Dongjiang Environmental Company Limited announced that it has entered into the subscription agreement for the private placement of maximum of 263,780,130 A Shares, representing 30% of the existing total issued share capital to not more than 35 specific target subscribers, including Guangdong Rising Holdings Group Co., Ltd., for gross proceeds of up to CNY 1,200,000,000 on may 27, 2022. The shares caries par value of CNY 1 per share. The issue price of the A Shares will be determined through price inquiry.

Guangdong Rising Holdings Group Co., Ltd. will subscribe not more than CNY 350,000,000 but not less than 25.72% of the total issue size of the of A Shares. Upon completion of the transaction, Guangdong Rising Holdings Group Co., Ltd. and the parties acting in concert with it will not hold 30% or more of the issued share capital in the company. The target subscribers other than Guangdong Rising Group include securities investment fund management companies, securities companies, trust investment companies, finance companies and other qualified investors in compliance with applicable laws and regulations.

Securities investment fund management companies, securities companies, qualified foreign institutional investors, RMB Qualified Foreign Institutional Investors, which subscribe for the A Shares with two or more of the funds managed by them, shall each be taken as one single subscriber. Trust companies may only subscribe for the A Shares with their own funds. The completion of the transaction is subject to the satisfaction of certain conditions.

The transaction has been approved by the board of directors and is subject to approval from the shareholders at the EGM and the class meetings, from empowered state owned assets supervision and administration authorities and the approval from the CSRC. Guangdong Rising Holdings Group Co., Ltd. shall not transfer the A shares within 18 months from the date of completion of the proposed non-public issuance of A shares and all other target subscribers shall not transfer the A Shares within 6 months from the date of completion.