Zhejiang Great Shengda Packaging Co.,Ltd. announced a private placement of not more than 120,000,000 A shares for gross proceeds of not more than CNY 650,000,000 on July 20, 2022. The transaction will include participation from no more than 35 specific investors, including the controlling shareholder of the company Hangzhou Shengda Investment Co., Ltd. Hangzhou Shengda Investment Co., Ltd. has signed a share subscription agreement to subscribe for not less than CNY 30,000,000 and not more than CNY 50,000,000 in the transaction. The shares issued having a par value of CNY 1.00 each.

The pricing base date of this non-public offering is the first day of the issue period, and the issue price is not less than 80% of the average price of the company's stocks 20 trading days before the first day of the issue period. After the completion of transaction, Hangzhou Shengda Investment Co., Ltd. stake will get reduce to not less than 51.62% from 64.20% in the company. The securities issued to Hangzhou Shengda Investment Co., Ltd. having lock-up period is 18 months from the date of the closing of transaction, for the rest of investors lock-up period is six months.

The transaction has been reviewed and approved at the twenty-seventh meeting of the second board of directors of the company, and still need to be reviewed and approved by the company's general meeting of shareholders and by the China Securities Regulatory Commission. The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting.