Luozhou cement is a major producer of cement in the middle reaches of the Changjiang River and Sichuan in China. The production facilities of Jichang are located in Jiangxi, Sichuan and Hubei provinces. As of the end of December 2012, the production capacity of JMC was about 2400 million tons. These facilities (with the exception of Sichuan Province) are located in the vicinity of major transportation roads to facilitate road and cost-effective waterway transport. In addition, the raw materials required for the production of clinker are supplied by its limestone mines, while the cement products of Jishi are sold as self-owned "foreign houses" in Sichuan, Jiangxi, Fujian and Shanghai.

After a tough year in 2012, the cement industry began to pick up in the second quarter of last year, and in the first half of last year, China's cement output also increased by 8% year-on-year to 1.07 billion tons, and the overall relationship between supply and demand in the country is becoming more and more balanced. In the first half of last year, under the strategy of deepening rural publicity and developing sales outlets in the lower reaches of the Changjiang River, cement sales volume in the six months to the end of June last year increased by 18% year-on-year to 0.11 million tons. In addition, the collection company has also increased the supply point of coal, making the supply more stable, and the production cost of each unit of cement products has dropped by 8% in the same period in 2012.

In the six months ended June 30, 2013, revenue from the market rose 3.4% year-on-year to 3.177 billion yuan. The annual production cost of cement products was 2.801 billion yuan, an annual increase of 10.3%, accounting for 88.2% of the total cost, while that of mixed concrete was 266 million yuan, with an annual increase of 1.9%, accounting for 8.4% of the total cost. If divided according to the regional plan, the income from the middle reaches of the Changjiang River will increase by 1.7% to 1.859 billion yuan, accounting for 58.5% of the total expenditure; the income from the Sichuan region will rise by 15.2% to 756 million yuan, accounting for 23.8% of the total expenditure; and the income from the Changjiang Delta and other regions will be 562 million yuan per capita, with an annual decline of 4.7%, accounting for 17.7%. During the period, gross profit increased by 20.4% year-on-year to 584 million yuan, while gross profit margin rose to 18.4% from 15.8% in the same period in 2012. The profit attributable to the holders of rights and interests during the period shall be increased by 1.1 times year-on-year to 256 million yuan.

Since its launch in October last year, Taizhou cement stocks have risen to the level of 5.58 yuan this month, a new high in nearly 52 weeks, and recently consolidated around 5.35 yuan. it is expected that they will rise again in the near future, with a target of 5.85 yuan and a recommended income of 5.30 yuan. If the stock market is not as expected and falls below the level of 5.0 yuan, it needs to be stopped.