Sign the equity transfer agreement! Ningxia Building Materials Layout New Track

21, Ningxia Building Materials announced that the company intends to sign the Equity Transfer Intention Agreement with the controlling shareholder China Building Materials Co., Ltd. to transfer 100% of the shares of China Building Materials Graphite New Materials Co., Ltd. (Hereinafter referred to as "China Building Materials Graphite") held by the latter. After the completion of this

transaction, CNBM Graphite will become a wholly-owned subsidiary of Ningxia Building Materials and be included in the consolidated statements, and the company's main business will add new graphite materials research and development, production and sales sectors.

The announcement shows that the transaction is to be implemented through agreement transfer, and the transfer price of the target equity will be based on the evaluation value of all shareholders'rights and interests of the target company filed by the state-owned assets supervision and administration department, and will be finalized in the formal equity transfer agreement after consultation between the two sides. After preliminary calculation, this transaction is not expected to constitute a major asset reorganization stipulated in the Measures for the Administration of Major Asset Reorganization of Listed Companies.

Ningxia Building Materials said that this transaction is an important strategic measure for the company to expand new business sectors, improve profitability and development quality. After the completion of the transaction, on the basis of maintaining the stable operation of the existing main business, the company will enter into the field of new graphite materials, further enrich the business layout, optimize the industrial structure, and enhance the company's compr ehensive competitiveness and sustainable profitability. At the same time, the

announcement pointed out that the "Equity Transfer Intention Agreement" signed this time is only an intentional agreement for cooperation between the two sides, and the specific transaction plan still needs to be further demonstrated and negotiated after the completion of due diligence, auditing, evaluation and other pre-work, and the legal procedures such as the approval of state-owned assets and the internal decision-making of both sides need to be fulfilled.

CNBM Graphite was founded in November 2022 with a registered capital of 2 billion yuan, which is fully owned by CNBM. According to the financial data, CNBM Graphite will achieve an operating income of 1.344 billion yuan and a net profit of 94 million yuan in 2025, and an operating income of 772 million yuan and a net profit of 98 million yuan in the first half of 2026. In terms of asset quality, by the end of June 2026, the total assets of CNBM Graphite reached 3.830 billion yuan, with net assets of 2.459 billion yuan. The asset structure is healthy, the scale of net assets continues to increase, and it has a solid foundation for business development.