Conch Environmental Protection Subsidiary Intends to Invest 8.77 Million yuan to Purchase the Land Use Right of Guangying Cement

of January 11, Conch Environmental Protection announced that on January 11, 2023, Qingyuan Haichuang, a non-wholly owned subsidiary of the company, entered into a property rights transaction agreement with Guangying Cement , pursuant to which Guangying Cement agreed to transfer its land use right to Qingyuan Haichuang on the target land, and to transfer its land use right to Qingyuan Haichuang. The consideration is approximately RMB8.77 million.

It is reported that the Target Land comprises five land parcels located at Daluo Village Committee of Shitan Town and Huangtian Village Committee of Zitan Town, Qingxin District, Qingyuan City, Guangdong Province, the PRC, with a total site area of approximately 12425. The Target Land is approved for industrial use. The Target Land was initially acquired by Guangying Cement by way of auction of state-owned land in the PRC at a consideration of approximately RMB2.27 million. According to

the announcement, Qingyuan Haichuang is located in Guangdong, which is rich in waste production and economically developed. Qingyuan Haichuang's purchase of the land use right of the target land is conducive to promoting project construction, improving the market layout of the group, and further enhancing the profitability of the group.