Continuous loss! Listed companies transfer their 600000 tons of clinker production capacity indicators.

June 2, Ningbo Fidelity issued the "Announcement on the Subsidiary's Proposed Public Listing and Transfer of Capacity Indicators".

The announcement said that in recent years, Xinping Company, a holding subsidiary of Ningbo Fidelity, has continued to lose money due to factors such as declining demand in the cement industry, intensified competition and stricter national environmental protection and consumption reduction policies. Although in 2025, Xinping Company will continue to face greater market uncertainty and large investment pressure in environmental protection in the future, taking into account the changes in market and policy environment since this year, by expanding sales, reducing costs and increasing efficiency.

After comprehensive evaluation, in order to maximize the capacity value of the existing clinker production line of Xinping Company and reduce the operational risk, it is proposed to transfer the capacity index of the cement clinker production line held by Xinping Company by public listing. The capacity index to be listed is 2000t/d, equivalent to 600,000 tons per year. After the transfer of production capacity indicators is completed, Xinping Company will shut down and dismantle the main equipment such as rotary kilns according to law. The appraisal value of the

production capacity index is 43.8 million yuan (equivalent to 73 yuan/ton) , the base price of this listing will not be lower than appraisal value, and the final transaction price will be subject to the results of public listing bidding. This transaction only transfers production capacity indicators, and physical assets such as cement clinker production lines corresponding to production capacity are not within the scope of transfer. After the completion of the transfer of

production capacity indicators, Xinping Company will shut down and dismantle the main production equipment such as rotary kilns according to law, retain the existing cement grinding system, and plan to invest about 23.5 million yuan in environmental protection and energy consumption technology transformation of the grinding system, while relying on existing mine resources to carry out aggregate production and sales business.