Anhui Huaye Special Materials Co., Ltd. announced that it will receive CNY 30,000,000 in an equity round of funding through capital increase by signing agreement with new investor, Zhejiang Double Arrow Rubber Co., Ltd. on October 26, 2022. After the completion of the capital increase, the investor will hold 30% stake in the company. The investor will pay the capital increase in multiple tranches.

The fund of CNY 10,000,000 within 2 working days after the signing of this agreement, and remaining capital increase of CNY 20,000,000 within 5 working days after this agreement takes effect. The CNY 25.7143 million goes to the newly increased registered capital, and CNY 4,285,700 will be included in the capital reserve. The capital increase is within the scope of the chairman's approval and does not need to be submitted to the board of directors and shareholders' general meeting for consideration.