Shenyang Machine Tool Co., Ltd. announced a private placement transaction of not more than 505,210,783 Class A common shares to be issued for gross proceeds of not more CNY 1,500,000,000 on January 27, 2022. The transaction will include participation from returning controlling shareholder China General Technology (Group) Holding Co.,Ltd. The pricing reference date will be the first day of issuance. Issue price for the shares to be issued in the private placement shall not be lower than 80% of the average stock price 20 trading days before the pricing reference date.

The securities to be issued in the transaction will have a lock-up period of thirty-six months after issuance completion date. The transaction has been approved by the twenty-fourth meeting of the ninth board of directors of the company. The transaction is subject to approval from the company's shareholders and from China Securities Regulatory Commission.