Ningxia Xinao Cashmere Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 90,000,000 on January 13, 2023. The transaction will include participation from returning investors Zhejiang Xinao Textiles Inc. for CNY 63,000,000, for CNY 27,000,000 of other returning investors, including Ningxia Taiao Enterprise Management Partnership Enterprise (Limited Partnership), Ningxia Ming'ao Enterprise Management Partnership Enterprise (Limited Partnership), Ningxia Yu'ao Enterprise Management Partnership Enterprise (Limited Partnership), Ningxia Jin'ao Enterprise Management Partnership Enterprise (Limited Partnership), Ningxia Bo'ao Enterprise Management Partnership Enterprise (Limited Partnership), Ningxia Yin'ao Enterprise Management Partnership Enterprise (Limited Partnership). The company has signed capital increase agreement with investors.

As a part of the transaction, the registered capital of the company will increase from CNY 30,000,000 to CNY 120,000,000. The transaction has been approved at the twenty-eighth meeting of the fifth board of directors and the twenty-third meeting of the fifth board of supervisors of Zhejiang Xinao Textiles Inc.