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 Province. The Group's total production capacity reached 29,200,000 tons, including. Twenty new dry 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 the “Silk Road Economic Development Plan,” the Group's cement production uses the economic development of western China as an opportunity to meet the development needs of Shaanxi, Xinjiang, Guizhou and western China, and provide cement products to the infrastructure, urban and rural construction markets. The Group's cement products are used in various infrastructure projects, such as highways, railways, bridges, hydropower plants, water conservancy and water transfer 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, along with 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 factories in the region, enabling the Group to achieve 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 current stage of consolidation in the cement industry, 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 areas. All of the Group's production facilities are new dry production lines. Most are adjacent to limestone quarries, and conveyors are used in many plants to minimize transportation-related emissions. The Group's waste heat recovery system has an installed rate of over 80%, reduced electricity consumption by about 30%, and reduced carbon dioxide emissions per million tons of cement by about 20,000 tons per year. The Group has installed denitrification (DE-NOx) equipment throughout the plant line, reducing nitrogen oxide emissions per ton of clinker by about 60%. At the same time, 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 a sustainable cement company under the World Business Council for Sustainable Development (WBCSD). A member of Initiative Action (CSI), a global voluntary organization of 25 major cement producers.