Suzhou Shihua New Material Technology Co., Ltd. announced a private placement to issue not exceeding 72,321,732 A shares at an issue price for an aggregate gross proceeds of not exceeding CNY 390,000,000 on October 24, 2022. The issue price shall not be lower than 80% of the average stock trading price in the 20 trading days prior to the pricing benchmark date. The transaction will include participation from not more than 35 specific investors including returning investor, Gu Zhengqing for CNY 169,000,000.

After the completion of the issuance of shares, the shares subscribed by Mr. Gu Zhengqing for this issuance shall not be transferred within 18 months from the closing date, and the shares subscribed by other specific objects in this issuance shall not be transferred within 6 months from the issuance completion date. The transaction has been approved at the eighth meeting of the second board of directors of the company and the first extraordinary general meeting of shareholders. The transaction is subject to approved by the Shanghai Stock Exchange and China Securities Regulatory Commission.