Core Viewpoint - Tianshan Co. stated on October 20 that shareholder information outside of regular reporting periods is not mandatory for disclosure, and the company will provide such information in regular reports to ensure fairness for investors [1] Group 1 - The company responded to investor inquiries on an interactive platform regarding shareholder information disclosure [1] - Tianshan Co. emphasized adherence to information disclosure regulations [1] - The company aims to maintain fairness in information access for investors [1]

Market Overview - The cement sector increased by 0.24% on October 20, with Hanjian Heshan leading the gains [1] - The Shanghai Composite Index closed at 3863.89, up 0.63%, while the Shenzhen Component Index closed at 12813.21, up 0.98% [1] Individual Stock Performance - Hanjian Heshan (603616) closed at 5.30, up 2.51% with a trading volume of 105,700 shares and a turnover of 55.47 million yuan [1] - Fujian Cement (600802) closed at 5.75, up 1.77% with a trading volume of 187,500 shares and a turnover of 108 million yuan [1] - Other notable performers include Sanhe Yingshao (003037) at 8.00 (+1.65%), Longquan Co. (002671) at 5.09 (+1.19%), and Xibu Construction (002302) at 6.97 (+1.16%) [1] Capital Flow Analysis - The cement sector experienced a net outflow of 121 million yuan from institutional investors, while retail investors saw a net inflow of 102 million yuan [2] - The overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors are actively buying [2] Detailed Capital Flow for Selected Stocks - Conch Cement (600585) had a net inflow of 18.35 million yuan from institutional investors, but a net outflow of 5.47 million yuan from retail investors [3] - Jinyu Group (000401) saw a significant net inflow of 10.42 million yuan from institutional investors, while retail investors had a net outflow of 13.28 million yuan [3] - Qing Song Jianhua (600425) reported a net inflow of 8.90 million yuan from institutional investors, with retail investors also experiencing a net outflow of 12.95 million yuan [3]

Core Viewpoint - Tianshan Co., Ltd. has experienced a decline in stock price recently, with a year-to-date increase of 10.25% but a notable drop of 6.02% in the last five trading days [2][3]. Group 1: Stock Performance - As of October 20, Tianshan's stock price was 6.24 CNY per share, with a market capitalization of 44.369 billion CNY [1]. - The stock has seen a year-to-date increase of 10.25%, but has declined by 6.02% over the last five trading days and 5.02% over the last 20 days [2]. - The stock has been on the "龙虎榜" (a stock trading list) once this year, with the last appearance on July 23, where it recorded a net buy of -295 million CNY [2]. Group 2: Financial Performance - For the first half of 2025, Tianshan reported a revenue of 35.98 billion CNY, a year-on-year decrease of 9.37%, while the net profit attributable to shareholders was -922 million CNY, an increase of 73% year-on-year [3]. - The company has distributed a total of 8.718 billion CNY in dividends since its A-share listing, with 3.327 billion CNY distributed in the last three years [4]. Group 3: Shareholder Information - As of June 30, 2025, Tianshan had 77,900 shareholders, an increase of 6.08% from the previous period, with an average of 91,309 circulating shares per shareholder, up by 267.85% [3]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 27.8878 million shares, a decrease of 9.846 million shares from the previous period [4]. Group 4: Business Overview - Tianshan Co., Ltd. is primarily engaged in the production and sale of cement, clinker, ready-mixed concrete, and aggregates, with revenue composition as follows: 63.16% from cement and clinker, 28.24% from ready-mixed concrete, 5.55% from aggregates, and 3.05% from other sources [2]. - The company is classified under the building materials industry, specifically in cement manufacturing, and is associated with concepts such as the Kashgar Planning Area and state-owned enterprise reform [2].

Summary of Conference Call on Aluminum and Copper Market Dynamics Industry Overview - The current copper-to-aluminum ratio is at a historical high of approximately 4.2 times, with expectations for a correction during the latter part of the interest rate cut cycle, suggesting aluminum may replicate copper's upward trend over the next three to five years [1][2][8] - The aluminum sector is currently undervalued, with an average dividend yield of 5-10% and a price-to-earnings (PE) ratio of 8 times, projected to rise from 8-9 times to 10-15 times by 2026, potentially doubling or more [1][2][15] Key Insights and Arguments - The inflation cycle typically sees gold leading, followed by silver, then copper and aluminum; thus, aluminum, which is currently at a low price point, should be a focus [1][3] - The average valuation metrics for the non-ferrous metals sector include a price-to-book (PB) ratio of 2 times, a return on equity (ROE) of 20%, and a PE ratio of 8 times, indicating a combination of resilience and dividend defensiveness [1][3] - The copper-aluminum price bottom usually occurs at the end of an interest rate cut cycle, aligning with economic recovery phases [4][5] Market Dynamics - The supply of electrolytic aluminum in China has reached its capacity ceiling, while uncertainties in overseas energy consumption will gradually restore the copper-to-aluminum ratio to normal levels [1][9] - Fund holdings in the sector are significantly lower than the previous year, with only 4.7% to 4.8% allocation in Q2, indicating a relatively low market crowding and room for recovery [1][7] Future Projections - Aluminum is expected to become a resource commodity similar to copper due to its price elasticity and diverse demand, with a current profit margin of approximately 3,000 yuan per ton [2][8] - The anticipated increase in demand for alternative materials, such as aluminum wire bundles, is expected to further support aluminum's market position [10] - The global energy consumption for electrolytic aluminum production accounts for about 3% to 3.5% of total electricity usage, with potential supply uncertainties due to energy constraints [11][12] Investment Opportunities - Companies with high elasticity, such as Zhongfu, Yun Aluminum, and Tianshan, are recommended for those seeking growth, while more stable options include Hongqiao, Hongchuang Holdings, and China Aluminum [2][15] - The aluminum sector's dividend yield is projected to remain strong, with some companies maintaining a dividend payout ratio of 60% [14] Conclusion - The aluminum sector is poised for significant growth over the next few years, driven by supply constraints and increasing demand for aluminum as a substitute material. The current market conditions present a favorable investment landscape for both growth and income-focused investors [15][18]

