Beijing E-Techstar Co.,Ltd. announced a private placement of not more than 76,000,000 shares at a price of CNY 8.83 per share for gross proceeds of CNY 671,080,000 on May 6, 2022. The transaction will include participation from existing investor Shenzhen Smart City Technology Development Group Co. Ltd. The shares issued will be subject to restriction period of 18 months from closing.

Post-completion of the transaction, the investor will hold 21.99% stake in the company. The company has signed agreement with the investor. The transaction has been approved at the 40th meeting of 3rd board of directors of the company, is subject to approval from general meeting of shareholders, State-owned Assets Supervision and Administration Department, the Shenzhen Stock Exchange, and China Securities Regulatory Commission.