Announcement of Huafon Chemical's investment in natural gas integration project including BDO

According to the announcement: the 15th meeting of the eighth board of directors of Huafon Chemical Co., Ltd. approved the motion on investing in the construction of an integrated natural gas project with an annual output of 1.1 million tons (first phase). It is proposed that its subsidiary company Chongqing Fufeng Chemical Co., Ltd. to build an annual natural gas integration project with an annual output of 1.1 million tons (phase I) (hereinafter referred to as "the project"), with investment at 5.02 billion yuan.

The basic information of the investment target:

1. Project name: annual production of 1.1 million tons of natural gas integration project (phase I)

2. Project investment construction unit: Chongqing Fufeng Chemical Co., Ltd.

3. Project investment estimation and funding sources: a total of 5.02 billion yuan is expected, the source of funds is self-raised funds, the final investment amount and construction period shall prevail after the implementation of the project.

4. Project construction period: the construction period is 36 months (finally based on the actual progress of project construction).

The implementation progress of the project will be timely adjusted according to market demand, operation and comprehensive argumentation of the board of directors, and disclosed in accordance with relevant laws and regulations.

5. Project content and scale: 250kt/year BDO plant, 300kt/year ammonia plant, supporting process equipment, public range and auxiliary facilities, etc.

6. Process technology: this project uses acetylene, formaldehyde and hydrogen as raw materials to produce BDO.

7. Project location: Baitao Chemical Industry Park, Fuling District, Chongqing.

8. Project payback period: the total investment is 5.02 billion yuan, and the static investment payback period after the completion of the project (after tax) is 5.4 years (excluding the construction period).