Rongyu Group Co., Ltd. announced that it has entered into a conditional subscription agreement with Changzhou Yanlu Yongle Enterprise Management Center (Limited Partnership) for the issuance of not more than 200,000,000 A shares, par value CNY 1 per share, at an issue price of CNY 3.26 per share for gross proceeds of not more than CNY 652,000,000 on October 11, 2022. The share issued shall not be transferred within 36 months from the date of the close of this offering. The resolution of this non-public offering will be valid within 12 months from the date of consideration and approval at the company's general meeting of shareholders.

The transaction has been been reviewed and approved at the 18th extraordinary meeting of the 5th board of directors held by the company's board of directors and at the 6th extraordinary meeting of the 5th board of supervisors. According to the relevant laws, the non-public issuance of A shares still needs to be submitted to the company's general meeting of shareholders for deliberation and approved by China. It can be implemented only after the approval of the China Securities Regulatory Commission.

The investor has performed internal decision-making procedures to review and approve the transaction.