Suzhou Hesheng Special Material Co., Ltd. announced a private placement of not more than 20,000,000 A shares for gross proceeds of not more than CNY 122,000,000 in the transaction on April 21, 2023. The issuance price of this of stocks shall not be lower than 80% of the average stock trading price of the 20 trading days before the pricing base date. The transaction will include participation from not more than 35 specific investors.

The shares issued are subjected to 6 months hold period, from the issuance closing date. The transaction is subjected to the approval of Shenzhen Stock Exchange and China Securities Regulatory Commission.