The company signed a framework agreement with McGonagall Industries of Canada for the development of the Mongo Potash project in the Republic of the Congo, and McGonagall designated the company as the contractor under the design, procurement and construction (EPC) contract for the project. Future cooperation includes EPC general contract, financing agreement, product compensation, sharing agreement and project equity acquisition option, etc.

McGonagall has a potash mining license of 136 square kilometers in the Congo and plans to build a potash plant with an annual production capacity of 1.2 million tons (600000 tons per phase) in two phases. The company will undertake to provide MPC with a construction loan of no more than US $1.2 billion. At the same time, the company will obtain the share purchase option of MPC, such as the exercise right to obtain 50% of the common shares of MPC + 1 common stock.

Guannong shares and salt lake potash rights and interests have a production capacity of 274000 tons and 1.204 million tons respectively, with a market capitalization of 9.2 billion yuan and 42 billion yuan respectively. According to production capacity estimates, if Zhongcheng shares branch, the company's market value can reach 20.52 billion yuan, there is a lot of room for improvement than at present.

Except for the 6-month exclusive cooperation period granted by McGonagall, the framework agreement shall not be binding. The future progress of the Mongo potash project depends on whether the company can sign a final agreement with McGonagall after due diligence. In the future, there are corresponding uncertainties in the progress of the project, whether the company will exercise its power or not, and the changes in the potash market.

The company's share price rose by a high margin in the early period, and it is expected that there will be a possibility of adjustment in the short term. We will continue to follow the progress of the company's potash project.