Fujian Cement: Subsidiaries cooperate with related parties to implement distributed photovoltaic power generation projects

On December 27, Fujian Cement announced that three subsidiaries of the company, Yongan Jianfu, Ansha Jianfu and Shunchang Stone Refining (Party A), intend to cooperate with the related party Fujian Power Distribution and Sales Co., Ltd. (Party B) to implement the distributed photovoltaic power generation project in the base factory. In this cooperation, Party a provides the roof and vacant land, and Party B invests in the construction and operation of the project in full and owns the ownership of the invested facilities. The total construction scale of the project is about 26 kWp 13338. The generated energy is supplied to Party a in priority and settled at a discount of 15% of the electricity price. The carbon emission index of the project is enjoyed by Party A. The impact

of

related party transactions on the company (1) The necessity, purpose and impact

of related party transactions on the company In the current situation of the company's capital shortage, the company cooperates with Party B to implement the photovoltaic project of the base factory at the lowest consideration (providing the project site). In line with the national policy of "carbon peak, carbon neutralization", it is one of the effective measures for the company to actively deploy carbon emission reduction in cement enterprises. After the project is completed and put into operation, it will reduce the cost of electricity purchased by the company to a certain extent and promote clean and low-carbon production. Cement is a high energy consumption and high emission industry. Cement enterprises implement distributed photovoltaic projects. As the proportion of power generation of the project itself in the total power consumption of enterprises is very low, enterprises mainly value the potential of green power in carbon reduction. In this cooperation with the related parties, it is agreed that all carbon emission indicators of the project will be enjoyed by the company's base factories. If there are insurmountable reasons such as policy adjustment, the company has the right to repurchase the project assets at the appraisal price. If the partner is not an enterprise controlled by the same actual controller, the above agreement may be difficult to achieve.

(II) Analysis

on pricing fairness In this cooperation, Party B will fully invest in the construction and operation of the project at the lowest consideration (providing the project site). As the project site is mainly the roof of the building and a small amount of idle space, there is basically no other use except for distributed photovoltaic projects. Under the condition of not increasing the cost of the base factory and not bearing the investment risk of the project itself, the carbon emission index is harvested, and the power generation of the project is preferentially supplied to the base factory of the company at a discount of 8.5%, which is equivalent to enjoying a certain proportion of profit sharing of the project. During the 25-year operation period, the cumulative maximum electricity cost can be saved by about 35.91 million yuan.