Guangdong KinLong Hardware Products Co.,Ltd. announced a private placement of not more than 48,231,000 A shares for gross proceeds of not more than CNY 1,990,000,000 on April 14, 2023. The transaction will include participation from returning individual investor, Bai Baokun for not less than CNY 100,000,000 and not more than CNY 150,000,000. and will include participation from not more than 35 investors.

The company has entered into a subscription agreement with Bai Baokun. The pricing base date for this issuance is the first day of the issuance period, and the issue price for this issuance of stocks to specific investors shall not be lower than 80% of the average trading price of the company's stocks in the 20 trading days prior to the pricing base date. The shares subscribed by Bai Baokun shall not be transferred within 18 months from the date of completion of the issuance and the shares subscribed by other investors shall not be transferred within 6 months from the closing date.

The transaction has been approved at the sixth meeting of the fourth board of directors and the sixth meeting of the fourth board of supervisors but still need to be considered and approved by the company's shareholders' meeting, Shenzhen Stock Exchange, and the China Securities Regulatory Commission.