Zhejiang Dongri Limited Company announced that it has entered into a share subscription agreement for the issuance of not more than 123,429,400 A shares for gross proceeds of not more than CNY 720,000,000 on March 12, 2023. The transaction will include participation from no more than 35 investors, including returning investor Wenzhou Dongfang Group Co., Ltd. for no more than CNY 50,000,000, currently holds 49.29% stake in the company for 202,807,800 shares. The issue price will not less than 80% of the average price in the 20 trading days before the pricing reference date.

All the shares issued in the transaction cannot be transferred within 6 months from the issuance closing date and the shares issued to Wenzhou Dongfang Group Co., Ltd. cannot be transferred within 36 months from the issuance closing date. The transaction has been approved in the thirteenth meeting of the company ninth directorate and eighth meeting of ninth supervisory board, and is subject to the approvals of the company’s shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. The company total share capital is 411,431,200 shares.