Conch Environmental and Conch Cement entered into the Alternative Fuels Co-processing Services Framework Agreement

Conch Environmental Protection announced that on June 26, 2023, the company (on behalf of the Group) and Conch Cement (on behalf of Conch Cement Group) agreed to enter into a framework agreement for co-disposal services of alternative fuels. In relation to, among other things, the provision of alternative fuel co-processing services and ancillary products by the Group to the Conch Cement Group. The proposed annual cap for the fees to be incurred for the Alternative Fuels Co-processing Services and Ancillary Products under the Alternative Fuels Co-processing Services Framework Agreement for the year ending 31 December

2023 is RMB28.5 million.

China's construction of ecological civilization is entering a critical period with carbon reduction as the key strategic direction, and the research and use of alternative fuels and alternative fuels co-processing services will be the only way for traditional enterprises to achieve energy saving and carbon reduction. The Group closely followed the country's development of green and low-carbon industries, and thoroughly implemented the firm concept of green and low-carbon development. While continuously consolidating the core advantages of co-processing in cement kilns, the Group made a forward-looking layout in the alternative fuel industry. The Group is of the view that the entering into of the Alternative Fuels Co-processing Services Framework Agreement with Conch Cement is conducive to enhancing the profitability of the Group and further consolidating its leading position in the industry. On July 6-7,

2023, China Cement Network will hold the " 2023 China Cement Energy Conservation and New Energy Development Conference " in Chongqing. Leading enterprises in China Building Materials, Conch Group, Jinyu Jidong, Red Lion Group, Huaxin Cement, Huarun Cement, Taiwan Cement, Shanshui Group, Tianrui Cement , Asian Cement and other industries will gather in Chongqing to discuss new ways of energy saving and carbon reduction in the cement industry with industry technical specialist and professors of colleges and universities. The cement industry is moving towards a new journey of low carbon and high quality development.