Luoniushan Co., Ltd. announced that it has signed the Share Subscription Agreement and private placement of not more than 345,454,073 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 the gross proceeds of not more than CNY 2,082,037,900 on March 20, 2023. The transaction will include participation not more than 35, including Luoniushan Group Co., Ltd., who will subscribe with not less than CNY 100,000,000. The shares Luoniushan Group Co., Ltd. subscribes to cannot be transferred within 18 months from the issuance closing date and the shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date.

At present, the Company's total share capital is 1,151,513,578 shares and Luoniushan Group Co., Ltd. holds 197,412,938 shares, 17.14% stake. The transaction has been approved in the 3rd Extraordinary Meeting of the Company's 10th Directorate, and is subject to the approvals of the Company's Shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.