Zhejiang Three Stars New Materials Co., Ltd. entered into a share subscription agreement for private placement of up to 54,107,109 A shares at an issue price of CNY 11.04 per share for gross proceeds of up to 597,342,483 on March 22, 2023. The transaction will include participation from new investor, Jinxitai Co., Ltd. for 541,07,109 shares to become a controlling shareholder. The transaction has been approved at the 17th meeting of the fourth board of directors and the fifteenth meeting of the fourth board of supervisors but needs to be approved by the company's shareholders, State Administration for Market Regulation, Shanghai Stock Exchange and 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. If after the completion of this issuance, Jinxitai Co., Ltd.'s voting shares in the company do not exceed 30% of the company's issued shares, the lock-up period for the subscribed shares will be 18 months but if it exceeds 30% of the company's issued shares, the lock-up period will be 36 months. After the issuance is completed, Jinxitai will become the controlling shareholder of the company.