Beijing E-Hualu Information Technology Co., Ltd. announced a private placement transaction of not more than 130,000,000 Class A common shares to be issued for gross proceeds of not more CNY 2,905,934,000 on May 25, 2022. The transaction will include participation from not more than 35 designated investors. The pricing reference date will be the first day of issuance.

Issue price for the shares to be issued in the private placement shall not be lower than 80% of the average stock price 20 trading days before the pricing reference date. The securities to be issued in the transaction will have a lock-up period of six months after issuance completion date. The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting.

The transaction has been approved by the company's 25th meeting of the 5th Board of Directors of the Company. The transaction is subject to approval from China Hualu Group Co., LTD., the company's shareholders, the Shenzhen Stock Exchange and from China Securities Regulatory Commission.