Henan Tianxuan Semiconductor Technology Co., Ltd. announced that it has entered into an agreement with the returning investors SF Diamond Co.,Ltd for CNY 190,000,000, Gongqingcheng Xingda for CNY 31,400,000, individual investors Fang Rui for CNY 147,600,000, Ni Bao for CNY 30,000,000 and Yan Xiaoping for CNY 1,000,0000 for the aggregate gross proceeds of CNY 400,000,000 in June 29, 2023. The transaction has been approved by the general shareholders of the SF Diamond Co.,Ltd. and still needs to be approved by the general meeting of shareholders. Before capital increase, SF Diamond Co.,Ltd. for CNY 190,000,000, Gongqingcheng Xingda Investment Partnership (Limited Partnership) for CNY 31,400,000, Fang Rui for CNY 147,600,000, Ni Biao for CNY 30,000,000 and Yan Xiaoping for CNY 1,000,000.

After the capital increase is completed, the company's direct shareholding in Tianxuan Semiconductor will increase to 46.8125%. Post capital increase, SF Diamond Co.,Ltd for CNY 56,175,000 for 46.8125% stake, Gongqingcheng Xingda Investment Partnership (Limited Partnership) for CNY 13,035,000 for 10.8625% stake, Fang Rui for 22,140,000 for 18.4500% stake, Ni Bio for CNY 4,500,000 for 3.7500% stake and Yan Xiaoping for CNY 750,000 for 0.6240% stake.