Before the M&A,Jiangsu DDBS Environmental Remediation Co., Ltd. (shorted as “DDBS”) wasregistered and established in Liuhe District, Nanjing City in 2009. It is theearliest scientific and technological environmental engineering companyspecializing in soil and groundwater pollution remediation in Jiangsu Province.After 10 years of entrepreneurial development, DDBS has become a high-techenterprise with strong technical strength and industry influence in the fieldof soil remediation in China, and has been rated as the "Domestic soilremediation annual leading enterprise" for many times, and itscomprehensive strength ranks forefront among the domestic soil remediationcompanies.

DDBS hasdeveloped rapidly in recent years. Since its establishment in 2009, it obtainedclass B qualification for specialty design of three environmental projects:pollution remediation, solid waste treatment and water pollution prevention andcontrol in 2010. In 2012, it took the lead in setting up the ProfessionalCommittee for remediation of contaminated sites of Jiangsu EnvironmentalProtection Industry Association. In 2013, the first pilot project of in-situthermal desorption repair in China was completed. In 2014, the advanced in-situthermal desorption (GTR) technology was introduced for the first time in Chinaand DDBS was approved as a high-tech enterprise. In 2016, the advancedsmoldering (STAR) technology was introduced. In 2017, it was approved withfirst-class qualification for professional contracting of environmentalprotection projects, and the newly signed project contract amount exceeded 200million yuan. In 2018, it won the national key R & D plan specialty project,and the project contract amount in that year exceeded 500 million yuan. In2019, DDBS introduced high-end returned talents, established a company expertcommittee composed of experts at home and abroad, added qualifications such asgeneral contracting of municipal engineering and electromechanical engineering,won the international cooperation project of Jiangsu Province, and was approvedas Jiangsu pollution site engineering technology research center.

VeoliaEnvironment Group, founded in 1853, is one of the world's Top 500 enterprisesand a leader in global environmental services business, with leading superiorityin comprehensive strength in environmental governance, global market layout andlong-term enterprise development experience, etc. Veolia has been committed andsupporting the development of environmental services business in China for manyyears, and has invested and operated many advanced and normative environmentalservices enterprises in the businesses of domestic solid waste, water affairs,energy services, etc. Veolia paid close attention to the technical progress,codes of practices, and development prospect of the soil remediation businessin China.

Compared withthe decades of history of pollution control in sewage, air, solid waste andother industries, soil remediation just appeared for more than ten years inChina. It is a new industry in the whole field of environmental protection. Inrecent years, with the increasing attention of governments to ecological andenvironmental protection, the new cause of soil pollution prevention and controlis also constantly undergoing new changes. For example, in May 2016, the StateCouncil issued The Action Plan For The Prevention And Control Of Soil Pollution(Soil Ten Articles), and The Law On The Prevention And Control Of SoilPollution was officially implemented on January 1, 2019, which greatly promotedthe development of the whole soil remediation industry. Due to the urgency,long-term, arduous and complexity of soil pollution prevention and control, thesoil remediation industry should not only be prepared to fight a tough battle,but also have the patience to fight a protracted war. Therefore, we are veryoptimistic about the prospect of the industry in the future.

Afterintroducing foreign advanced in-situ thermal desorption (GTR) remediationtechnology in 2014, through digestion, promotion and localization innovation,we have implemented a number of in-situ thermal desorption remediation projectsin Beijing, Nanjing, Guangzhou, Ningbo and other places. Driven by the importedtechnology, in-situ thermal desorption remediation technology has become animportant application technology for the remediation of organic contaminatedsites in China.

In 2016, weintroduced advanced smoldering (STAR) treatment technology, which is a new heattreatment technology for efficient treatment of petroleum organic pollutantsthrough self-sustaining combustion of hydrocarbons with porous media as thermalmatrix. It is especially suitable for the treatment of all kinds of oil sludgeproduced in the production process of oil fields and petrochemical, chemical,iron and steel enterprises.

Since 2018, we have undertaken "Research On Precise Injection And StrongTransmission Technology And Equipment Of Functional Materials For In-SituRemediation Of Groundwater", and participated in three national key R& D projects such as "Electric Enhancement Chemical OxidationCollaborative Remediation Technology And Demonstration Of Coal ChemicalContaminated Sites" and "Integration And Engineering Demonstration OfSite Pollution Prevention Technology In Chemical Parks Of The Yangtze RiverEconomic Belt". We have undertaken the international cooperative R & Dproject of Jiangsu Province "Cooperative R & D and EngineeringDemonstration of Domestic Equipment For Smoldering Technology Treatment Of Oil Sludge".In 2020, we are cooperating with more than 30 universities, scientific researchinstitutes and remediation enterprises, and have applied for seven key projectsof "special soil projects" in the national key R & D plan.

After the jointventure, DDBS will closely combine Veolia's brand, capital, technical advantagesand international operation and management experience with the advantages oflocal enterprises to establish a soil and groundwater remediation enterpriseintegrating investment, operation, technical design, engineering construction,R & D experiments, equipment research and international exchange inNanjing, China, and build it into a world-class environmental remediationenterprise. DDBS will also widely absorb technical experts, business backboneand excellent talents at home and abroad to cultivate a talent team with highquality, ability and experience.

We will givefull play to the local advantages of "land benefits", gather the soiland groundwater technology R & D resources accumulated by Veolia groupin Europe, North America, Asia Pacific and other regions and in China, and worktogether to build an international high-level technology R & D base andexperimental center, build a national engineering technology center and KeyLaboratory, and build a soil and groundwater technology center in China and theworld Groundwater remediation technology. We will integrate Veolia group'sglobal technical reserves and expert resources to make the new "DDBS"become the focus of soil and groundwater remediation technology at home andabroad and a global soil and groundwater engineering technology center.

Relying on theinternational advantages of Veolia group, DDBS will actively play the role of awindow for foreign exchange and make it an international exchange center forthe remediation and treatment of soil and groundwater pollution in China. Atpresent, the most influential international exchange center in this field islocated in Palm Springs, California, USA. The city holds a global Battelle soiland groundwater technology exchange conference every two years. Thousands ofprofessionals from all over the world attend the conference. Battelleconference has a great impact on the global soil remediation industry. In thefuture, DDBS will give full play to Veolia International Group's influence inthe international environmental field and its professional and technicaladvantages, and hopes to organize and undertake domestic and international soiland groundwater technology forums and other international exchange activitiesin Nanjing, so as to promote Nanjing, Jiangsu Province to become one of theinternational exchange centers in this professional field.