Beijing Baofeng Rongxin Technology Co., Ltd. announced that it has entered into a capital increase agreement for a private placement of shares for gross proceeds of CNY 5,000,000 on January 20, 2017. The transaction will include participation from new investor, Baofeng Group Co., Ltd. (SZSE:300431). Pursuant to the transaction, the investor will invest for CNY 1,242,200 into the registered capital of the company and CNY 3,757,800 to the capital reserve. As part of the transaction, the investor will acquire 19.90% stake in the company. Post transaction, the registered capital of the company will increase from CNY 5,000,000 to CNY 6,242,200. The transaction was approved at the 26th session of the 2nd supervisory board meeting and the 34th session of the 2nd directorate meeting of Baofeng Group Co., Ltd. (SZSE:300431) and does not need the approval of its shareholders’ meeting.