Guangdong DaZhi Environmental Protection Technology Incorporated Company announced a private placement of not more than 47,441,835 shares for gross proceeds of not more than CNY 900,000,000 on April 13, 2021. The company entered into Share Subscription Agreement with returning investor Hunan Hengling Dongli Technology Partnership Enterprise (Limited Partnership) who will subscribe with not less than CNY 400,000,000, share of which will be restricted for period of 36 months. The transaction will include participation from not more than 35 investors whose shares will be subject to restrictions for 6 months and for Hunan Hengling Dongli Technology Partnership Enterprise (Limited Partnership) it will be 18 months.

The issue price shall not be less than 80% of the average price of the company's stock trading on the 20 trading days before the first day of the issuance period. Hunan Hengpa Power Partnership Enterprise (Limited Partnership) do not exceed 30% of the company's total share capital (after the issuance) when the issuance is completed, Hunan Hengpa Power Partnership Enterprise (Limited Partnership) will not transfer its acquired new shares within 18 months from the end of the issuance. Except for Hunan Hengpa Power Partnership Enterprise (Limited Partnership), other issuers will not transfer their newly acquired shares within 6 months from the date of the end of the issuance to specific targets.

The transaction has been approved in the eighteenth Meeting of company's fourth board of directors and is subject to the approvals of the shareholders meeting, Shenzhen Stock Exchange and the China Securities Regulatory Commission.