Zhejiang Xinan Chemical Industrial Group Co.,Ltd announced a private placement of not more than 343,723,962 shares A shares at an issue price of not less than 80% of the average price in the 20 trading days before the pricing reference date for gross proceeds of up to CNY 1,800,000,000 on May 20, 2022. The transaction will include participation from not more than 35, including Zhejiang Transfar Chemicals Group Co., Ltd., who will subscribe with not less than CNY 200,000,000. The transaction was approved by board of directors in its 13th Meeting of the 10th Supervisory Board.

The shares Zhejiang Transfar Chemicals Group Co., Ltd. subscribes to cannot be transferred within 18 months from the issuance closing date and the shares of other investors subscribe to cannot be transferred within 6 months from the issuance closing date.