Recently, the company's Shanghai Stock Exchange e-interactive Q&A platform received a question from investors. The specific content is as follows:
Q: Yesterday, the Ministry of Finance announced the evaluation results of the 2025 urban renewal action, and 20 cities were shortlisted. May I ask if the company's business involves these cities? In addition, which projects are related to the company's business in the construction of model projects supported by central government funds for urban renewal?
Answer: Dear investor, hello. We have taken note of the relevant information. As the largest research and development, production, and sales enterprise of welded steel pipes in China, Youfa Group has maintained a leading national production and sales scale for welded steel pipes for 19 consecutive years. The sales network of thousands of major distributors of the company covers the whole country, so effective business coverage can be achieved in various cities in China. The overall market share of the company's products in the domestic market has remained stable at over 20% for several consecutive years (in 2024, the apparent consumption of welded steel pipes in China was 55.278 million tons, and the company's steel pipe sales were 13.4734 million tons). Among them, the core product galvanized round pipe has a domestic market share of about 35%, and its market share in some advantageous regions can remain stable at over 50%. At the same time, the company has already established production bases in Tianjin and Tangshan, both of which are in 20 cities supported by the central government, which can better leverage regional advantages. In terms of projects, the company's various welded steel pipes, composite pipes, socket pipes, anti-corrosion pipes, stainless steel pipes, insulation pipes, PE pipes, buckle scaffolding, connecting pipe fittings and other products are widely used in urban renewal and underground pipe network construction and renovation projects, as well as in various water supply, drainage, gas, heating, fire protection, wiring and pipe network gallery construction. They are also basic and tool materials for various municipal infrastructure construction. In addition, they can be used to construct pipeline systems for sewage treatment plants, including inlet pipelines, drainage pipelines and treatment equipment connection pipelines. These areas are key directions for the construction of urban renewal model projects supported by central government funding, and are expected to bring business growth to the company. The company will seize all favorable opportunities, leverage the advantages of industry-leading enterprises, fully explore and seize market opportunities, strive for better business results, and actively return to investors. Of course, it is difficult to predict the scale of business growth and its impact on company performance in the short term. Investors are advised to pay attention to investment risks. Thank you for your attention.
Please follow the Shanghai Stock Exchange e-Interactive Q&A Platform for the above specific information（ https://sns.sseinfo.com ）.
Post time: Jun-10-2025