Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company significantly reduced its losses in the first half of 2025, with a core market strategy further strengthened [1] - The company achieved a total operating revenue of 11.761 billion yuan in the first half of 2025, a year-on-year increase of 4.8%, and a net profit attributable to shareholders of -154 million yuan, a year-on-year reduction in losses of 80.9% [1] - The company’s Q2 single-quarter revenue was 7.858 billion yuan, a year-on-year decrease of 0.3%, with a net profit of 719 million yuan, a year-on-year increase of 153.3% [1] Summary by Sections Financial Performance - The company’s cement and clinker sales volume in the first half was 37.38 million tons, a year-on-year decrease of 2%, with a significant narrowing of the decline compared to 2024 [1] - The average price per ton and gross profit per ton were 246 yuan and 51 yuan, respectively, with increases of 4 yuan and 26 yuan year-on-year, mainly due to strengthened industry supply discipline and optimized peak-shifting effects [1] - The gross profit margin for Q2 was 26.4%, an increase of 5.8 percentage points year-on-year, reflecting good price maintenance in core markets [1] Cost Control and Cash Flow - The company maintained good cost control, with a net cash flow from operating activities of 1.287 billion yuan, a year-on-year increase of 55% [1] - The company’s asset-liability ratio was 50.96% as of the end of Q2, with a slight increase of 0.70 percentage points year-on-year [1] Strategic Layout - The company has optimized its strategic layout, further consolidating its strength in the Northeast market through acquisitions [1] - The company completed the acquisition of Liaoning Hengwei Cement and its affiliates, enhancing its influence in the Northeast market [1] - The company’s long-term strategy includes cost reduction and efficiency enhancement, market integration, and overseas capacity layout [1] Earnings Forecast - The company’s net profit forecast for 2025-2026 has been adjusted to 270 million yuan and 590 million yuan, respectively, with a new forecast for 2027 set at 880 million yuan [1]