Stone industry expert Overview of China stone industry in 2012 So far, China stone industry is under pincer attack

from economic downturn in overseas market and the strict macro-economic control at home. Although most of domestic stone enterprises still witness stable growth of their business, the growth rate is much lower than the high growth speed in the past. In addition to the fast growth in production, the growth rate of their revenue, profit, investment, import and export volume and value have shown obvious decrease since 2012. Output According to China Stone Material Association (CSMA), the total slab output of domestic abovescale enterprises in 2012 reached 541.02 million m2, up 27.70% over that in 2011, including 127.81 million m2 of marble slab output and 413.21 million m2 of granite slab, up 31.10% and 26.7% YoY. Growth rate of the output of these two kinds of stone slab increased by 1.9% and 9.9% respectively. Revenue and profit Total revenue of domestic above-scale enterprises in 2012 reached 44.91 billion, up 23.70% YoY and growth rate down 12.30% YoY. Total profit of these enterprises in 2012 reached USD3.75 billion, up 30.50% YoY and growth rate down 10.50% YoY. Total revenue of domestic above-scale stone mining enterprises in 2012 reached USD9.22 billion, up 23.5% YoY and growth rate down 17.00% YoY. Total profit of these enterprises in this period reached USD694.39 million, up 38.30% YoY and growth rate down 11.80% YoY. Total revenue of domestic above-scale stone processing enterprises in 2012 reached USD35.69 billion, up 23.80% YoY and growth rate down 10.90%. Total profit of these enterprises in this period reached USD3.07 billion, up 28.90% YoY and growth rate down 10.00% YoY. Investment In 2012, total investment in building stone mining and processing surged by 23.80% over 2011, reaching USD19.99 billion, but the growth rate decreased by 21.30% YoY. Investment in building stone mining and stone processing reached USD6.33 billion and USD13.66, up 25.80% and 22.90% YoY and growth rate down 13.60% and 24.90% respectively. Import and export Compared to domestic stone market, the export of domestic stones has witnessed a rare decrease in the growth rate of export volume and value in 2012.

TABLE: The import and export data of domestic stone industry, 2012
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Stone industry expert Volume, million tonnes 37.72 24.07 13.65 YoY, % 1.40 0.20 3.7 Growth rate, % -8.50 -10.90 -3.2 Value, billion USD 8.06 5.37 2.69 YoY, % 5.5 4.70 7.2 Growth rate, % -14.1 -17.50 -3.8

Import & Export Export Import Source: CSMA

In 2012, Chinas main stone imports originating countries were Turkey, India, Egypt, Brazil, Spain, Italy and Iran. Total import volume and value from these countries accounted for 80% and 79% of the Chinas total import volume and value in 2012. TABLE: Import volume and value growth rate, price and import value proportion of stones imported from Chinas main stone imports originating countries, 2012 Country Import volume Import value Price, USD/t Import value growth, % growth, % proportion, % Turkey 3.50 15.40 213 28.3 India 19.00 16.80 172 17.2 Egypt -0.70 10.30 122 8.5 Brazil 6.60 7.90 257 7.9 Spain -6.80 -8.90 221 6.5 Italy 0.00 7.90 328 6.4 Iran 2.50 8.20 193 4.1 Source: CSMA Although the export situation of domestic stone industry is still not optimistic, the market demand in some areas in Africa, Oceania and Central Asia witness growth. Export value of domestic stones to these areas increased by 65.7%17.2% and 32.5% respectively. Total export value to these areas accounted for 7.2% of the Chinas total stone export value in 2012. While entering 2013, the slide situation of domestic stone export volume continues. Total export volume in Jan. to April 2013 reached 6.84 million tonnes, down 11.30% over the same period of 2012. However, the export value in this period enjoyed a large growth, reaching USD1.79 billion, up 20.3% over the same period of 2012. Subscribe Thinkrealstones Stone China Monthly Insight to update the latest Chinas stone market information and get adequate and effective information support of your Chinas business strategy and marketing project planning. For more details, please visit http://www.thinkrealstone.com/stone-china-monthly-insight.html or contact info@thinkrealstone.com

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