Jixi Baotailong Investment Co., Ltd. announced it has entered into capital increase and share expansion agreement for private placement of common shares for gross proceeds of CNY 120,000,000 on September 17, 2021. The transaction will include participation from returning investor Baotailong New Materials Co., Ltd. and new investor Jixi Dahan Coal Sales Co., Ltd. The registered capital of the company will be increased from CNY 30,000,000 to CNY 60,000,000. The Baotailong New Materials Co., Ltd. will invest CNY 3,000,000 and after the capital increase, Baotailong New Materials Co., Ltd. held the company?s capital contribution of 33,000,000 accounting for 55% of the company?s registered capital; the new shareholder Jixi Dahan Coal Sales Co., Ltd. will invest 27,000,000 accounting for 45% of the company?s registered capital. The company will include CNY 93,000,000 in the capital reserve. After the capital increase, the members of the board of directors of company shall be adjusted and shall be composed of 5 directors, of which 2 directors shall be selected by Jixi Dahan Coal Sales Co., Ltd., and 3 directors shall be selected by Baotailong New Materials Co., Ltd. After the capital increase, the chairman and chief financial officer of company shall be appointed by Baotailong New Materials Co., Ltd., and the general manager and other senior management personnel can be recommended by Baotailong New Materials Co., Ltd. and hired by the board of directors. After the capital increase, the board of supervisors of the company will consist of 3 supervisors including Baotailong New Materials Co., Ltd. and Jixi Dahan Coal Sales Co., Ltd. each electing one, and the company electing one employee supervisor. The transaction was approved at the 20th meeting of the fifth board of directors of Baotailong New Materials Co., Ltd.