en.Wedoany.com Report on Mar 26th, Facing the industry's winter in 2025, where China's cement output fell by 6.9% year-on-year, Conch Cement delivered a report card of counter-trend growth by leveraging extreme cost control and industrial chain extension. The annual report released on the evening of March 24th shows that the company achieved annual operating revenue of 82.532 billion yuan, a decrease of 9.33% year-on-year; however, net profit attributable to shareholders grew by 5.42% year-on-year to 8.113 billion yuan. Against the backdrop of pressure on its core cement business, the "cement+" businesses, represented by aggregates, have become a critical pillar supporting the company's profit resilience.

Aggregate Capacity Exceeds 180 Million Tons, 9 Major Projects Intensively Commence Operation

As a core direction for the company's industrial chain extension, Conch Cement's aggregate business achieved dual breakthroughs in scale and layout in 2025. The annual report shows that as of the end of the reporting period, the company's aggregate capacity had reached 180 million tons. During the year, 9 aggregate projects, including those in Zongyang and Yingde, were successively completed and put into operation, further solidifying the company's resource layout in core markets such as East China and South China.

Thanks to scale advantages and low-cost control capabilities, the aggregate business has continuously contributed substantial profits to the company. Although affected by market supply-demand fluctuations, the gross margin of this business declined year-on-year, it remained high at 40.13%, a decrease of 6.78 percentage points compared to the same period last year, significantly higher than the gross margin level of the core cement business. The annual report explicitly states that the aggregate business "remains an important source of the company's high gross margin."

"Cement+" Strategy Advances In-Depth, Synergy Effects Become Prominent

The rapid expansion of the aggregate business epitomizes Conch Cement's "cement+" industrial chain extension strategy. In the context of cement demand plateauing and intensifying industry competition, the company has built a full industrial chain advantage from basic building materials to terminal services by vigorously developing aggregates, ready-mix concrete, and consumer building materials.

In 2025, the company not only added 9 aggregate projects but also simultaneously added 22 ready-mix concrete stations and put 13 dry-mix mortar/tile adhesive projects into operation. This series of deployments ensures that the aggregate business is no longer an isolated raw material link; instead, it synergizes with cement and ready-mix concrete. Through comprehensive resource utilization and channel sharing, it effectively hedges against the cyclical fluctuations of the single cement business and enhances the company's integrated service capabilities in regional markets.

Another 11.820 Billion Yuan Investment in 2026, Aggregate Layout Continues

Looking ahead to 2026, Conch Cement's pace of industrial chain extension has not stopped. According to the plans disclosed in the annual report, the company plans capital expenditures of 11.820 billion yuan for the full year, focusing on core business M&A, overseas expansion, low-carbon technological upgrades, and industrial chain extension areas such as aggregates, ready-mix concrete, and consumer building materials.

This clear direction of capital expenditure indicates that the aggregate business will continue to serve as a key growth engine for the company's future. By continuously expanding aggregate capacity and optimizing regional layout, Conch Cement is accelerating its transformation from a traditional cement producer to a "one-stop" comprehensive building materials service provider, laying a solid foundation for navigating industry cycles and achieving high-quality development.