Sinoma Cement Co.,Ltd. announced that it has entered into the capital contribution agreement with returning investor Xinjiangtianshan Cement Co.,Ltd, and new investor Sinoma International Engineering Co.,Ltd on December 4, 2023. The company will issue 1,235,520,442 shares at a subscription price of CNY 1.0693424 per share for gross proceeds of CNY 1,321.1939 million in its first capital contribution, and 6,911,200,000 shares at a subscription price of CNY 1 per share for gross proceeds of CNY 6,911.2 million in its second capital contribution, for aggregate gross proceeds of CNY 8,232.3939 million in the transaction. In first capital contribution, the new investor Sinoma International Engineering Co.,Ltd will subscribe for the CNY 1,235.52 million newly increased registered share capital of the company.

Post first capital contribution, the registered share capital of the company will increase from CNY 1,853.28 million to CNY 3,088.80 million and returning investor Xinjiangtianshan Cement Co.,Ltd will holds 60% stake, and new investor Sinoma International Engineering Co.,Ltd will holds 40% stake in the company. In second capital contribution, returning investor Xinjiangtianshan Cement Co.,Ltd will subscribe for CNY 4,146.72 million, and new investor Sinoma International Engineering Co.,Ltd will subscribe for CNY 2,764.48 million, for aggregate of CNY 6,911.20 million of newly increased registered share capital of the company. Post second capital contribution, the registered share capital of the company will increase from CNY 3,088.80 million to CNY 10,000.00 million, and returning investor Xinjiangtianshan Cement Co.,Ltd will remains holds 60% stake, and new investor Sinoma International Engineering Co.,Ltd will remains holds 40% stake in the company.

The company should complete the market supervision registration change procedures for the capital contribution and obtain a new business license within 15 working days from the effective date of the capital contribution agreement. The investors have agreed to complete the market supervision registration procedures for the second capital contribution within one month from the completion date of registration change of the first capital contribution and obtain a new business license for the company. The transaction has been approved at the 28th meeting of the 8th board of directors.