Shenzhen Zhenhua E-Chem Co., Ltd. announced a private placement of 28,600,000 common shares at an issue price of CNY 20 per share for gross proceeds of CNY 572,000,000 on October 25, 2017. The transaction will involve participation from new investors Guotou (Shanghai) Technology Achievement Conversion Venture Capital Fund (LP) for 9,750,000 shares to hold 6.6964% stake in the company, Taizhou Xintai CITIC Construction Equity Investment Partnership Enterprise (LP) for 5,000,000 shares to hold 3.4341% stake in the company, Shenzhen Kaifa Technology Co., Ltd. (SZSE:000021) for 2,800,000 shares to hold 1.9231% stake in the company, Yinhe Yueke (Guangdong) Industry Investment Fund, a fund managed by Yinhe Yueke Fund Management Co., Ltd. for 2,000,000 shares to hold 1.3736% stake in the company, Shenzhen Xintianyu Phase 6 Equity Investment Partnership Enterprise (LP) for 5,000,000 shares to hold 3.4341% stake in the company and returning investor China Zhenhua Electronics Group Co., Ltd. for 4,050,000 shares to hold 43.0566% stake in the company. The transaction was approved by Shenzhen Kaifa Technology Co., Ltd. (SZSE:000021) in its 8th directorate and needs approval from its shareholders meeting as well as the governmental regulatory authorities.

The company reported total assets of CNY 842,751,800, total liabilities of CNY 594,138,700, net assets of CNY 248,613,200, operating revenue of CNY 484,114,800, operating profit of CNY 2,654,400, and net profit of CNY 4,860,800 for the year ended December 31, 2016.