Zhongfu Shenying Carbon Fiber Co., Ltd

2025 action plan of "improving quality, efficiency and return".

In order to fully implement the spirit of the 20th National Congress of the Communist Party of China and the Third Plenary Session of the 20th Central Committee of the Communist Party of China, thoroughly implement the spirit of the Central Financial Work Conference and the Central Economic Work Conference and the relevant requirements of the State Council's "Opinions on Further Improving the Quality of Listed Companies", Zhongfu Shenying Carbon Fiber Co., Ltd. (hereinafter referred to as the "Company" or "Zhongfu Shenying") has formulated the 2025 action plan of "Improving Quality and Efficiency and Emphasizing Returns" in order to fully implement the spirit of the 20th National Congress of the Communist Party of China and the Third Plenary Session of the 20th Central Committee, thoroughly implement the spirit of the Central Financial Work Conference and the Central Economic Work Conference and the relevant requirements of the State Council's "Opinions on Further Improving the Quality of Listed Companies".

The company has established the four-in-one strategic positioning of "green, high-end, internationalization and scale", adhering to the business philosophy of "customer-centric, application-driven", through systematic planning and careful deployment, continuing to promote the action plan, carrying out major scientific and technological research projects, excellent performance and quality improvement actions, increasing savings and reducing cost saving plans, high-quality party building to lead the improvement of corporate governance efficiency, establish and improve an international professional marketing system, and strive to build a "good performance, fine management, first-class environmental protection, well-known brand, advanced, simple, safe and stable", continue to create value for shareholders and empower the development of stakeholders.

1. Focus on the main responsibilities and main businesses, and build a world-class scientific and technological innovation system

Zhongfu Shenying insists on empowering the high-quality development of enterprises with scientific and technological innovation, unlocking the "performance code" of carbon fiber with scientific and technological innovation, and building a world-class carbon fiber enterprise with global competitiveness. After years of technical precipitation, Zhongfu Shenying has maturely mastered the preparation technology of 10,000-ton dry-jet wet-spun high-performance carbon fiber, built a 10,000-ton dry-jet wet-spun carbon fiber production system with completely independent intellectual property rights for the first time in China, and built the world's largest single dry-jet wet-spun high-performance carbon fiber production base. The company deepens the cooperation between industry, academia, research and application with universities and research institutes, effectively integrates the resource advantages of all parties, carries out basic research work such as carbon fiber mechanism research and microstructure analysis, continuously breaks through the bottleneck of a new generation of carbon fiber technology, innovates and develops a new generation of high-strength and high-modulus carbon fiber, and continues to unlock "Chinese strength". In recent years, the company's scientific and technological achievements have been efficiently transformed, and the world's first large tow for fan blades (SYT45M-48K), the world's first engineering mass production of high-strength and high-modulus carbon fiber (SYM50X-12K), and the world's first ultra-high-strength and high-modulus carbon fiber (SYM55X-12K) have provided important services for the development of national defense and military industry and national economy

Prop up. In 2024, the company's R&D investment will reach 190 million yuan, accounting for 12.22%; 269 patents were processed throughout the year

(including 166 invention patents), an increase of 17% year-on-year, a record high. "Preparation method of low ash polyacrylonitrile-based carbon fiber" won the China Patent Silver Award (announced), and "3K small tow carbon fiber" won the individual champion of the manufacturing industry of the Ministry of Industry and Information Technology.

