Summary of Conference Call Notes Industry Overview - **Industry**: Cement Industry in China - **Outlook**: Improved supply-demand dynamics expected to lead to a recovery in cement prices in the near term, supported by better-than-expected anti-involution policies in the long term [1][3] Key Points 1. **Clinker Price Increase**: - Clinker price in the Yangtze River Delta rose by Rmb30/t to Rmb230-240/t FOB due to planned 15-day off-peak production suspension and a bottoming out of prices after previous declines [2] - Cement shipments in the region were affected by adverse weather, operating at 50-60% capacity [2] 2. **Current Market Conditions**: - Cement prices in East China have bottomed, with industry leaders' gross profit per ton (GP/t) near last year's lowest levels, while smaller players are at break-even [3] - Cement inventory utilization is high at 70-80%, which may facilitate better implementation of off-peak production suspensions [3] 3. **Seasonal Improvement Expected**: - Cement shipments are currently low due to weather but are expected to improve seasonally until November [3] - Similar conditions are observed in South and Central China [3] 4. **Long-term Policy Implications**: - The Ministry of Industry and Information Technology (MIIT) is expected to implement stricter anti-involution policies, potentially reducing approved clinker capacity from ~2.2 billion tons (bnt) to ~1.6 bnt by 2026 [4] - This reduction could improve clinker capacity utilization to ~65% in 2026 from ~50% currently, supporting further price improvements [4] 5. **Beneficiaries**: - Key beneficiaries of the expected price recovery include Anhui Conch, CNBM, CR Building Materials, and Huaxin Cement [3] Additional Insights - **Market Monitoring**: The implementation of price hikes needs to be closely monitored due to potential disruptions in cement shipments caused by weather conditions [2] - **Future Capacity Checks**: MIIT's capacity checks and the introduction of Technical Specifications for Clinker Production Monitoring may lead to more stringent operational standards [4] Conclusion - The cement industry in China is poised for a recovery in prices due to improved supply-demand dynamics and supportive government policies. Key players are expected to benefit from these changes, while ongoing monitoring of market conditions is essential for assessing the implementation of price increases and production adjustments.

Group 1 - Pacasmayo (CPAC) shows a noticeable improvement in earnings outlook, making it an attractive investment option [1] - Analysts are raising earnings estimates for Pacasmayo, reflecting growing optimism about the company's earnings prospects [2][3] - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Pacasmayo currently holding a Zacks Rank 2 (Buy) [3][10] Group 2 - The current quarter's earnings estimate for Pacasmayo is $0.19 per share, representing a year-over-year increase of +18.8% [7] - The full-year earnings estimate is projected at $0.71 per share, reflecting a +16.4% change from the previous year [8] - The consensus estimate for the current year has increased by 9.23% due to positive revisions [9] Group 3 - Pacasmayo's stock has gained 5.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11]

证券代码：600585 证券简称：海螺水泥 公告编号：2025-23 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、总经理离任情况 (一)离任的基本情况 公司"）董事会收到执行董事兼总经理李群峰先生的书面辞职报告，李群峰先生 因个人工作变动，申请辞去公司总经理职务，仍继续担任本公司执行董事和本公 司部分附属公司董事职务。 本公司执行董事 海螺国际控股（香 港）有限公司董事 伏尔加海螺水泥有 限责任公司董事 中国海螺环保控股 李群峰 总经理 - 是 否 海创国际控股（香 港）有限公司董事 安徽海螺环保集团 有限公司董事长 安徽海创环保科技 有限公司董事 (二)离任对公司的影响 根据《公司法》及《公司章程》等有关规定，李群峰先生的辞任自辞职报告 送达董事会之日起生效。李群峰先生不存在其应当履行而未履行的承诺事项，并 已按照公司相关规定妥善交接工作，其辞任不会对公司日常运营产生不利影响。 是否存在 | | | | | 是否继续在上 离任 | | | | | --- | --- | --- | --- | --- | --- | ...

