Jingmen Luyuan Environmental Protection Industry Development Co.(hereinafter referred to as "Jingmen Luyuan") is the main body of the environmental service business of GEM Co. Jingmen Luyuan, a wholly-owned subsidiary of GEM, was established in 2012 as an environmental service company specializing in the disposal and resource utilization of waste water, slag and sludge. Jingmen Luyuan Company has two solid waste disposal centers (including one environmental protection brick factory, one general solid waste landfill and two hazardous waste landfills) and two sewage treatment plants (one living sewage treatment plant and one industrial sewage treatment plant), which are the main battlefield of national ecological civilization construction and the green industry to realize "lucid waters and lush mountains are invaluable assets". Jingmen Luyuan Company has initially formed a whole industry chain from resource recovery, harmless disposal of hazardous waste to final disposal, with disposal capacity to dispose 35 types of hazardous waste, forming a complete treatment process of comprehensive utilization, harmless treatment and safe landfill. The company's comprehensive utilization and harmless disposal of industrial waste and hazardous waste not only saves resources, but also improves the environment, eliminates secondary pollution, and achieves a double harvest of economic and environmental benefits.

GEM has built a global advanced green waste management chain of "waste recycling--waste transfer--waste management--green waste disposal", which provides complete green disposal of waste water, waste slag and waste sludge, and actively promotes integrated waste recycling and surface source pollution control in urban and rural areas. In July 2013, Jingmen Luyuan's "resource utilization technology of waste slag and waste sludge" successfully passed the identification of scientific and technological achievements organized by Jingmen Science and Technology Bureau, and obtained the registration of scientific and technological achievements issued by Hubei Provincial Science and Technology Department. In February 2016, Jingmen Luyuan's "resource utilization of waste slag and sludge project" was approved and supported by the former Hubei Provincial Department of Environmental Protection, and was granted a hazardous waste operation license.

Certificate of Registration of Scientific and Technological Achievements

Hazardous Waste Operation License

GEM's modified recycled plastic products have successfully entered the supply chain of the world's top 500 companies such as Ineos, Lyondebasel, Borough, Exxonmobil, etc., established good cooperation relationship with new material modification factories such as Huitong, and entered the supply chain of automobile and home appliance companies. in June 2020, GEM as the first initiator joined Sinopec, P&G, Dow Chemical, ExxonMobil, Costco, Suez, BP China, BASF, SK Integrated Chemical, a total of 16 units established a joint working group on green recycled plastics supply chain under the leadership of China Petrochemical Federation and China Materials Recycling Association. The working group is committed to solving the bottleneck problems in the construction of plastics recycling economy, promoting the application of green recycled plastics and the construction of green plastics supply chain through the cooperation of important stakeholders, and exploring a new model for the development of plastics recycling economy in China and the world.

Green Recycled Plastics Supply Chain Joint Working Group

GEM invested in Jingmen in February 2012 to set up Luyuan Company, which is mainly engaged in the resource utilization and disposal of waste slag and sludge; in April 2015, Jingmen Luyuan Company's environmental brick project was put into operation; in February 2016, Jingmen Luyuan Company applied to the former Hubei Provincial Department of Environmental Protection for a hazardous waste operation license; in 2018, it took over the construction of the solid waste disposal project from Qingdao Xintiandi Company and completed the operation; at the end of 2020, Jingmen Luyuan Company started the design work of the hazardous waste disposal project and completed the construction of the first phase of the hazardous waste landfill project in December 2021, and is currently applying to the Hubei Provincial Department of Ecology and Environment for a hazardous waste operation license.

History of Solid Waste Disposal

（2）Development History of Sewage Treatment

In July 2016, GEM was invited by Jingmen Municipal Government to participate in the bidding project of "Yang Shugang Sewage Treatment Plant PPP (ROT) Project" and successfully won the bid, the establishment of Jingmen City the south of the city Wastewater Treatment Co., Ltd. is responsible for the operation of the project, through a series of upgrades to the project process technology, equipment, in a short period of time, that the effluent stable to "urban wastewater treatment plant pollutant discharge standards" (GB18918) level B standard; in April 2018, the completion of the upgrading of the south of the city sewage treatment plant, the transformation of the effluent stable to achieve the "urban sewage treatment plant pollutant discharge standards" (GB18918) level A standard.

In September 2017, based on the technical strength of GEM and the successful operation experience of the south of the city sewage treatment plant, the company was invited again to participate in the "Jingmen High-tech Industrial Sewage Treatment Plant and Supporting Pipeline Network Project PPP Project" and successfully won the bid. 2018, the establishment of GEM (Jingmen) Industrial Sewage Treatment Co., Ltd. is responsible for the construction and operation of the project, the project was completed and put into operation in 2019, and is currently operating stably, and the effluent quality meets the "urban sewage treatment plant pollutant discharge standards" (GB18918) level A standard.

History of Wastewater Disposal

（3）Industry Layout and Scale

GEM environmental management business is mainly based in Jingmen base, starting from both solid waste treatment and sewage treatment,

giving full play to the location characteristics and integration advantages, actively undertaking corporate social responsibility, forming a five-in-one environmental protection industry of general solid waste disposal, hazardous waste disposal, solid waste resourceization, industrial wastewater treatment and living wastewater treatment, serving the local area while radiating the surrounding areas, resulting in a positive social impact and economic benefits.

Five-in-One Environmental Industry of GEM

The company's environmental protection brick project is designed to treat 12,000 tons of solid waste per year, with an annual output of 25 million environmental protection bricks. The company's general solid waste landfill (Phase I) is designed to have an effective storage capacity of 360,000 square meters with an annual landfill capacity of 45,000 tons; the hazardous waste landfill is designed to have an effective storage capacity of 136,000 square meters, including 100,000 square meters of flexible storage with an annual landfill capacity of 30,000 tons and 36,000 square meters of rigid storage with an annual landfill capacity of 10,000 tons; the hazardous waste incineration is designed to have a treatment capacity of 60,000 tons per year, and the total treatment capacity of hazardous waste is a total of 100,000 tons per year.

The planned wastewater treatment scale of the company are 50,000 tons per day (about 18 million tons per year), the south of the city sewage treatment plant mainly treats living wastewater, is now full production, water treatment unit price of 0.8 yuan per ton; in high-tech District, industrial wastewater treatment plant mainly treats industrial wastewater and a small amount of living wastewater, is now close to full production, water treatment unit price of 2.78 yuan per ton, at present, is coordinating the government for price adjustment, is expected to adjust to 5.66 yuan per ton in the end of 2022.