Anhui Xinke New Materials Co.,Ltd announced a private placement of not more than 510,000,000 shares and the issue price is CNY 2.09 per share for gross proceeds of not more than CNY 1,065,900,000 on July 6, 2022. The transaction included participation from Sichuan Rongxin Hongzi Technology Co., Ltd. . The issue price is 80% of the average trading price of the company's stock in the 20 trading days before the pricing.

The shares cannot be transferred within 18 months from the issuance closing date. The transaction has been approved in the 21st meeting of the company's eighth board of directors and is subject to the approvals of the company's shareholders and the China Securities Regulatory Commission. The validity period of the resolution on the non-public offering of shares is 12 months from the date of deliberation and approval at the general meeting of shareholders.

After the completion of the transaction Sichuan Rongxin will become the controlling shareholder of the company.