Gelonghui, May 10, GHW INTL (09933Drakeplayingroulette.HK) announcementDrakeplayingrouletteOn May 10, 2024, the target company Taian Hanwei Group Co., Ltd.DrakeplayingrouletteEntered into a capital increase agreement with Nanjing Jinhaiwei, Taian Taiying and the subscribers (Taian Ruopeng, Taian Ruopeng, Taian Jinweitai, Nanjing Weijinhe and Nanjing Jinwei Yongzheng). The subscriber conditionally agreed to contribute a total of RMB 3677.Drakeplayingroulette50,000 yuan to subscribe for the registered capital of the target company totaling about 8.05% of the actual equity.

The target company is a limited company established in China, mainly engaged in manufacturing and selling chemical products.

The purpose and objectives of the Capital increase are: (I) to provide opportunities for employees of the Group who are the ultimate beneficial owners of the subscribers to subscribe for shares in the Target Company; and (ii) to consolidate the capital base of the Target Company.

The Directors are of the view that providing employees with the opportunity to subscribe for shares in the target company will align the interests of the employees with the objectives of the target company and the group, thereby enhancing employee loyalty and enabling them to contribute to the long-term development of the group. The Directors have also taken into account the company's debt ratio and liquidity position and are of the view that the capital increase will provide a good opportunity to improve the liquidity position of the Target Group, thereby strengthening the ability of the target company to undertake the necessary capital expenditure and seek business opportunities, including, but not limited to, the construction of factories in Vietnam.