Qilian International Holding Group Limited Completes Phase One of Its Expansion of New Organic Fertilizer Production Facility and Puts It into Production

Qilian International Holding Group Limited (Nasdaq: QLI) (the "Company"), a China-based pharmaceutical and chemical products manufacturer, today announced that the Company has completed phase one of the expansion of its new organic fertilizer production facility. As a result, the Company's annual production capacity of organic fertilizers has increased to 30,000 tons. After the Expansion is fully complete, the Company's annual production capacity of organic fertilizers is expected to reach 50,000 tons. The installation and commission of production equipment and the construction of supporting facilities have been completed and put into production after optimization and improvement.

According to the Company's overall development plan, the Expansion is key to improving the Company's whole industrial chain. Started in September 2020,the Expansion consists of installing a complete set of production lines including a new fermentation field with a volume of 84,000 cubic meters (approximately 296,6432 cubic feet), a drying field with an area of 35,000 square meters (approximately 37,6737 square feet), a raw material warehouse with an area of 540 square meters (approximately 5,812 square feet), a finished product warehouse of 1,872 square meters (approximately 20,150 square feet), a raw material storage tank of 900 cubic meters (approximately 3,1783 cubic feet), and advanced production equipment and supporting facilities.

The Company's subsidiary Moshangfa Fertilizer Industry Co., Ltd., formerly known as Jiuquan Qiming Biotechnology Co., Ltd., is a technological company that focuses on the research and development, production and sales of organic fertilizers, bio-organic fertilizers, organic-inorganic compound fertilizers, compound microbial fertilizers, flushing fertilizers, substrates, soil conditioners and other series of fertilizers. Bio-organic fertilizer under the "Moshangfa" brand has won the trust of farmers because we believe that its effectiveness lasts longer, prevents root rot in crops, helps grow roots, and significantly increases crop yields. The "Moshangfa" brand bio-organic fertilizer is sold in large quantities to customers in Shaanxi Province, Gansu Province, Qinghai Province and Ningxia Hui Autonomous Region, Xinjiang Uygur Autonomous Region, Sichuan Province, Shanxi Province, Tibet Autonomous Region, Inner Mongolia Autonomous Region and other places. The market demand for the "Moshangfa" brand bio-organic fertilizer continues to grow.

Mr. Zhanchang Xin, Chairman and CEO of the Company, commented, "The completion of phase one of the Expansion will enable the Company's production capacity of various organic fertilizers to reach more than 30,000 tons within a year and enhance the Company's market competitiveness. At the same time, the Expansion will vigorously promote the recycle of local rural livestock and poultry manures and agricultural wastes, effectively control pollution emissions from the breeding industry, promote the development of local modern agriculture, and play an active role in the implementation of the national organic agricultural development strategy."

About Qilian International Holding Group Limited

Qilian International Holding Group Limited, headquartered in Gansu, China, is a pharmaceutical and chemical products manufacturer in China. It focuses on the development, manufacture, marketing and sale of licorice products, oxytetracycline products, traditional Chinese medicine derivatives product, heparin product, sausage casings, and fertilizers. The Company's products are sold in more than 20 provinces in China. For more information, visit the company's website at http://qilianinternational.com/

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, financial needs and the successful construction of the pig by-product processing project facility. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.

Source: Qilian International Holding Group Limited