Hengli Industrial Development Group Co., Ltd. announced a private placement of not more than 126,000,000 common shares, par value CNY 1, at a price of CNY 4.15 per share for proceeds of up to not more than CNY 522.9 million on October 20, 2022. The transaction has been reviewed and approved at the first special meeting of the ninth board of directors of the company in 2022. The transaction will include participation from new investors, Shenzhen New Hengli Technology Development Partnership (Limited Partnership) and Yancheng Gusheng Technology Partnership (Limited Partnership).

Shenzhen New Hengli Technology Development Partnership (Limited Partnership) will subscribe for 80,000,000 shares for gross proceeds of CNY 332,000,000 for 14.51% stake and Yancheng Gusheng Technology Partnership (Limited Partnership) will subscribe for 46,000,000 shares for gross proceeds of CNY 190,900,000 for 8.35% stake. After the completion of the transaction, the shares issued shall not be transferred within 18 months from the date of closing.