On June 6, Gelunhui announced that Kangxin New Materials (600076.SH), a wholly-owned subsidiary of the company, signed a strategic cooperation agreement (referred to as"Strategic Cooperation Agreement 1") with Wuxi Environmental Group Co., Ltd. (referred to as "Wuxi Environmental Protection") and China Galaxy International Holdings Limited (referred to as "Galaxy International"). Kangxin's wholly-owned subsidiary, Hubei Kangxin Technology Development Co., Ltd., signed a strategic cooperation agreement (referred to as"Strategic Cooperation Agreement 2") with Hubei Nonglin Agricultural Technology Co., Ltd. (referred to as "Nonglin Agriculture").

Galaxy International is a carbon financial service provider that assists Kangxin with carbon trading, and develops carbon financial products for Kangxin, including but not limited to green bonds, financing leases, ABS, asset management plans, credit and other products, helps Kangxin use forestry carbon credits to increase its creditworthiness and expand financing channels, and uses Kangxin's existing 1.39 million mu of forestry resources as the basis for rolling development of the three-party carbon credits. The planned first phase will develop about 120,000 mu of forestry resources (the specific carbon credits will be calculated according to the latest publishing methodology), and will continue to develop 100-150,000 mu of forestry resources annually in the later period. The income generated from the development will be shared by the three parties through negotiation on specific income sharing methods. Within the agreed-upon forest land, Kangxin Technology will entrust Nonglin Agriculture to develop, manage and operate the forest land owned by Kangxin Technology. The specific details of the entrustment will be signed by both parties in a separate agreement or contract.