Hunan Nanling Industrial Explosive Materials Co., Ltd announced a private placement transaction of Class A common shares each with a par value of CNY 1.00 on November 2, 2021. The transaction will include participation from not more than 35 designated investors. The pricing reference date will be the first day of issuance.

Issue price for the shares to be issued in the private placement shall not be lower than 80% of the average stock price 20 trading days before the pricing reference date. The securities to be issued in the transaction will have a lock-up period of six months after issuance completion date. The transaction has been approved by the 23th session of the company's 6th directorate, and is subject to approval from shareholders, board of directors, State-owned assets supervision and administration department, and China Securities Regulatory Commission.