Ufct Technology Co., Limited announce that it has entered into a capital increase agreement for common shares for gross proceeds of not more than CNY 500,000,000 with investor, Loncin Motor Co., Ltd. (SHSE:603766) on November 7, 2020. Post the closing, Loncin Motor Co., Ltd. (SHSE:603766) will hold not more than 26% stake in the company. The transaction has been approved at the eleventh meeting of the fourth directorate of the Loncin Motor Co., Ltd. (SHSE:603766). The transaction if necessary will require approval from Ministry of Commerce, the National Development and Reform Commission, the State Administration of Foreign Exchange and other competent regulatory agencies.