Hubei State-owned Capital Management Co., Ltd. announced a private placement of 388,349,515 shares at a price of CNY 1.03 for gross proceeds of CNY 400,000,000 on January 20, 2017. The transaction includes participation from new investor, Top Resource Conservation and Environment Corp. which will invest CNY 50,000,000, existing investor, Hubei Hongtai State-owned Capital Investment Management Group Co., Ltd. which will invest CNY 50,000,000, and new investors, Three Gorges Capital Holding Co., Ltd. which will invest CNY 100,000,000 and Huaneng Guicheng Trust Co., Ltd. which will invest CNY 200,000,000. The transaction was approved in the 39th session of the 2rd directorate of Top Resource Conservation and Environment Corp. The company and the investors entered into a capital increase agreement as part of the transaction. On closing, the capital of the company will increase from CNY 200,000,000 to CNY 588,349,500. The transaction is not subject to approval from the shareholders of Top Resource Conservation and Environment Corp. On closing, Hubei Hongtai State-owned Capital Investment Management Group Co., Ltd.’s stake in the company will be diluted from 100% to 42.25%, Three Gorges Capital Holding Co., Ltd. will hold 16.5%, Huaneng Guicheng Trust Co., Ltd. will hold 33%, and Top Resource Conservation and Environment Corp will hold 8.25% stake in the company.