Xiarui Sand Industry Gansu Co. Ltd is a Sino-US joint venture company established in October, 2013 by US Blue Sky Capital and Xiarui Biological Science and Technology Inc. It’s located in Nanhua Industrial Park of Gaotai County, Zhangye City, Gansu Province. We acquired 100,000 square meters of land to build factories, workplaces and offices. We rented 33,333,333.3 square meters of land in Xusanwan Village, Xinbei town, Gaotai County to farm quality licorice.

The company's industrial production base and office buildings are located at the foot of the magical Qilian Mountain. The high-speed railroad will open to traffic soon. There are unique sceneries, plenty of water supply and convenient transportation. Our 33,333,333.3 square meters of agricultural land is on Badan Jilin Desert – miles of deserts with nobody in sight.

It has been 9 months since October 6th 2013. I would like to make a presentation of what we have achieved in industrial development and agricultural development.

1. The establishment of the company. On Oct. 6th, 2013, we signed shareholders' agreement of Xiarui Sand Industry in Beijing. Supplementary Agreement to shareholders was signed in Gaotai on Nov. 11th, 2013. We completed the registration procedures at the Trade and Industry Bureau of Gaotai on Oct. 25th, 2013. From then on, board of directors and board of shareholders of Xiarui Sand Industry Co. Ltd were founded. Our cause has now started.
2. The acquisition of 100,000 square meters of land. The construction of the industrial base started on Oct. 12, 2013. From breaking the ground to Mar. 31st, 2014, Xiarui Sand Industry has completed the formalities of acquiring the 100,000 square meters of land in Gaotai and got the use permit of the land.
3. We rented 33,333,333.3 square meters of land as licorice planting base. On July 11, 2013, we signed the lease of the land with the local government to use the land for 50 years. We named it “Xiarui Sand Industry Licorice Planting Base” at Xusanwan and began farming. The work started on June 15th, 2014. We hired four construction teams to work on the land and the roads, dig wells to get water and set up electricity, etc. We plan to plant 6,666,666.66 square meters of high-quality licorice before July 25th, 2014.
4. We completed the licorice beverage factory of “Qilian Nectar”. As of Mar. 31, 2014, we have completed the beverage factory of 3200 square meters. (80 meters long, 40 meters wide), waiting for the equipment to get in. We have built and tested two automatic production lines. Each line can produce 450 cans of drink per minute. The name is “Qilian Nectar” and the estimated production date is Oct. 1st, 2014.
5. We have built licorice slicing factory and have been working on other factories, such as licorice extracting and deep processing factory, boiler room, licorice drying field, etc. Our first product, Xiarui licorice slice, will be available.
6. We are using a temporary office that is 400 square meters as of March 1, 2014, a total of 10 rooms. They are chairman’s office, general manager's office, deputy general manager’s office, corporate administration office, finance department, trade department, engineering department, staff canteen and dorms.
7. We have more than 20 employees and we have established a complete administrative system.
8. The establishment of Xiarui Sand Industry American Holding Company. In Nov. 2013, "Xiarui Sand Industry American holding Inc." was registered and listed at 52 East Broadway, 5FL, Suite 502, New York, NY 10002. We have made Business Plans, PowerPoint slides and two-page long investors’ summary report, all of them in English and Chinese. We have also prepared prospectus of Xiarui Sand Industry and initial offerings, waiting for the printing and issuing to further raise capital for the industrial and agricultural production.
9. We have built our own web site : www.xrsand.com
10. Apollo Solar Energy Gaotai Co. Ltd. has been registered and listed. As a part of the sand industry, Xiarui Sand Industry along with US Blue Sky Capital has registered and listed Apollo Solar Energy Co. Ltd. on March 20, 2014. It covers 1,666,666 square meters of land and we have completed the formalities. As of July 2, 2014, we are working with Shenzhen Enesoon Technology Group Corp., starting to build a 200 MW photovoltaic power generation project in Gaotai. We are proud to have clean energy which is pollution-free, taking full advantage of the desert and protecting the environment. Our work today will benefit the later generations.
11. We have got a lot of attentions and supports from local governments and leaders. We have also attracted great interest from American investors. From March 5 to March 22, we received important local leaders and a number of American visitors like Chairman Jinxing Wu’s group from US Blue Sky Capital, Mayor Zeyuan Huang of Zhangye City and county secretary Yi Ju’s group and groups from Liberty Oil Company from American. They have conducted some research which has achieved good results. It will have a great impact on the company’s future development.
12. From June 3th to 5th, 2014, our company received a second group of visitors from the US: Senior partner John David Liddel and Jenifer Jiang of American blue capital. They visited the company on behalf of senior investors, investment institutions and banks, conducted thorough research, and made reports called "20-million-dollar Investment Report" and "Licorice Investment Summary Report".

