Hubei Kailong Chemical Group Co., Ltd. announced that it has entered into a share subscription agreement of not more than 117,283,150 A shares for gross proceeds of not more than CNY 850,000,000 on March 29, 2023. The transaction will involve participation from not more than 35 specific investors including returning investor Zhongjing Investment Holding Group Co., Ltd. will subscribe for no less than CNY 50,000,000 and no more than CNY 120,000,000 and individual investor Shao Xingxiang will subscribe for an amount of not less than CNY 40,000,000 and not more than CNY 80,000,000. The pricing base date for this issuance of stocks to specific objects is the first day of the issuance period.

The issue price of this issue is determined through price inquiry, and the issue price is not lower than 80% of the average trading price of the company's stock in the 20 trading days prior to the pricing base date. All securities issued in the transaction are subject to a hold period of six months after the issuance, and the shares subscribed by Zhongjing Investment Holding Group Co., Ltd. and Shao Xingxiang shall not be transferred within eighteen months. The transaction has been approved in the twenty-third meeting of the eighth board of directors of the company.

The transaction still needs to be approved by the company's general meeting of shareholders, competent state-owned assets department, the Shenzhen Stock Exchange and to be approved by the China Securities Regulatory Commission.