Longxing Chemical Stock Co., Ltd. announced that it has entered into a share subscription agreement for a private placement of not more than 147,246,000 A shares for gross proceeds of not more than CNY 1,603,656,600 on April 25, 2022. The transaction included participation from not more than 35, including Liu Pengda, who will subscribe to 5,000,000-10,000,000 shares. The shares Liu Pengda subscribes to cannot be transferred within 18 months from the closing of the transaction.

The shares the other investors subscribe to cannot be transferred within 6 months from the closing of the transaction. The transaction has been approved in the 3rd extraordinary meeting of 2022 of the company's 5th directorate, and is subject to the approvals of the company's shareholders and the China Securities Regulatory Commission. The issue price shall not be less than 80% of the average price in the 20 trading days before the pricing reference date.