Xinfengming Group Co., Ltd. announced that it has entered into the share subscription agreement of 114,285,714 A shares at an issue price of CNY 8.75 per share for the gross proceeds of CNY 1,000,000,000 on January 17, 2023. The transaction will include participation from Xinfengming Holding Group Co., Ltd. for not more than 68,571,428 shares and individual investor Zhuang Kuilong for not more than 45,714,286 shares. The shares cannot be transferred within 18 months from the issuance closing date.

The transaction has been approved approved in the 37th meeting of the company?s 5th directorate and the 24th meeting of the 5th supervisory board, and is subject to the approvals of the company?s shareholders and the China Securities Regulatory Commission. The company?s total share capital is 1,529,469,778 shares. Xinfengming Holding Group Co., Ltd. holds 15.41% stake for 235,693,920 shares and Zhuang Kuilong holds 22.07% stake for 337,521,813 shares.

Post the completion, Xinfengming Holding Group Co., Ltd. will hold 304,265,348 shares and Zhuang Kuilong will hold 383,236,099 shares.