Henan Hengxing Science & Technology Co.,Ltd. announced a private placement of not more than 159,574,468 shares, par value, CNY 1 per share, at a price of CNY 3.76 per share for gross proceeds of not more than CNY 600,000,000 on November 9, 2022. The transaction will include participation from individual investor, Xie Baojun and holds 265,927,345 shares of the company, accounting for 18.97% of the company's total share capital, and is the company's controlling shareholder and actual controller. The lock-up period of the shares is 18 months.

The transaction has been approved in the second meeting of the seventh board of directors of the company. The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting