Hangzhou Changhong Information Technology Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 132,000,000 on June 7, 2021. The transaction will include participation from returning investor Essence Information Technology Co., Ltd., to retain 100% stake in the company. Post the transaction, the registered capital if the company will increase from CNY 68,000,000 to CNY 200,000,000.

The transaction has been approved in the 17th meeting of investor's directorate meeting and does not need shareholders approval.