Recently, the Company entered into the agreement to acquire the Sewage Treatment Center of Shanxi Lubao Industrial Park with Shanxi Lubao Group Coking Co., ltd. and its holding enterprise Shanxi Lubao Xinghai New Material Co., ltd. The company will complete this asset acquisition with 300 million RMB, which marks the company taking a substantive step to sewage business. The Acquisition further enhances the company's core competitiveness. It has great significance for the company business transformation and layout. In the future, the company will cooperate with Shanxi Lubao Group Coking Co., ltd. on sewage upgrading service, flue gas treatment and operation service, hazardous solid waste and other environmental treatment business in the park.

At the same time, as a leading company in ecological protection and environmental governance, the company signed a strategic cooperation agreement with Shanxi Lucheng Economic and Technological Development Zone Management Committee, to promote the environment governance of the business park and carry out cooperation service of "environmental housekeeping" in the park.

The Sewage Treatment Center of Shanxi Lubao Industrial Park passed the environmental protection acceptance of the completed project in June 2018. With an area of 110 mu, its main businesses are production waste water, life wastewater, and clean water treatment in Shanxi Lubao Industrial Park. Sewage treatment process has a complete chain, including ultrafiltration, nanofiltration, reverse osmosis and other technologies.

Lucheng Economic and Technological Development Zone is a circular economic and ecological park with coke and downstream fine chemical industry as the leading industries. It includes Lubao Industrial Park and Luan Industrial Park. The planned total land area of the Development Zone is 16.21 square kilometers, and the total area of starting zone is 7.02 square kilometers. On September 25, 2018, the 13th executive meeting of Shanxi provincial government decided to upgrade it to provincial economic and technological development zone, which is one of the ten coking industrial parks in Shanxi Province.