Shandong Fengyuan Chemical Co., Ltd. announced a private placement to issue not more than 84,018,752 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 2,000,000,000 on July 14, 2023. The transaction will include participation from not more than 35 investors. The shares cannot be transferred within 6 months from the issuance closing date.

The transaction has been approved in the 28th Meeting of the Company?s 5th Directorate, and the 19th Meeting of the 5th Supervisory Board and is subject to the approvals of the Company?s Shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.