Zhejiang Huayou Cobalt Co., Ltd announced a private placement of not more than 476,293,655 A shares for gross proceeds of not more than CNY 17,700,000,000 on June 19, 2022. The transaction will include participation from not more than 35 investors, including returning investor Zhejiang Huayou Holding Group Co., Ltd., who will subscribe with not more than CNY 510,000,000. As of this announcement date, Zhejiang Huayou Holding Group Co., Ltd. holds 260,313,967 shares, 16.40% stake.

The issue price is not less than 80% of the average price in the 20 trading days before the pricing reference date. The shares Zhejiang Huayou Holding Group Co., Ltd. subscribes to cannot be transferred within 18 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date.

The company and investors signed share subscription agreement. The transaction has been approved in the 38th meeting of the company's 5th directorate and 33rd meeting of the 5th supervisory board and is subject to the approvals of the company's shareholders and the China Securities Regulatory Commission.