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Shandong Hengxing New Material Technology Co., Ltd.

1. Project name
Shandong Hengxing New Material Technology Co., Ltd. 270,000 t/a of feed additives, food additives and environment-friendly solvents project

2. Introduction of Project unit
Shandong Hengxing New Material Technology Co., Ltd. is affiliated to Zhonggang Group; it was founded on July 18, 2018 Japan, with a registered capital of CNY 50 million yuan; Shandong Hengxing New Material Technology Co., Ltd. is located in Jining new material industrial park now.

3. Total investment
CNY 1.433 billion (including working capital)

4. Construction period: January 2020 to October 2021

5. Main construction content and construction progress
Construction Scale: An annual output of 270,000 tons of feed additives, food additives and environment-friendly solvents, 18 sets of new process equipment.?Main construction content: This project covers an area of ??227,733.81 square meters, with a total construction area of ??99,978.3 square meters. The main products of this project are organic acids, organic esters, and organic ketones. Among them, ketones: 2-heptanone, acetophenone, phenylacetone, propiophenone, Isobutyrophenone and methyl isobutyl ketone; ester products: tributyrin, ethyl butyrate; acid products: isobutyric acid, n-valeric acid, benzoic acid, propionic acid, n-butyric acid, Methyl Isobutyl Carbinol and benzoic acid.

In terms of economic benefits: this project covers an area of ??227,733.81 square meters, with an average investment intensity of CNY 3.5 million per 667 square meters, an average tax contribution of CNY 850,000 per 667 square meters, an annual sales income of CNY 2,235.18 million (excluding tax), and a total annual profit and tax of CNY 861.41 million. The average annual net profit is CNY 515.99 million, the investment profit tax rate is 62.17%, the investment profit rate is 35.99%, and the investment payback period is 3.74 years (after tax).