Shandong Shida Shenghua Chemical Group Company Limited announced that it will issue not more than 60,804,000 A shares for total gross proceeds of not more than CNY 4,500,000,000 on July 14, 2022. The transaction will include participation from no more than 35 specific investors, which may include securities investment fund management companies, securities companies, insurance institutional investors, trust companies, financial companies, asset management companies, qualified foreign institutional investors, qualified foreign institutional investors and other legal persons, natural persons or other qualified investors among them, securities investment fund management companies, securities companies, qualified foreign institutional investors, and qualified foreign institutional investors. The issue price for the shares to be issued in the private placement shall not be lower than 80% of the average stock price 20 trading days before the pricing reference date.

All the securities issued in the transaction will subject to a hold period of six months. The transaction has been approved in the twentieth meeting of the seventh session of the board of directors and approved at the tenth meeting of the seventh board of supervisors of the company. The transaction is still needs to be reviewed and approved by the general meeting of shareholders and the approval from the China Securities Regulatory Commission.