CETC Deqing Huaying Electronics Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 50,000,000 on November 22, 2021. The transaction will involve participation from existing investors, Shenzhen Sunway Communication Co., Ltd. for CNY 8,000,000, CLP (Nanjing) Industrial Investment Fund Partnership (Limited Partnership) and external new shareholders for 10.07% stake in the company. Post-closing of the transaction, the stake of Shenzhen Sunway Communication Co., Ltd. will reduce from 19.54% stake to 18.65% stake and stake of CLP (Nanjing) Industrial Investment Fund Partnership (Limited Partnership) will increase from 7.68% stake to 7.71% stake in the company. Out of the total amount, the company will receive CNY 38,717,920 and CNY 11,282,080. Post-closing, the registered capital of the company will increase from CNY 33,525,840 to CNY 44,807,920. The transaction has been approved by the 19th meeting of the 4th Board of Directors and the 10th Meeting of the 4th Board of Supervisors of the investor and the eighteenth meeting of the fourth board of supervisors of the investor. The transaction require approval of the higher-level unit of the relevant party or the state-owned regulatory authority. The transaction does not need to be submitted to the investor’s shareholders meeting for review and approval. The transaction still requires all parties to participate in the shareholders to complete the internal approval process and sign a formal capital increase agreement.