Conch Cement intends to acquire 100% equity of Conch Information Engineering Company for 126 million yuan.

Conch Cement announced that on December 15, 2023, the company (as the transferee), the controlling shareholder Conch Group (as the transferor) and Conch Information Engineering Company (as the target company) signed an equity transfer agreement. Conch Group agreed to sell and the Company agreed to acquire 100% equity interest in Conch Information Engineering Company held by Conch Group at a consideration of RMB126 million. Upon completion of the acquisition, Conch Information Engineering Company will become a direct wholly-owned subsidiary of the Company. According to

the announcement, the main business of Conch Information Engineering Company includes software development, technical services, intelligent control system integration, industrial automatic control system device sales, information system integration services, information system operation and maintenanc e services, etc. Conch Information Engineering Company is more familiar with the Group's business and the Group is satisfied with its service quality. Therefore, the Board is of the view that

the Acquisition is conducive to promoting the digitalization transformation and upgrading of the Group's production, manufacturing and operation management. So as to improve the operation efficiency of the group, reduce production and operation costs, optimize the allocation of resources, and improve the quality of products and services; After the completion of the acquisition, the Group can gather the professional technology and human resources accumulated by Conch Information Engineering Company in the field of cement intelligent manufacturing and system operation and maintenance, and form a joint force to promote technological innovation with the existing digital intelligent enterprises of the Group, so as to promote the high-quality and sustainable development of the Group. As Conch Information Engineering Company will become a wholly-owned subsidiary of the Company and cease to be a connected person of the Company upon completion of the Acquisition, the Acquisition can reduce future connected transactions between the Group and Conch Information Engineering Company.