Hangzhou Honghua Digital Technology Co., Ltd. announced a private placement of not more than 22,800,000 A shares for gross proceeds of not more than CNY 1,000,000,000 on April 11, 2022. The transaction will include participation from not more than 35 investors. The issuance price of the share will be not less than 80% of the average price in the 20 trading days before the pricing reference date.

The transaction has been approved approved in the 20th meeting of the company's 6th directorate meeting and in the 10th meeting of the 6th supervisory board. The transaction is subject to the approvals of the company's shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. The securities issued shall be subject to hold period of not more than 6 months from issuance.