Henan Yicheng New Energy Co., Ltd. announced a private placement to issue of A shares not more than 1,600,000,000 shares at a price of CNY 1 for an aggregate gross proceeds of not more than CNY 1,600,000,000 on September 6, 2022. The company shall issue shares at a price not lower than 80% of the average price of the company A shares in the 20 trading days prior to the pricing benchmark date. The transaction will include participation from no more than 35 qualified specific investors including returning investor China Pingmei Shenma Group Co.,Ltd. The shares shall not transfer shares of this issuance subscribed within 18 months from the end date of this issuance.

The transaction has been reviewed and approved at the 28th meeting of the 5th board of directors and the 27th meeting of the 5th board of supervisors of the company. The transaction to specific objects still needs to be reviewed and approved by the state-funded enterprise and the company's general meeting of shareholders. The transaction to specific objects still needs to be reviewed and approved by the Shenzhen Stock Exchange and approved by the China Securities Regulatory Commission for registration.

After obtaining the approval of the China Securities Regulatory Commission for registration, the company will apply to the Shenzhen Stock Exchange and the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. for stock issuance, registration and listing, and complete the approval process for the issuance of stocks to specific objects.