Zhejiang Jolly Pharmaceutical Co.,LTD announced a private placement of not more than 100,000,000 shares for gross proceeds of CNY 910,000,000 on January 26, 2022. The transaction will include participation from not more than 35 investors. The number does not exceed 30% of the company's total share capital before the issuance. The pricing base date for the issuance of stocks to specific objects is the first day of the issuance period. The issue price of this issuance shall not be lower than 80% of the company's average stock trading price in the 20 trading days before the pricing benchmark date. The shares subscribed by the issuer for this issuance shall not be transferred within six months from the date of the end of the issuance. The transaction has been approved at the seventh (temporary) meeting of the seventh board of directors of the company and is subject to the registration approval document of the China Securities Regulatory Commission. The validity period of the resolution on the issue of shares to specific objects is within 12 months from the date when the company's general meeting of shareholders considers and approves the resolutions related to the issue of shares to specific objects.

On July 1, 2022, the company announced that the application documents with respect to the transaction has been accepted by Shenzhen Stock Exchange. The transaction still needs to be reviewed by the Shenzhen Stock Exchange and approved by the China Securities Regulatory Commission.