Performance of Shangfeng Cement in the First Half of the Year Greatly Increases, New Quality Business Cultivates Steady Development

25, Shangfeng Cement released its 2025 semi-annual report. In the first half of the year, the company's main business developed steadily, investment focused on new quality, cost continued to optimize, and benefits increased significantly year on year. Despite the slight decrease in sales of the company's main products and the 5.02% year-on-year decrease in operating income due to the downward demand of the national cement market in the first half of the year, the company's cost control and efficiency performance were outstanding. In the first half of the year, the Company realized a net profit of RMB247 million attributable to the shareholders of the listed company, representing a year-on-year increase of 44.53%; realized a net profit of RMB282 million attributable to the shareholders of the listed company after deducting non-recurring gains and losses, representing a year-on-year increase of 33.47%; realized a net cash flow from operating activities of RMB476 million, representing a year-on-year increase of 23.99%; The comprehensive gross profit rate of the company's business was 31.80%, up 6.38 percentage points year-on-year, and continued to maintain the leading level in the industry. The Company's aggregates, new energy and other extended businesses maintained rapid growth, and the equity investment business focused on semiconductor materials and other science and technology innovation areas to accumulate new quality business ecological resources, and a number of investment projects began to apply for listing or receive listing guidance. In terms of

cement building materials business chain, the Company continued to deepen cost reduction and efficiency enhancement in the first half of the year, and the unit cost of main products decreased by RMB14.97/ton, of which the controllable cost decreased by RMB6.11/ton, and the contribution ratio of Xinjiang base and Ningxia base in the west increased. In the first half of the year, the sales volume of sand and gravel aggregates increased by 37.46% year-on-year; The environmental protection business disposed 88,800 tons of various hazardous solid wastes and realized an operating income of 51,019,200 yuan; New energy business In the first half of the year, photovoltaic power generation was 14.1637 million kwh, representing a year-on-year increase of 92.1%, and energy storage and discharge increased by 182% year-on-year. Three new heavy truck overcharging stations were put into operation, and the system integration of "light, storage, charging and carbon" was initially realized. At present, the total power generation of Shangfeng Sunshine New Energy has exceeded 44 million kwh, equivalent to 17.9 million tons of coal saving. Carbon dioxide emissions were reduced by 44000 tons. In terms of equity investment in the

new economy, equity investment in Guangzhou Xinrui Photomask, Hefei Fangjing Science and Technology, Yineng Science and Technology and other projects was added during the reporting period, in which the mask is the key material in the lithography process of semiconductor manufacturing. After more than six years of investment and expansion in semiconductor related materials and other fields, the company has initially accumulated abundant ecological chain resources, laying the foundation for the cultivation and development of the company's second growth curve new quality business. Hefei Jinghe invested by the company has been listed, Angruiwei and Shanghai Super Silicon have been accepted to apply for listing on the Science and Technology Innovation Board, Zhongrun Solar Energy has been accepted to apply for listing on the Hong Kong Stock Exchange, and Quzhou Development (600208) has announced that it intends to merge and acquire Pilot Electrical Science; Shenghe Jingwei, Changxin Science and Technology, Guangzhou Yuexin and Xinyaohui have successively entered the stage of listing guidance, and the company's "two-wheel drive" strategy has been clearly implemented. During the

reporting period, the Party Committee of the Company further strengthened the construction of Party building and corporate culture, played the role of Party building in promoting development, formed a situation of mutual integration and promotion with business, and carried out joint construction of enterprises and villages with Party organizations in surrounding communities for many times to form new features of Party building in non-public enterprises. The company actively cooperates with China Securities Investment Service Center to promote the mechanism of recommending independent directors by small and medium-sized shareholders, and becomes the first non-public listed company to respond to the reform of the mechanism of recommending independent directors by small and medium-sized shareholders; In the first half of the year, China Cement Network released the "2025 China Cement Enterprise ESG List" for the first time, and the company was rated a for its comprehensive performance in environmental, social and corporate governance (ESG), ranking in the top ten of the list; In the first half of the year, the subsidiaries have successively won the honorary titles of "Top 30 Local Enterprises", "Top 30 Local Taxpayers", "Green Factory" and "Provincial Green Mine".