Yingcheng Hongyi Chemical Technology Co., Ltd announced a capital Increase agreement of CNY 740,000,000 on May 19, 2022. The company will issue common shares 740,000,000 at an issue price of CNY 1 per share in the transaction. The transaction will include participation from existing investors Hubei Shuanghuan Science and Technology Stock Co.,Ltd., Hubei Yihua Group Limited Liability Company for CNY 140,000,000, other investors Hubei Hong Tai Huachuang Emerging Industry Investment Co., Ltd for CNY 185,000,000, Hubei New Kinetic Energy Industry Investment Fund Limited Partnership for CNY 185,000,000 and Hubei Kechuang Hongtai Zero High-end Manufacturing Investment Fund Limited Partnership for CNY 30,000,000.

The transaction has been approved at the 12th meeting of the 10th board of directors of the company. The transaction still needs to reviewed and approved by the company's shareholders' meeting.