Wuchan Zhongda Group Co.,Ltd. (SHSE:600704) agreed to spin-off ZJMI Environmental Energy Co., Ltd. on June 30, 2020. Wuchan Zhongda Group Co.,Ltd. will list A shares of ZJMI Environmental Energy Co., Ltd. on Shanghai Stock Exchange. ZJMI Environmental Energy will select an appropriate time to issue after approval by the Shanghai Stock Exchange and the China Securities Regulatory Commission.

As far as issuance method is concerned, a combination of offline allotment and online fund subscription and issuance or other issuance methods approved by the China Securities Regulatory Commission and the Shanghai Stock Exchange. The number of shares issued this time will not exceed 20% of the total share capital after the issuance of ZJMI Environmental Energy. The ZJMI Environmental Energy Shareholders' Meeting authorizes the ZJMI Environmental Energy Board of Directors to negotiate with the lead underwriter to determine the final issuance quantity in accordance with the requirements of relevant regulatory agencies, the actual situation of the securities market, the amount of equity before the issuance, and the capital requirements of the raised funds.

Pricing method will be determined through inquiries to professional institutional investors such as securities companies, fund management companies, trust companies, finance companies, insurance companies, qualified foreign investors and private equity fund managers registered with the Securities Association of China The issue price of shares. The issuer and the lead underwriter may determine the issue price through preliminary inquiry or other methods. The specific issuance date will be authorized by the ZJMI Environmental Energy shareholders' meeting and the ZJMI Environmental Energy Board of Directors shall be approved by the Shanghai Stock Exchange and the China Securities Regulatory Commission and/or confirmed after registration.

The transaction still needs to be approved by the board of directors and shareholders of Wuchan Zhongda Group Co.,Ltd. in a general meeting. The spin-off also needs to be approved by the China Securities Regulatory Commission. The plan for the spin-off and listing has been reviewed and approved at the 8th meeting of the 9th board of directors and the 10th meeting of the 9th board of directors of Wuchan Zhongda Group Co.,Ltd. The plan for this spin-off and listing has been reviewed and approved at the sixth meeting of the ninth board of supervisors and the seventh meeting of the ninth board of supervisors.

Deng Rui, Qi Yufei and Yu Peng of CITIC Securities Company Limited acted as independent financial advisors, whereas Ye Guojun, Jiao Fugang, Zhang Yanan of King & Wood Mallesons, China acted as legal advisors and Liang Chun and Yang Xiong of Moore Stephens Da Hua Certified Public Accountants acted as accountants to Wuchan Zhongda Group Co.,Ltd.