PDF《北斗嘉药业股份有限公司》

10 years while the third to fourth year after the plantation would be their rich harvesting period. According to market search of the Company, the Sehisandra is in strong demand and its market price has been on an upward trend, increased from RMB50/kg in

2015 to RMB150/kg to 2018. The Company has already employed two experienced plantation personnel who both have over

15 years of experience in the plantation of Sehisandra and have deep understanding in the local market for Sehisandra. The Company is currently working on the preparation work for the plantation of and has been liaising with the potential suppliers of the sapling of Sehisandra and potential customers of Sehisandra so as to formulate our plantation plan. The Company has entered into a sales contract with 尚志市北方中药材种植专业合作社 (the Co-Op ) on

28 July

2018 for a term of five years and three months, pursuant to which the Co-op would purchase 20,000 kg to 30,000 kg of Sinshandra each year from the Company at the prevailing market price. To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiry, each of Co-Op and its ultimate beneficial owners is independent of the Company and its connected persons. The Company has already received a deposit of RMB100,000 from the Co-Op pursuant to the sales contract. It is currently contemplated that the sowing and plantation of Sehisandra will commence in March

2019 as the sowing season for Sehisandra is in March and April only. The Company intends to procure Sehisandra locally to satisfy the obligation under the sales contract for the years ended

31 December

2018 and

2019 and expects to sell the harvested self-planting Sehisandra beginning from 2020. In respect of the sales of Ginseng, 安图县东北虎新兴特产有限公司, a wholly-owned subsidiary of the Company, has entered into supply contract with the Co-Op on

6 August ........