Hongbaoli Group Corporation, Ltd. announced a private placement of not more than 180,617,433 common shares for gross proceeds of no more than CNY 508,868,800 on September 2, 2020. The company will issue shares at a price of not lower than 80% of the median market price of the company's shares as of 20 previous days to issuance date. The transaction will include participation from no more than 35 specific investors.

The transaction has been approved by the board of directors of the company at its eighth meeting of the ninth board of directors and the eighth meeting of the ninth board of supervisors. The transaction is subject to approval from company's shareholders meeting and China Securities Regulatory Commission. The shares issued are subject to a hold period of 6 months from the date of issuance.