Jiangxi Yongguan Technology Development Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 500,000,000 on December 17, 2021. The transaction will involve participation from existing investor, Shanghai Yongguan Adhesive Products Corp., Ltd. Out of the total amount, the company will receive CNY 50,000,000 as part of registered capital and CNY 450,000,000 as part of capital reserve. Post-closing of the transaction, the registered capital of the company will increase from CNY 162,000,000 to CNY 212,000,000.

Post-closing, Shanghai Yongguan Adhesive Products Corp., Ltd. will continue to retain its 100% stake in the company. The transaction has been reviewed and approved at the 22nd meeting of the 3rd board of directors and need not to be submitted to the investor's general meeting of shareholders for deliberation.