Yiwu Huading Nylon Co.,Ltd. announced that it signed the a conditionally effective non-public issuance stock subscription agreement to issue of 250,000,000 A shares at an issue price CNY 3.01 per share for gross proceeds not exceed CNY 752,500,000 on February 3, 2023. The transaction will include participation from returning investor, True Love Group Co., Ltd. for 210,000,000 A shares, and Zhuji Yuanfu Enterprise Management Partnership (Limited Partnership) for 40,000,000 A shares. The pricing base date for this non-public offering of stocks is the announcement date of the board resolution for reviewing the non-public offering of stocks, and the issue price is CNY 3.01 per share, which is no less than 20 transactions before the pricing base date 80% of the average trading price of the company?s stock on that date (the average trading price of the company?s stock in the 20 trading days before the pricing base date equal to the total stock trading volume in the 20 trading days before the pricing base date/the total stock trading volume in the 20 trading days before the pricing base date).

The shares subscribed by the investors for this non-public offering shall not be transferred within 36 months from the date of the end of this non-public offering. The transaction has been reviewed and approved at the twenty-third meeting of the fifth session of the board of directors and the twenty-first meeting of the company's fifth board of supervisors of the company. The transaction is still needs to be approved by the company's shareholders' meeting and the China Securities Regulatory Commission.

The validity period of the resolution on the non-public offering of shares is 12 months from the date of approval by the company's general meeting of shareholders.