Summary of Conference Call on China's Anti-Involution and Supply-Side Reform Industry Overview - The focus is on the **China Materials** sector, particularly the implications of the **anti-involution** campaign and supply-side reforms across various industries including **steel**, **cement**, **coal**, **lithium**, and **waterproofing materials** [1][2][3][4][10][11]. Key Points and Arguments Anti-Involution Campaign - The anti-involution campaign is perceived to be more complex and less effective than previous supply-side reforms from 2015-2018, but it is expected to have a quicker impact on upstream industries due to improved supply control experience [1][2]. - The campaign aims to regulate excessive competition, with various industrial regulators and associations actively involved in consultations and proposals [2]. Steel Industry - A target of approximately **30 million tons** (mnt) production cut was communicated to steel mills, with a **1%** reduction in pig iron production year-to-date (YTD) [2][16]. - Steel margins have improved significantly, recovering to over **Rmb 400/ton** from **Rmb 150/ton** earlier in the year, despite rising raw material prices [2]. - Further production cuts of **10-20 mnt** are anticipated for the remainder of the year, aligning with declining domestic and overseas demand [2][16]. Cement Industry - Cement is the first industry to implement anti-involution policies, with a **20%** cut in overproduction mandated by the end of 2025 [3][13]. - The Ministry of Industry and Information Technology (MIIT) has set stricter requirements for capacity swaps to address the **20%** overproduction at the industry level [3][13]. Coal Industry - The National Energy Administration has initiated checks on coal overproduction, focusing on whether production exceeds designed capacities by **10%** [4][17]. - The impact of these checks is expected to be minor, as over **70%** of coal capacity is owned by state-owned enterprises (SOEs) that operate within designed capacities [4][17]. Lithium Industry - Recent enforcement of mining regulations may disrupt lithium production, with specific projects facing suspension due to licensing issues [10][22]. - These disruptions could tighten supply and support price increases in the short term, although lithium is not a primary target of the anti-involution campaign [10][23]. Waterproofing Materials - The waterproofing materials sector has seen significant price competition, leading to market consolidation, with leading players increasing their market share from **20%** in 2021 to **45%** in 2024 [11][21]. - Price hikes have been announced by major companies in response to anti-involution messaging, which is expected to improve industry margins [11][21]. Potential Beneficiaries - Key beneficiaries of the anti-involution measures include **Anhui Conch**, **China National Building Material (CNBM)** in the cement sector, and **Baosteel** in the steel sector, which are expected to see margin expansion and improved supply-demand balance [27][28][41]. Risks and Considerations - Upside risks include stronger-than-expected infrastructure demand and stricter production suspensions [29][30][31]. - Downside risks involve weaker property demand and potential government intervention in pricing [32][33][34]. Conclusion - The anti-involution campaign is set to reshape the landscape of several key industries in China, with varying degrees of impact expected across sectors. The focus on supply-side reforms aims to address overproduction and improve profitability, particularly in cement and steel, while also posing risks that investors should monitor closely.

