Gelonghui, August 15, Qingshuiyuan (300437.SZ) announced that since this year, due to the impact of the domestic and foreign economic situation and the water treatment chemicals market environment, the sales volume and prices of the company's water treatment agents and related products have declined to varying degrees. In order to effectively reduce project investment risks and enhance the prudence and scientific nature of investment decisions, according to the current market situation of water treatment agents and phosphorus pentachloride, combined with the production capacity layout of the company's existing products, Qingyuan Water Treatment plans to adjust the production capacity plan for some products in the relocation project. At the same time, the scale of investment in the phosphorus pentachloride project will be adjusted from 100,000 tons per year The annual output was adjusted to 20,000 tons and the above project adjustments were re-applied to the competent department for project filing. The details are subject to approval by the competent department. Subsequent companies will promptly disclose information according to the progress of the filing.

The Qingyuan Water Treatment Qingyuan Plant has a design capacity of 90,000 tons/year for water treatment agents, 60,000 tons/year for phosphorus trichloride, and 30,000 tons/year for chloromethane. Currently, production has been discontinued according to the relocation plan. After the Qingyuan Water Treatment Qingyuan Plant is discontinued, the company will plan the Qingyuan plant in an integrated manner based on various factors such as future company development strategies and industry market development patterns. After the Qingyuan Water Treatment Qingyuan Plant stops production, the company's water treatment agent production capacity will be temporarily concentrated in the Qingyuan Water Treatment Huling Plant. The Huling Plant's water treatment agent design capacity is 180,000 tons/year, phosphorus trichloride design capacity is 100,000 tons/year, and chloromethane design capacity is 100,000 tons/year. In view of the current demand situation in the water treatment agent industry, combined with the release of industry capacity and the company's 2022 production capacity utilization rate, etc., during the implementation of the relocation project, the discontinuation of production at the Qingyuan plant will not have a significant impact on the company's current production and sales of water treatment agents, and the scale of production capacity of the company's water treatment agents and related products can meet the current market demand.