The fourth season of Conch Cement is still elastic. Since the net profit for per ton of fourth season last year reached RMB 62, we think the fourth season of this year will be the same and the whole years’ net profit will reach a new peak.

  ① the demand end is obvious, the infrastructure and rural investment is the leading force of stabilizing the demand.

  ② the shrinkage of supply continues to be effective. In the short term, the autonomous kiln shutdown during good competition will prevail. And in the long term, the low-grade and outdated capacity will be eliminated.

  ③ the cement price in East China area have risen for two times and the total amount of increase from RMB 40-70. It is anticipated to be another price increase and the profit will be the same as last year.(translator:Huxiaohong)