Shanghai Shenda Co., Ltd announced a private placement of not more than 255,687,394 A shares of par value CNY 1 per share for gross proceeds of not more than CNY 900,000,000 on February 18, 2021. The transaction will include participation from returning investor Shanghai Shenda (Group) Co., Ltd. The company has entered into a share subscription contract with the investor. The company will issue shares at a price not less than the average trading price of its A shares on the 20 trading days before the pricing base date. All securities to be issued in the transaction will be subject to a hold period of 36 months from the date of closing. The transaction has been approved in the thirteenth meeting of the company's tenth board of directors, and is subject to the approval of the state-owned assets management department, company’s board of directors and shareholders meeting and China Securities Regulatory Commission.