Investor Relations Activity Record Form of Shandong Sanwei Chemical Group Co., Ltd.

Investor Relations Activity Categories

● Targeted Audience Research         □ Analyst Conference

□ Media Interview             □ Performance Briefing

□ Press Conference           □ Roadshow Event

□ On-site visit

□ Other ( Please provide a written description of the other activities.

Names of Participating Organizations and Personnel

Caitong Securities: Bi Chunhui

Yuanyin Investment: Zhou Yang

Time

2024 Year 11 Month 7 Day 10:00-11:30

Location

Headquarters of Shandong Sanwei Chemical Group Co., Ltd.

Name of the Receiving Personnel from the Listed Company

Director and President: Feng Yiyuan

Board Secretary: Zhang Jun

Securities Legal Department: Liu Cai

Introduction to the Main Activities of Investor Relations

1. What is the company's current business situation?

The company's overall business performance remains stable, with robust operating cash flow. However, this is influenced by the recognition of project execution progress. The first three quarters Year-on-year business performance To have something The decline was primarily due to:

According to relevant accounting systems and standards, revenue from engineering general contracting projects is recognized based on the progress of contract fulfillment. The company uses the input method to determine the progress of fulfillment. Given that equipment and materials required for engineering projects typically have a certain supply cycle, the company has undertaken projects for Northern Huajin United Petrochemical Co., Ltd. “ Turnkey EPC Contract for Sulfur Recovery Unit, Acidic Water Stripping Unit, and Solvent Regeneration Unit in the Fine Chemicals and Raw Materials Engineering Project EPC ） ” Project Sinopec Tianjin Branch ‘ Oil Conversion ’ Newly Built Technical Renovation Project 15 Ten thousand tons / Annual Sulfur Recovery Unit and Supporting Project Engineering, Procurement, and Construction Turnkey Contract EPC ） Project Since the early stages mainly involved ordering and production of equipment and materials, engineering revenue recognized based on contract fulfillment progress has been relatively low. As the delivery schedule approaches and on-site construction accelerates, revenue from these projects will increase significantly in the coming period. Will gradually Confirmed.

II. What are the company's main products in its chemical business? And what factors have contributed to the steady yet growing performance in the chemical sector?

The company is the largest n-propanol producer in China, a leading domestic enterprise specializing in butanol and octanol residue recovery, and a prominent n-pentanol sales company. It primarily focuses on the research and development of various new chemical materials, as well as certain other areas. C3、C4、C5、C8 Production and sales of alcohols (including aldehydes and acids), as well as products such as n-propyl acetate, butyl acetate cellulose, and their derivatives. The company's products are widely used across multiple industries and fields, including pharmaceuticals, agrochemicals, dyes, pigments, coatings, chemicals for information technology, chemical reagents and high-purity substances, food additives, feed additives, catalysts, adhesives, auxiliaries, surfactants, fragrances, and more.

Overall, the company's chemical industry performance Good Compared to large, integrated enterprises in the industry, the company enjoys greater flexibility in production and operations due to the absence of specific constraints tied to raw material sources. This allows the company to closely monitor product marginal benefits and swiftly shift toward producing high-margin products by adjusting its raw material strategies—based on short-term and long-term market demands, trends in raw material prices, fluctuations in product pricing, and inventory conditions—thereby ensuring robust economic performance.

Three What are the company's major ongoing or tracked engineering projects that are currently in progress?

