Huafu Fashion Co., Ltd. announced a private placement of not more than 455,812,666 shares for gross proceeds of not more than CNY 1,500,000,000 on June 5, 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 second temporary meeting of the seventh board of directors and is subject to approval from its shareholders' meeting and China securities regulatory commission. The shares issued are subject to a hold period of 6 months from the date of issuance. The transaction will be valid for 12 months from the date of consideration and approval by the shareholders meeting.

If the company obtains the approval of the China Securities Regulatory Commission for the transaction within the validity period, the validity period of the authorization is automatically extended to the completion date of the implementation of the transaction.