R&D investment 2022-2024 Patent year 2022-2024

Proportion of growth trend Acceptance

12.22 269

9.67 230

7.76

135

2022 2023 2024 2022 2023 2024

R&D proportion (%) Number of patents accepted (cases)

In 2025, under the strategic guidance of the Science and Technology Committee of China National Building Materials Group Co., Ltd. (hereinafter referred to as "China National Building Materials Group"), under the leadership of Chief Scientist Mr. Zhang Guoliang, the company will rely on the company's new science and technology committee to comprehensively strengthen and coordinate the deployment of scientific research work, further improve the innovation system, increase R&D strength, and maintain a high and stable R&D investment and patent applications; The company will adhere to scientific and technological innovation to empower product development and application development, concentrate on the technical backbone to continue to carry out basic research on carbon fiber, research cutting-edge, key and common technologies in the industry, unlock the "new height" of carbon fiber performance, and create a source of original technology; The company will continue to strengthen the innovation and collaboration with the two national key laboratories of China National Building Materials Group and the scientific research institutes of domestic advantageous universities, relying on the Shanghai Application R&D Center and the national postdoctoral workstations in Lianyungang and Xining, focusing on national defense science and industry and deep sea and deep space, focusing on new energy, focusing on aerospace, focusing on low-altitude economy and humanoid robots, focusing on electronic consumption and sporting goods, strengthening scientific and technological research and development around the "five focuses", and steadily increasing the company's market share in the field of "emerging + traditional". Through the above measures, we will build a bridge from "innovation end" to "application end" and form a world-class scientific and technological innovation ecosystem.

2. Focus on the implementation of strategies and establish a standardized governance system

The company deeply practices the "4335" guiding principle of China National Building Materials Group, based on the actual situation of the enterprise, follows the strategy of adapting measures to the needs of the enterprise, implements the appropriate governance model, and vigorously strengthens the construction of the corporate governance system. In this process, the Company will clarify the boundaries of the rights and responsibilities of the governance entity as an important task, continuously improve the decision-making mechanism for major business management matters, standardize the decision-making process authorized by the Board of Directors, adhere to and improve the core responsibilities of the Board of Directors in setting strategies, making decisions and preventing risks, strengthen the supervisory role of the Board of Directors, refine the functions and roles of the professional committees of the Board of Directors, and realize the resonance and direction of the Board of Directors and other governance entities at the same frequency, so as to gather a strong synergy to promote the development of the Company. For the in-depth implementation of the whole

The company has always adhered to the problem-oriented decision-making process of the board of directors in terms of orientation, the whole chain and the whole process, implemented policies around the three links before, during and after the decision-making, coordinated and linked the business plan, investment decision-making, project implementation, post-assessment evaluation and other links, built a closed-loop scientific decision-making management system, and promoted the company's standardized operation and scientific exercise of power.

In 2025, the company will focus on upgrading management efficiency, improving the response speed to market dynamics, and enhancing flexibility and initiative in market competition. Focusing on the five core functions of finance, technology, investment, personnel and procurement, the company implements the "five centralized" management strategy, further clarifies the division of responsibilities of each department, promotes the optimal allocation of resources, builds a cross-functional collaborative operation mechanism, improves the overall work efficiency of the company, and enhances its core competitiveness. In order to effectively prevent operational risks, the company has comprehensively upgraded its compliance management system and established a joint prevention and control system of legal compliance, audit supervision and financial supervision. In the process of major decision-making, the pre-review of legal affairs is carried out to control risks from the source, build a solid line of defense for business safety, and provide a solid guarantee for the stable development of the company. In the future, the company will continue to deepen the construction of a standardized governance system, continuously improve the level of corporate governance and standardized operation capabilities, strengthen the awareness of risk prevention, establish and improve the risk early warning and response mechanism, and ensure that the company achieves stable and sustainable development in a complex and changeable market environment.

3. Focus on customer value management and carry out quality improvement actions for excellent performance

In 2024, the company will always focus on customers and establish an intelligent quality management model for the whole production cycle from procurement, R&D, production, testing and sales. Relying on the quality management systems such as IATF16949 and AS9100D, we have continuously improved the management mechanism and refined the control process, so as to realize the comprehensive coverage of all process links and the full control of product quality by quality management. The company's main products have passed DNV GL, CCS and other product certifications, which further broadens the application field of products. By organizing different forms of quality activities, such as "climbing plan", QC team, quality month, etc., the "General Manager Quality Award", "Quality Excellent Team" and "Quality Benchmark" are selected to encourage all employees to participate in quality management, create a quality culture atmosphere of "building dreams with the original intention and striving for perfection with ingenuity", focus on product quality improvement, and constantly meet and exceed customer expectations. The performance of the company's main products has increased by 6%, the rate of A-grade products has increased by 5%, and the market share of high-end applications is far ahead.