The company is an engineering firm established through the restructuring of a state-owned central enterprise design institute. It primarily serves clients in the chemical and petrochemical industries while actively transforming and expanding into the new energy market. The company excels in environmental protection services and has been dedicated for many years to providing customers with one-stop, full-lifecycle engineering technical services, including engineering consulting, engineering design, engineering general contracting, project start-up, and post-completion maintenance. One of the company’s ongoing projects is the Northern Huajin United Petrochemical Co., Ltd. “ Turnkey EPC Contract for Sulfur Recovery Unit, Acidic Water Stripping Unit, and Solvent Regeneration Unit in the Fine Chemicals and Raw Materials Engineering Project EPC ） ” Sinopec (Tianjin) Petrochemical Co., Ltd. “ Tianjin Branch ‘ Oil Conversion ’ Newly Built Technical Renovation Project 15 Ten thousand tons / Annual Sulfur Recovery Unit and Supporting Project Engineering, Procurement, and Construction Turnkey Contract EPC ） ” Qilu Branch Refinery Oil Tank Area Safety Hazard Remediation Project EPC Qingdao Refining & Chemical Company's Liquefied Gas Safety Enhancement (Maleic Anhydride) Project, Section 2 EPC , Ningxia Baofeng Energy Group Co., Ltd. Second Set 50 Ten thousand tons / A large portfolio of EPC or design projects is currently in hand, including the process package and design for the sulfur recovery unit supporting the annual coal-to-olefins project's methanol facility, as well as the sulfur recovery unit design for Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project. Additionally, long-term service agreements cover turnkey maintenance, technical upgrades, and improvement initiatives.

Currently, the investment scale exceeds 200 Million-yuan-level China Petrochemical Corporation Qilu Branch's Lu Oil & Lu Refinery Transformation and Upgrading Technical Renovation Project All tasks are steadily advancing. As From The engineering company established through the restructuring of the Qilu Petrochemical Refinery, the company Will Actively leverage your own professional strengths, Strive to secure more projects, Fully commit to serving the technical renovation project for Qilu Petrochemical's Lu Oil and Lu Refining transformation and upgrading.

4. What are the company's primary areas of collaborative research and development with the Dalian Institute of Chemical Physics, CAS? And what is the current progress?

The company has established a comprehensive strategic partnership with the Dalian Institute of Chemical Physics, Chinese Academy of Sciences. Together, the two sides will focus on national strategic needs and industrial policies, leveraging their respective strengths and resources to jointly pursue technological development and industrial-scale promotion in fields such as petrochemicals, chemicals, energy, and materials. They will also collaborate on building joint R&D platforms, fostering talent exchange and cooperation, and exploring other substantive forms of collaboration. Currently, the two parties are jointly developing… “10 Wanfang / Development of Electrocatalytic Hydrogen and Sulfur Production Technology via Field-Deployed H2S Decomposition in the Refining and Chemical Industry ” Project Progress is going smoothly. 。

V. Does the company have new project orders in the coal chemical industry?

Recently, the company has successively secured the basic design and technical service project for the sulfur recovery unit of Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project, as well as the second set for Ningxia Baofeng Energy Group Co., Ltd. 50 Ten thousand tons / The annual coal-to-olefins project's supporting methanol plant sulfur recovery unit process package and design project, as well as the sulfur recovery unit patent technology licensing and technical service project for Shaanxi Coal Group Yulin Chemical Co., Ltd., have been successfully awarded to Guodian Energy Group Jun Dong. 20 Billion cubic meters / Annual Coal-to-Natural-Gas Project Sulfur Recovery Unit Design Projects, among other things. Meanwhile, the company has assigned dedicated personnel to monitor and coordinate the progress of the coal chemical projects, leveraging its own resources Technology and Engineering advantages actively serve the development of the coal chemical industry.

Six Introduce the company's strategic initiatives, key projects, and future plans in areas such as molten salt energy storage, concentrated solar power storage, and hydrogen energy.

The company has leveraged its own technological expertise to explore fields such as hydrogen energy, molten salt energy storage, and compressed air energy storage, and has successively undertaken (or participated in) design or general contracting tasks for several projects. In the hydrogen energy sector, the company has taken on projects including the Qingdao Hydrogen Resource Base Project of Sinopec Qingdao Refining & Chemical Co., Ltd., the Hydrogen Energy Utilization Project of Gel Hydrogen Technology (Qingdao) Co., Ltd., the Phase I Integrated Hydrogen Energy Project of Qilu Hydrogen Energy (Shandong) Development Co., Ltd., and the Refining Division of China Petroleum Tianjin Branch. 1#C2 The company undertakes general contracting or design tasks in multiple hydrogen energy fields, including projects such as the recovery of tail gas from recycling units and the recovery of hydrogen from new flare gases, actively supporting the development of the hydrogen energy industry. In the molten salt energy storage sector, the company has secured the contract for China's first large-scale commercial concentrating solar power plant currently under construction. - The thermal energy storage island of the CGN Delingha Solar Thermal Power Station EPC , the project has been put into operation and has yielded significant ecological and social benefits. In the field of air-based energy storage, the Jiangsu Jintan Salt Cavern Compressed Air Energy Storage Project—designed with the company's involvement—has become the world's first non-combustion-based compressed air energy storage power station.

