Fujian Kuncai Material Technology Co., Ltd. announced a private placement of not more than 60,000,000 shares for gross proceeds of not more than CNY 3,850,000,000 on April 13, 2022. The transaction will include participation from not more than 35 investors including, securities investment fund management companies, securities companies, asset management companies, trust investment companies, financial companies, insurance institutional investors, and qualified foreign institutions Investors, other legal person investors and natural persons. The pricing base date of this offering is the first day of the company's non-public offering of shares. The number of shares in this non-public offering shall not exceed 30% of the company's total share capital. The issue price of this offering shall not be lower than 80% of the company's average stock trading price in the 20 trading days prior to the pricing benchmark date. The shares will not be transferred within six months from the date of the end of the transaction. The transaction has been reviewed and approved at ninth meeting of the third board of directors and subject to the approval of the shareholders, and China Securities Regulatory Commission.

On June 9, 2022, the company announced the China Securities Regulatory Commission has reviewed the administrative license application materials submitted by the company for the non-public issuance of shares, and believes that the application materials are complete and in compliance with the statutory form, and decides to accept the administrative license application.