Chengdu Huasun Technology Group Inc., Ltd. announced that it has signed an agreement to issue not more than 106,666,666 A shares at an issue price of CNY 3.75 per share for gross proceeds of not more than CNY 400,000,000 on May 20, 2022. The transaction will include participation from returning investor, Chengdu Yuanhong Biological Technology Co., Ltd. The shares cannot be transferred within 18 months from the issuance closing date. The transaction has been approved at the 19th Meeting of the company's 12th Directorate, and is subject to the approvals of the company's shareholders and the China Securities Regulatory Commission.