Tianjin Zhonghuan Semiconductor Co., Ltd. (SZSE:002129) announced a private placement of not more than 557,031,294 class A common shares for gross proceeds of not more than CNY 5,000,000,000 on January 7, 2019. The transaction will include participation from not more than 10 designated investors. The issue price for the shares in this transaction shall not be lower than 90% of the average stock price 20 trading days before the pricing reference date. The transaction has been approved by the board of directors of the company at the 5th directorate in its 19th meeting. The transaction is subject to the approval of the shareholders of the company, China Securities Regulatory Commission and the state-invested enterprises. The shares to be issued in this transaction will have a lock-up period of 12 months after issuance completion date within which they cannot be transferred.