Zhitong Financial App News, China rare Earth (00769) announced that on August 15, 2022, the company's subsidiary Yixing Xinwei rare Earth Co., Ltd. (Yixing Xinwei) entered into an agreement with Jiangsu Zhongyi Jinda Environmental Protection Industry Technology Research Institute Co., Ltd. (Jiangsu Zhongyi), the content is about Jiangsu Zhongyi to provide soil and groundwater maintenance services to the area where Yixing Xinwei plant is located in and around Jiangsu Province. Yixing Xinwei has previously engaged an independent third party to conduct an environmental survey of the soil and groundwater in the area where the plant is located, and is aware of the need to carry out some maintenance work. Therefore, Yixing Sunway has appointed Jiangsu Zhongyi to provide these services.

According to the agreement, Jiangsu Zhongyi is responsible for maintaining the soil and groundwater in the area where the plant is located and its surrounding area (land area); conducting a comprehensive safety inspection of the land area; and ensuring that the soil and groundwater quality in the land area complies with government regulatory standards.

According to the terms of the agreement, Yixing Sunway shall pay 20% of the total service fee of RMB 296 million, that is, RMB 59.2 million, to Jiangsu Zhongyi within five working days after signing the agreement, as a prepayment for such services. Thereafter, Yixing Sunway shall from time to time pay Jiangsu Zhongyi on a pro rata basis according to different project milestones after signing and confirming the progress of the project in writing. Upon receipt of the advance payment, Jiangsu Zhongyi shall immediately start preparing for the provision of such services. These services are expected to be completed within two months after the start date.