Inner Mongolia Junzheng 20.7 billion yuan 2×600,000 tons BDO project begins equipment installation

Basic information of the projectConstruction unit: Inner Mongolia Junzheng Chemical Co., Ltd. construction project name: Construction location of the first phase project of Inner Mongolia Junzheng Chemical Co., Ltd.'s green environmental protection recycling industry with an annual output of 2×600,000 tons of BDO and an annual output of 2×1 million tons of PBAT/PBS/PBT/PTMEG: The construction site is located in Wuda Industrial Park, Wuhai City, adjacent to the Inner Mongolia Xingfa project land in the east, Wuhai Changxin Industry and Trade Co., Ltd. in the west, Huagong Road in the south, and Walter Valley in the north. land area: 533322.44 square meters of capacity area: Total investment of 325,326.70 square meters: 20.70 billion yuan, including self-owned funds: 6.21 billion yuan, apply for bank loan: 14.49 billion yuan, other 00,000 yuan planned construction start and end years: Construction scale and content from 2021/05 to 2023/12: The total investment is 20.7 billion yuan to build a PBAT/PBS/PBT/PTMEG co-production unit with an annual output of 1 million tons, a BDO unit with an annual output of 600,000 tons, a carbon-based material hydrogen production unit, a formaldehyde synthesis (55%wt) unit with an annual output of 800,000 tons, an adipic acid unit with an annual output of 200,000 tons and supporting raw material production equipment, an acetylene unit, and supporting solid storage and transportation, circulating water stations, sewage treatment plants, recycled water stations and other public works and auxiliary production facilities. Project code: 2104-150304-04-01-974830 Project contracting scope: Installation project (Tender Section 1) Contract amount: 160 million yuan (one hundred and sixty million yuan) contract period: April 1, 2023-October 1, 2023, the total construction period is 6 months, Note: The start and completion date shall be subject to the contact sheet issued by the contractor. Construction unit: Northwest Branch

Project Progress On June 21, 2021, Inner Mongolia Junzheng Energy and Chemical Industry Group Co., Ltd.’s green, low-carbon, environmentally friendly and degradable plastic recycling industry project phase I cooperated with Wuhai City* * Sign the agreement. On April 8, 2022, the first phase of the green, low-carbon, environmentally friendly and degradable plastic recycling industry project built by Junzheng Group in Wuda Industrial Park, Wuhai City, Inner Mongolia, totaling 20.7 billion yuan, officially started. On June 17, 2022, matters related to the environmental impact assessment work of the first phase of Inner Mongolia Junzheng Chemical Co., Ltd.'s 2×600,000 tons of BDO and 2×1 million tons of PBAT/PBS/PBT and PTMEG green environmental recycling industry projects were announced for the second time. On July 6, 2022, Inner Mongolia Junzheng Chemical Co., Ltd.'s annual output of 2×600,000 tons of BDO and annual output of 2×1 million tons of PBAT/PBS/PBT/PTMEG green environmental recycling industry project was announced before approval. On August 26, 2022, accompanied by the sound of firecrackers, applause, and the rumbling sound of machinery, the opening ceremony of the first phase coking methanol project of Inner Mongolia Junzheng Chemical Co., Ltd. with an annual output of 2×600,000 tons of BDO and an annual output of 2×1 million tons of PBAT/PBS/PBT/PTMEG green environmental protection recycling industry was held in Wuda Industrial Park, Wuhai City. On January 28, 2023, Sinochem Erjian Electric Instrument Co., Ltd. won the bid for Inner Mongolia Junzheng Chemical Co., Ltd. (referred to as "Inner Mongolia Junzheng Chemical") with an annual production capacity of 2X600,000 tons of BDO and an annual production capacity of 2X1 million tons of PBAT/PBS/PBT. /PTMEG Green Environmental Protection Recycling Industry Phase I project batch installation project. This winning bid is another fruitful result of Sinochem Erjian Electric Instrument Co., Ltd.’s deep development in the Wuhai area of ​​Inner Mongolia. It is also a good start for the company’s work to reach a new level in 2023. On March 10, 2023, Inner Mongolia Junzheng Chemical Co., Ltd. announced the planning and design plan for the first phase of the green environmental recycling industry project with an annual output of 2×600,000 tons of BDO and an annual output of 2×1 million tons of PBAT/PBS/PBT/PTMEG.

The first phase of the Inner Mongolia Junzheng project is located in Wuda Industrial Park, Wuhai City, Inner Mongolia, with a total investment of 20.7 billion yuan, approximately twice its net profit in the past four years. (The BDO+PBAT project of Sanwei Share Investment is also located in the Low-Carbon Industrial Park of Wuhai Economic Development Zone, Wuhai City. The two parks are about 50 kilometers apart.) Junzheng Group stated that funding sources include but are not limited to the company’s own funds, loans from financial institutions, etc. The construction period of this project is from May 2021 to December 2023. After the project is put into operation, it will have an annual output of 600,000 tons of BDO and an annual output of 1 million tons of PBAT/PBS/PBT/PTMEG. It is expected to achieve an average annual operating income of approximately 16.4 billion yuan and a total profit of approximately 3.5 billion yuan. Junzheng Group announced news of the project for the first time on May 7, 2021. The stock price rose and fell back to close at 6.56 yuan that day. It then fluctuated and fell. As of June 22, it closed at 5.36 yuan, with a total market value of 45.23 billion.