The Board of China Shanshui Cement Group Limited announced that, based on its preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2022, as well as the information currently available to the Company immediately preceding the publication of this announcement, the Board considers that the profit attributable to equity holders of the Company for the year ended 31 December 2022 will decrease by no less than 70% as compared with that of approximately RMB 2,777,298,000 for the year ended 31 December 2021. Due to the pandemic, climatic factors and the decline in market demand in the year of 2022, cement sales and operating revenue decreased as compared with the year of 2021. In terms of costs, operating costs increased in the year of 2022 as compared with the year of 2021 due to the increase in the prices of raw materials and coal and electricity, reducing profit margins.