Guangdong Shenling Environmental Systems Co., Ltd. announced a private placement of not more than 72,003,000 shares at an issue price of not less than 80% of the average price in the 20 trading days before the pricing reference date for gross proceeds of not more than CNY 800,000,000 on April 12, 2022. The transaction includes participation from not more than 35 investors. The shares cannot be transferred within 6 months from the issuance closing date. The transaction is approved by the board of directors of the company in the 7th Meeting of the 3rd Directorate and the 5th Meeting of the 3rd Supervisory Board. The transaction is subject to approval from the company's shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting. This issuance will not lead to changes in the company's control.

On August 26, 2022, the company received the notice on acceptance of application documents to issue shares to specific objects from Shenzhen Stock Exchange. The issuance still needs to be reviewed and approved by the Shenzhen Stock Exchange and approved by the China Securities Regulatory Commission.