Shangfeng Cement: Cost Control Level Maintains Strong Industry Competitiveness

Recently, Shangfeng Cement released a record of investor relations activities on cost control measures and how much room for future decline.

Shangfeng Cement said that the company has always focused on cost control and optimization in its production and operation. At present, the company's cost control level has maintained a strong competitiveness in the industry. In 2024, the operating cost of the company's main building materials industry decreased by 9.50% compared with the same period last year, and the comprehensive operating interest rate of 26.16% continued to maintain the leading level in the industry. In 2024, the standard coal consumption and power consumption per ton of clinker in the core indicators of the company's main products will continue to decline steadily, and the application of new technologies such as raw material substitution and fuel substitution will further optimize the company's cost control ability, which still has a large room for optimization. Later, with the price of the main products rising, the benefits will be clearly reflected. In terms of cost control, the controllable management costs in 2024 have decreased significantly. With the gradual and precise implementation of the Company's budget management and refined management, as well as the continuous optimization of the financing structure, the Company's cost control capability will be further enhanced.

In addition to the cost factors affected by the decline in coal prices, in 2025, the Company will strive to achieve controllable costs through refined management. The comparable caliber of clinker cost will be reduced by 5.0 yuan/ton compared with the previous year, and the comparable caliber of cement product cost will be reduced by 3.0 yuan/ton compared with the previous year. In addition, the company's early layout of new energy business is mainly aimed at empowering the main industry and reducing the cost of electricity and energy in the main industry. The company has accumulated certain green power indicators, and made a series of deployment arrangements for future carbon asset management, and the effect of energy cost reduction and quality improvement will be gradually reflected.