Jiaozuo Huakang Sugar Alcohol Technology Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 295,867,100 on June 27, 2022. The transaction will involve participation from existing investor, Zhejiang Huakang Pharmaceutical Co., Ltd. Post-closing of the transaction, the investor will retain its 100% stake in the company. Out of the total amount received, the company will receive CNY 40,000,000 to increase its registered capital and CNY 255,867,100 for its capital reserve.

Post-closing, the registered capital will increase from CNY 60,000,000 to CNY 100,000,000. The transaction has been approved by the 21st meeting of the 5th board of directors and the 14th meeting of the 5th board of supervisors of the investor and does not require its shareholders' approval.