Zhende Medical Co., Ltd. announced a private placement to issue not more than 39,246,466 A shares at a price of CNY 25.48 per share for gross proceeds of not more than CNY 1,000,000,000 on September 28, 2021. The company signed a share subscription agreement with Lu Jianguo for 3,924,646 shares and proceeds of CNY 10,000,000, Zhejiang Zhende Holding Co., Ltd. for 23,547,880 shares and proceeds of CNY 60,000,000 and Xuchang Zhende Landscaping Engineering Co., Ltd. for 11,773,940 shares and proceeds of CNY 30,000,000. The shares issued in the transaction is subject to a lock up period of 18 months from the closing of the transaction.

The transaction has been approved by the board of directors of the company at the 21st Meeting of the 2nd directorate and 17th meeting of the 2nd supervisory board and is subject to approval from its shareholders and the China Securities Regulatory Commission.