Northern Cement: Strive to create new advantages and win the initiative in the deep adjustment period of the industry

the work

in 2025 is the steady improvement of business performance. Faced with the severe market environment, we resolutely implemented the core task of turning around losses and extricating ourselves from difficulties, comprehensively implemented the "16-character" management policy, successfully stabilized the basic market, achieved a substantial reduction in total profits and a historic breakthrough in manufacturing costs.

Second, progress has been made in market balance. Deepening the ecological construction of the industry, actively implementing peak-shifting production, promoting the balance of regional supply and demand and the orderly flow of clinker , actively exploring overseas markets, and achieving breakthroughs in foreign trade sales.

Third, the cost continues to deepen. Through comprehensive measures such as technological transformation, centralized procurement and logistics optimization, production costs have been effectively reduced, key energy consumption indicators have been continuously improved, and the competitiveness of enterprises has been enhanced.

Fourth, the personnel structure is constantly optimized. The implementation of organizational structure and personnel optimization has significantly improved labor efficiency, improved personnel training and incentive mechanism, strengthened the selection and professional training of young cadres, and further stimulated the vitality of the team.

Fifth, the disposal of assets has achieved remarkable results. We will promote the classified evaluation and disposal of inefficient and ineffective assets to realize the return of funds and the improvement of efficiency. We will actively carry out the internal allocation of equipment and the leasing and utilization of idle real estate, promote the efficient reuse of existing resources, and provide strong support for improving cash flow and optimizing the asset structure. The working measures

in 2026 are guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, in-depth study and implementation of the spirit of the 2026 working conference of China Building Materials Group and Tianshan Materials, and unswervingly implement the management concept of "price, cost and profit" around the goal of "1211" of northern cement. Strive to create new advantages and win the initiative in the period of deep adjustment of the industry, and lay a solid foundation for creating a new situation of higher quality and more sustainable development of the company.

First, we should deepen market operation and make every effort to stabilize the basic market. Adhere to the concept of "cost and profit", strictly implement the rigid off-peak production, promote the dynamic balance of regional supply and demand; consolidate the core market profit area, actively expand foreign trade and emerging application markets, ensure the completion of the annual sales target, and achieve a reasonable rebound in sales prices.

The second is to focus on system cost reduction and optimize operation indicators in an all-round way. We will promote production process innovation and technological transformation, strictly control key production indicators such as coal consumption and power consumption, deepen strategic direct mining, expand cost-effective resource channels, optimize logistics structure, reduce operating costs, strengthen comprehensive budget and capital control, and improve the efficiency of cost use.

Third, optimize organizational efficiency and stimulate the vitality of the talent team. We should scientifically implement the optimization of organizational structure and post setting, establish an efficient and coordinated operation mechanism, speed up the construction of young and professional cadres, improve the talent system of "selection and use", strengthen the performance orientation, and promote the continuous optimization of personnel structure and the improvement of labor productivity.

Fourth, speed up the revitalization of assets and improve the cash flow of enterprises. We will spare no effort to promote the disposal of inefficient and ineffective assets and problems left over by history, explore the path of asset integration and capital operation, carry out in-depth collection of creditor's rights, establish a long-term debt clearance mechanism, promote the transformation and upgrading of commercial mixed business, and cultivate the "second curve" of growth.

Fifth, we should strengthen the leadership of Party building and ensure stability and long-term development. Promote the deep integration of Party building and production and operation, and put the Party's leadership into all aspects of reform and development; deepen the comprehensive strict management of the Party, strengthen discipline construction and style construction, create a good atmosphere full of integrity and responsibility, and ensure the high-quality development of enterprises with high-quality Party building.