The project announcement has not been put into production for 10 years! Transfer of equity of Shangfeng Cement Holding Company!

2025-07-24 13:59:58

Since the start of the preliminary construction work, the project has been affected by multiple external factors, resulting in a long-term lag in construction progress, and has not yet been put into operation. In May 2025, Shangfeng Building Materials received a legal document forwarded by ZETH International, the shareholder of the project, which excluded the shareholder qualification of Shangfeng Building Materials in Shangfeng ZETH and was supported by the default judgment of the local court of Kyrgyzstan. Shangfeng Building Materials has hired relevant lawyers to communicate and confirm with ZETH International and the local court of Kyrgyzstan.

On the evening of July

23, Shangfeng Cement issued an announcement on the transfer of creditor's rights and assets rights of wholly-owned subsidiaries to overseas joint ventures. On 17 November

2014, The 14th meeting of the seventh board of directors of Gansu Shangfeng Cement Co., Ltd. (Hereinafter referred to as the "Company") deliberated and passed the Proposal on the Construction of Cement Clinker Production Line Project in Kyrgyzstan with ZETH International Joint Venture. Zhejiang Shangfeng Building Materials Co., Ltd. (Hereinafter referred to as "Shangfeng Building Materials"), a wholly-owned subsidiary of the company, is the main investor and cooperates with Kyrgyzstan ZETH International Investment Co., Ltd. Shangfeng ZETH Cement Co., Ltd. (Hereinafter referred to as "Shangfeng ZETH"), a joint venture subsidiary in the Kyrgyz Republic (hereinafter referred to as "Kyrgyzstan"), has a registered capital of 200 million yuan, of which Shangfeng Building Materials contributes 58% and ZETH International contributes 42%. Shangfeng ZETH plans to invest in the construction of a cement clinker production line with a daily output of 2800 tons and a supporting cement grinding production line with an annual output of 1.2 million tons in Chuhe Prefecture, Kyrgyzstan. Since the start of the preliminary construction work, the

project has been affected by multiple external factors, resulting in a long-term lag in construction progress, and has not yet been put into operation. In May 2025, Shangfeng Building Materials received a legal document forwarded by ZETH International, the shareholder of the project, which excluded the shareholder qualification of Shangfeng Building Materials in Shangfeng ZETH and was supported by the default judgment of the local court of Kyrgyzstan. Shangfeng Building Materials has hired relevant lawyers to communicate and confirm with ZETH International and the local court of Kyrgyzstan.

In order to properly handle the above shareholder qualification disputes and the rights and interests of the shareholders in the joint venture company, and thoroughly solve the problems and obstacles of the project, in combination with the adjustment of the company's strategic planning, the relevant parties reached a consensus through friendly consultation. Shangfeng Building Materials intends to cooperate with Zhejiang First Hydropower Construction Group Co., Ltd. (Hereinafter referred to as "Zhejiang Water"), ZETH International and three related parties: Zhu Rongjun, Shangfeng ZETH, ZETH Cement Co., Ltd. (Hereinafter referred to as "ZETH Cement"), European Concrete Co., Ltd. (Hereinafter referred to as "European Concrete"), ZETH New Standard Co., Ltd. (Hereinafter referred to as "ZETH New Standard"), Zhejiang Zheshui New Energy Co., Ltd. (Hereinafter referred to as "Zheshui New Energy") and Zhejiang Jiangneng Construction Co., Ltd. (Hereinafter referred to as "Jiangneng Construction") jointly signed the Equity and Creditor's Rights Transfer Agreement of Shangfeng ZETH (hereinafter referred to as "Transfer Agreement").

Among them, Shangfeng Building Materials intends to transfer all the principal and interest of its creditor's rights to Shangfeng ZETH in accordance with the transfer agreement, totaling RMB 211,234,420.71 (the total amount of principal and interest is US $29,427,213.05. Transferred to Zheshui Co., Ltd. at the price of RMB90,000,000 (converted based on the central parity rate of RMB to USD on March 31, 2025); At the same time, ZETH International transferred the 58% equity of Shangfeng ZETH registered under its name to Zhejiang Water Co., Ltd. for 10,000 som (about 820 yuan in total); Due to the need of overseas business development, Zhejiang Water Co., Ltd. agreed to transfer 58% of the equity of Shangfeng ZETH and all the creditor's rights of Shangfeng Building Materials to Shangfeng ZETH at the above price.

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Correlation

The project announcement has not been put into production for 10 years! Transfer of equity of Shangfeng Cement Holding Company!

Since the start of the preliminary construction work, the project has been affected by multiple external factors, resulting in a long-term lag in construction progress, and has not yet been put into operation. In May 2025, Shangfeng Building Materials received a legal document forwarded by ZETH International, the shareholder of the project, which excluded the shareholder qualification of Shangfeng Building Materials in Shangfeng ZETH and was supported by the default judgment of the local court of Kyrgyzstan. Shangfeng Building Materials has hired relevant lawyers to communicate and confirm with ZETH International and the local court of Kyrgyzstan.

2025-07-24 13:59:58

CEMPI

105.29

-0.38 -0.36%

CONCPI

94.30

-1.31 -1.37%

CLKPI

104.52

-0.09 -0.09%

SPPI

45.16

+0.02 +0.04%

MORPI

76.51

-0.42 -0.55%

A number of cement industry-related technologies are proposed to be included in the Catalogue of Advanced and Applicable Technologies and Equipment for Comprehensive Utilization of National Industrial

Grinding technology and equipment of wet slag discharge vertical mill; key technology of Bayer process red mud quality control to produce matrix composite materials; key technology and equipment of comprehensive utilization of fly ash quality improvement and carbon reduction; technology of solid waste resource utilization coupled with carbon dioxide capture and storage utilization (CCUS); remanufacturing technology of wear-resistant parts of mechanical equipment; remanufacturing technology of permanent magnetization of old motors; The green remanufacturing technology of high-precision and long-life gearboxes has been listed in the Catalogue of Advanced and Applicable Technology and Equipment for Comprehensive Utilization of National Industrial Resources (2025 edition).