Baota Industry Co., Ltd. announced that it has entered into a subscription agreement with Ningxia Water Investment Group Co., Ltd. for a private placement of not more than 112,500,000 shares at an issue price of CNY 2.13 per share for gross proceeds of not more than CNY 239,625,000 on August 22, 2021. The transaction has been approved by the board of directors of the company in its fifth meeting of the ninth session. The transaction is still subject to approval by the shareholders' meeting and by the China Securities Regulatory Commission.

The shares to be issued will have a hold period of 36 months.