Master Plan for Future Investment of Shangfeng Cement

Recently, Shangfeng Cement released a record of investor relations activities about the total amount and structure of future investment.

Shangfeng Cement said that in terms of future investment, the overall plan is: one main and two wings-two-wheel drive troika. The specific implementation path is as follows:

in terms of the main production line, continue to enhance the comprehensive strength and competitiveness, choose the opportunity for mergers and acquisitions in the trough period, or cooperate with large leading enterprises to increase equity production capacity; Product matching: strengthen the chain in key areas, complete the existing technical transformation or new grinding station projects, and increase the aggregate production capacity in areas with market conditions; cooperate with colleges and universities to develop calcium-based material products and enhance the added value of products. The main business operation will maintain the energy efficiency level of the first echelon of the industry through horizontal benchmarking and optimization of the necessary manufacturing process system, and implement the upgrading and transformation of the clinker base, such as ultra-low emission, digital and intelligent upgrading, fuel and raw material substitution, etc.; on the premise of safe production, it will maintain a streamlined and efficient operation efficiency and enhance the overall competitiveness. Co-disposal environmental protection business completed the construction and operation of Huaining Base, demonstrated the feasibility of new co-disposal process equipment and production lines in other bases, combined with the new technology of fuel substitution and comprehensive utilization of resources in cement kilns, realized the optimization of energy cost and the improvement of comprehensive benefits in the main industry. While making good use of the existing physical terminal resources, logistics tool resources and data resources to empower the main business, the logistics business will build a digital platform for the Internet of Things and upgrade and transform to the intelligent Internet of Things. Aiming at industrial and commercial users, the

new energy business aims at saving energy, reducing carbon, reducing costs and increasing efficiency for customers with an economical and efficient "light storage and carbon charging" system, while steadily accumulating the scale resources of light, storage and charging new energy power stations, it also completes the work of carbon asset management system, and completes the development of intelligent energy integrated management system and carbon asset management system. Continue to forge the leading enterprise of "source network load storage carbon" intelligent energy integration system. In terms of equity investment in the

new economy, we should further enrich the professional investment team, moderately increase investment and accumulate capital scale with the cooperation of external experts. We will continue to focus on solving the problems of semiconductors, new materials and new energy in accordance with the "three stringent" principles (strict control of quotas, scope and risks), and strive to achieve a total investment of 3 billion yuan by 2030, so as to achieve the strategic goal of two-wheel drive. As for the cultivation of

new quality materials industry, with the continuous upgrading, extension and expansion of the main industry chain, as well as the cultivation, linking and integration of the equity investment industry chain, the focus is gradually on the scope of the track of the new quality industry, so as to enhance the ability of the top team to control the integration of the new quality business, and at the same time, through the relevant information, contacts and integration of the equity investment industry chain. Deepen the understanding and insight of the industrial cycle and policy changes of new materials such as silicon-based, calcium-based and carbon-based materials, finally determine the goal of the new quality industry, seize the opportunity to increase investment in the formal entry, supplement the short board of the project, promote the scale of new business, become the "third carriage" of the peak business, and gradually stabilize the overall pattern.