Anhui Tongfeng Electronics Company Limited entered into a share subscription agreement for issuance of 57,306,590 common shares at a price of CNY 6.98 per share for gross proceeds of CNY 399,999,998.20 on September 29, 2022. The transaction will include participation from returning investor Tongling Dajiang Investment Holding Co.,Ltd. for 17,191,977 shares for CNY 119,999,999.46 increasing its stake from 19.79% to 20.73%; and new investors China National Gold Group Asset Management Co., Ltd. for 2,865,329 shares for CNY 19,999,996.42 for 0.46% stake; Yimi Fund Management Co., Ltd., for 3,724,928 shares for CNY 25,999,997.44 for 0.60% stake; Caitong Fund Management Co., Ltd. for 19,985,673 shares for CNY 139,499,997.54 for 3.21% stake; Nuode Asset Management Co., Ltd. for 9,699,140 shares for CNY 67,699,997.20 for 1.56% stake; Huatai Asset Management Co., Ltd., for 974,214 shares for CNY 6,800,013.72 and individual investor Yang Yuezhi for 2,865,329 shares for CNY 19,999,996.42 for 0.46% stake. The shares are restricted to a hold period of 18 months for Tongling Dajiang Investment Holding Co.,Ltd. and 6 months for all other investors.

The company has incurred issuance expenses of CNY 2,662,855.90 raising net proceeds of CNY 397,337,142.30. The company will include CNY 57,306,590 as share capital and CNY 340,030,552.30 as capital reserve. The transaction has been approved at the fourteenth meeting of the ninth board of directors of the company.