Zhejiang Longneng Electric Power Technology Co., Ltd. announced a private placement of 84,770,070 shares for gross proceeds of CNY 435,373,330 on June 24, 2022. The transaction will include participation from returning investors Wolong Electric Group Co.,Ltd for 40,816,320 shares CNY 199,999,968, Muyuan Industrial Group Co., Ltd. for 12,244,900 shares for CNY 60,000,010, Feng Hailiang for 10,204,100 shares for CNY 50,000,090, Song Sigen for 6,122,450 shares for CNY 30,000,005, and new investor Hangzhou Jinyan Yihou Equity Investment Partnership for 6,326,530 shares for CNY 30,999,997, Shaoxing Shangyu Qianxin Equity Investment Partnership for 2,450,000 shares for CNY 12,005,000, Hangzhou Zhechuang Qiufeng Equity Investment Partnership for 3,673,100 shares for CNY 17,998,190, Shaoxing State Reform and Innovation Equity Investment Partnership, fund managed by Shaoxing Fuyue Private Fund Management Co., Ltd. for 4,081,630 shares for CNY 19,999,987, Luo Guobiao for 204,090 shares for CNY 1,000,041, Xu Jing for 408,170 shares for 408,170 for CNY 2,000,033, Wang Jianqiao for 500,000 shares for CNY 2,450,000, Che Sibao for 800,000 shares for CNY 3,920,000, Guangzhou Chaohui Investment Partnership for 1,020,410 shares CNY 5,000,009.The total of CNY 435,373,330, of which CNY 88,851,700 is included in the registered capital, and CNY 346,521,630 is included in the capital reserve. After this capital increase, the registered capital of company will increase from CNY 193,831,207 to CNY 282,682,907, and the Wolong Electric Group Co.,Ltd shareholding in will increase from 40.17% to 41.98%.and CNY 199,999,968 in cash, of which CNY 40,816,320 is included in the registered capital, and CNY 159,183,648 is included in the capital reserve.

The transaction have been approved at the seventeenth interim board of directors of the eighth session of the Wolong Electric Group Co.,Ltd. The transaction parties have not formally signed the "Agreement on the Capital Increase.". The company will sign a formal agreement with each transaction party in a timely manner after performing the approval process.