WHATEVER

As the biggest loser in the industrial hemp seed industry last season, I am still waiting for the last batch of late-maturing experimental seeds to return. Therefore, I don't intend to engage in any debate, but I clarify the following facts:

### 1. On the Definition of Fraud:

Fraud is judged based on both subjective intent and objective behavior. Here's a comparison:

- (1) The seed adaptability data I locked in Google Drive, tracked from 2009 to 2017 over 8 years, followed the Earth's Yellow red angle and the "SWITCH BACK" daylight algorithm. It also explained why commercial spy Huang must in masks of American small farmers like WINDY BOB to engage in fraudulent activities. I endured countless lonely and arduous nights with no parties and no applause, with the worry of my private data wouldn’t be persuasive enough. So, I decided to include global cultivation data for important audiences to reference. Idealistic approaches often come at a heavy cost. I am also well aware that using papers from agricultural research institutes to back seeds, especially parent seeds, is indeed a shortcut.

- (2) We shipped 430 tons of goods for a final payment for 319 tons. We did have a small portion of seeds with a germination rate higher than 95% (around 20 tons), indeed the quantity was very small. The vast majority of seeds had germination rates between 60% and 65% (at least this was the result of pre-shipping raw material testing). This is why Xue hoped to set the germination rate target at around 65% at the begining. Last season, we faced an overheated hemp fiber market and a significant reduction in production due to natural disasters. To meet the 75% germination rate target, we had to strictly select full seeds.—at the time, we still thought that strictest selection could meet the basic germination requirements. However, this should not undermine the efforts of the workers. They laid the seeds very thinly during outdoor drying. These agricultural workers had 8 years of experience in hemp seed work, LAST SEASON THEY WORKED more than 13 hours a day, ultimately selecting out a mountain of seeds that were unqualified as inplump and white seeds to finally ensured that at least 185-190 tons of seeds achieved a germination rate above 75%. Even in May, the most difficult time (when no seeds were available in China), we still managed to ship 50 tons of seeds. Of that, 40 tons were selected at a discount almost closed to 50%, and 10 tons were reslected just to meet the quantity requirement. And no price increase was made. We almost exchausted all we had in one season ,yes , I left no backup.

### 2. On Seed Production:

In my understanding, seed production means producing special varieties during the off-season and meeting market demand during the peak season. To preserve genetic resources, I often overproduced kenaf seeds. Therefore, we eagerly desired for planting contracts I have invested a lot in R&D which doesn’t always guarantee success. I hand over genetics and bear the natural and market risks in large-scale propagation. Actually, in the trial fields, there were cases of unmatching male and female flowering periods, and last season there were signs of seed vitality decline (small seeds decline slower, while large seeds decline faster). From a genetic and subsequent experimental analysis perspective, the “OVER 33N” label on the seed packaging is correct. But it is essential to continue research and identify the causes of problems, as well as introduce new testing standards. A person is not only defined by what they do when they are successful but also by how they handle failure. That remark, "Do you still have money for R&D?" does not imply that last season wasn’t tough for me. Due to money, I had to suspend several projects, but some of the results you see at linkedin post today can be traced back to 2012.

### 3. On Market Competition:

Any factory in the market is inherently weak, and I admit that I am not a competent trader (a trader, of course, tries to minimize risk). I ultimately decided to give up total distribution rights mainly because I wanted to focus on research and its commercialization. However, the “single channel” approach means you give up all your cards, which is why I insist on maintaining the “rights to know” clause in contracts. In extreme cases, I need to know the list of growers to track losses, but I won’t interfere with your final materials business, such as where the fiber or grains are sold. This means I won’t sue you at your target markets (such as Europe), as GMO giant did before. Initially back in 2016, I didn’t place much importance on the intellectual property of some hemp varieties. We came from the kenaf era, when there was no industry , no matter how good the seeds were, they had no value.

### 4. Current Difficulties:

Currently, we are in a very difficult situation. For reasons I prefer not to disclose, we have adjusted our annual seed compensation from two to three containers a year to approximately 15-20% replenishment until we return to normal. That the total is the 180 tons required by others (which is the total amount of large seeds I shipped). Looking back now, the clause in our total distribution contract that restricted sales to only my seeds seems ridiculous. In the face of disaster, everyone is equal, and there will always be other companies with good seeds in hand. We only oppose commercial spy, not normal industry peers(Sinohemp,Q power etc).

I sure during all my posts ,The phrase "We will enhance the regular varieties yielding such as Han-NE" was ignored.

I hope the above clarifications help to understand the current situation.#HEMP