FENGXIANG CO plans to issue a maximum of approximately 183 million shares to two investors for subscription, raising a net amount of approximately HKD 272 million.

FENGXIANG CO announced on August 26, 2023 that it has entered into subscription agreements with Subscriber A and Subscriber B, intending to issue a maximum of approximately 157 million shares and 25.939 million shares of subscription shares to Subscriber A and Subscriber B, respectively, at a subscription price of HKD 1.5132 per H share. Assuming that Subscriber A subscribes for a maximum of approximately 157 million shares of subscription shares, the total number of subscription shares under the subscription will be approximately 183 million shares. The estimated total amount of proceeds from the subscription is approximately HKD 276 million, with a net amount of approximately HKD 272 million. 70% of the proceeds will be used to repay the Group's short-term borrowings (approximately RMB 1.1 billion as of December 31, 2022) to improve the company's liquidity position, while 30% will be used to supplement the company's working capital, mainly for covering operating costs and expenses such as animal feed costs, seasoning costs for the development of deep-processed chicken products, and environmental-related costs. It is reported that Subscriber A, Platinum Peony B 2023 RSC Limited, is a restricted scope company registered under the laws and regulations of the Abu Dhabi Global Market in the United Arab Emirates (Emirates of Abu Dhabi), indirectly wholly owned by the Abu Dhabi Investment Authority.