Introduction of Baotai Co., Ltd.

Baose Factory, the main sponsor of the company, was established in 1965, which was a "third-line enterprise" invested and built in China during the 13th Five-Year Plan period. 1982 was included in China Nonferrous Metals Industry Corporation, which is a major titanium production and processing enterprise in China. Baoji Titanium Industry Co., Ltd. (to be established) passed the high-tech certification organized by the Ministry of Science and Technology and the Chinese Academy of Sciences on 1998 and 12. 1March 5, 1999, China Securities Regulatory Commission issued the Notice on Issues Concerning Baoji Titanium Industry Co., Ltd. (to be established) as a High-tech Enterprise with the issuance supervision letter No.4. Subsequently, according to the requirements of China Securities Regulatory Commission, it was approved by the State Economic and Trade Commission with the document No.4, [1999] 643 and Baose Factory as the main sponsors, and cooperated with Northwest Nonferrous Metals Research Institute. Baose Factory invested all the production and operation net assets of its four subsidiaries, including smelting, forging, plate and rod, and related management departments of supply, sales, technology and quality into 1, 2192,600 yuan (confirmed by evaluation) into the joint-stock company. The corresponding intangible assets are also invested in the joint-stock company for free. 1June, 1999, the Ministry of Finance confirmed the appraisal results of the assets invested by Baose Factory in the Company with document No.236 [1999], and approved the equity management plan of the Company with document No.88 [1999]; Other sponsors, Northwest Nonferrous Metals Research Institute, China Nonferrous Metals Import and Export Shaanxi Company, Central South University of Technology, Northwestern Polytechnical University and Shaanxi Huaxia Property Company, respectively contributed 6,543,800 yuan, 700,000 yuan, 500,000 yuan, 500,000 yuan and 500,000 yuan in cash, and * * 3,200,000 yuan was equivalent to 2.08 million shares, accounting for 6,543,800+0.48% of the total share capital. 1July 2, 9991day, the company held the founding meeting and the first shareholders' meeting, and registered in Shaanxi Administration for Industry and Commerce. After the establishment of the company, it has a complete set of production management system from casting and forging to plate and tube processing, which mainly focuses on titanium processing, and has formed an independent and complete production, supply, sales and development system. Its leading product titanium is widely used in aerospace, chemical industry, petroleum, medicine, ocean engineering and high-end consumer goods. Our company is the largest manufacturer of titanium materials in China. According to the statistics of the Office of the National Leading Group for the Promotion and Application of Titanium, since 199 1, the products of "Qin Feng" brand titanium and titanium alloy processed materials produced by our company account for more than 85% of the total output and sales of titanium materials in China every year, and enjoy a wide reputation in the international market.