Huafon Chemical Co., Ltd. announced a private placement of not more than 1,390,055,766 A shares for gross proceeds of not more than CNY 5,000,000,000 on May 14, 2021. The transaction will include participation from not more than 35 specific investors. The transaction has been reviewed and approved at the 26th meeting of the 7th board of directors of the company.

The transaction is subject to approval by the company's shareholders in its annual general meeting to be held on June 10, 2021, and the China Securities Regulatory Commission. The company will pay issuance expenses in the transaction. The shares shall not be transferable within 6 months from the date of completion of the transaction.