Chengdu Xuguang Electronics Co., Ltd. announced a private placement of not more than 163,116,000 A shares for gross proceeds of not more than CNY 550,000,000 on January 21, 2022. The transaction includes participation form than 35 specific targets, including the company's controlling returning shareholder, Shun Tak Holdings Limited. The number of shares to be issued in this transaction does not exceed 30% of the total share capital of the company before this transaction.

The company entered into agreement with the returning investor, Shun Tak Holdings Limited. The transaction is subjected to approval of China Securities Regulatory Commission, and shareholders in its general meeting. The transaction was approved by the board of directors in its the sixth meeting of the tenth board of directors.

The issue price of this non-public offering of shares shall not be lower than the average stock trading price of the company in the 20 trading days before the pricing benchmark.