Financial Data and Key Metrics Changes - The consolidated margin for the quarter stood at 21.2%, showing a year-over-year decline primarily due to a challenging competitive environment [6] - Adjusted EBITDA for the quarter was $34 million, down 31% in real terms when measured in pesos, reflecting a contraction in EBITDA margin [7][17] - Net profit attributable to owners of the company totaled ARS 0.4 billion for the quarter, a significant decline from ARS 41 billion in the same quarter of 2024 [20] Business Line Data and Key Metrics Changes - Cement dispatch volumes grew by 14% year-over-year, but the Cement segment revenue declined by 9.9% due to weaker pricing [11][12] - Concrete revenues declined by 1.1% despite a 44% increase in volumes, impacted by price pressures [14] - The Aggregates segment posted a slight revenue increase of 0.8%, driven by a 44% increase in volumes [14] Market Data and Key Metrics Changes - The Argentine economy showed a year-over-year growth of 5.8% in the first quarter, with forecasts for the full year around 5% [9][10] - The Construction Activity Index (ISAC) indicates a positive rebound in the industry, although recovery is not uniform across all sectors [11] Company Strategy and Development Direction - The company is focused on operational efficiency and innovation, with a commitment to transitioning to 25-kilogram cement bags [27] - The management remains optimistic about the future, expecting double-digit growth in cement dispatches for 2025 [26] Management Comments on Operating Environment and Future Outlook - Management noted that the recovery is still in the early stages, with potential political volatility due to upcoming midterm elections [11] - The competitive environment is stable, with expectations for pricing recovery in the second half of the year [34][64] Other Important Information - The company successfully issued a new corporate bond for $112.9 million to address upcoming debt maturity and improve its maturity profile [8][24] - Cash flow used in operational activities totaled ARS 22.3 billion, driven by lower operational results and higher income tax paid [22] Q&A Session Summary Question: Timing of price increases and competitive trends - Management indicated that the competitive environment has been challenging, but they foresee an increase in pricing above inflation by the end of the year [33][34] Question: Outlook for construction in the second half of the year - Management expects a gradual moderate growth in construction activity, driven by public works and private investments [39] Question: Expectations for volume growth in 2025 - Management maintains a double-digit growth forecast for volumes in 2025, with specific expectations for low to mid-teens growth [42][50] Question: Impact of energy prices on margins - Management acknowledged that both energy prices and competitive dynamics have affected margins, but they expect a recovery in pricing [56][64] Question: Public work program recovery outlook - Management believes there is significant potential in public infrastructure projects, but the impact in the second half of the year may be limited [67]

Financial Performance - Net revenues reached Ps 174511 million, down 80% (US$ 149 million)[12] - Adjusted EBITDA stood at Ps 37005 million, down 306% (US$ 34 million)[12] - Consolidated Adjusted EBITDA margin reached 212%, with a contraction of 691 bps YoY from 281%[11] - Net Profit Attributable to Owners of the Company in 2Q25 was Ps 04 billion, down from Ps 41309 million in 2Q24[36] - Consolidated Gross Profit declined 305% year-over-year, while margin contracted by 659 basis points to 204%[28] Volumes and Sales - Cement business dispatches continue its recovery, growing 11% YoY[9] - Total Net Revenues decreased by 80% year-over-year[22] - Concrete sales volumes improved by 440% year-over-year[22] - Aggregates sales volumes increased by 341% year-over-year[22] Balance Sheet - Balance sheet remains solid, with Net Debt of US$ 215 million, representing a Net Debt/LTM Adjusted EBITDA ratio of 134x[11] - Cash position and Investments of Ps 159 billion and total debt at Ps 2721 billion as of end of 2Q25[37] - Successful US$1129 million Class 5 bond issuance in July to refinance short-term debt, extending average duration and preserving a balanced maturity profile[11]

