On July 19, 2024, the European Commission announced the preliminary disclosure of the initial ruling on the anti-dumping investigation of Chinese biodiesel products, which involved the following main content of the company: After the provisional anti-dumping duty is announced, the European Commission will impose a temporary anti-dumping duty of 23.70% on the biodiesel products of the company's wholly-owned subsidiary Hainan Huanyu New Energy Co., Ltd., holding subsidiary Shandong Sanju Bioenergy Co., Ltd., commissioned processing enterprise Baoshun (Henan) New Charcoal Material Co., Ltd., and Shandong Baoshun Chemical Technology Co., Ltd., and Sustainable Aviation Fuel (SAF) will not be subject to anti-dumping duty.

The temporary anti-dumping duty imposed by the European Commission on biodiesel products has caused temporary adverse effects on the company's biodiesel prices, but the overall impact is limited. In the long run, bio-energy business has obvious carbon emission reduction advantages, downstream applications are spread across water, land, and air transportation fields, and can be extended to bioproducts, with broad prospects. At present, the company has actively developed markets outside the European Union, such as Japan and South Korea, Singapore, Hong Kong, Australia and other markets, and has established cooperation with many group companies. The company will continue to expand non-European Union markets, improve its product portfolio, and introduce customized products to meet segment market requirements. At present, the National Energy Administration has organized pilot applications, and the company has accelerated the promotion and application pilot of biodiesel in Haidian district, Beijing and Juxian county, Rizhao City, Shandong Province. This will develop domestic application scenarios for biodiesel, and the domestic market demand will gradually be released, and the company's biodiesel products will expand to the domestic market.

The European Commission does not impose anti-dumping duties on sustainable aviation fuels (SAF). According to the European RefuelEU Act, as of January 1, 2025, sustainable aviation fuels (SAF) will be mandatory added to airplane fuels at EU airports. At present, the company has produced qualified sustainable aviation fuel (SAF) components on industrialized equipment, and has obtained ISCCCORSIA and ISCC-EU under the HEFA international certification. The Holding subsidiary Shandong Sanju Bioenergy Co., Ltd. has also started the construction of a 0.2 million-ton/year biodiesel isomerization project. After reaching production capacity, it will continue to improve the production capacity of sustainable aviation fuel components.

The anti-dumping duty rate announced by the European Commission this time is the preliminary disclosure result, and according to the EU's anti-dumping investigation procedure, the European Commission expects to make a final ruling result 13-14 months after the start. The company will continue to closely monitor the progress of anti-dumping defense and actively participate in industry non-injury defense and related hearings to maximize corporate interests.