1、 Project Name

Xigratan Environmental Improvement and Planting Base Construction Project (Phase II) in Pingchuan District, Baiyin City, Gansu Province

2、 Overview of the project undertaking unit

1. Project Undertaking Unit: Gansu Dongxiang Modern Agriculture and Animal Husbandry Technology Co., Ltd

2. Registered address: Pingchuan District, Baiyin City, Gansu Province

3. Establishment date: March 2016

4. Business scope: Planting and sales of corn, beans, oilseeds, grains, potatoes, hemp, vegetables, flowers, fruits, and local Chinese medicinal materials; Afforestation; The breeding, sales, and comprehensive agricultural development of chickens, cows, horses, and sheep.

5. Overview of major shareholders: Gansu Yindi Industry and Trade (Group) Co., Ltd., with a registered capital of 122.6 million yuan; Business license registration number: 91620403MA74P92P16, subscribed capital of RMB 10 million, accounting for 100% of the registered capital, and contributed in currency.

6. Table of Assets and Business Situation of Undertaking Unit in the Past 3 Years Unit: 10000 yuan

Year

total assets

Net assets

Asset liability ratio

sales revenue

Net profit

2021

nineteen thousand seven hundred and three

eight thousand and seventy-eight

59%

three thousand and twelve

four hundred and eighty-two

2022

twenty thousand and three

nine thousand and one

55%

two thousand three hundred and thirty-four

four hundred and twenty

2023

nineteen thousand eight hundred and forty-nine

seven thousand five hundred and forty-one

62%

one thousand nine hundred and seventy-one

two hundred and seventy-six

7. Personnel situation: There are currently 30 management and agricultural technical personnel, including 16 graduates with a bachelor's degree, 1 senior agronomist, and 3 intermediate agronomists.

3、 Project Overview

1. Background and Objectives of Project Construction

Pingchuan District of Baiyin City is a typical resource-based urban area, where coal is used to establish enterprises and enterprises are used to establish districts. After more than 50 years of underground mining, discontinuous damage, mainly surface cracks and collapse pits, has been caused, resulting in the collapse of farmland, severe damage to underground water systems, surface buildings, and infrastructure. The local area has to face a series of problems such as land collapse, groundwater level decline, abandoned farmland, and difficulties in people's production and living. In recent years, the Pingchuan District Committee and Government have been committed to solving prominent problems in the difficult lives of people in coal mining subsidence areas, agricultural production conditions, and social stability. They have mainly implemented relocation projects, water diversion and irrigation projects, reinforcement and maintenance projects for damaged residential buildings, and strict geological environment restoration and treatment projects for collapsed mines. The financial difficulties at the district level and geological disasters such as collapse have not been effectively solved on a large scale. The accumulated old problems have not been solved yet, and new and larger problems have emerged one after another. The scope of damage and the resulting problems are gradually expanding, which not only seriously affects the production and social stability of residents in the region, but also restricts the sustainable development of the entire economy and society. To change the economic structure that relied excessively on the development and utilization of mineral resources in the past, it is necessary to reconfigure resources.

Gansu Dongxiang Modern Agriculture and Animal Husbandry Technology Co., Ltd. has implemented the Xigratan Environmental Improvement and Planting Base Construction Project in Pingchuan District, Baiyin City, Gansu Province, in order to improve the damage caused by coal mining subsidence to the regional environment and ecology, restore the original land cultivation capacity, improve the agricultural production and living conditions of surrounding farmers, and enhance the level of agricultural and economic development in the coal mining subsidence area.

2. Construction site

Xigratan, Pingchuan District, Baiyin City, Gansu Province.

3. Construction scale

The project area is located in Xigratan, Pingchuan District, Baiyin City. Through comprehensive ecological environment management and land reclamation in the coal mining subsidence area, 10000 acres of damaged and collapsed land have been repaired. Build 2000m 3 One transfer reservoir will be developed for efficient and water-saving irrigation. After land reclamation and improvement, 4000 acres of silage corn, 1000 acres of oats, and 5000 acres of alfalfa will be planted.

4. Construction content

Repair and improve 10000 acres of damaged and collapsed land in the core area of Xigra Beach in Pingchuan District, Baiyin City; 10000 acres of high-efficiency water-saving irrigation facilities will be constructed as supporting facilities; Supporting construction of 10km field roads, including 4km main roads and 6km tractor roads; Supporting construction of 2000m 3 A transfer reservoir and a supporting control room of 9m 2， Install 1.0km of power supply lines and 21km of water supply pipelines; 400 acres of windproof forest belt will be planted for supporting purposes. The project plans to purchase one 800KVA and one 200KVA transformer, as well as one water pump.

