Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd. announced a private placement of not more than 232,540,200 A 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 700,000,000 on April 19, 2022. The transaction included participation from not more than 35 special investors including returning investor LB Group Co., Ltd. The company signed shares subscription agreement with returning investor LB Group Co., Ltd. The shares have a par value of CNY 1 each. The securities subscribed by LB Group Co., Ltd. will be subject to a hold period of 18 months from the date of closing and shares subscribed by other investors will be subject to a hold period of 6 months from the date of closing.

The transaction was approved at the 31st and 34th meeting of the 7th board of directors and the 34th meeting of the 7th board of supervisors and is subject to approval from the company's shareholders and the China Securities Regulatory Commission. The investor LB Group Co., Ltd. intends to subscribe for no less than 23.51% of the total number of shares issued in the transaction. Post the closing, LB Group Co., Ltd. will hold 29.99% stake in the company.