Mongolian Grass Ecological: Holding subsidiary terminates Xilinhaote PPP project ahead of schedule.

Mengcao Ecological Announcement, the holding subsidiary of the company, Xilinhot Chencao Ecological Restoration and Management Co., Ltd., signed an early termination agreement with Xilinhot City Garden Landscaping Service Center, terminating the original government and social capital cooperation project. The original cooperation period of the project was 10 years, and it entered the operation period in May 2020. According to the agreement, the total project cost is 200 million yuan, of which 133 million yuan has been paid, and 67.0199 million yuan has not been paid. The government capital contributed 2.6299 million yuan to pay for the project engineering costs. Chencao Ecological will receive 20 million yuan after completing the project handover, and will receive 44.39 million yuan after providing a debt commitment letter. The termination of the project will not have a significant impact on the company's production and operation performance.