Shenzhen Huakong Seg Co., Ltd. announced that it has entered into Share Subscription Agreement with returning investor Shenzhen Waranty Assets Management Co., Ltd. to issue not more than 302,001,439 A shares at an issue price of CNY 2.80 per share for the gross proceeds of not more than CNY 845,604,029.20 on August 7, 2023. The investor will subscribe all the shares. The shares cannot be transferred within 36 months from the issuance closing date.

and the shares held prior to the issuance cannot be transferred within 18 months from the issuance closing date. At present, Shenzhen Waranty Assets Management Co., Ltd. holds 26.48% stake, and will increase to 43.44% post completion. The transaction has been been approved in the 11th Extraordinary Meeting of the Company?s 7th Directorate and the 11th Extraordinary Meeting of the 7th Supervisory Board, and is subject to the approvals of the Company?s Shareholders, the authorized state-owned assets supervision and administration department, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.

The transaction has been approved by the 21st extraordinary meeting of the 7th Board of Directors and the 15th extraordinary meeting of the 7th Board of Supervisors.