Yibin Paper Industry Co., Ltd. entered into share purchase agreement to issue not more than 53,071,200 A shares at a issue price of CNY 9.60 per share for the gross proceeds of not more than CNY 509,483,500 on November 3, 2022. The transaction will include participation from returning investor, Wuliangye Group Co., Ltd. for 41,571,200 shares and Xiamen C&D Paper &Pulp Co., Ltd. for 11,500,000 shares. The shares to be issued to Wuliangye Group Co., Ltd. has a holding period of 36 months & Xiamen C&D Paper &Pulp Co., Ltd. has a holding period of 18 months from the date of closing of transaction.

The transaction has been approved in the 5th Meeting of the Company?s 11th Directorate and in the 4th Meeting of the 11th Supervisory Board and is subject to the approvals of shareholders of the company and the China Securities Regulatory Commission and the authorized state-owned assets supervision and administration department.