Ningxia Zhongyin Rongye Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without any false records, misleading statements, or major omissions.
I. Overview of the Xinruiheng Project Construction Land
From February 22, 2022, to March 7, 2022, the Company's wholly-owned subsidiary, Sichuan Xinruiheng Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Xinruiheng"), obtained the land use rights for three plots of state-owned construction land totaling 279.02 acres in the Deyang-Abazhou Ecological Economic Industrial Park (hereinafter referred to as "Deyang Industrial Park") through public listing, paying a land transfer fee of RMB 22.3216 million. This land is designated for the construction of an annual production project of 80,000 tons of lithium battery cathode material lithium iron phosphate. However, there are two government-planned roads that have not yet been constructed between the three plots of land. From the perspectives of overall project construction design, environmental assessment, operation, planning, approval, and management, it is necessary to consolidate the three plots of land. Xinruiheng has applied to adjust the planning of the two roads and consolidate the three plots into one plot. The land occupied by the two roads will be changed to construction land for Xinruiheng through public bidding. Overall land leveling, boundary definition, and construction approval will be carried out.
After continuous communication with relevant government departments, on June 5, 2024, Xinruiheng received a reply from the Deyang-Abazhou Ecological Economic Industrial Park Management Committee regarding the request for the consolidation of the three plots of land (Deyang Letter [2024] No. 15), indicating the intention to reserve the original three plots of land and reallocate the land according to the plan after consolidation. On June 11, 2024, Xinruiheng received another reply from the Deyang-Abazhou Ecological Economic Industrial Park Management Committee regarding the land reserve and subsequent reallocation (Deyang Letter [2024] No. 17), further clarifying related issues: "First, the reserve will be conducted on a compensated basis, with the reserve price determined according to the current market assessment price of the land. The reserve work must be completed by June 25, 2024, and the reserve payment must be made by July 10, 2024; second, after the land reserve consolidation, the land supply procedure will be initiated immediately, with the land listing expected to occur by July 20, 2024. The reallocated land is located east of Jiuzhaigou Road, north of Ligu South Road, and south of Ligu North Road, with an area not exceeding that of the reserved land. The land transfer price will be based on the reserve land price; third, the Deyang Industrial Park will coordinate with relevant departments to ensure timely and full payment of the land reserve price and reallocation, sign the land transfer contract, and protect the legitimate interests of the enterprise." For further details, please refer to the announcement titled "Ningxia Zhongyin Rongye Co., Ltd. Regarding the Reply to the Request for Land Consolidation Received by the Wholly-Owned Subsidiary" (Announcement No. 2024-56).
II. Overview of the Land Reserve and Subsequent Reallocation
Entrusted by the Mianzhu City Land Reserve Center, Sichuan Chengxin Liangyou Real Estate Land Asset Appraisal Co., Ltd. issued the pre-assessment result letters numbered Chuan Chengxin Liangyou Land Appraisal (2024) Pre-assessment No. 011, 012, and 013, indicating that the market price of the land use rights for the three plots as industrial land during the assessment period totals RMB 25.8554 million. On June 21, 2024, the Mianzhu Municipal Government approved the total compensation price for the recovery of the three plots of state-owned land use rights to be RMB 25.8554 million.