Shenzhen Geoway Co., Ltd. announced a private placement of not more than 160,134,000 A shares at a price of CNY 1.25 per share for gross proceeds of not more than CNY 200,167,500 on April 27, 2020. The company entered into subscription agreement between investors including Henan Hongcheng Holding Industrial Co., Ltd for 138,782,800 shares for CNY 173,478,500 and Bao Li for Bao Li for CNY 26,689,000. The securities are subject to a hold period of 24 months and 18 months for both the investors respectively. The transaction has been approved by the board of directors at the 24th meeting of the 7th directorate and 19th meeting of the supervisory board. The transaction is subject to approval of the company's general meeting of shareholders and the approval of the China Securities Regulatory Commission.