Konfoong Materials International Co., Ltd announced a private placement of not more than 68,174,916 A shares for gross proceeds of not more than CNY 1,650,000,000 on December 17, 2021. The company entered into a subscription agreement with individual investor Yao Lijun for gross proceeds of not less than CNY 50,000,000 and not more than CNY 100,000,000. The shares carry a par value of CNY 1 per share.

The transaction will include participation from not more than 35 special investors. Yao Lijun currently holds 24.67% stake in the company and post the closing of the transaction will continue to be controlling shareholder in the company. The pricing base date of the transaction is the first day of the issue period and and the issue price is not less than 80% of the average price of the company's stocks 20 trading days before the first day of the issue period.

The lock-up period for Mr. Yao Lijun is 18 months, and for the other investors is 6 months. The resolution of passed for the transaction is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting. The transaction was approved at the 14th meeting of the 3rd directorate of the company.

The transaction is subject to the approvals of the company's shareholders meeting, Shenzhen Stock Exchange and the China Securities Regulatory Commission.