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Announcement on the Subsidiary's Receipt of the Administrative License Receipt Form and Commissioning of Trial Production

Release time:

2021-05-20

Securities Abbreviations: Jianfeng Group Securities Code: 600668 No.: Pro 2020-024

Zhejiang Jianfeng Group Co., Ltd.

Announcement

on Subsidiary's Receipt of Administrative License Form and Trial Production The Board of Directors and all directors of the Company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and assume individual and joint responsibility for the truthfulness, accuracy and completeness of its contents.

Important Content Reminder:

According to "Implementation Measures of the People's Republic of China Industrial Product Production License Management Regulations", this received to "Administrative License Acceptance Form", marking that Guizhou Huangping Jianfeng Cement Co., Ltd. 4500 tons of cement clinker new dry cement production line has been put into trial production, can carry out cement (trial products) production, sales, will help to further expand the company's cement business scale, enhance the company's core competitiveness.
Risk Warning: It will take some time for the project to reach full production from trial production , and it will still need to obtain a formal production license , and there are operational risks such as cement market fluctuation, production line running-in, product sales price and raw material price fluctuation. Please pay attention to the investment risks.
Recently, Guizhou Huangping Jianfeng Cement Co., Ltd. (hereinafter referred to as "Guizhou Jianfeng"), a wholly-owned subsidiary of Zhejiang Jianfeng Group Co., Ltd. (hereinafter referred to as "the Company"), received the "Administrative License Acceptance Form" (Acceptance Form No.: (State) Municipal Supervision (2020) Xu shengzi (004232)) issued by Guizhou Provincial Market Supervision Administration. The relevant information is hereby announced as follows:
Overview of the Basic Situation of 1. Project
On December 29, 2018 , the 9th meeting of the 10th board of directors of the company passed the "Proposal on the Company's Foreign Investment". The company plans to invest in the acquisition of 100 of Guizhou Huangping Gu Longmingchuan Cement Co., Ltd. (hereinafter referred to as "Guizhou Mingchuan", now renamed as "Huangping Jianfeng Cement Co., Ltd." ), and continue to invest in the construction of a new dry cement production line with a daily output of 4500 tons of cement clinker (with waste heat power generation). For the above matters, please refer to the announcement on the company's foreign investment of the company disclosed on the website of Shanghai Stock Exchange on January 3, 2019, and the announcement on the progress of the company's foreign investment and the entry into force of the agreement disclosed on the website of Shanghai Stock Exchange on February 28, 2019.
2. the progress of the project and its impact on the company
After the acquisition, the company strongly supported the construction of the cement project in terms of capital, manpower, technology and other aspects, and orderly promoted the project infrastructure construction, equipment installation and commissioning, and raw materials Bidding and other work . Recently, Guizhou Jianfeng received the "Administrative License Acceptance Form" issued by Guizhou Market Supervision and Administration Bureau (Acceptance Form No.: (State) Municipal Supervision (2020) Xu Shenzi (004232)).
According to the Measures for the Implementation of the Regulations on the Administration of Production Licenses for Industrial Products in the People's Republic of China, the "Administrative Licensing Approval Form" was received this time. marks that Guizhou Jianfeng 4500-ton cement clinker new dry cement production line has been put into trial production , which can produce and sell cement (trial products). helps to further expand the company's cement business scale and enhance the company's core competitiveness.
3. Risk Tips
In recent years, thanks to the implementation of policies such as the country's vigorous elimination of inefficient production capacity, improvement of safety and environmental protection standards, and implementation of peak-shift production, the overall situation of the cement industry has been running well. However, the overall surplus situation of my country's cement industry has not been fundamentally changed, and the competition is fierce; and the cement industry is highly dependent on fixed asset investment and the construction industry, and there is a certain degree of uncertainty in the cement market demand.
It will take some time for the project to reach full production from trial production , and it will still need to obtain a formal production license . Moreover, there are operational risks such as cement market fluctuation, production line running-in, product sales price and raw material price fluctuation. Please pay attention to the investment risks.

This is to announce
Zhejiang Jianfeng Group Co., Ltd.
Board of Directors
September 17, 2020

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