Tianjin Pengling Group Co., Ltd announced that it has signed a share subscription agreement for a private placement of minimum of 79,872,204 shares and maximum of 102,236,421 shares at an issue price of CNY 3.13 per share for minimum gross proceeds of CNY 249,999,998.52 and maximum gross proceeds of CNY 319,999,997.73 on April 22, 2022. The transaction will include participation from individual investor Wang Zhifang and will hold 39.27% to 41.04% stake in the company. All securities issued in the transaction have a hold period of 36 months.

The transaction has been approved in the 8th extraordinary meeting of the it's 8th directorate, and is subject to approval of the Company's shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.