5, Gansu Shangfeng Cement (000672) Co., Ltd. Zhejiang Shangfeng Building Materials Co., Ltd. (Hereinafter referred to as "Shangfeng Building Materials"), a wholly-owned subsidiary of the company, and the joint venture partner, Ningbo Economic and Technological Development Zone Kaiyuan Development Investment Co., Ltd. (Hereinafter referred to as "Ningbo Kaiyuan"), intend to increase the capital of Ningbo Shangfeng Cement Co., Ltd. (Hereinafter referred to as "Ningbo Shangfeng") by 40 million yuan in cash according to the proportion of capital contribution. The registered capital of Ningbo Shangfeng has changed from 20 million yuan before the capital increase to 60 million yuan.
(hereinafter referred to as "Yongxin Port") and the acquisition of 1.2 million tons of cement grinding capacity per year of Ningbo Daxie Wanhua Thermal Power Building Materials Co., Ltd. and the annual transfer of 600000 tons of ultra-fine powder storage project and its supporting equipment and facilities. The total purchase amount of the above assets is 72.0302 million yuan.
Ningbo Shangfeng is jointly invested by Shangfeng Building Materials and Ningbo Kaiyuan in October 2024, with a registered capital of 20 million yuan, of which Shangfeng Building Materials and Ningbo Kaiyuan hold 51% and 49% of the equity respectively. The original intention is to relocate and rebuild a cement grinding production line with a design scale of 1.2 million tons per year by leasing the 5000-ton multi-purpose wharf and some supporting facilities of Yongxin Port and utilizing the idle space behind the wharf. At present, the administrative examination and approval work in the early stage of the project construction has been basically completed, and the 5000-ton multi-purpose wharf and some supporting facilities of Yongxin Port have been leased. The announcement issued
by Shangfeng Cement shows that the implementation of this transaction will help the company to give full play to the location and resource advantages of the terminal, and enhance the efficiency of stock assets and market competitiveness by developing trade business such as cement, mineral powder, fly ash and coal, so as to achieve better economic benefits; At the same time, it is also conducive to Shangfeng Cement to deepen the development and layout of regional market channels, enhance brand image and market influence, and lay a better market foundation for future cement grinding project construction.

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