SKSHU Paint Co.,Ltd. announced a private placement of not more than 80,665,175 A shares for gross proceeds of CNY 3,700,000,000 on April 8, 2021. The transaction will involve participation from not more than 35 investors. The number of shares to be issued cannot not exceed 30% of the company's total share capital before the issuance. The pricing base date of the transaction is the first day of the issuance period, and the issuance price shall not be lower than 80% of the average trading price of the company's stock in the 20 trading days prior to the pricing base date. The shares have a hold period of 6 months. The transaction has been approved at the 17th meeting of the 5th board of directors of the company. The transaction is subject to approval by the company's shareholders meeting, from the China Securities Regulatory Commission, other relevant Chinese laws, and regulations and regulatory documents.

On May 19, 2021, the company received the China Securities Regulatory Commission Administrative License Application Acceptance Form (acceptance serial number: 211139) issued by the China Securities Regulatory Commission that the application materials were complete and decided to accept the administrative license application.

On May 20, 2021, the company announced that it has received Acceptance of Application for Non-public Shares Issuance from China Securities Regulatory Commission.