Chengdu Xuci New Material Co., Ltd. announced that it has signed a capital increase agreement to receive CNY 10,524,700 in an equity round of funding from returning investor Chengdu Xuguang Electronics Co., Ltd. on January 12, 2022. The investor will increase its stake from 35% to 50.43% stake after completion of current transaction and related transaction. The registered capital will increase from CNY 30,000,000 to CNY 34,500,000 and CNY 6,024,700 should be included in the capital reserve.

The transaction has been approved by the fifth meeting of the tenth board of directors of Chengdu Xuguang Electronics Co., Ltd. and does not need the shareholders' approval. Within 10 days from the date of signing the agreement, the investor shall pay the first capital increase of CNY 5,000,000 to the company and within 10 days from the date of completion of the delivery, the investor shall pay the second capital increase of CNY 5,524,700 to the company.