Dongguan Huali industries Co., Ltd. (SHSE:603038) announced a private placement of not more than 55,230,000 A shares for gross proceeds of not more than CNY 600,000,000 on October 29, 2020. The transaction will include participation from not more than 35 specific investors. The common shares have a par value of CNY 1 per share, and will be issued at a price not lower than 80% of the average stock trading price of its shares on the 20 trading days before the first day of issuance. The transaction has been approved in the 11th meeting of the 5th board of directors and 8th meeting of the 5th board of supervisors of the company, and is subject to the approval in the company's shareholders meeting and the China Securities Regulatory Commission. All shares to be issued will be subject to a lock-up period of 6 months from the closing date. The validity period of the resolution on the transaction is 12 months from the date of shareholders' approval.