On May 17, Gansu Shangfeng Cement Co., Ltd. issued a notice on the receipt of administrative penalty decision by subsidiaries. According to the
announcement, Ningxia Shangfeng Shengsheng Environmental Protection Technology Co., Ltd. (Hereinafter referred to as "Shengsheng Environmental Protection") is a 65% subsidiary of Zhejiang Shangfeng Jiexia Environmental Protection Technology Co., Ltd., a 51% subsidiary of Gansu Shangfeng Cement Co., Ltd. Sprouting Environmental Protection recently received the Decision on Administrative Penalty (Wu Huan Fa Zi [2024] No.54) issued by Wuzhong Ecological Environment Bureau.
After consulting, the hazardous waste disposal account of the environmental protection cement kiln co-disposal facility, the summary of the entry and exit account of the SMP workshop in 2023 and the summary of the entry and exit account of the flexible landfill in 2023 were recorded. The records show that the cement kiln co-processing facility disposed a total of 2650.737 tons of hazardous wastes classified as HW49 (except activated carbon), HW08, HW17, HW21, HW23, HW24, HW34, HW35, HW36, HW48 and HW50 in 2023. The flexible safe landfill site disposed a total of 7,629.83 tons of HW06, HW08 and HW34 hazardous wastes in 2023. The category of hazardous wastes disposed by the cement kiln and the safe landfill site was inconsistent with the category of hazardous wastes approved by the hazardous waste business license, and did not engage in hazardous waste disposal business activities in accordance with the provisions of the hazardous waste business license.
In accordance with the second paragraph of Article 114 of the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes and the Applicable Standards for the Right to Discretion of Administrative Penalties for Ecological Environment in the Autonomous Region, the Bureau of Ecological Environment of Wuzhong City decides to impose the following administrative penalties on the Environmental Protection Bureau of Wuzhong City: a fine of 1.5 million yuan (1500000.00 yuan). After
receiving the penalty decision, the company will seriously rectify and strengthen the operation management and control in strict accordance with relevant laws and regulations; In strict accordance with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes and other relevant laws and regulations, the Company will conscientiously implement various management systems, improve the environmental protection management and control system, earnestly fulfill its environmental protection responsibilities, and prevent the recurrence of such incidents. This administrative penalty has no significant impact on the normal production and operation activities of the Company and its subsidiaries, and does not touch on the major illegal compulsory delisting situation stipulated in the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange. The Company and its relevant subsidiaries will continue to operate and manage in strict accordance with relevant regulations, strengthen internal control, and fulfill disclosure obligations in a timely manner according to the subsequent situation.
