Chengdu Tuozhan New Material Co.,Ltd announced a private placement of 29,300,000 shares at a price of CNY 2.75 per share for the gross proceeds of CNY 80,575,000 on October 19, 2020. The transaction will include participation from new investors Sichuan Dowell Science and Technology Inc. for 19,000,000 shares for the gross proceeds of CNY 52,250,000, representing the stake of 24.27% in the company, Shanghai Hengjiu Enterprise Management Partnership (Limited Partnership) for 4,800,000 shares for the gross proceeds of CNY 13,200,000, representing the stake of 6.13% in the company, Guo Wei for 3,000,000 shares for the gross proceeds of CNY 8,250,000, representing the stake of 3.83% in the company and controller of the company, Fu Yong, for 2,500,000 shares for the gross proceeds of CNY 6,875,000. The transaction has been approved by the fifth meeting of the fifth directorate of Sichuan Dowell Science and Technology Inc. (SZSE:300535) and is subject to approval of its second extraordinary general meeting of shareholders in 2020.