Let me give a summary of our construction situation of the 100,000 square meters of land as of July 6th, 2014:

1. The front door of the company has been built.
2. Qilian nectar—licorice beverage producing factory has been built and can be put into use. It is 3200 square meters with 6 meters high. There are two production lines. Each line can produce 450 cans of licorice beverage in one minute. So a total of 900 cans can be produced in one minute.
3. Licorice slicing factory has been built. It is 4080 square meters with 6 meters high.
4. The main factory that provide plant extraction and purification has been capped on June 16th, 2014. I happened to be present and attended the 8:00am capping ceremony. This factory is currently the largest one in Gaotai. It is 5226 square meters and 17.5 meters high. It can produce 10,000 tons of licorice, from which 240 tons of licorice flavonoids, 303 tons of glycyrrhizinate and 303 tons of licorice sweeteners can be extracted.
5. The office building will be four floors and we have built two floors. It is 4210 square meters and 18 meters high. It is estimated to be capped in August 2014.
6. Packaging factory can be used soon. It is 3200 square meters with 6.5 meters high.
7. Finished product warehouse is under construction. It is 4080 square meters with 6 meters high.
8. Raw licorice stacking space is under construction. It is 9200 square meters and 4.5 meters high.
9. Reservoir has been built. It is buried under the ground, 600 square meters and 3.5 meters high.
10. Sewage treatment pool has been built. It is buried under the ground, 450 square meters and 4.2 meters high.
11. Circulating pool has been built. It is buried under the ground, 450 square meters and 4.2 meters high.
12. Backup equipments and their fixing workplace is under construction. It’s 450 square meters and 6 meters high.
13. Boiler room has been built. It is 600 square meters and 10.8 meters high.
14. Three transformer rooms have been built. One 630 kilowatts transformer room and two 500 kilowatts transformer rooms.
15. Sunlight awning is under construction. It is 9200 square meters and 4.5 meters.
16. Canteen and dorms are under construction. There are two floors that is 2760 square meters and 4.5 meters high.
17. The fence around the 100,000 square meters of land is 1828 meters long and has been put into use.
18. Now let me report how we are doing with the 33,333,333.3 square meters of agricultural land:
19. It is located in Xusanwan Village, Xinbei town, Gaotai County. The work has started since May 15, 2014. The estimated total investment amount is 475 million yuan. It is in the Badan Jilin Desert. Currently, there are four project teams doing the work. From June 15, 2014, the four construction teams have been evening the ground, working on the roads, digging wells and building electricity power. We plan to plant high-quality licorice 1,333,333.33 square meters. We plan to plant 6,666,666.66 square meters of high-quality licorice before July 25th, 2014. After we plant the 33,333,333.3 square meters of licorice, we will get an oasis on Badan Jilin Desert. Here we will build three natural reservoirs, 22 man-made reservoirs, and dig 24 wells. We will have 50 sprinkler frames with a diameter of 920 m radius. It’s controlled by computers and it can irrigate 136,000 square meters of licorice.
20. Last but not the least, we are collaborating with Shenzhen Enesoon Science & Technology Co. Ltd.
21. On July 2nd, 2014, Enesoon sent out a group of experts and engineers led by President Ke Li to our company to conduct planning. Enesoon will provide us a new source of energy – solar energy, to cater our needs of clean energy and improve our systems that provide electricity, heat and cooling air. The chief expert of Enesoon, Mr. Zhiyong Zeng, who gets allowance from the State Council, will be in charge of the design, construction and production. The products developed by Zeng’s group has got “Blue Sky” award presented by the United Nations – 10 leading technologies that are valuable to invest in reusable energy field. On July 5th, 2014, both sides signed the strategic cooperation agreements on the uniting of Gansu Xiarui Sand Industry and Shenzhen Enesoon New Energy Industry. We will build a 120-meter-high 20-megawatt power tower on our 33,333,333.3 square meters of land.
22. We are proud to be the leader in using energy to build workplace and buildings. We abandoned the traditional mode of coal energy and use the latest technology of solar energy. The design and production by Expert Zeng is world leading solar energy project without pollution. By building the 120-meter-high power tower on Badan Jilin dessert, Xiarui Sand Industry will not only solve the problem of getting energy, but also will have enough energy to provide to local people. The potential of environmental benefit and economic benefit will be tremendous.
23. To take full advantage of solar energy to benefit the society and enrich the meaning of sand industry is not only a theoretical problem but also an urgent practical problem. It’ the new strong point of the Silk Route and the new hope of peaceful development and green development to practice Chinese dreams. In order to realize the dream, on July 5th, 2014, US Blue Sky Capital signed Sino-US New Energy Strategic Investment Cooperation Agreements with China (Hong Kong) Enesoon Energy and Environment Investment Co. Ltd. and Shenzhen China Academy Blue Sky League Investment Capital Management Co. Ltd. to use solar energy fully and enrich the meaning of sand industry.

All in all, Xiarui Sand industry has been very vibrant and thriving since the launch thanks to the strong support by the local government and pursuit by the investors. Xiarui brand licorice products will be renowned all over the world and the company is moving to the next step of billion-dollar value business. We will become the leading enterprise of sand industry and the star enterprise in western China. We will become the model enterprise along the Silk Route. We have already made large impact at home and abroad and our intangible assets are more priceless and immeasurable.