Shandong Fengyuan Chemical Co., Ltd. announced a private placement of 53,379,661 A shares for gross proceeds of not more than CNY 940,000,000 on January 12, 2022. The issue price will not be lower than 80% of the average stock price of the company in the 20 trading days prior to the first day of the issuance period. The transaction will include participation from not more than 35 investors including Zhao Guanghui for not less than CNY 30,000,000 and not more than CNY 90,000,000.

The shares issued to Zhao Guanghui are subject to restriction period of 18 months and to other investors are subject to 6 months. The investor has signed a conditional subscription agreement with the company. The transaction has been approved twelfth meeting of the fifth board of directors of the company, and is subject to approval from shareholders meeting and the China Securities Regulatory Commission.