Kangxin New Materials Co., Ltd. (SHSE:600076) announced that it has entered into a conditional share subscription contract with existing investor Wuxi Construction & Development Investment Co., Ltd. for private placement of 310,279,238 A shares at a price of CNY 2.77 per share for total gross proceeds of CNY 859,473,489.26 on July 13, 2020. The investor currently holds 206,623,347 A shares or 19.98% stake which will increase to 516,902,585 shares or 38.44% stake in the company. The shares does not exceed 30% of the total share capital before the issuance. The shares issued to investor shall not be transferred within 36 months from the end of the issuance. The transaction has been reviewed and approved by the board of directors of the company at its 10th session of the 10th directorate meeting. The transaction is subject to approval from the shareholders of the company at its 3rd special meeting to be held on July 29, 2020 and the China Securities Regulatory Commission. On July 28, 2020, the company received in principle approval for the transaction by the board of directors of the investor and by state-funded enterprises.