Huzhou Jiuli Stainless Steel Material Co., Ltd. will receive $29,700,000 in a round of funding on August 26, 2023. The transaction will include participation from new investor Zhejiang JIULI Hi-tech Metals Co.,Ltd. Prior to the transaction, the registered capital of the company is CNY 3,750,000. Out of the total proceeds, CNY 5,625,000 is added to registered capital, and CNY 24,075,000 is added to capital reserve of the company.

The transaction has been approved by the investor in its 28th meeting of the 6th board of directors and does not require shareholders approval in its regular shareholders? meeting. Post capital increase, and equity transfer, the investor will holds 70% stake in the company, and become the subsidiary.

The capital increase will be completed in three tranches, first tranche will be completed within 3 working days after the changes in business registration are completed due to equity transfer and capital increase, the investor shall pay the company the amount of CNY 15,000,000, in which CNY 5,625,000 will be added to the registered capital, while the remaining CNY 9,375,000 will be added to the capital reserve, second tranche will be completed before December 31, 2023, the investor shall pay the company the amount of CNY 10,000,000 that will be added to the capital reserve, and third tranche will be completed before June 30, 2024, the investor shall pay the company the remaining balance amounting to CNY 4,700,000 that will be added to the capital reserve.