Polyrocks Chemical Co.,LTD announced that it has entered into a share subscription agreement for issuance of not more than 16,393,442 A shares at a price of CNY 18.30 per share for an aggregate gross proceeds of not more than CNY 300,000,000 on December 8, 2022. The transaction will include participation from returning investors Chen Gang for 15,846,994 shares increasing its stake to 18.69% and Yang Zhenggao for 546,448 shares decreasing its stake to 3.51%. The shares cannot be transferred within 18 months from the issuance closing date.

The transaction has been approved at the 9th meeting of the company?s 6th directorate and 7th meeting of the 6th supervisory board of the company. The transaction is subject to the approvals of the company?s shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission.