Chongqing Hongjiu Fruit Co., Limited entered into the share subscription agreement to issue not more than 30,487,802 common shares at an issue price of CNY 16.40 per share for gross proceeds of not more than CNY 499,999,952.80 on April 4, 2023. The company will pay the issuance fees and expenses and the net proceeds will be CNY 497.2 million. The validity period of the plan for the Issuance is 12 months from the date of consideration and approval at shareholders' class meetings and the general meeting of the company.

The Issuance is subject to approval by the CSRC after consideration and approval at the general meeting and shareholders' class meetings, and the final plan approved by the CSRC shall prevail. The transaction will include participation from Guizhou Zhongken for 18,292,682 shares for CNY 299,999,984.80, Hunan Zhongken for 6,097,560 shares for CNY 99,999,984, Chongqing Zhongken and Beijing Kentuo for 3,048,780 shares each for CNY 49,999,992 each. The transaction is expected to receive in tranches.

The transaction has been approved by the shareholders at the Domestic Share Class Meeting and H Share Class Meeting and third extraordinary general meeting of 2023.