Guangdong Xinhui Meida Nylon Co., Ltd. announced that it has entered into a share subscription agreement for issuance of not more than 158,441,886 A shares at a price of CNY 3.78 per share for gross proceeds of not more than CNY 598,910,329 on March 1, 2023. The transaction will include participation from returning investor Fujian Liheng Investment Co., Ltd increasing its stake to 23.36%. The shares cannot be transferred within 36 months from the issuance closing date.

The transaction has been approved at the 13th meeting of the 10th directorate of the company, and is subject to the approval of the Shenzhen Stock Exchange and the China Securities Regulatory Commission.