Qinchuan Machine Tool & Tool Group Share Co., Ltd. announced that it has entered into a share subscription agreement for a private placement of not more than 269,811,273 A shares for proceeds of not more than CNY 1,230,000,000 on July 6, 2022, The transaction will include participation from not more than 35 investors, including returning investor Shaanxi Fast Auto Drive Group Co., Ltd., who will subscribe to 35.19% of the issuance. Shaanxi Fast Auto Drive Group Co., Ltd. currently holds 35.19% stake in the company. The shares subscribed by Shaanxi Fast Auto Drive Group Co., Ltd., 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 14th Meeting of the company’s 8th directorate held on July 6, 2022, as well as the 9th Meeting of the 8th Supervisory Board and is subject to the approvals of the authorized state-owned assets management agency, the company’s shareholders, and the China Securities Regulatory Commission.