Ningxia Lanfeng Fine Chemical Co., Ltd. announced that it will issue common shares for gross proceeds of not more than CNY 300 million on September 22, 2023. The transaction will include participation from returning investor, Jiangsu Lanfeng Bio-chemical Co.,Ltd. The transaction has been approved at the third meeting of the seventh board of directors and the third meeting of the seventh board of supervisors. The transaction is still subject to be approved by the company?s shareholders?

meeting. Out of the total capital increase, CNY 20 million will be included in the paid-in capital, and the remaining part will be included in the capital reserve. After the capital increase is completed, the registered capital of the company will be increased from CNY 580 million to CNY 600 million yuan.