Dongguan Huali Industries Co.,Ltd announced a private placement to issue A shares for the gross proceeds of CNY 300,000,000 on April 11, 2024. . The issuance price shall be no less than 80% of the company?s average stock trading price in the 20 trading days before the pricing base date.

The transaction has been approved in 6th Board of Directors and the 10th meeting of the 6th Board of Supervisors and still needs to be submitted to the company?s shareholders? meeting for consideration. This issuance of stocks to specific subscribers through a simplified procedure is limited to no more than 35 (inclusive) specific subscribers.

After the issuance of stocks to specific subscribers through a simplified procedure is completed, the stocks subscribed by the issuance subscribers shall not be transferred within 6 months from the date of completion of this issuance.