Shenzhen FRD Science & Technology Co., Ltd. announced a private placement transaction of not more than 152,382,584 Class A common shares, par value CNY 1 each, at a price of CNY 6.56243 per share for total gross proceeds of not more CNY 1,000,000,000 on January 24, 2022. The transaction will include participation from not more than 35 designated investors. 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 six months after issuance completion date. The transaction has been approved in the fourth meeting of the fifth directorate of the company.

The transaction is subject to approval from the company's shareholders, Shenzhen Stock Exchange and from China Securities Regulatory Commission.