Announcement on Related Party Transaction of Providing Entrusted Loan to Shanxi Xishan Huaton Cement Co., Ltd.

1. Securities Code: 000983
   Securities Abbreviation: Shanxi Coal
   Announcement Number: 2025-045

Announcement on Related Party Transaction of Providing Entrusted Loan to Shanxi Xishan Huaton Cement Co., Ltd.

The company and all members of the board guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.

I. Overview of Related Party Transaction

1. Shanxi Coal and Coking Group Co., Ltd. (hereinafter referred to as "the Company" or "the Entrustor") intends to sign an "Entrusted Agency Agreement" with Shanxi Coal Group Finance Co., Ltd. (hereinafter referred to as "the Finance Company" or "the Trustee"); the Company plans to sign an "Entrusted Loan Agreement" with the Finance Company and its holding subsidiary, Shanxi Xishan Huaton Cement Co., Ltd. (hereinafter referred to as "Xishan Huaton" or "the Borrower"). Xishan Huaton was jointly established by the Company and Huaton Road and Bridge Group Co., Ltd. (hereinafter referred to as "Huaton Road and Bridge") with a registered capital of RMB 368.51 million, of which the Company contributed RMB 357.45 million, accounting for 97% of the total investment; Huaton Road and Bridge contributed RMB 11.06 million, accounting for 3% of the total investment. To ensure the normal production and operation of Xishan Huaton, the Company intends to provide an entrusted loan of RMB 196 million to Xishan Huaton through the Finance Company, with a term of 3 years, an interest rate of 3.0%, and a one-time handling fee of 0.01% (RMB 19,600) charged by the Finance Company.

2. The Finance Company is a holding subsidiary of the Company's controlling shareholder, Shanxi Coal Group Co., Ltd. (hereinafter referred to as "Coal Group"), with a registered capital of RMB 3.55 billion, of which Coal Group holds 80% and the Company holds 20%. According to the "Shenzhen Stock Exchange Stock Listing Rules," the Company and the Finance Company are related parties controlled by the same legal entity, Coal Group, thus this transaction constitutes a related party transaction.

3. The 15th meeting of the 9th Board of Directors of the Company approved the proposal on providing an entrusted loan to Shanxi Xishan Huaton Cement Co., Ltd. with a vote of 4 in favor, 0 against, and 0 abstentions. The proposal is a related party transaction, and in accordance with the "Shenzhen Stock Exchange Stock Listing Rules," the 6 related directors, Wang Qiang, Hu Wenqiang, Fan Dahong, Wang Huiling, Jiao Yuqiang, and Meng Qi, abstained from voting, while 4 non-related directors voted on the proposal. This matter was reviewed and approved by the independent directors at the 4th special meeting of the 9th Board of Directors in 2025, and all independent directors agreed to the matter and issued review opinions.