Fuchun Technology Co., Ltd. announced a private placement of issuance of A shares, with a par value of CNY 1.00 per share for gross proceeds of not more than CNY 300 million on April 22, 2022. The transaction will include participation from no more than 35 specific investors. The pricing base date of the issuance of shares is the first day of the issuance period, and the issuance price shall not be lower than 80% of the average stock trading price in the 20 trading days prior to the pricing base date.

The number of issuances shall be determined by dividing the total amount of funds raised by the issuance price, and shall not exceed 30% of the total share capital of the company before the issuance. The final issue price and issue quantity will be determined by the board of directors. The total amount of fund raised shall not exceed 20% of the net assets at the end of the most recent year.

The transaction has been approved in 17th meeting of the 4th Board of Directors and the 16th meeting of the 4th Board of Supervisors and subject to approval of shareholders of the company. The authorization period of this issuance is from the date of approval of the 2021 annual general meeting to the date of the next annual general meeting. The shares issued shall not be transferred within 6 months from the end of the issue.

The shares issued will be listed on the Growth Enterprise Market of the Shenzhen Stock Exchange.