development of domestic cement industry. Strive for the early landing of overseas incremental projects.

The second is to extend the upstream and downstream industrial chain in depth, accelerate the early production of aggregate projects under construction, accelerate the layout of commercial mixed industries in central cities, and promote the development of consumer building materials from point to area to form a scale.

Third, adhere to the new format development scale and quality , the digital industry will continue to tackle key technologies, play an active role in the company's digital transformation, and enhance the external market competitiveness; The new energy industry focuses on the positioning of "zero (low) carbon solution" provider, deeply explores the internal new energy application scenarios, expands the scale of green power, and strives to build a full green power demonstration plant; the environmental protection industry focuses on the main business, and explores the new market of non-cement kiln disposal of solid hazardous waste in central cities.