Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 107

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 107
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. The operating entities have been working on applying their activated carbon production technology currently used with forestry residues, little fuelwood, and wood wastes to crop residues as well. The operating entities are seeking to reduce their reliance on forest resources and therefore expand their network of suppliers to other provinces in the PRC.

Explore New Business Opportunities

The operating entities have been monitoring possible business opportunities in the downstream sectors of the activated carbon industry, such as environment restoration, water purification, and air cleaning. In the long term, the operating entities plan to strategically establish or acquire companies that use activated carbon as raw materials. In November 2022, we completed the acquisition of Yunnan Honghao. See “-A. History and Development of the Company.” By expanding our business vertically in the activated carbon industry, we hope to increase the operating entities’ pricing power and minimize risks in their Activated Carbon Production business.

Production Process

Production of Activated Carbon for Water Purification

The production of activated carbon for water purification involves a detailed and carefully controlled process to ensure the high quality and performance of the final product. A description of the operating entities’ production process for such activated carbon is as below:

| · | Procurement of Semi-finished Activated Carbon: The process begins with the procurement of semi-finished activated carbon from suppliers. This raw material serves as the base for further refinement and customization.                                                                                                                                                    |
| · | Quality Testing: Upon receipt, the operating entities test the activated carbon supplied, ensuring it meets the necessary standards for water purification applications.                                                                                                                                                                                                   |
| · | Formulation Development: Based on the tailored purification need of each customer, the operating entities develop different formulations and provide customized solutions.                                                                                                                                                                                                 |
| · | Refinement: The semi-finished activated carbon then undergoes a series of refinement processes in the workshop, including (a) decontamination to remove impurities and contaminants; (b) mixing different types of activated carbon according to the developed formula; and (c) crushing to reduce the size of the activated carbon particles to the required granularity. |
| · | Quality Control: All activated carbon undergoes a final quality inspection to ensure it meets the standards and customer requirements.                                                                                                                                                                                                                                     |
| · | Packaging and Distribution: Finished activated carbon is then packaged for distribution.                                                                                                                                                                                                                                                                                   |

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Products

Activated Carbon

| Powdered Activated Carbon | Granular Activated Carbon |

Activated carbon, also called activated charcoal, is a carbonaceous, highly porous adsorptive medium that has a complex