Shandong Jiangquan Industry Co.,Ltd announced that it has entered into subscription agreement for a private placement of 153,500,000 A shares at an issue price of CNY 2.95 per share for gross proceeds of up to CNY 452,825,000 on November 21, 2021. The transaction will include participation from Beihai Jing'an Investment Co., Ltd. for 50,700,000 shares for CNY 149,565,000 for 7.62% stake, Beihai Jingyao Investment Co., Ltd for 50,800,000 shares for CNY 149,860,000 for 7.64% stake and Beihai Jingzhong Investment Co., Ltd. for 52,000,000 shares for CNY 153,400,000 for 7.82% stake. The shares cannot be transferred within 36 months from the issuance closing date.

The transaction was approved by the board of directors of the company at its 17th meeting of its 10th directorate and 12th meeting of the 10th supervisory board, and is subject to the approvals of the company's shareholders and the China Securities Regulatory Commission.