SIFANG NEW MATERIAL: Subsidiaries and branches will gradually suspend operations and production

SIFANG NEW MATERIAL announced that its wholly-owned subsidiary Guangcheng Building Materials and the Building Materials branch hold the mining rights for two limestone mineral resources for construction in Jiangjia Town, Banan District, Chongqing. Due to the high-speed railway covering part of the mineral resources, some mining areas of the company's mine have ceased operations, while mining work in other areas and subsequent production processes of the mined ore are proceeding normally. As the original limestone mineral resources are nearly exhausted, the company will gradually suspend operations and initiate pit closure procedures. The company stated that the high-speed railway covering the mine will not have a significant impact on its main business and will not result in significant losses