In 2025, the company will continue to take the excellent performance quality management model as the core, upgrade the information-based intelligent management and control platform, realize the comprehensive analysis and control of production and operation data, and improve the efficiency of production quality management; Relying on the CNAS (China National Accreditation Service for Conformity Assessment) laboratory accreditation system, we will build a team of professional testing talents, continuously improve the level of testing technology, and accelerate the construction of a world-class carbon fiber and composite materials testing center; Continue to carry out system and product certification, and constantly expand the application field of products; Improve the quality assessment mechanism, further consolidate the quality responsibility at all levels, and continuously promote the steady improvement of product quality; Focus on the quality of customer feedback,

Carry out the special activity of "unveiling the leader" to continuously improve customer satisfaction. In 2025, the company's product A-grade product rate will increase by another 5% year-on-year, and customer satisfaction will reach 95 points and above.

Quality is the life of the enterprise, in 2025, the company will control the quality of every link and every employee's work, carry out the quality awareness of all employees to improve the activities, strengthen quality publicity, and further "the next process is the customer" and "do a good job in quality, everyone is responsible" The quality awareness is deeply rooted in the heart and externalized in the line, and through the development of excellent performance and quality improvement activities, we will continue to build a solid product quality embankment, continuously improve the brand awareness of Zhongfu Shenying, and expand the company's international influence.

Fourth, focus on lean operation, and comprehensively promote the plan of increasing and reducing costs

The "big base" accumulates "big kinetic energy". The company has built two mature production bases of Shenying Dapu and Shenying Xining, and the 30,000-ton base of Shenying Lianyungang is under construction in an orderly manner. In 2024, focusing on market demand and the current situation of its own production capacity, the company adheres to the market as the center and forms a differentiated efficient collaborative production model between the two places. The Shenying Dapu base is mainly positioned with small tows and high-performance products, and has realized stable applications in special fields, aerospace, high-end sports and leisure, electronic 3C and other fields; Shenying Xining Base continues to launch differentiated and cost-effective products, and broadens its applications in the fields of wind power, pressure vessels, building reinforcement, sports and leisure.

In 2025, on the basis of high-performance and large-scale production lines, we will further promote the intellectualization of production line equipment and the digitalization of management systems, and gradually build and successively put into use the "10,000-ton carbon fiber base digital twin system" to help precise production scheduling, process optimization and equipment efficiency improvement, and ensure stable product supply; Practicing the lean management concept, through measures such as material dynamic balance algorithm optimization, the overall utilization rate of key raw materials has been increased by more than 5%, and the turnover period of auxiliary materials has been controlled within 1 month. Through the linkage of production capacity and the synergy of technological innovation, we will promote the production efficiency, quality control, cost reduction and efficiency improvement of each base to a new stage of high-quality development.

At the same time, the company will further uphold the concept of green and sustainable development and build an efficient and intensive green manufacturing system. Implement the whole process control of "source reduction, process control, and end treatment", implement the hierarchical utilization of heat energy, and promote the transformation of energy from "linear consumption" to "recycling"; Accelerate the high-value utilization of waste, use carbon fiber residue in the thermoplastic industry, and build a new model of green circular economy. The company has won the highest honor of ecological environmental protection credit "Green Environmental Protection Credit" for four consecutive years and the "Enterprise Environmental Protection Quality Award" for two consecutive years, demonstrating the strength of environmental responsibility and green development. 2025 target: reduce the overall energy consumption per unit of carbon fiber by another 5% year-on-year, and reduce the unit of carbon dioxide emissions by another 6% year-on-year.

