Huizhou Champion Asia Circuit Technology Co., Ltd. announced it has entered into capital increase agreement to receive CNY 149,000,000 in an equity round of funding on October 20, 2021. The transaction will include participation from existing investor Guangdong Champion Asia Electronics Co.,Ltd. which will hold 15% stake after completion and new investors including Shenzhen Hui Chuang Da Technology Co.,Ltd which will hold 5% stake after completion, Shenzhen Junyou Investment Partnership (Limited Partnership) which will hold 22.5% stake after completion, Wuhan Jiazhao Yongjun Industrial Investment Management Center (Limited Partnership) which will hold 7% stake after completion, Wuhan Xinchuangyuan Semiconductor Co., Ltd. which will hold 40% stake after completion, Xinyu Ruixing Phase II M&A Investment Management Partnership (Limited Partnership) which will hold 5% stake after completion and individual investor Tang Yan which will hold 5.5% stake after completion. Guangdong Champion Asia Electronics Co.,Ltd. will subscribe and contribute CNY 21,500,000 and other 6 investors will contribute CNY 127,500,000.

Except for Shenzhen Junyou Investment Partnership (Limited Partnership), the other investors shall pay the capital increase to company by bank transfer within 5 working days from the effective date of the agreement and Shenzhen Junyou Investment Partnership (Limited Partnership) shall pay the subscribed capital contribution of CNY 25,450,000 within 5 days after the entry into force of the agreement, and the remaining CNY 8,300,000 shall be paid within five years from the effective date of the agreement completed. At the time of the industrial and commercial change of the capital increase, all investors after the capital increase shall appoint legal representatives in accordance with the Company Law and the company's articles of association, form the board of directors and elect supervisors, hire new senior managers, and amend the company's articles of association. The capital increase agreement shall take effect from the date when Xinfang's shareholders decide to approve the capital increase.

The registered capital of the company will increase from CNY 1,000,000 to CNY 150,000,000. The transaction has been approved at the 37th meeting of the company's second board of directors, and does not need to be submitted to the company's shareholders meeting for deliberation.