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On December 8, Huafeng Chemical issued two announcements: first, the company plans to invest 502 million yuan through its wholly-owned subsidiary Chongqing Fufeng Chemical Co., Ltd. to build a natural gas integration project with an annual production capacity of 1.1 million tons (Phase 1)； Secondly, the company plans to invest 2.04 billion yuan through its wholly-owned subsidiary, Huafeng Chongqing Biomedical Materials Co., Ltd., to build a project aimed at expanding the PTMEG spandex production capacity to 120,000 tons per year. According to the announcement regarding the Integrated Natural Gas Project with an annual production capacity of 1.1 million tons (Phase I), the 15th meeting of the eighth board of directors of Huafeng Chemical Co., Ltd. approved the proposal to invest in the construction of this project. It is planned to use 502 million yuan, funded through its wholly-owned subsidiary Chongqing Fufeng Chemical Co., Ltd., to build Phase I of the integrated natural gas project with an annual production capacity of 1.1 million tons. This project does not require submission to the shareholders’ meeting for review. The company will disclose any progress or changes regarding this project in a timely manner in accordance with the relevant regulations of the Shenzhen Stock Exchange. Investors are advised to be aware of the investment risks involved. Project Details: Project Name: Annual Production of 1.1 million tons of natural gas integrated project (Phase I). Constructor: Chongqing Fufeng Chemical Co., Ltd. Project investment estimate and funding source: The total investment is estimated at 502 million yuan, to be funded through self-financing; the actual investment amount and construction period will depend on the conditions after the project is implemented. Project construction period: The construction timeline is 36 months (subject to the actual progress of the project construction). The progress of project implementation will be adjusted in a timely manner based on market demands, operational conditions, and comprehensive evaluations by the board of directors, and such adjustments will be disclosed in accordance with relevant laws and regulations. Project content and scale: 250,000 tons/year BDO plant, 300,000 tons/year synthetic ammonia plant, associated process units, utility systems, and auxiliary facilities, etc. Process technology: This project uses acetylene, formaldehyde, and hydrogen as raw materials to produce BDO via the alkyne-aldehyde method. Project location: Baitao Chemical Industrial Park, Fuling District, Chongqing. Project payback period: With a total investment of 502 million yuan, the static payback period for the investment after the project is operational (after taxes) is 5.4 years (excluding the construction period). Regarding the project to further develop the spandex industry chain, the announcement states that at its 15th meeting of the eighth board of directors, Huafeng Chemical Co., Ltd. approved the proposal to invest in a project aimed at producing 120,000 tons per year of PTMEG-based spandex. This investment will be made through its wholly-owned subsidiary, Huafeng Chongqing Biomaterials Co., Ltd., with an investment amount of 204 million yuan. Project Details: Project Name: Project to Enhance the PTMEG Spandex Industry Chain with an Annual Production Capacity of 120,000 tons. Project Investor and Constructor: Huafeng Chongqing Biomedical Materials Co., Ltd. Estimated Investment and Funding Source: The total investment is estimated at 2,040,000 million yuan, to be funded through internal resources; the actual investment amount and construction period will depend on the conditions after the project is implemented. Project construction period: Estimated at 36 months (subject to the actual progress of project construction). The progress of project implementation will be adjusted in a timely manner based on market demands, operational conditions, and comprehensive evaluations by the board of directors, and such adjustments will be disclosed in accordance with relevant laws and regulations. Project content and scale: 120,000 tons/year PTMEG plant ； Associated process equipment, utility systems, and auxiliary facilities, etc. Process technology: BDO cyclodehydration will be used to produce PTMEG. Location of the project: Baitao Chemical Industrial Park, Fuling District, Chongqing. Payback period for the project: With a total investment of 20.4 billion yuan, the static payback period (after taxes) after the project is operational is 4.8 years (excluding the construction period). Regarding the purpose of this investment project, Huafeng Chemical stated that the company has over the years focused on the development, production, and sales of spandex, polyurethane raw materials, and adipic acid products, pursuing an approach to industrial integration in order to build advantages within the industry chain. Adhering to the principle of giving equal importance to innovation and strengthening its capabilities, the company aims to further enhance its overall profitability and risk resistance through the implementation of this project, improve its position in the industry, and strengthen and expand its comprehensive competitiveness, core competitiveness, and sustainable development capabilities.