Additionally, the company will actively support technological and model innovations in the new energy sector by strategically allocating internal resources and attracting top-tier industry leaders. It will also proactively pursue orders for new energy and advanced materials, leveraging these initiatives to drive growth and expansion. “ New Energy ” With “ Refining and Petrochemicals ” Including applied research on coupling, we continuously enhance our independent innovation capabilities, steadily injecting new momentum into the company's growth.

7. What is the company's approach to developing its chemical business? Currently What are the incremental projects?

The company will continue to focus. “ Differentiation, specialization, and high-end positioning ” Development goals, centered around “ Aldehyde-acrylic ester ” The industrial chain, market-oriented and leveraging the company's technological expertise, is advancing existing initiatives. “ Alcohol, Ester ” Product quality and purity of the category have improved, Strive for March into “ Electronics-grade ” Market; Promote the existing “ Sour ” Product category industry chain extends to “ Organic acid salts ” Field, Strive for March into “ Food-grade ” The market.

Currently ， The company is fully committed to advancing “ Butyric Acid Cellulose Acetate Product Optimization and Upgrade Technical Transformation Project ” Ensure high-quality construction progress. “ Isooctanoic acid ” New production capacity ( 50000 Ton / Year) to be completed and put into operation as soon as possible; the company “ Cellulose Derivative and Its Supporting Equipment Upgrade Project ” Currently, technical feasibility studies and design optimizations are underway to ensure construction is completed as planned. Additionally, the company has integrated R&D resources from universities, research institutes, and enterprises, focusing on developing new downstream products based on aldehydes, alcohols, acids, and esters. This effort also extends to exploring collaborative technology development in emerging fields such as new energy, fine chemicals, and advanced materials.

VIII. Could you please introduce the application areas, technical advantages, and market prospects of the company's catalyst products?

The company is a domestically influential provider of sulfur-resistant shift process technologies and catalyst products, primarily engaged in the research and development of various new chemical processes and innovative catalysts, as well as QDB Series of sulfur-resistant shift catalysts, QLS 、 QSR Series of sulfur recovery catalysts, QSJ Series of hydrolysis agents, QTD 、 QZH Production and sales of a series of products such as detoxifiers and desulfurizers. These products are primarily used in large- and medium-scale coal-based syngas projects, including coal-to-oil, coal-to-gas, coal-to-olefins, coal-to-methanol, coal-to-ethylene glycol, and synthetic ammonia production facilities.

From a technical perspective, the company possesses internationally advanced sulfur-tolerant shift technology with an exceptionally low steam-to-gas ratio, along with strong capabilities for ongoing research and development. Its technology leader, Professor Zong Qiuyun, is a leading expert in the industry. In terms of its business model, the company currently not only sells catalysts externally but also offers process packages, proprietary equipment, and other specialized technical services in the sulfur-tolerant shift field, giving it a distinct competitive edge in the market. As for production capacity, the company's first-phase high-end catalyst project 5000 Ton / Year) Its completion ， Effective Breakthrough Resolved the production capacity bottleneck and improved Production efficiency.

The company will firmly grasp Coal chemical industry Opportunities for development ， Continue leveraging our technological R&D capabilities and leading-edge product performance, and strive to drive forward Catalyst Business Profitability The leap forward 。

List of Attachments (if any)

None

Date

2024 Year 11 Month 7 Day