Jinan Shengquan Group Share Holding Co., Ltd. announced a private placement of not more than 70,126,227 A shares at an issue price of CNY 14.26 per share for gross proceeds of not more than CNY 1,000,000,000 on November 9, 2022. The transaction included participation from individual investor Tang Diyuan. The company has signed conditional subscription agreement with investor. The pricing base date of the shares is the announcement date of the resolutions of the ninth meeting of the ninth board of directors of the company, and the issue price shall not be lower than 80% of the average trading price of the company's shares in the 20 trading days prior to the pricing base date. The number of shares to be issued does not exceed 30% of the company's total share capital before this transaction. The final number of shares to be issued shall be determined by the board of directors authorized by the general meeting of shareholders in consultation with the sponsor. The transaction has been reviewed and approved at the ninth meeting of the ninth board of directors and tenth meeting of the ninth board of supervisors of the company and still needs to be reviewed and approved by the shareholders in third extraordinary general meeting in 2022 and China Securities Regulatory Commission. The shares to be issued in the transaction shall not be transferred within 18 months from the date of the closing of transaction.

On March 27, 2023, the company announced that the application for private placement was accepted by the Shanghai Stock Exchange.