Xintai Yonghe (Yantai) New Materials Co., Ltd. announced a placement of 179,000,000 shares at an issue price of CNY 1 per share for gross proceeds of 179,000,000 on December 14, 2022. The transaction will include participation from returning investor, Shanghai Tianyang Hot Melt Adhesives Co., Ltd. for CNY 153.277 million, individual investors, Zhang Liwen for CNY 5.197 million, Lin Zhixiu for 11.408 million, He Guoxin for 8.357 million and Bai Chunyong for 761,000. The transaction has been approved at the second meeting of the fourth board of directors of Shanghai Tianyang Hot Melt Adhesives Co., Ltd. and does not need to be submitted to the company's shareholders' meeting for review.

After this capital increase, the registered capital of the company will change to CNY 180 million. After this agreement takes effect, the investors shall complete the transaction within 12 months after the industrial and commercial change is completed.