Guangxi Linglong Tire Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 700,000,000 on March 12, 2018. The transaction will include participation from the returning investor Shandong Linglong Tyre Co.,Ltd. (SHSE:601966) to continue to hold 100% stake in the company. In this transaction, CNY 200,000,000 will go to registered capital and CNY 500,000,000 will be added to capital reserve. Post completion of this transaction, the company's registered capital will increase from CNY 300,000,000 to CNY 500,000,000. The transaction was approved by the board of directors in its 17th meeting of the 3rd directorate of the investor.