Zhejiang Sanwei Rubber Item Co., Ltd. signed a conditional share subscription agreement for the non-public offering of 46,168,051 A shares for gross proceeds of not more than CNY 1,000,0000,000 on November 29, 2021. The transaction will include participation from existing investor Ye Jiyue. The issue price of the non-public offering of shares shall not be lower than the average price of the company’s stock trading on the 20 trading days before the pricing base date. The shares shall not be transferred within 36 months from the end of the issuance. The non-public offering plan was reviewed and approved at the 15th meeting of the fourth board of directors of the company. The transaction still needs to be approved by the company’s shareholders meeting and China Securities Regulatory Commission.