Item 2. Properties
ITEM 2. PROPERTIES
Our primary facilities, which are owned except
where otherwise indicated, are as follows:
Facility
Location
Approximate
Size (Square Meters)
Owned or Leased
Xianning Bozhuang *
Xianning City, Hubei Province, PRC
33,333
Land Use Rights Obtained
Jingshan Sanhe **
Jingshan City, Hubei Province,
PRC
11,018
Leased
*
Became a VIE in May 2019 and became a subsidiary in August 2021.
**
Became a subsidiary in September 2021.
In the aggregate, we
currently have land use rights to, or lease, a total of two properties with approximately 44,351 square meters, consisting of
manufacturing facilities and office buildings for future expansion. We believe our current facilities provide adequate capacity for
our current and projected needs.
All land in China is owned
by the government. Individuals and companies are permitted to acquire land use rights for specific purposes. In the case of land used
for industrial purposes, the land use rights are granted for a period of up to 50 years. This period may be renewed at the expiration
of the initial and any subsequent terms. Granted land use rights are transferable and may be used as security for borrowings and other
obligations.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.