Jiangsu Lihua Animal Husbandry Co., Ltd. signed share subscription agreement to issue not more than 70,453,544 shares at the price of CNY 22.71 per share for gross proceeds of CNY 1,599,999,984.24 on October 19, 2021. The transaction will include participation from Cheng Lili, Chairman of the company which directly holds 94,150,000 shares comprises, 23.21% stake. The shares cannot be transferred within 18 months from the issuance closing date.

The transaction has been approved in the 4th meeting of the company's 3rd directorate and the 4th meeting of the company's 3rd supervisory board and is subject to the approvals of the company's shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.