Quzhou Qufarui New Energy Materials Co., Ltd. announced a private placement of common shares for the gross proceeds of CNY 570 million on June 15, 2023. The transaction will include participation from returning investor, Zhejiang Xinhu Zhizao Industrial Co., Ltd. for CNY 221 million and new investors, Xinhu Zhongbao Co.,Ltd., Quzhou Greenstone New Material Equity Investment Partnership (Limited Partnership) for CNY 204 million, Quzhou Shengong No. 3 Equity Investment Partnership (Limited Partnership) for CNY 134 million and Quzhou Rongbenyuan Holding Partnership (Limited Partnership) for CNY 41,000,000.

The transaction has been approved in the Seventeenth Meeting of the Eleventh Board of Directors of Xinhu Zhongbao Co.,Ltd. Post capital increase, Xinhu Zhizao will own a total of CNY 73.67 million in registered capital of the company, accounting for 32.41% stake. The total new registered capital is CNY 197.34 million.