Dacheng Lawyers Assisted Zhenhua New Materials in Issuing Stocks to Specific Targets

Dacheng assisted Guizhou Zhenhua New Material Co., Ltd. ("Zhenhua New Material", stock code: 688707) in the issuance of A-shares to specific persons in 2022 (this "Issuance") and recently completed share registration, custody and trading restriction procedures in respect of the additional shares issued in this Issuance. The total amount of funds to be raised in the private placement exceeds CNY1 billion, which is proposed to be used in the construction project of the production line of positive electrode materials (Yilong Phase III) and supplement the working capital.

Guizhou Zhenhua New Material Co., Ltd.

ZPMC was established in April 2004. Its controlling shareholder is China Zpmc Electronics Group Co., Ltd., and its actual controller is China Electronics Information Industry Group Co., Ltd. The company shall be listed on the Science and Technology Innovation Board of the SSE (abbreviation of stock: Zhenhua New Materials; stock code: 688707) on September 14, 2021. Zhenhua New Materials has been focusing on the R&D, production and sales of lithium ion battery cathode materials since its establishment, mainly supplying lithium ion battery cathode materials for new energy vehicle and 3C consumer electronics. Products and technologies related to Zhenhua New Materials have been granted a number of patents, and have been awarded nine national and provincial awards, including China Patent Excellence Award, Guizhou Provincial Gold Award, Guizhou Provincial Second Award for Scientific and Technological Progress, Guizhou Provincial Second Award for Scientific and Technological Achievement Transformation and 2020 Guizhou High-value Patent. In December 2018, the company successfully entered into the list of the third batch of enterprises specified in the Standard Conditions for the Lithium Ion Battery Industry of the Ministry of Industry and Information Technology.

After providing special legal services for the listing on the science and technology innovation board of Zhenhua New Materials in 2021, Dacheng Team, as the special legal counsels for the current offering of Zhenhua New Materials, has provided professional and efficient legal support to the matters relating to the current offering of Zhenhua New Materials, including but not limited to comprehensive verification of the compliance of the offering, issuance of lawyer's working documents such as legal opinions, replies to issues concerned by the Stock Exchange, and verification of the compliance of the offering process and offering objects, and assisting Zhenhua New Materials in completing the offering.

The China Securities Regulatory Commission will introduce such policies as the Regulatory Arrangements for the China Securities Regulatory Commission to Make Overall Arrangements for the Primary and Secondary Markets to Balance and Optimize IPOs and Refinancing in 2023, making strict and tight arrangements for the refinancing pace, financing scale and other aspects of listed companies based on the current market conditions. In the context of the relatively big challenges posed by refinancing of listed companies, the lawyers team of Dacheng, working together with ZHENHUA New Materials and other intermediary agencies, facilitated the smooth progress of the issuance, which provided the capital source for the construction and putting into production of Yilong Phase III Project, and was helpful for ZHENHUA New Materials to improve its production capacity and promote the vigorous development of the new energy industry.

The Team is comprised of Mr. Shoushuang Li, senior partner of our Beijing Office, Mr. Su Shaokui, senior partner of our Chengdu Office, Ms. Zhou Mengting, associate lawyer Songlei Yuan, and others.