Shineco, Bazhou Autonomous Prefecture enter strategic cooperation agreement
Shineco announced that the company, through its joint venture company, Xinjiang Shineco Taihe Agriculture Technology Ltd., has entered into a strategic cooperation agreement with the People's Government of Bayingolin Mongol Autonomous Prefecture for the Company's Apocynum Industrial Integration Construction Project. As previously disclosed in a press release dated July 2, 2018, the Company officially established its Apocynum Industrial Integration Construction Project in Bazhou. The Project is now operated by the Company's joint venture company, Xinjiang Shineco Taihe Agriculture Technology Ltd. and has secured the requisite local government approvals.The Company and the Bazhou Autonomous Prefecture have entered into the Agreement to take full advantage of the local ecology of Bazhou for growing Apocynum, accelerate the processing and development of Apocynum, expand and strengthen the Apocynum industry, promote ecological restoration, boost farmers' income and assist the local population alleviate poverty. The cooperation between the Company and the Bazhou Autonomous Prefecture is expected to play an active role in and provide benefits to the local economy and locals' livelihood. After consultation, the two parties formed a strategic partnership to build a whole industrial chain development model and industrial layout integrating Apocynum fiber extraction, cotton and linen blending and comprehensive utilization, and promote the development of the Apocynum industry in Bazhou. Pursuant to the Agreement, both parties agree to establish a long-term and stable cooperation mechanism to develop relations of mutual cooperation, honesty and trustworthiness, and mutual development. Specific cooperation matters are expected to operate in a market-oriented manner. Based on relevant local industrial policies, the Bazhou Autonomous Prefecture is expected to support the Company by coordinating support and advocating for financial assistance and subsidies on behalf of the Company when the Company applies for preferential policies in the areas of ecological protection, poverty alleviation, technological innovation, investment promotion, textiles and clothing in the countries, autonomous regions and autonomous prefectures. The Company plans to promote the planting of Apocynum plants on fallow farmland or grassland without affecting the local water ecology or increasing water use indicators and carry out the transformation of secondary grassland to improve the yield and quality of Apocynum. The Company intends to carry out Apocynum growing, cutting, and cultivation activities based upon the principles of preserving the ecological environment, wild vegetation, and maintaining the original ownership of the grassland.