Core Insights - The cement sector experienced a 2.26% increase on October 15, with Huaxin Cement leading the gains [1] - The Shanghai Composite Index closed at 3912.21, up 1.22%, while the Shenzhen Component Index closed at 13118.75, up 1.73% [1] Cement Sector Performance - Huaxin Cement (600801) closed at 21.28, up 6.45% with a trading volume of 411,100 shares and a transaction value of 864 million [1] - Other notable performers include: - Qingsong Jianhua (600425) at 4.92, up 2.71% with a transaction value of 409 million - Conch Cement (600585) at 24.49, up 2.47% with a transaction value of 1.253 billion [1] - The overall trading volume and transaction values for various cement stocks indicate strong market activity [1][2] Capital Flow Analysis - The cement sector saw a net inflow of 349 million from institutional investors, while retail investors experienced a net outflow of 243 million [2] - Specific stock capital flows include: - Conch Cement with a net inflow of 250 million from institutional investors [3] - Huaxin Cement with a net inflow of approximately 41.69 million from institutional investors [3] - The data indicates a divergence in capital flow, with institutional investors showing confidence while retail investors withdrew [2][3]

Market Overview - The cement sector experienced a decline of 0.14% on October 14, with Tianshan Shares leading the drop [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Individual Stock Performance - Notable gainers in the cement sector included: - Sifang New Material: closed at 13.40, up 0.98% with a trading volume of 23,700 lots [1] - Sichuan Jinding: closed at 9.46, up 0.85% with a trading volume of 146,700 lots [1] - Hainan Ruize: closed at 3.89, up 0.78% with a trading volume of 478,800 lots [1] - Tianshan Shares saw a significant decline, closing at 6.57, down 1.05% with a trading volume of 733,000 lots [2] Capital Flow Analysis - The cement sector experienced a net outflow of 117 million yuan from institutional investors and 146 million yuan from speculative funds, while retail investors saw a net inflow of 263 million yuan [2] - Key stocks with notable capital flows included: - Conch Cement: net inflow of 66.69 million yuan from institutional investors, but a net outflow of 34.82 million yuan from speculative funds [3] - Qingsong Jianhua: net inflow of 16.60 million yuan from institutional investors, with a net outflow of 37.11 million yuan from speculative funds [3]

Investment Rating - The investment rating for the building materials industry is "Overweight" [70] Core Insights - The overall ESG scores for the 11 central enterprises in the building materials sector are good, with strengths in climate change response and social responsibility, while governance performance varies among companies [10][58] - The importance assessment shows that 10 companies have completed dual importance assessments, but third-party verification is lacking, with only one company introducing third-party validation [13][15] - Environmental and climate issues are prioritized, with scores ranging from 24 to 34 out of 35, indicating a strong focus on compliance and green transformation [17][18] - Social responsibility is highlighted through initiatives in rural revitalization and public welfare, with all companies demonstrating a strong commitment to social responsibility [44][47] - Governance structures are generally well-established, with most companies scoring high in governance mechanisms, although there is room for improvement in ESG information supervision [58][65] Summary by Sections Overall Performance - The ESG scores for the 11 central enterprises are generally above 70, with 2 companies scoring above 90, 5 between 80-89, 3 between 70-79, and 1 between 60-69 [10][12] Importance Assessment - 10 companies disclosed importance assessments, with a focus on financial performance-related issues, but only one company provided third-party verification [13][15] Environmental & Climate - The total scores for environmental and climate issues range from 24 to 34, with 7 companies scoring between 30-34, indicating a strong emphasis on both environmental compliance and climate disclosure [17][18] - All companies disclosed their waste management practices, with a 100% disclosure rate for waste treatment [20] Social Responsibility - All 11 companies disclosed their social responsibility initiatives, particularly in rural revitalization and public welfare, demonstrating a strong commitment to social issues [44][47] Governance - Governance scores are concentrated in the mid to high range, with 9 out of 11 companies achieving high scores in governance structure [58][65] - Most companies have established effective governance mechanisms, but there is a need for improved transparency in ESG information supervision [58][65]

