The construction progress of overseas investment projects of Shangfeng Cement's wholly-owned subsidiary is lagging behind.

On May 12, Shangfeng Cement announced the progress of its wholly-owned subsidiary Shangfeng Building Materials'foreign investment in Kyrgyzstan. The registered capital of Shangfeng ZETH Cement Co., Ltd. established by the

company in cooperation with ZETH International is 200 million yuan, of which Shangfeng Building Materials contributes 58%. The project plans to invest about 120 million US dollars to build a cement clinker production line with a daily output of 2800 tons and a cement grinding production line with an annual output of 1.2 million tons. However, since its launch in 2015, the construction progress has lagged behind due to various factors and has not yet been put into operation.

As of December 31, 2024, the total assets of Shangfeng ZETH are 179 million yuan, the net profit attributable to the parent company is about 5.47 million yuan, and the operating income is 280000 yuan, all of which account for a low proportion of the company's relevant indicators and are expected to have little impact on the company's interests. However, incomplete approval procedures and disputes among shareholders may increase the uncertainty of the progress of the project. The company plans to take legal measures to resolve shareholder disputes, and will continue to strengthen risk control and communication to promote project construction. In the

first quarter of 2025, Shangfeng Cement realized a revenue of 951 million yuan and a net profit of 79.93 million yuan.