"Fine management" creates "fine efficiency". In the management of refinement of multi-pronged approach, to further improve the overall efficiency of management. In terms of financial management, with the help of comprehensive budget management, in capital operation and cost control

Improve the level of level, optimize the debt structure and other aspects to reduce the cost of capital, and strengthen the management of accounts receivable and inventory

to prevent the risks of the two funds, and fully tap and make good use of the preferential financial policies; Develop a cost drop meter

Combined with the evaluation and incentive mechanism to promote cost reduction and efficiency increase, to ensure the healthy operation of cash flow. In terms of organizational management, we focused on efficiency and risk, re-optimized functional departments, sorted out business functions and classified management, and continuously optimized efficient decision-making mechanisms. Optimize the work process, realize more rapid and accurate information transmission, improve the efficiency of communication and decision-making, improve operational efficiency, and strengthen the construction of digitalization, informatization and intelligence, improve the timeliness and accuracy of decision-making, and improve the level of internal and external management services.

Fifth, focus on two-wheel drive, and build a domestic and international dual-cycle market matrix

Driven by the globalization strategy and the goal of "double carbon", the carbon fiber industry has become a strategic pillar in the field of new materials, under the guidance of the strategic goal of "accelerating the construction of a world-class material industry investment group" of China National Building Materials Group, the company always maintains a sense of international responsibility and mission, accelerates the construction of a new development pattern of "taking the domestic cycle as the main body and the domestic and international dual cycles promoting each other", and further consolidates high-quality development.

The company is deeply engaged in the domestic market, further clarifies the product positioning of high-performance, high-quality and cost-competitive carbon fiber and its products, and relies on technological breakthroughs and production capacity advantages to provide customers with differentiated products and system solutions. Lock in core orders through the annual framework agreement of strategic customers, and rely on the market grid management mechanism to set up a special business team covering key regions and segments; Build an "iron triangle" collaboration mechanism composed of product managers, delivery managers and account managers; Supporting the establishment of a technical application support team, in-depth docking of customer process needs and provide customized solutions, improve the market response speed and service added value. Focusing on wind power, photovoltaic, hydrogen energy, sports, construction and infrastructure reinforcement and other fields, accelerate the application of second-generation carbon fiber in the wind power field, and help wind power main beams continue to reduce weight; Strengthen the development of "end-to-end" project-based channels, and seize market share by taking advantage of product technology maturity and production capacity scale cost advantages. Actively participate in the verification of national key models, give full play to the policy-driven role, and support the national strategic needs. Through the sinking of application scenarios, we will deeply explore emerging fields such as lightweight new energy vehicles, low-altitude aerial vehicles and high-end electronic 3C.

The company closely follows the internationalization goal of China National Building Materials Group, accelerates the penetration of overseas markets by leveraging the overseas channels of the group and customers, continues to promote the pace of international development of the company, focuses on the application fields of wind power, automobile industry, hydrogen energy and other fields in the international market, gives full play to the company's first-mover advantage in the application of hydrogen high-pressure vessels, and continues to develop key international markets such as Europe, Asia and South America. Actively participate in the International Carbon Fiber Summit, strengthen the promotion of carbon fiber's contribution to emission reduction in the field of wind power and hydrogen energy, and enhance brand influence. In-depth development and construction of market channel layout, seeking direct cooperation with high-value customers such as aerospace and automobile manufacturers, and establishing strategies

Supply chain; Improve the distribution network, set up a regional warehousing center in the target market, cooperate with local composite material preparers and distributors, integrate development, and make the carbon fiber market bigger; Make good use of the digital platform, use the B2B platform (Business-to-Business e-commerce platform) to display product parameters and provide online technical support. Based on the long-term formulation of international development plans, the implementation of international market development step by step, the rapid establishment of sales channels in the target market within the year, into the supply chain of some local enterprises, enhance brand awareness, to achieve "high-end technology to break the situation, with high cost performance to occupy the market" to expand the new path of overseas expansion. Through the two-wheel drive of "deep cultivation of domestic scenes + international high-end breakthroughs", the company will continue to promote the expansion strategy, enrich the product matrix, strengthen the "endogenous power" of the domestic market, and accelerate the pace of overseas markets, build an internal and external dual circulation, multi-level market pattern, further enhance brand awareness and international influence, and lay a solid foundation for accelerating the construction of a world-class carbon fiber enterprise.

