Hunan Sokan Advanced Surface Treatment and Functional Coating Research Institute Co., Ltd. announced a private placement and it will issue 20,000,000 common shares at an issue price of CNY 1 per share for a gross proceeds of CNY 20,000,000 on July 20, 2023. The transaction will include participation from returning investor, Hunan Sokan New Materials Co., Ltd. Post-closing the transaction, the company registered capital will increases from CNY 16,666,700 to CNY 36,666,700 and equity stake of the investor will increased from 70% to 86.36%. The increase in the registered capital of the company has been reviewed and approved at the 22nd meeting of the 2nd session of the board of directors of the investor and does not need to be submitted to the general meeting of shareholders for consideration.