Investment Rating - The report rates the central state-owned enterprises in the building materials industry as "Positive" [2] Core Insights - The overall ESG scores of the 11 central state-owned enterprises in the building materials sector are good, with strengths in climate change response and social responsibility, while governance performance varies among companies [4][12] - The scoring results show that 2 companies scored above 90, 5 companies scored between 80-89, 3 companies scored between 70-79, and 1 company scored between 60-69, with no companies scoring below 60 [12] - The report emphasizes the importance of ESG performance in the context of increasing regulatory requirements and market expectations [4] Summary by Sections 1. Overall Scores and Areas for Improvement - The ESG scores of the 11 central state-owned enterprises are generally good, with climate change and social responsibility being strong points, while governance disclosures need improvement [12] 2. Importance Assessment - 10 out of 11 companies disclosed importance assessments, indicating a high level of awareness regarding issues related to their financial performance [15][17] - Only 1 company included third-party verification in their ESG report, highlighting a gap in external validation [15][17] 3. Environmental & Climate Focus - The total scores for "environment + climate change" range from 24 to 34 (out of 35), with 7 companies scoring between 30-34, indicating a strong focus on these issues [20] - All companies disclosed their waste management practices, with a 100% disclosure rate for "three wastes" [24] 4. Social Responsibility - All 11 companies disclosed their contributions to rural revitalization and social welfare, reflecting a strong commitment to social responsibility [53][56] - Most companies provided detailed accounts of their funding, project execution, and social impact [53] 5. Governance Structure - The governance scores are primarily in the mid to high range, with 9 out of 11 companies achieving full marks in three governance areas [68] - Most companies have established robust governance mechanisms, but disclosures regarding ESG information supervision are still lacking [68][71] 6. Climate Management - 8 companies have established climate management frameworks, but there is a need for improved transparency and quantification in risk management [49] - All companies disclosed their climate-related targets, focusing on carbon reduction and energy efficiency [50]

Core Viewpoint - Tianshan Co., Ltd. has experienced fluctuations in stock price and trading volume, with a notable increase in stock price this year, but a recent decline in net profit and revenue [1][2]. Group 1: Stock Performance - On October 13, Tianshan's stock price fell by 2.08% to 6.58 CNY per share, with a trading volume of 394 million CNY and a market capitalization of 46.787 billion CNY [1]. - Year-to-date, Tianshan's stock price has increased by 16.25%, with a 10.22% rise over the last five trading days, a 0.75% decline over the last 20 days, and a 30.82% increase over the last 60 days [1]. - The company has appeared on the "Dragon and Tiger List" once this year, with the most recent occurrence on July 23, where it recorded a net buy of -295 million CNY [1]. Group 2: Company Overview - Tianshan Materials Co., Ltd. was established on November 18, 1998, and listed on January 7, 1999, with its main business involving the production and sale of cement, clinker, ready-mixed concrete, and aggregates [2]. - The revenue composition of Tianshan includes 63.16% from cement clinker, 28.24% from ready-mixed concrete, 5.55% from aggregates, and 3.05% from other sources [2]. - The company is classified under the building materials industry, specifically in cement manufacturing, and is associated with concepts such as Kashgar Planning Area and state-owned enterprise reform [2]. Group 3: Financial Performance - For the first half of 2025, Tianshan reported a revenue of 35.98 billion CNY, a year-on-year decrease of 9.37%, while the net profit attributable to shareholders was -922 million CNY, reflecting a 73.00% increase compared to the previous year [2]. - Since its A-share listing, Tianshan has distributed a total of 8.718 billion CNY in dividends, with 3.327 billion CNY distributed over the last three years [3]. - As of June 30, 2025, Tianshan had 77,900 shareholders, an increase of 6.08% from the previous period, with an average of 91,309 circulating shares per shareholder, up by 267.85% [2][3].

Market Overview - The cement sector increased by 2.66% on October 9, with Tianshan Co. leading the gains [1] - The Shanghai Composite Index closed at 3933.97, up 1.32%, while the Shenzhen Component Index closed at 13725.56, up 1.47% [1] Individual Stock Performance - Tianshan Co. (000877) closed at 6.57, up 9.14% with a trading volume of 1.4871 million shares [1] - Qingsong Jianhua (600425) closed at 4.68, up 5.64% with a trading volume of 1.2673 million shares [1] - Xibu Construction (002302) closed at 6.94, up 5.31% with a trading volume of 453,600 shares [1] - Wan Nian Qing (000789) closed at 6.04, up 4.14% with a trading volume of 193,400 shares [1] - Other notable performers include Tapai Group (002233) and Sichuan Jinding (600678), with increases of 2.63% and 2.60% respectively [1] Fund Flow Analysis - The cement sector saw a net inflow of 233 million yuan from institutional investors, while retail investors experienced a net outflow of 62.51 million yuan [2] - Major stocks like Tianshan Co. and Conch Cement (600585) had significant fund flow variations, with Tianshan Co. experiencing a net outflow of 90.91 million yuan from institutional investors [3] - Conch Cement had a net inflow of 87.31 million yuan from institutional investors, indicating strong interest [3]