ShangHai Huahong Jitong Smart System Co., Ltd signed share subscription agreement to issue not more than 28,208,744 shares at the price of CNY 7.09 per share for gross proceeds of CNY 199,999,994.96 on April 16, 2021. The transaction will include participation from Shanghai Songjiang State-owned Assets Investment Management Group Co., Ltd. which will acquire 21,156,558 shares for CNY 149,999,996.22 and existing investor Shanghai Huahong (Group) Co., Ltd. which will acquire 7,052,186 shares for CNY 49,999,998.74. The transaction has been approved by the 23rd meeting of the 4th directorate and the 16th meeting of the 4th supervisory board.

The transaction is subject to the approvals of the shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.