Shangfeng Cement: The cement industry has resumed its upward trend, and the overall outlook for the late market trend is optimistic.

On August 28, Shangfeng Cement released a record of investor relations activities. In terms

of anti-involution, Shangfeng Cement said that on July 18, 2025, the relevant person in charge of the Ministry of Industry and Information Technology said at a press conference held by the State New Office that the Ministry of Industry and Information Technology would soon issue a work programme for the steady growth of ten key industries, such as iron and steel, non-ferrous metals, petrochemical and building materials, and that the Ministry of Industry and Information Technology would promote key industries to focus on restructuring, optimizing supply and eliminating backward production capacity. We have also noted the "Opinions on Promoting Green and Low Carbon Transformation and Strengthening the Construction of the National Carbon Market" forwarded by Xinhua News Agency. The overall goal of the carbon market is to shift from intensity control to total amount control in 2030. The cement industry will moderately consider tightening the total amount in 2027, and adjust the total amount control of the cement industry in top-level design. This series of policies will strengthen the marketization of the cement industry, promote the withdrawal and clearance of inefficient production capacity, and ultimately benefit the cement industry. Of course, these documents and policies will be implemented smoothly in a period of time, and they also have certain adaptability for enterprises. In terms

of peak-shifting, the peak-shifting production in East China in 2025 was earlier and longer than shutdown time in 2024. Affected by this, cement prices in many places in East China have risen slightly recently. At present, the current regional inventory is low, cost support is still in place, coupled with the traditional peak season approaching, the market bullish sentiment is strong.

For the future outlook, Shangfeng Cement said that after years of competition, the cement industry is relatively stable. Affected by the downturn of the real estate market and some regional infrastructure demand in the early stage, a large number of enterprises in the industry lost money last year, and the market has been running at the bottom for some time. With the replacement of production capacity and the gradual implementation of the "double carbon" policy, the steady increase of industry concentration, as well as the construction of the western super project and other factors, the prosperity of the cement industry has resumed its upward trend. But there are already parts of the region that are moving in a better direction.