Zhejiang Sanhua Automotive Components Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 700,000,000 on May 31, 2022. The transaction will involve participation from existing investor, Zhejiang Sanhua Intelligent Controls Co.,Ltd. Post the closing, the registered capital of the company will increase from CNY 1,460,000,000 to CNY 2,160,000,000. Post-closing, the investor will retain its 100% stake in the company.

The transaction has been approved in the 5th extraordinary meeting of the 7th directorate of the investor held on May 31, 2022, and does not need the shareholders' approval.