Wuxi Hongpeng Aviation Power Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 29,812,734 on November 2, 2020. The company has signed capital increase agreement with the investor. The transaction will involve participation from new investor, Jiangsu Shentong Valve Co., Ltd. (SZSE:002438) for 19.90% stake in the company. Out of the total amount received, the company will receive CNY 4,968,789 as the target company’s registered capital, and the rest will be included in the target company’s capital reserve. Post-closing of the transaction, the registered capital of the company will increase from CNY 20,000,000 to CNY 24,968,789. The transaction does not need approval from its board of directors and its shareholders, and is within the scope of the chairman's approval authority.