Dynagreen Environmental Protection Group Co., Ltd. — Capital/Financing Update 2021

Nov 26, 2021

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綠色動力環保集團股份有限公司 Dynagreen Environmental Protection Group Co., Ltd. (a joint stock limited liability company incorporated in the People’s Republic of China) (Stock Code: 1330)*

ANNOUNCEMENT ADJUSTMENT OF THE SIZE OF ISSUANCE OF THE PUBLIC ISSUANCE OF A SHARE CONVERTIBLE CORPORATE BONDS BY THE COMPANY

References are made to the announcement of Dynagreen Environmental Protection Group Co., Ltd. (綠色動力環保集團股份有限公司) (the “ Company* ”) dated 23 July 2021, the circular of the Company dated 6 August 2021 and the announcement on the poll results of the shareholders’ meeting of the Company dated 24 August 2021, in relation to the proposed public issuance of the A Share Convertible Corporate Bonds by the Company and the authorisation to the Board in respect of the issuance of A Share Convertible Corporate Bonds which have been passed at the shareholders’ meeting. Unless otherwise defined in this announcement, capitalised terms used herein shall have the same meanings as those defined in the above-mentioned announcements and circular.

The resolution on the authorisation to the Board or its authorised persons to exercise in full the power to deal with specific matters relating to the Company’s public issuance of A Share Convertible Corporate Bonds was considered and passed at the shareholders’ meeting convened on 24 August 2021. Pursuant to the authorization, the Board has decided to reduce the total amounts of proceeds from the public issuance of the A Share Convertible Corporate Bonds from “not exceeding RMB2.39 billion (RMB2.39 billion inclusive)” to “not exceeding RMB2.36 billion (RMB2.36 billion inclusive)”, adjust the specific use of the proceeds correspondingly, and to amend the plan of the public issuance of A Share Convertible Corporate Bonds.

Details of the adjustments are as follows:

I. SIZE OF ISSUANCE

(I) Size of issuance before adjustment

The total amount of the A Share Convertible Corporate Bonds proposed to be issued will not exceed RMB2.39 billion (RMB2.39 billion inclusive). The actual size of the issuance shall be determined by the Board or its authorised persons within the above range, subject to the authorisation at the shareholders’ meeting.

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(II) Size of issuance after adjustment

The total amount of the A Share Convertible Corporate Bonds proposed to be issued will not exceed RMB2.36 billion (RMB2.36 billion inclusive). The actual size of the issuance shall be determined by the Board or its authorised persons within the above range, subject to the authorisation at the shareholders’ meeting.

II. USE OF PROCEEDS

(I) Use of proceeds before adjustment

The total amounts of proceeds from the public issuance of the A Share Convertible Corporate Bonds will not exceed RMB2.39 billion (RMB2.39 billion inclusive), which will be used for the following projects after deducting issuance expenses:

Unit: RMB’0,000

No. Project name 1 Dengfeng Project 2 Enshi Project 3 Shuozhou Project 4 Wuhan Phase II Project 5 Huludao Power Generation Project 6 Replenishment of working capital and repayment of bank loans Total	Total amount of investment 39,920.00 69,000.00 66,015.15 69,985.00 67,471.00 60,000.00 372,391.15	Amount of proceeds proposed to be used 15,000.00 40,000.00 44,000.00 48,000.00 32,000.00 60,000.00 239,000.00

Prior to receipt of the proceeds from this issuance, the Company will first make investment with its self-raised funds according to the progress of the proceeds funded projects, and then replace such funds according to the relevant specified procedures after receipt of the proceeds.

If the actual amount of proceeds (after deducting the issuance expenses) is less than the amount of proceeds to be invested in the abovementioned projects, the Company will, within the scope of ultimately determined proceeds funded projects, adjust and ultimately decide the specific proceeds funded projects, priority, and specific amount of investment in each project according to the actual amount of proceeds and taking into account the Company’s operation and the construction progress of the projects. The insufficient funds that cannot be covered by the proceeds will be raised by the Company itself.

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(II) Use of proceeds after adjustment

The total amounts of proceeds from the public issuance of the A Share Convertible Corporate Bonds will not exceed RMB2.36 billion (RMB2.36 billion inclusive), which will be used for the following projects after deducting issuance expenses:

Unit: RMB’0,000

No. Project name 1 Dengfeng Project 2 Enshi Project 3 Shuozhou Project 4 Wuhan Phase II Project 5 Huludao Power Generation Project 6 Replenishment of working capital and repayment of bank loans Total	Total amount of investment 39,920.00 69,000.00 66,015.15 69,985.00 67,471.00 57,000.00 369,391.15	Amount of proceeds proposed to be used 15,000.00 40,000.00 44,000.00 48,000.00 32,000.00 57,000.00 236,000.00

Prior to receipt of the proceeds from this issuance, the Company will first make investment with its self-raised funds according to the progress of the proceeds funded projects, and then replace such funds according to the relevant specified procedures after receipt of the proceeds.

If the actual amount of proceeds (after deducting the issuance expenses) is less than the amount of proceeds to be invested in the abovementioned projects, the Company will, within the scope of ultimately determined proceeds funded projects, adjust and ultimately decide the specific proceeds funded projects, priority, and specific amount of investment in each project according to the actual amount of proceeds and taking into account the Company’s operation and the construction progress of the projects. The insufficient funds that cannot be covered by the proceeds will be raised by the Company itself.

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III. AMENDMENTS TO THE PLAN OF THE PUBLIC ISSUANCE OF A SHARE CONVERTIBLE CORPORATE BONDS

Section of the Plan	Section of the Plan	Content of the Section	Major Amendments
II.	OVERVIEW OF THE	(II) Size of issuance	The total amounts of proceeds
	ISSUANCE		from the proposed issuance of the
			convertible corporate bonds were
			adjusted
		(XVIII) Use of proceeds	The total amounts of proceeds
			from the proposed issuance of the
			convertible corporate bonds and
			the amounts of proceeds proposed
			to be used were adjusted
III.	FINANCIAL	Financial information and	The financial indicators and
	INFORMATION AND	management’s discussion	analysis were updated based on
	MANAGEMENT’S	and analysis	the financial data of the Company
	DISCUSSION AND		as at 30 September 2021
	ANALYSIS
IV.	USE OF THE	Use of the proceeds from the	The total amounts of proceeds
	PROCEEDS FROM	public issuance of convertible	from the proposed issuance of the
	THE PUBLIC	bonds	convertible corporate bonds and
	ISSUANCE OF		the amounts of proceeds proposed
	CONVERTIBLE		to be used were adjusted
	BONDS

By order of the Board Dynagreen Environmental Protection Group Co., Ltd.* Qiao Dewei Chairman

Shenzhen, the PRC 26 November 2021

As of the date of this announcement, the executive directors of the Company are Mr. Qiao Dewei, Ms. Zhong Xia and Mr. Hu Shengyong; the non-executive directors of the Company are Mr. Liu Shuguang, Mr. Cheng Suning and Mr. Li Lei; and the independent non-executive directors of the Company are Ms. Fu Jie, Mr. Xie Lanjun and Mr. Zhou Beihai.

• For identification purposes only

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