5. Construction cycle and schedule arrangement

Project construction period of 1 year (July 2023 to August 2024)

6. Investment estimation

The total investment of the project is 132.928 million yuan, of which: construction investment is 130.547 million yuan, accounting for 98.2% of the total investment; The interest during the construction period is 950000 yuan, accounting for 0.73% of the total investment; The initial working capital is 1.431 million yuan, accounting for 1.07% of the total investment.

4、 The necessity of project construction

1. The project construction complies with national and local industrial policies

The Central Committee of the Communist Party of China and the State Council attach great importance to it and have successively introduced a series of policy measures to support the comprehensive management of coal mining subsidence areas. In 2016, the General Office of the State Council issued the "Opinions on Accelerating the Comprehensive Management of Coal Mining Subsidence Areas" (State Council Office [2016] No. 102); In the same year, the National Development and Reform Commission issued the "Special Management Measures for Comprehensive Treatment of Coal Mining Subsidence Areas (Trial)" (Development and Reform Revitalization Regulations [2016] No. 2739); In November 2017, the National Development and Reform Commission organized the first ministerial level joint meeting on comprehensive governance of coal mining subsidence areas, conveying the spirit of learning from the leadership instructions of the Central Committee of the Communist Party of China and the State Council, as well as the requirements of relevant documents of the State Council, to further accelerate the comprehensive governance of coal mining subsidence areas, promote the transformation and upgrading of subsidence areas, improve quality and efficiency, and achieve harmonious coexistence between humans and nature, as well as stable, healthy and sustainable development of the economy and society. In July 2016, five departments jointly issued the Guiding Opinions on Strengthening the Restoration and Comprehensive Management of Mining Geological Environment by the Ministry of Land and Resources, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Environmental Protection, and the National Energy Administration, proposing to "make full use of national policies, introduce market mechanisms, and break the funding bottleneck of governance". Through the redevelopment and utilization of land after governance, innovating the functional coupling of policies, stimulating policy dividends, achieving a comprehensive balance and high integration of economic, social, and ecological benefits, maximizing the comprehensive benefits of governance, and achieving green, coordinated, safe, and innovative development of mining areas.

This project combines policies such as rural revitalization, targeted poverty alleviation, and comprehensive management of coal mining subsidence areas to develop environmental protection governance, forage planting, promote the transformation of resource cities, and drive farmers to increase their income, which meets the requirements of national and local industrial policies.

2. Project construction is necessary for governance and improvement of local environmental conditions and sustainable development

This project takes the environmental improvement and land management of coal mining subsidence areas as the starting point, and takes the sustainable development of ecological agriculture industry as the construction concept. It promotes economic forest belts with windproof and sand fixing effects suitable for planting in mining areas and forage grass with strong adaptability to soil environment. In the future, a beef cattle breeding base will be established to create an ecological agriculture system industrial chain in the mining area, forming a symbiotic, circular, and complementary sustainable development ecological industry model.

3. It is necessary to promote the increase of farmers' income

After the completion of the project, the current ecological circular agriculture has replaced the original mining industry. It not only manages and improves the ecological environment of the coal mining subsidence area, but also drives farmers in the area to participate in grass planting and beef cattle breeding, increasing their income, and is conducive to maintaining a stable and united social situation in the project area.

Therefore, the construction of this project conforms to the support direction and requirements of investment within the central budget, complies with various industrial policies of the country for mining areas, realizes the organic combination and complementary advantages of industrial development and ecological restoration, improves the ecological environment of coal mining subsidence areas, accelerates the development of contiguous industries, promotes the transformation of resource-based cities, and ensures the improvement of people's living standards. It has created a new situation for the transformation and sustainable development of coal mining subsidence areas in Gansu Province.

5、 Implementation of project construction conditions

This project is a new construction project. 22000 acres of land have been transferred in the coal mining subsidence area of Gonghe Town, Pingchuan District, and 10000 acres of land have been leveled and equipped with efficient water-saving facilities.

6、 Fundraising plan

The total investment of the project is 132.928 million yuan, of which 39.88 million yuan has been applied for central special funds, accounting for 30% of the total investment; Apply for a bank loan of 39.6 million yuan, accounting for 30% of the total investment; The enterprise self raised 53.428 million yuan, accounting for 40% of the total investment.

The enterprise has raised 53.428 million yuan of self raised funds, which have been fully funded and invested in project construction. They are mainly used for leveling and repairing collapsed land, purchasing agricultural machinery and construction machinery, installing high-voltage circuits, laying water pipelines, and constructing auxiliary buildings.

Attachment 1: Land Transfer Contract

Attachment 2: Proof of Self owned Funds of the Project Undertaking Unit

Attachment 3: Qualification of Project Undertaking Units