“工程+化工”同步发展，积极扩展醋酸丁酸纤维素产品

⚫⚫⚫⚫⚫ Seethe last page for disclaimerAPPENDIX 1Summary➢The company is involved in the synchronous development of the engineering and chemical industries. Shandong Sanwei ChemicalGroup Co., Ltd. was founded in November 1994 and was listed on the Shenzhen Stock Exchange in September 2010. It is atechnology-based chemical group that integrates the research and development of chemical and petrochemical technology andproducts, engineering technology services, and the production and sales of catalysts and basic chemical raw materials. The companydevelops throughthe mutual drive and linkage of "technology plus engineering plus industry". It is the domestic company with themost designs and general contracting of sulphur recovery units in the engineering industry. In the chemical industry, it is the largestproducer of n-propanol in China and a leading producer of butanol and octanol residue. It is also a seller of n-pentanol and a providerof sulphur-resistant shift process technology and catalyst products.➢There was stable deployment of major businesses in 2024. The company's operating revenue was 2.610 billion yuan, 2.657 billionyuan and 2.554 billion yuan respectively from 2022 to 2024, with year-on-year increases of-0.82%, +1.82% and-3.The net profitsattributable to the parent company were 274 million yuan, 282 million yuan and 263 million yuan respectively, with year-on-yearincreases of 27.48%, 3.07% and 6.92% respectively. The gross profit margin for sales was 19.57%, 21.24% and 21.56% respectively.The slight fluctuations in the company's operating revenue and profit in 2024 were mainly affected by factors such as insufficientdemand in the petrochemical downstream market, low product prices and low demand and profit in the chemical industry, as wellas intensified competition in the chemical raw materials and products sector. In terms of sales volume, the company's residual liquidprocessing product sales were 58,300 tons in 2022, 64,300 tons in 2023, and 60,700 tons in 2024, while its alcohol aldehyde esterproduct sales were 173,900 tons in 2022, 203,200 tons in 2023, and 188,000 tons in 2024.➢The company has benefited from new engineering orders and project breakthroughs.Since2025,the comapnyhas won multipleorders for coal chemical projects in Xinjiang by leveraging its own advantages. The coal chemical industry has ushered in newdevelopment opportunities. The 14th Five Year Plan clearly states that Xinjiang is to become a major national coal supply base. Withpolicy support, the industry will increase investment and enter an upward cycle of prosperity. Overall, the optimisation andupgrading of the petrochemical industry structure, including oil conversion, upgrading and transformation, equipment upgradingand updating, downstream capacity expansion, and accelerating the industrial chain, as well as implementing coal chemical projectsin Xinjiang and integrating wind, solar power, hydrogen and traditional energy, are all directions of industrial development. Since2025, the company has won new bids for the procurement of complete sets of low-methane cascade refrigeration compressors forthe2 billion cubic metre per year Zhundong coal-to-natural gas project of Xinjiang Tianchi Energy Co., Ltd., as well as for the technicallicence and design services for the sulphur recovery unit of the Hami Energy Integration Innovation Base project (PhaseI coal-to-oilproject) of Xinjiang Hami Energy Chemical Co. Ltd., EPC general contracting for the sulfur recovery unit of the Baotou ShenhuaBaotou coal-to-olefin upgrading demonstration project of Guoneng Baotou Coal Chemical Co. Ltd., and sulfur recoverytechnologyand process package technical services for the Zhundong Wucaiwan 800,000-tonne-per-year coal-to-olefin project of XinjiangShanneng Chemical Co. Ltd.➢The company is actively expanding its chemical business. In recent years, it has acquired equity in several companies to increase thecapacity of its existing projects. The main companies acquired include Zibo Nuoao Chemical, Shandong Sanwei Longbang NewMaterials and Qingdao Lianxin Catalytic Materials. These companies have factories in Zibo and Qingdao. The production capacitiesof their n-propanol, cellulose and catalyst businesses have all been increased. According to the company's annual report, the currentproduction capacities of its main products are:-170,000 tonnes per year for C3, C4, C5 and C8 aldehydes; 260,000 tonnes per yearfor C3, C4, C5 and C8 alcohols; 30,000 tonnes per year for propionic acid, butyric acid and valeric acid; 100,000 tonnes per year forn-propyl acetate; 6,000 tonnes per year for catalysts; 1,000 tonnes per year for cellulose.The company is currently undertaking aproject to optimise production capacity and upgrade its cellulose acetate butyrate products. This includes a 50,000-tonne-per-yearisooctanoic acid plant and supporting facilities. This project includes a 50,000-tonne-per-year isooctanoic acid plant and supportingfacilities. Meanwhile, the f