Shantou Wanshun New Material Group Co., Ltd. announced a private placement of not more than 198,700,000 common shares for gross proceeds of not more than CNY 1,700,000,000 on January 7, 2022. The transaction will include participation from not more than 35 investors. The issuance price of this issuance shall not be lower than 80% of the average trading price of the company's stock in the 20 trading days before the pricing benchmark date. The pricing base date of this issuance is the first day of the issuance period. The transaction has been approved at the twenty-eighth meeting of the fifth board of directors the company. The transaction is subject to the approvals of the general meeting of shareholders of the company, by the Shenzhen Stock Exchange, and by the China Securities Regulatory Commission before it can be implemented. The shares cannot be transferred within six months from the issuance closing date.

On April 27, 2022, the company announced that the application for issuance of shares have been accepted by Shenzhen Stock Exchange under [2022] No. 110.