The board of directors of Dynagreen Environmental Protection Group Co., Ltd. announced that, on 3 June 2020, the Company and the Zhangqiu District Environmental Protection Center of Jinan City officially entered into the Concession Agreement on Municipal Solid Waste-to-Energy Project Phase II and the Venous Industrial Park Project in Zhangqiu District (the "Zhangqiu Phase II Project"). The Zhangqiu Phase II Project will adopt the build-operate-transfer (BOT) model and has a concessionary period of 30 years. The design of the Zhangqiu Phase II Project has a treatment capacity of 2,400 tons of general industrial solid waste and municipal solid waste per day, to be implemented in two separate stages, of which the treatment capacity in the first stage is 1,600 tons per day with the key incineration process adopting mechanical grate furnace. The Zhangqiu Phase II Project also includes a kitchen waste and food waste collaborative treatment project with a planned capacity of 200 tons per day; and a sludge collaborative treatment project with a planned capacity of 400 tons per day. The municipal solid waste treatment fee is RMB 51.5 per ton. The total investment for the Zhangqiu Phase II Project is approximately RMB 1.5 billion, and total investment in the first stage is approximately RMB 850 million (subject to the total investment amount finalized based on the preliminary project design), of which the amount of the capital is approximately RMB 255 million.