Qtone Education Group (Guangdong) Co.,Ltd announced an share subscription agreement to issue not more than 41,753,653 shares at the price of CNY 4.79 per share for not more than CNY 199,999,997.87 on February 28, 2022. The transaction will include participation from existing investor Nanchang Economic Development Zone Chinese Xushun Enterprise Management Partnership Enterprise. The shares cannot be transferred within 36 months from the issuance closing date.

The transaction has been approved in the 9th Extraordinary Meeting of the 4th Directorate and the 9th Extraordinary Meeting of the 4th Supervisory Board of the company. The transaction is subject to the approvals of the company's Shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.