BIANCO Company in Cairo, Egypt is an industrial conglomerate founded in 2004 by Mr. Wang Hu, a Chinese steel magnate in Egypt, and Egyptian partner Said, mainly engaged in the production of marble. Currently, its main business is steel production and sales, marble production and sales, and mineral product production and sales. The company's steel production capacity can reach 1.8 million tons per year, ranking third in the entire Egyptian steel and carbon steel production industry in terms of overall output. BIANCO Company is located on the Yiyang Line and is a 550 threaded steel rolling production line with an annual output of 450000 tons of crude steel. Construction began in 2015 and production began in the autumn of 2017, with an original capacity of 450000 tons per year. Two factories were put into operation in 2019, with five sets of small electric furnaces and an annual output of 200000 units; Four sets of 20 ton high-efficiency energy-saving electric furnaces were put into operation in the summer of 2020, with an annual output of 400000 tons; In the summer of 2021, three sets of 12 ton electric furnaces were put into operation, with an annual output of 150000 tons; Three sets of 40 ton hig-efficiency energy-saving electric furnaces will be put into operation in the autumn of 2024, with an annual output of 650000 tons;

Shanghai Shengxuan Construction Engineering Co., Ltd. was established in 2014 and is located in Hengsha Island Industrial Zone, Chongming District, Shanghai. It is an enterprise mainly engaged in power engineering, transmission and distribution, as well as power energy construction and investment. It mainly undertakes the overseas projects of China Power Equipment Corporation and China Power Construction Corporation of the National Grid. At present, it is building power projects in Egypt, Nigeria, Ethiopia, Southeast Asia, Thailand, Indonesia, the Philippines, Vietnam, Asia, Pakistan, Türkiye, Bangladesh and other countries, including power transmission and distribution projects. In 2016, we collaborated with BIANCO in Egypt to invest in some mineral and industrial product projects.

In 2017, we collaborated with BIANCO on resource recycling and reprocessing, as well as the construction of industrial zones for scrap steel in Morocco.

In order to further strengthen cooperation, the two sides signed an agreement in April 2021, with each holding 50% of the shares, to jointly build a 1.6 million ton annual bar project. The first phase of the project has been put into operation in the autumn of 2024. This project is the largest single unit steelmaking project in Egypt.

Due to the strong demand for the steel market in Egypt, but the Egyptian government needs to protect its domestic industry, customs issued a requirement in May 2019 to impose a 45% tariff on imported steel billets starting from June 1, 2019. And it will be officially implemented from September 2, 2019.

According to a report on the Egyptian market, the demand for rebar in Egypt's domestic building materials market was 16.5 million tons in 2017. Currently, the annual production of domestically produced steel billets in Egypt is 6.5 million tons, with 4.5 million tons of imported steel billets. The rest of the wire rods are still imported through Saudi Arabia's transit; At present, Egypt is a country with a large number of infrastructure projects and a high demand for building materials, especially in Africa. Egypt has a permanent population of 112.766 million and is a major African country. In December 2021, the Egyptian Minister of Industry issued a ministerial order prohibiting the import of rebar for a period of five years; The local production scale and level in Egypt cannot meet the market demand.

The construction of a new administrative capital was launched in April 2017, with a planned area of 700 square kilometers for the new capital of Egypt. In the coming years, the base of infrastructure construction will be large, and the demand for building materials will increase. We signed a steel supply contract with China Construction Egypt Branch in September 2018 to supply a total of 970000 tons of steel for the first and second phases of the New Cairo CBD project in Egypt. In recent years, Egypt's industrial expansion and civilian construction have exceeded those of the past 30 years. The entire urban area of New Cairo and the Alaman New City near the pressure mountain have a construction scale and planning similar to Dubai in the United Arab Emirates, with an overall steel demand of 1.7 million tons for individual projects.

At present, the market situation of rebar is that the industry is in need of revitalization, and President Sisi is actively developing the national economy and increasing national infrastructure construction efforts. For the steelmaking, rolling, and rebar industries, demand will exceed supply in the next decade. Therefore, the steelmaking and rolling industries have huge profit margins and sustainability, injecting unlimited vitality into the steel industry. Due to the shortage of electrical energy in Egypt, steel licenses jointly approved by the Egyptian Ministry of Industrial Development and the Ministry of Environmental Protection are particularly scarce, and according to current valuations, they are almost in a monopolistic state of operation. In short, the steel market is expected to benefit greatly in the next decade.