6. Pay attention to the dissemination of the value of information disclosure, and continue to optimize the management of investment and customs

Information disclosure is the "lifeline" of the capital market, the company actively improves the quality and efficiency of information disclosure, adheres to openness and transparency, effectively enhances the timeliness and coverage of information reporting, consolidates the foundation of information disclosure and standardized operation, and has been rated A in the information disclosure evaluation of the Shanghai Stock Exchange for two consecutive years. In 2024, the company held a total of 4 performance briefings, 2 offline roadshows and nearly 40 investor communication activities, effectively strengthening good interaction with investors and improving the readability of annual reports and ESG reports through "one picture to understand".

In 2025, the company will focus on the core strategy of "value creation" and build a new market value management system guided by the national strategy and supported by scientific and technological innovation attributes. As a scientific and technological innovation enterprise, we will take the hard technology strength of domestic carbon fiber leaders as the value anchor, and increase the multi-dimensional valuation logic of innovation ability and future growth on the valuation logic based on traditional profits, so as to promote the value resonance of the capital market. At the same time, the company will further enhance the public's awareness of the company, and strengthen two-way interaction with investors through high-quality normalized performance briefings, special investment activities, improving the readability and effectiveness of information disclosure content, and holding "high-quality + new momentum" investor communication activities combining "reporting + return". In 2025, the company will hold no less than 3 performance briefings/investor reception days, no less than 30 investor research or roadshow activities, and invite investors to the company for on-site research from time to time, so that the company's business development potential and actual value can be fully understood by investors, and work together to create a new pattern of symbiosis and win-win with investors. During the implementation of the follow-up action plan, the company will continue to pay attention to the feedback of domestic and foreign investors, and continuously optimize the action plan and continue to promote the implementation of the plan based on the actual situation of the company and the concerns of investors.

7. Strengthen the sharing of interests and constraints between management and shareholders

As a pilot enterprise of the State-owned Assets Supervision and Administration Commission (SASAC) and the Double Hundred Action of State-owned Enterprise Reform, the company's management remuneration has achieved a strong correlation with the company's operating performance. In 2025, the company will further strengthen the tenure system and contractual management of managers, continuously optimize the remuneration system of senior executives, and sign a letter of responsibility for business objectives between the board of directors and managers according to the job responsibilities and division of labor of the management, and determine the assessment content and indicators of each managerial member in accordance with the combination of quantitative and qualitative and quantitative orientation, and clarify the interface of rights and responsibilities. The board of directors conducts assessment and evaluation according to the completion of the manager's business objectives and rigidly fulfills it, and the board of directors performs the dismissal procedure for the incompetent comprehensive assessment rating during the term of office, or the general manager scores low for two consecutive years in the annual comprehensive appraisal and evaluation, and other managerial members rank last for two consecutive years. Through the strong linkage between executive compensation and the company's operating performance, the interests of management and shareholders are shared.

At the same time, the company will continue to pay attention to changes in regulatory policies, maintain close communication with major shareholders and the company's directors, supervisors, senior managers and other "key minority" in a timely manner, convey the latest regulatory spirit, organize and participate in various trainings held by regulators, urge them to actively learn and master the relevant laws and regulations of the securities market, and continuously enhance the awareness of the "key minority" of standardized operation and responsibility, and ensure that the "red line" of performing duties is strictly observed.

The forward-looking description of future plans and development strategies involved in this plan does not constitute the company's substantive commitment to investors. The implementation of this plan may be affected by the internal and external environment, and there is a certain degree of uncertainty, so investors are advised to pay attention to the relevant risks.

Zhongfu Shenying Carbon Fiber Co., Ltd

board of directors

March 26, 2025