Mianyang Fulin Precision Machining Co., Ltd. announced that it has entered into share subscription agreement for private placement of 221,709,674 A shares for gross proceeds of CNY 1,500,000,000 on June 17, 2021. The issue price is not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction will include participation from not more than 35 investors including returning investor Sichuan Fulin Industrial Group Co., Ltd, who will subscribe to not less than 10% of the issuance. If in the 12 months after the closing of the issuance Sichuan Fulin Industrial Group Co., Ltd. increases its holdings by more than 2% stake, the shares Sichuan Fulin Industrial Group Co., Ltd. subscribes to cannot be transferred within 36 months from the issuance closing date. If in the 12 months after the closing of the issuance Sichuan Fulin Industrial Group Co., Ltd. increases its holdings by no more than 2% stake, the shares Sichuan Fulin Industrial Group Co., Ltd. subscribes to cannot be transferred within 18 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date. The transaction has been approved in the 11th meeting of the company's 4th directorate, and is subject to the approvals of the Shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.