Yueyang Forest & Paper Co., Ltd. entered into a share subscription agreement for issuance of not more than 350,000,000 A shares for gross proceeds of not more than CNY 2,500,000,000 on May 10, 2023. The transaction will include participation from not more than 35 qualified specific investors including returning investor, China Paper Investment Co., Ltd. subscribing to not less than 10% of the total issue volume and not more than 30% of the total issue volume. The shares to be subscribed by China Paper Investment Co., Ltd. shall not be allowed within 18 months from the date of completion of this issuance, and the shares to be subscribed by the remaining investors shall not be transferred within six months from the date of the completion of this issue.

The transaction has been approved at the ninth meeting of the eighth board of supervisors and thirteenth meeting of the company's eighth board of directors of the company. The transaction still needs to be approved by the company's general meeting of shareholders, by the entity performing state-owned assets supervision and management duties, the Shanghai Stock Exchange and the China Securities Regulatory Commission.