Yancheng Youhebo New Materials Co., Ltd. announced that it will raise CNY 179.67 million in an equity round of funding on November 14, 2022. The transaction include participation from new investor Beijing Tongyizhong New Material Technology Corporation for 70% after capital increase and singed a capital increase agreement. The transaction was approved by the board of directors in its 11th meeting of the second board of directors and the 8th meeting of the 2nd board of supervisors and does not need to be submitted to the company's general meeting of shareholders for consideration of the parent company.

The company contribute CNY 140 million for registered capital, and the rest was included in the capital reserve. The capital increase will be paid in three tranches. The first tranche will occur within ten working days from the date on which the conditions precedent for the first tranche payment are fully satisfied for CNY 90 million, within ten working days from the date on which the conditions precedent for the second tranche payment are fully satisfied second tranche for 72 million and within ten working days from the date on which the conditions precedent for the third tranche payment are fully for 17.67 million.

The round is raised at a pre-money valuation of CNY 77 million. Before this capital increase, the company should complete the industrial and commercial registration procedures for this capital increase. If the payment terms of the first installment of the capital increase agreement are not completed before December 31, 2022, or are waived in writing by investor, Beijing Tongyizhong New Material Technology Corporation has the right to terminate the capital increase agreement and abandon this capital increase.