Baotou Huazi Industry Co., Ltd announced a private placement of A shares not exceeding 30% of the company?s total share capital before this issuance at a price of not less than 80% of the average trading price of the company?s stock in the previous 20 trading days on the pricing base date for the gross proceeds of CNY 296,000,000 on March 18, 2024. The transaction will include participation from no more than thirty-five specific investors. The shares subscribed by the issuance shall not be transferred within 6 months from the date of completion of the issuance.

The transaction has been approved at the fifth meeting of the ninth board of directors and the fourth meeting of the ninth board of supervisors and still needs to be reviewed and approved by the Shanghai Stock Exchange and the China Securities Regulatory Commission.