Shenzhen Huabao Biomaterial Technology Co., Ltd. announced that it has entered into an capital increase agreement for a private placement of common shares for gross proceeds of CNY 28,714,286 on January 25, 2022. The transaction will include participation from new investor Shenzhen WOTE Advanced Materials Co., Ltd for CNY 21,000,000 of which CNY 16,333,333 will be added as registered capital and CNY 4,666,667 as capital reserve and returning individual investor Ni Zhuo for CNY 7,714,286 of which CNY 6,000,000 will be added as registered capital and CNY 1,714,286 as capital reserve. The transaction will take place in tranches.

Post the transaction, Shenzhen WOTE Advanced Materials Co., Ltd will hold 70% stake and Ni Zhuo's stake in the company will decrease from 100% to 30% and the registered capital of the company will increase from CNY 1,000,000 to CNY 23,333,333.