Shandong HFS Photonics Technology Limited Company announced that it will issue 34,782,385 common shares of par value CNY 1 per share, at an issue price of CNY 1.725011094 per share for gross proceeds of CNY 60,000,000 on December 31, 2021. The company entered into a capital increase agreement pursuant to which new investor Shenzhen Sunshine Laser & Electronics Technology Co., Ltd. will invest CNY 55,000,000 in the transaction, out of which CNY 31,883,853 will be added to the registered capital. The transaction will include participation from new investor Shandong Industrial Technology Research Institute Investment and Development Co., Ltd. for CNY 5,000,000 out of which CNY 2,898,532 will be added to the registered capital of the company.

As a part of the transaction, the investors will collectively acquire 34% stake in the company.