The primary processing of grain and oil shall be exempted from enterprise income tax (Ministry of Finance and State Taxation Administration of The People's Republic of China announced the scope of primary processing of agricultural products enjoying preferential policies of enterprise income tax in February 2008 (for Trial Implementation)).

1. Primary grain processing: (omitted)

2. Primary processing of oil plants: crude oil (including four-grade soybean oil) and vegetable oil are made by cleaning, frying, grinding, squeezing oil (stirring oil, standing oil), leaching and other simple processing of by-products such as rapeseed, peanut, soybean, sunflower seed, castor seed, sesame seed, hemp seed, tea seed, tung oil seed, cottonseed and rice bran. Specifically, it includes rapeseed oil, peanut oil, soybean oil, sunflower oil, castor oil, sesame oil, hemp seed oil, tea seed oil, tung oil, cottonseed oil, safflower oil, rice bran oil, oil cake, bean cake and cottonseed cake.

The fourth-grade soybean oil is crude oil, the soybean oil contract in futures refers to the fourth-grade soybean oil, and the salad oil we usually eat is the first-grade soybean oil.

Crude soybean oil is refined by oil processing enterprises to obtain national first-class soybean oil, namely soybean salad oil. Soybean crude oil produced by Zhiyuan is generally sold directly to domestic oil processing enterprises.