Financial Data and Key Metrics Changes - The company reported total revenues of $10.2 billion for Q2 2025, a 6% increase compared to the prior year, driven by favorable underlying demand and strong contributions from acquisitions [8][9] - Adjusted EBITDA for the quarter was $2.5 billion, reflecting a 9% increase year-over-year, with a margin expansion of 70 basis points [9][17] - The diluted earnings per share increased by 3% compared to the prior year period [9] Business Line Data and Key Metrics Changes - Americas Materials Solutions saw a 24% increase in total revenues and adjusted EBITDA, driven by operational efficiencies and contributions from acquisitions [10] - Essential Materials reported a 4% increase in revenues, supported by increased volumes and positive pricing momentum in Aggregates and Cement [10] - International Solutions experienced a 13% increase in revenue and a 23% increase in adjusted EBITDA, with margin expansion of 170 basis points [14] Market Data and Key Metrics Changes - The infrastructure market remains robust, with less than 40% of the IIJA highway funding deployed, indicating significant future opportunities [12][30] - State transportation budgets for fiscal year 2026 are expected to increase by 6% over the prior year, supporting continued demand [12] - The residential sector in the U.S. is expected to remain subdued, while repair and remodel activities are resilient [30] Company Strategy and Development Direction - The company is focused on reinvesting in high-growth markets and has allocated approximately $1.7 billion across 19 acquisitions and growth CapEx investments [7] - The acquisition of EcoMaterial Technologies for $2.1 billion is expected to enhance the company's cementitious growth strategy and create a unique national distribution network [22][23] - The company emphasizes a connected portfolio that maximizes profitability and operational efficiencies across the construction value chain [25] Management's Comments on Operating Environment and Future Outlook - Management raised the financial guidance for 2025, expecting adjusted EBITDA to be between $7.5 billion and $7.7 billion, representing a 10% growth at the midpoint [8][33] - The company anticipates continued positive momentum in backlogs and underlying demand across key markets [7][30] - Management highlighted the importance of federal and state funding in driving infrastructure demand, with a supportive legislative environment for future funding [30][56] Other Important Information - The company has declared a quarterly dividend of 37¢ per share, a 6% increase from the prior year, and has repurchased approximately $800 million in shares so far this year [19][20] - The company has a strong pipeline of growth opportunities and expects to allocate approximately $35 billion over the next five years for capital investments [34] Q&A Session Summary Question: Drivers of the full year guidance increase - Management noted strong Q2 performance with EBITDA up 9% and margins up 70 basis points despite challenging weather conditions, with robust infrastructure demand and good backlogs contributing to the guidance increase [36][39] Question: Expectations for U.S. Cement and aggregates - Management indicated that underlying aggregate volumes were up 5% and pricing up 4%, with expectations for mid to high single-digit pricing growth for the full year [44][46] Question: Update on federal infrastructure funding and next highway bill - Management confirmed ongoing discussions about the next highway bill, emphasizing a supportive bipartisan environment and the need for a sustainable funding mechanism [52][56] Question: Performance of Adbri and margin expansion drivers - Management reported that Adbri is trading ahead of expectations, with good tailwinds from infrastructure and residential recovery, while margin expansion is attributed to operational excellence and cost control initiatives [99][100]

Financial Performance - Q2 2025 - Revenue from Operations reached ₹4401 billion, a 17% increase compared to Q1 2025 and an 8% increase compared to Q2 2024[7] - Adjusted EBITDA was ₹617 billion, showing a 42% increase compared to Q1 2025 and a 26% increase compared to Q2 2024[7] - Adjusted Net Profit After Tax was ₹050 billion[7] - The company's liquidity stands at US$339 million, including a cash balance of US$191 million and undrawn loan facilities of US$148 million[7] Segment Performance - Q2 2025 vs Q1 2025 - **Carbon:** Revenue increased by 17% to ₹319 billion, with Adjusted EBITDA increasing by 26% to ₹52 billion Sales volumes increased by 11% to 664 MT[12,8] - **Advanced Materials:** Revenue increased by 13% to ₹82 billion, with Adjusted EBITDA increasing significantly by 317% to ₹08 billion Sales volumes increased by 17% to 70 MT[13] - **Cement:** Revenue increased by 13% to ₹33 billion, with Adjusted EBITDA increasing significantly by 315% to ₹02 billion Sales volumes increased by 01% to 699 MT[14,11] Debt and Cash Flow - Total Capex for the six months period was US$28 million[7] - Net operating cash outflows include a net working capital increase of ₹1195 billion, compared to inflows of ₹143 billion in H1 2024[37,41] - Gross Term Debt is US$834 million as of June 2025[37]

