ZHEJIANG ZHENYUAN SHARE CO., LTD. announced a private placement to issue not more than 100,236,985 A shares for gross proceeds of not more than CNY 601,400,000 on August 9, 2021 and signed a share subscription agreement with returning investor Shaoxing Zhenyuan Health Industry Group Co., Ltd. on August 9, 2021. The transaction will include participation from not more than 35 investors including the company?s existing shareholder, Shaoxing Zhenyuan Health Industry Group Co., Ltd. The pricing base date is the first day of the issuance period. The issue price is not less than 80% of the average price of the company?s stock during the 20 trading days prior to the pricing base date. The shares issued in the transaction is subject to a lock up period of 18 months from the closing of the transaction for Shaoxing Zhenyuan Health Industry Group Co., Ltd. and a lock up period of 6 months from the closing of the transaction for other investors. The transaction has been approved at the third interim meeting of the company's tenth board of directors in 2021 and is subject to approval from shareholders of the company and the China Securities Regulatory Commission. The investor Shaoxing Zhenyuan Health Industry Group Co., Ltd, holds 83,300,474 shares of the company, accounting for 24.93% of the company's total share capital prior the transaction.