Anhui Xinke New Materials Co.,Ltd announced that it has entered into an share subscription agreement for a private placement of 223,463,687 A shares at a price of CNY 1.79 per share for gross proceeds of CNY 399,999,999.73 on August 14, 2023. The transaction will include participation from returning investor Sichuan Rongxin Hongzi Technology Co., Ltd which already holds 176,959,400 shares for a 9.80% stake in the company. The shares to be issued in the transaction will be not more than 30% of the total share capital of the company.

The transaction has been approved in the 8th meeting of the company?s 9th directorate, and the 6th meeting of the company?s 9th supervisory board, and is subject to the approvals of the company?s shareholders, the authorized state-owned assets management department, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. The shares cannot be transferred within 18 months from the issuance closing date.