Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 116

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 116
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, 2025, with an annual rent of RMB126,440 (approximately $18,046) pursuant to a lease agreement entered into with Tahe Forestry Bureau on July 1, 2020. According to the lease agreement, the operating entities can only use the land and factory buildings for the operations of Tahe Biopower Plant and cannot transfer the lease to a third person without the prior consent of the landlord; otherwise, the lease agreement will be terminated. The operating entities are required to notify the landlord at least two months in advance if they would like to renew the lease agreement. Tahe Biopower Plant has a building area of 199,199 square feet and one production line, which runs 24 hours per day and 300 days per year. Its annual operating capacity for manufacturing activated carbon is approximately 7,800 tons. The operating entities produced 2,865, 6,594, and 5,776 tons of activated carbon and were at about 0%, 37%, and 85% capacity during the fiscal years ended September 30, 2024 2023, and 2022, respectively. The COVID-19 pandemic resulted in a shortage of imports of wood waste, an important raw material for us, which led to a significant decrease in our production of activated carbon in 2023. The amounts of activated carbon produced in 2022 were impacted by a 30-day upgrade of the machines, respectively. As of the fiscal year ended September 30, 2024, Tahe Biopower Plant has already been divested following the Reorganization.

Facilities of Tahe Biopower Plant

From January to August 2023, the operating entities were constructing a new facility in Manzhouli City, Inner Mongolia, to expand their production capacity. The operating entities planned to construct the new facility in two stages: the first stage requiring an investment of approximately RMB140 million (approximately $20.21 million), followed by an additional RMB190 million (approximately $28.21 million) for the second stage. Upon completion of the construction, the annual production capacity of activated carbon is expected to increase to 10,000 tons and the annual production capacity of heating steam is expected to increase to 230,400 tons. In November 2018, the operating entities purchased a tract of land that is 279,861 square feet for the first stage of construction. As of September 2023, the operating entities had completed the construction of the groundwork of