Huaxin Cement holds 25% of the shares and establishes a joint venture company to operate the phosphogypsum acid co-production cement project

Recently, Sichuan Development Dragon Python Co., Ltd. issued the Announcement on the Investment and Establishment of Joint Venture Company by Nanzhang Dragon Python Phosphorus Products Co., Ltd., a wholly-owned subsidiary.

The announcement said that in order to promote the comprehensive utilization of phosphogypsum resources, develop the circular economy of sulfur resources and enhance the sustainable development ability of the industrial chain, Sichuan Development Dragon Python Co., Ltd. The Bill on the Investment and Establishment of a Joint Venture Company by Nanzhang Longpyong Phosphorus Products Co., Ltd. was considered and adopted. Nanzhang Lomon Phosphorus Products Co., Ltd. (Hereinafter referred to as "Nanzhang Company"), a wholly-owned subsidiary of the Company, intends to cooperate with Huaxin Cement (Enshi) Co., Ltd. (Hereinafter referred to as "Huaxin Enshi"), (Hereinafter referred to as "Huaxin Xiangyang") and Nanzhang State-owned Capital Investment Group Co., Ltd. (Hereinafter referred to as "Nanzhang Guotou") jointly invested in the establishment of Xiangyang Longpyong Resources Recycling Co., Ltd. The registered capital of the joint venture is RMB 450 million, of which, Nanzhang Company has subscribed a capital contribution of RMB 229.5 million, holding 51% of the shares, and the source of funds is self-owned and self-raised funds; Huaxin Enshi has subscribed a capital contribution of RMB 67.5 million, holding 15% of the shares; Huaxin Xiangyang has subscribed a capital contribution of RMB 45 million, holding 10% of the shares; The subscribed capital contribution of Nanzhang Guotou is 108.0 million yuan, with a shareholding ratio of 24%.

The Joint Venture intends to be the construction and operation entity of the subsequent acquisition of the cement clinker production capacity index of 800,000 tons/year and the cement clinker co-production project of 2 million tons/year phosphogypsum acid production (the aforesaid capacity acquisition and project construction are subject to the decision-making and approval procedures, and the subsequent decision-making shall prevail). After the establishment of the joint venture company, it will be included in the scope of the company's consolidated statements.