We pay attention to the applications of hemp in recent years. We have carried out relevant research on the hemp since 2017 and we particularly focus on the medicinal value of hemp extracts. We considered the whole industry chain layout of hemp as one of our new strategic development goals in 2019. At present, our business layout in hemp includes exploration on drugs R&D and hemp plantation.

On May 13, 2019, we signed the Equity Transfer and Capital Increase, Shares Expansion Agreement with Yunnan Muya Agricultural Technology Co., Ltd. (“Muya Agricultural”) and its existing shareholders, acquiring 51% of its shares with the self-owned capital no more than RMB 15 million. Muya Agricultural became one of our holding subsidiaries in June 2019.

Muya Agricultural has planted the hemp since 2016, and obtained Yunnan License for Hemp Plantation for the first time in 2016. The license was replaced on April 20, 2018, and Muya Agricultural obtained the approval to plant the hemp in an area of 12 thousand mu (1 mu =0.0667 hectares). As an important participator for targeted poverty alleviation project in Shizong County, Muya Agricultural has years of experience in legal large-scale hemp plantation. With sound management system, sufficient technicians and strict storage and transportation management, Muya Agricultural strictly carries out the production and operation activities according to Yunnan Regulation for Hemp Plantation Licensing.

Yunnan Muya Agricultural Technology Co., Ltd.

Telephone: +86-871-68257855

Address: Jinding Science Park, Xuefu Road, Wuhua District, Kunming, Yunnan, China