The board of directors of China XLX Fertiliser Ltd. and its subsidiaries (together refer to as the "Group") announced that, on 30 October 2022, the Phase I Project with annual output of 140,000 tons of tower compound fertiliser, 30,000 tons of water-soluble fertiliser and 10,000 tons of liquid fertiliser of the Group's subsidiary, Gansu xinlianxin Modern Agricultural Technology CO., LTD. ("Gansu xinlianxin") was put into operation successfully. At the same time, the construction of Phase II Project is also under preparation. Gansu xinlianxin actively responded to the requirements on full-scale transformation, high-end green and quality development put forward by the government and industry park.

The project integrates with the new automation and upgrade technology of the Company's production systems, and fully embodies the integrated innovation of production technology and product upgrading, which are conducive to the application of the Company's main core technological advantages such as "nitrogen-efficient, phosphorous reduction, humic acid activation". Depending on the stable supply of raw materials in local areas, as well as the Group's technological advantages and production experience in the compound fertiliser sector, Gansu xinlianxin has laid a solid foundation for further expansion in the markets of Northwest China such as Gansu, Ningxia, Qinghai and Inner Mongolia, and at the same time also accelerated the Group's layout across the country.