Shanghai New Culture Media Group Co., Ltd. announced a private placement of not more than 241,869,000 A shares at an issue price of CNY 1.14 per share for gross proceeds of not more than CNY 275,730,660 on May 20, 2022. The transaction will include participation from Shanghai Shuangchuang Xuanmian Enterprise Management Center (Limited Partnership). The company has entered into share subscription agreement with the investor.

The transaction has been approved by the board of directors in its 2nd Meeting of the Company's 5th Directorate and the 2nd Meeting of the Company's 5th Supervisory Board, and is subject to the approvals of the Company's shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. The shares cannot be transferred within 36 months from the issuance closing date. The transaction also received approval from partner's meeting of the investor.