Xiamen Hongfa Electroacoustic Co., Ltd. announced a private placement of 90,784,883 common shares at a par value of CNY 1 per share, issue price CNY 15.48 for gross proceeds of CNY 1,405,349,988.848 on June 10, 2021. The transaction included participation from returning investors Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (SHSE:600363) for 345,607 shares for gross proceeds of CNY 5,350,000 the stake will increase from 22.0424% to 20.0001% post transaction and Hongfa Technology Co., Ltd. (SHSE:600885) for 90,439,276 shares for gross proceeds of CNY 1,400 million the stake will increase from 77.9576% to 79.9999% post transaction. Post completion of transaction, the registered capital of the company will increase from CNY 872,121,960 to CNY 962,906,843.

The transaction was approved by board of directors 25th meeting of the 7th board of directors of Hongfa Technology Co., Ltd. and 13th Meeting of the 9th Board of Directors and subject to approval from shareholders.