Shanghai Fenghwa Group Co., Ltd (SHSE:600615) announced a private placement of A shares on August 17, 2020. The issue price shall not be lower than 80% of the average price of the company's stock trading on the 20 trading days prior to the first day of the first day of the non-public issuance of the shares. The transaction will include participation from 35 investors including Loncin Motor Co., Ltd. (SHSE:603766), Guangzhou Chaoneng Investment Group Co., Ltd. The transaction has been approved at the second extraordinary meeting of the ninth directorate of 2020 and the 1st extraordinary meeting of the 9th supervisory board of the company.

The shares issued to Loncin Motor Co., Ltd. (SHSE:603766) are subject to hold period for 36 months and to Guangzhou Chaoneng Investment Group Co., Ltd. are subject to 12 months, and other investors for 6 months. The transaction is subject to approval from shareholders and the China Securities Regulatory commission.