Fujian Sanmu Group Co., Ltd. announced a private placement to issue not more than 80,000,000 A shares at a price of CNY 3.75 per share for an aggregate gross proceeds of not more than CNY 300 million on January 16, 2023. The transaction will include participation from Fujian Sanlian Investment Co., Ltd. The transaction has been reviewed and approved at the company's ninth meeting of the tenth board of directors. The transaction is still subject to approval from general meeting of shareholders and China Securities Regulatory Commission.

The shares subscribed by the investor through this issuance shall not be transferred within 36 months from the date of completion of the issuance. If subsequent relevant laws, regulations, and normative documents of securities regulatory authorities change, the restricted period will be adjusted accordingly.