Ningxia Xinao Cashmere Co., Ltd. announced a private placement of 50,000,000 common shares at a price of CNY 3 per common share for gross proceeds of CNY 150,000,000 on June 28, 2022. The transaction will include participation from returning investor Zhejiang Xinao Textiles Inc. for CNY 105,000,000 to retain 70% stake, for CNY 22,240,000 of other returning investors, including Ningxia Taiao Enterprise Management Partnership Enterprise (Limited Partnership) for 4.6389% stake, Ningxia Ming'ao Enterprise Management Partnership Enterprise (Limited Partnership) for 3.4917% stake, Ningxia Yu'ao Enterprise Management Partnership Enterprise (Limited Partnership) for 3.3472% stake, Ningxia Jin'ao Enterprise Management Partnership Enterprise (Limited Partnership) for 3.2778% stake, Ningxia Bo'ao Enterprise Management Partnership Enterprise (Limited Partnership) for 2.8833% stake, Ningxia Yin'ao Enterprise Management Partnership Enterprise (Limited Partnership) for 2.8778% stake, at the same time directors, supervisors, management personnel will carry out a capital increase of CNY 22,760,000, including Hua Xinzhong for 2.2222% stake, Zhou Xiaotian for 2.2222% stake, Zhu Mingjie for 1.3890% stake, Chen Xueming for 0.8333% stake, Liu Peiyi for 0.7778% stake, Shen Minyu for 0.5333% stake, Shen Jianbo for 0.5% stake, Chen Xing for 0.50% stake, Li Xinxue for 0.2222% stake, Wang Linghua for 0.2222% stake and Yu Xiaolu for 0.0611% stake. As a part of the transaction, the registered capital of the company will increase from CNY 30,000,000 to CNY 80,000,000.

The transaction has been approved in the twenty-third session of the fifth directorate and eighteenth session of the fifth board of directors.