About WESTCHINACEMENT Company

Western China Cement Co., Ltd. (the “Company”) and its subsidiaries (collectively, the “Group”) is one of the leading cement producers in Shaanxi Province. It enjoys a major market position in eastern and southern Shaanxi Province, and also has bases in Xinjiang and Guizhou provinces. The Group's total production capacity reached 29,200,000 tons, including. Twenty new dry-method cement production lines have production capacity of 23,300,000 tons, 4,100,000 tons, and 1,800,000 tons in Shaanxi, Xinjiang and Guizhou provinces, respectively. Driven by the Chinese government's “Western Development Policy” and “Silk Road Economic Development Plan”, the Group's cement production takes the economic development of western China as an opportunity to meet the development needs of Shaanxi, Xinjiang, Guizhou and western China, and provides cement products to infrastructure, urban and rural construction markets. The Group's cement products are used in various infrastructure projects such as roads, railways, bridges, hydropower stations, water conservancy and water diversion projects. The Group also focuses on meeting urban and rural development in western China. demand, the region is currently undergoing rapid urbanization and population migration, accompanied by the development of housing and social infrastructure. The Group is committed to consolidating its position in the core market in southeastern Shaanxi Province. It has built or acquired well-located plants in the region, enabling the Group to obtain a leading market position in Shaanxi Province and benefit from the high market threshold caused by high transportation costs. The Group's layout allows the Group to benefit from the cement industry's current consolidation phase, and the Group's recent acquisition in Guanzhong has also strengthened the Group's position in the Xi'an urban market. Energy saving and emission reduction is an increasingly important issue in the cement industry, and the Group has always strived to meet the best standards in the industry in these fields. All of the Group's production facilities are new dry process production lines, most of which are adjacent to limestone quarries, and conveyors are used in many plants to minimize transport-related emissions. The installation rate of the Group's waste heat recovery system has exceeded 80%, reduced electricity consumption by about 30%, and reduced annual carbon dioxide emissions by about 20,000 tons per million tons of cement. The Group's plants have been fully equipped with denitrification (de-NOX) equipment to reduce nitrogen oxide emissions per ton of clinker by about 60%, and suspended particle emission reduction equipment has also been installed. The Group also engages in hazardous and municipal waste incineration through Yao Bai Environmental Protection. In 2015, the Group officially became sustainable cement under the World Business Council for Sustainable Development (WBCSD). A member of the Initiative for Action (CSI), a global voluntary organization of 25 major cement producers.