Summary of Key Points from the Conference Call Industry and Company Involved - **Industry**: Sustainability and Decarbonisation in China - **Company**: Morgan Stanley Asia Limited Core Insights and Arguments 1. **Anti-Involution Campaign**: China's "anti-involution" campaign is a significant focus for investors, aiming to address price wars and overcapacity in key sectors crucial to decarbonisation goals [2][7][9] 2. **Decarbonisation Impact**: The anti-involution drive is expected to influence decarbonisation progress both within China and globally, particularly in "hard-to-abate" sectors such as cement, steel, and aluminium [2][10] 3. **Investor Interest**: There is a renewed investor interest in sustainability fund flows and energy transition themes in China, with an uptick in inflows into sustainability funds observed in Q1 2025 [3][9] 4. **Policy Signals**: Recent policy signals from China indicate a focus on tackling overcapacity, with discussions on various sectors including solar, materials, and new energy vehicles (NEVs) [8][10] 5. **Global Decarbonisation**: China's clean energy exports, including solar panels and electric vehicles, are projected to significantly reduce global CO2 emissions, with an estimated reduction of 220 million tonnes in 2024 alone [12] 6. **Competition Dynamics**: The current intense competition in China's cleantech sectors has kept decarbonisation costs low for other countries; however, a reduction in competition could lead to increased costs for these technologies abroad [13] Other Important but Potentially Overlooked Content 1. **Capacity Reduction Focus**: The focus on reducing old and dirty capacity in hard-to-abate sectors is a recurring theme, with the government actively checking for overproduction in coal and other sectors [10][12] 2. **Trade Reliance**: Many countries still rely on Chinese products for their decarbonisation efforts, which could face headwinds from trade tensions [12] 3. **Renewable Energy Standards**: New solar capacity built between 2022-2024 has already adopted new emission reduction standards, indicating progress in the sector [11] 4. **Long-term Investment Story**: China's decarbonisation remains a long-term secular investment story, with consistent emphasis on its relevance since 2020 [9] This summary encapsulates the critical insights from the conference call, highlighting the implications of China's anti-involution campaign on sustainability and decarbonisation efforts.

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Greater China Materials, specifically in the Asia Pacific region [1] - **Market Sentiment**: The industry view is considered attractive by Morgan Stanley [6] Price Movements and Inventory Changes Base Metals - **Copper**: Prices decreased by 1.5% week-over-week (WoW), with inventories down by 1.2% WoW [2] - **Aluminum**: Prices fell by 1.3% WoW, while inventories increased by 1.5% WoW [2] - **Gold**: Price decreased by 1.4% WoW, settling at US$3,290 per ounce [2] Battery Metals - **Lithium Hydroxide**: Prices for industrial-grade and battery-grade lithium hydroxide rose by 9.4% and 8.5% WoW, respectively [2] - **Lithium Carbonate**: Prices for industrial-grade and battery-grade lithium carbonate increased by 1.5% and 2.1% WoW, respectively [2] Steel - **HRC and CRC Prices**: Shanghai HRC prices increased by 0.9% WoW, while CRC prices decreased by 0.2% WoW [3] - **Rebar**: Prices rose by 2.3% WoW [3] - **Long Steel Inventories**: Increased by 3.3% WoW [3] Cement and Coal - **Cement Prices**: Decreased by 0.6% WoW to Rmb323 per ton [3] - **Coal Prices**: QHD5500 coal prices increased by 0.5% WoW to Rmb665 per ton, with inventories dropping by 10.8% WoW [3] Glass - **Glass Fiber Prices**: Average prices declined by 1.3% WoW to Rmb3,850 per ton [4] - **Float Glass Prices**: Increased by 2.8% WoW to Rmb1,317 per ton [4] Regulatory Environment - **NDRC Initiatives**: The National Development and Reform Commission (NDRC) is promoting a unified national market and aims to eliminate 'involution-style' competition [8] - **CISA Recommendations**: The China Iron and Steel Association (CISA) emphasized the need for regional and product self-discipline, urging enterprises to control production and stabilize prices [8] Analyst Insights - **Analyst Team**: The report includes insights from multiple equity analysts at Morgan Stanley, indicating a collaborative approach to research [5] - **Investment Banking Relationships**: Morgan Stanley has disclosed its investment banking relationships with several companies in the materials sector, which may influence research objectivity [6][18] Stock Ratings - **Coverage Universe**: The report lists various companies within the Greater China Materials sector, with ratings ranging from Overweight to Underweight [62][64] - **Notable Companies**: Companies such as Aluminum Corp. of China Ltd. and Ganfeng Lithium Co. Ltd. are highlighted with their respective ratings [62][64] Conclusion - The Greater China Materials sector is experiencing mixed price movements across various commodities, with regulatory efforts aimed at stabilizing the market. Analysts maintain an attractive outlook for the industry, supported by ongoing price adjustments and inventory management strategies.