Hongfa Technology Co., Ltd. (SHSE:600885) announced a private placement of not more than 99,630,000 A shares at a price of not less than CNY 8.33 per share for gross proceeds of not more than CNY 830,000,000 on December 27, 2012. The company will issue shares to not more than 10 specific investors. The company will receive the net proceeds of CNY 800,250,000 after deducting the issuance expenses. The shares issued will have a lock-up period of 12 months. The transaction was approved at the company's second session of the seventh directorate meeting, company's second session for the seventh supervisory board meeting, and China Securities Regulatory Commission. The transaction is still subject to the approval from the company's shareholders' meeting.

On April 12, 2013, the company announced that it has received approval for the transaction at annual general meeting of 2012.

On September 27, 2013, the company announced that the transaction was approved at the 9th session of the 7th directorate meeting of the company.

On November 18, 2013, the company announced that it has approval of application from the Issuance Examination Committee of China Securities Regulatory Commission upon examination and verification.

On December 10, 2013, the company announced that the transaction has been approved by the China Securities Regulatory Commission.

On January 6, 2014, Hongfa Technology Co Ltd. closed the transaction. The company announced that it has issued 55,333,300 A shares at CNY 15 per share for gross proceeds of CNY 829,999,500. The transaction included participation from Haitong Securities Co., Ltd., Suqian Renhe Antai Investment Partnership, Guangfa Ganhe Investment Co., Ltd., which invested for 5,800,000 shares each, China Southern Fund Management Co., Ltd. and China Merchants Fund (CMF) Management Co., Ltd., which invested for 7,000,0000 shares each, Lianfa Group Co., Ltd., which invested for 10,000,000 shares, and other investors. The company incurred issuance expenses of CNY 19,752,300 and received net proceeds of CNY 810,247,200 in the transaction. Pan-China Certified Public Accountants LLP and DaHua Certified Public Accountants acted as accountants, Southwest Securities Co., Ltd. acted as the placement agent, and Tianyuan Law Firm acted as the legal advisor to the company. The shares being issued are subject to a lock-in period of 12 months from the date of issuance. The company incurred CNY 1,200,000 as audit & appraisal fees expense paid to DaHua Certified Public Accountants, CNY 900,000 as legal fees paid to Tianyuan Law Firm, CNY 55,333.30 as registration trust fees paid to China Securities Depository and Clearing Corporation Ltd. Shanghai Branch, CNY 16,000,000 as underwriting and sponsor fees paid to Southwest Securities Co., Ltd., CNY 1,180,000 as Information disclosure fees paid to China Securities Journal Limited Company No. 4 Company, CNY 405,123.58 as stamp duty and CNY 11,881.21 as other expenses.