Tapai Group: After September, Demand Is Expected to Rise Gradually and Prices Get Strong Support

On September 15, Tapai Group held a performance presentation to answer questions from investors. In terms of

cement prices , Tapai Group said that in early September, the Pearl River Delta market experienced a round of price increases, and the market prices in eastern Guangdong remained stable. After entering September, the cement industry in the southern region has entered the traditional peak sales season. With the improvement of weather and the resumption of construction activities, the market demand is expected to gradually pick up, and the cement price is expected to be strongly supported after the demand rises. The follow-up trend still needs to pay attention to the self-discipline implementation of peak staggering production in the industry and the trend of coal prices.

Regarding "stabilizing the main business" and "expanding the new Bureau", Tapai Group said that in terms of "stabilizing the main business", the company adheres to the principle of "attaching importance to both quantity and price", pursues maximum benefits on the basis of consolidating market share, continuously reduces costs and increases efficiency, and strives to win the market in terms of sales and profits throughout the year; On the one hand, it pays attention to the merger and acquisition opportunities of production lines with market synergy effect and the opportunities of going to sea with benefits; on the other hand, it actively cultivates the second main business and strives to make the environmental protection business of co-disposal of solid waste in cement kilns into the second profit source ; In addition, it is also actively looking for high-quality industrial investment projects and financial investment projects suitable for the development of enterprises. In terms of

cost, Tapai Group responded that, combined with limestone transportation distance difference, management cost, financial burden and other factors, the company's cost is expected to be more than 10 yuan/ton ahead of the cost of the same industry in the region. Shut down low-quality enterprises and continue to consolidate the company's cost advantage. We believe that it will be a long-term and gradual process to rely solely on the mechanism of market survival of the fittest to clear excess capacity.