About KINETIC DEV Company

Power Development Group Limited (“Power Development” or the “Group”) was incorporated in the Cayman Islands in July 2010. Listed on the main board of the Hong Kong Stock Exchange in March 2012, the stock code is 1277. The Group is a comprehensive coal enterprise, and its business covers the entire coal production, washing, loading, transportation and coal trading industry chain. The Group's vision is to become a leading private integrated coal supplier in China. Coal resources Power Development focuses on the development of the Daeanpu Coal Mine. The Daianpu Coal Mine is an underground coal mine located in Huaigeerqi, Ordos City, Inner Mongolia, China. The mining area is about 9.6 square kilometers. As of December 31, 2021, the Taianpu coal mine has about 389.77 million tons of coal resources (including proven coal resources of 154.79 million tons, controlled coal resources of 216.34 million tons, and estimated coal resources of 18.64 million tons); coal reserves of about 183.72 million tons (including confirmed coal reserves of 83.13 million tons and estimated coal reserves of 100.59 million tons). The Group holds mining rights for the Daianpu Coal Mine and can apply for renewal from the relevant competent authorities until November 2039. Coal production and operation The Group strives to operate efficient and safe coal mines. The Group is now using comprehensive mechanized full-thickness capped coal mining technology to replace the original stratified topped coal mining technology, and coal mining production efficiency is at the leading level in the industry. Thanks to the comprehensive use of mechanized production processes in the Daxianpu Coal Mine and the Group's comprehensive optimization of the coal production personnel structure, the Group's employee costs have remained low in the industry. The Daianpu Coal Mine is also equipped with the construction of a coal washing plant with an annual processing capacity of 5 million metric tons. Furthermore, the Group holds a 45% interest in the Xiaojia loading station and its supporting railway branch lines. The Xiaojia loading station is located 1,200 meters north of the Daxianpu Coal Mine Industrial Plaza, and the location is excellent and convenient. The average processing capacity of Xiaojia Station is about 5,000 tons per hour. The Group can transport its self-produced and outsourced coal to Qinhuangdao for sale via the Dazhun Railway and the Daqin Railway to meet the logistics needs brought about by the Group's growing coal sales and trading business. The Group has established a coal trade center in Qinhuangdao. The price of coal at Qinhuangdao Port is higher than the price of Kengkou coal in Inner Mongolia. By increasing the price per ton reported by Xiaojia Station, the gross margin of the Group's coal products has been greatly increased. Furthermore, by directly participating in the coal trade business in Qinhuangdao, the Group can be more closely connected to the latest trends in pricing, marketing, transportation needs, technology, safety and management, so as to enhance profits and efficiency, and consolidate the Group's position in the coal industry. Group honors Power development relies on strong advantages and is frequently recognized by the capital community and industry. The Daianpu Coal Mine received the highest “Class A mine” rating from the Zhungeerqi Energy Administration for 6 consecutive years. The Daianpu Coal Mine has been included in the “Level 1 Safety and Quality Standardized Coal Mine List (Second Batch)” of the State Administration of Safety Supervision and the State Administration of Coal Mines for 6 consecutive years. The Daianpu Coal Mine was awarded the honorable title of “Premium Safe and Efficient Mine in the Coal Industry” by the China Coal Industry Association. The Daianpu Coal Mine was officially included in the “National Green Mine List” of the Ministry of Natural Resources of China.