Suzhou Xintongchuang Automobile Air Conditioning Co., Ltd. announced that it has entered into capital increase agreement to issue common shares for proceeds of CNY 200 million on August 30, 2022. The transaction wll include participation from returning investors Suzhou Chuangyuan Investment Development (Group) Co., Ltd. for CNY 80 million to retain 40% stake and Songz Automobile Air Conditioning Co., Ltd. for CNY 120 million to retain 60% stake. The transaction has been approved by the 11th meeting of the fifth session of the board of directors of Songz Automobile Air Conditioning Co., Ltd., parent of the company and does not need shareholders approval.

After the capital increase is completed, the registered capital of the company will increase from CNY 119.22 million to CNY 319.22 million.