Baoding Technology Co., Ltd. announced private placement of A common shares for CNY 11.24 per share for gross proceeds not exceeding CNY 300 million on October 12, 2021. The transaction will include participation from returning investor Shandong Zhaojin Group Co., Ltd. and/or its controlled affiliates. The number of shares to be issued with matching funds raised does not exceed 30% of the total share capital of the company, and the total amount of funds raised does not exceed 100% of the company's share consideration for the purchase of assets by issuing shares in the transaction.

The issuance price is not less than 80% of the average trading price of A-shares of listed companies on the 20 trading days before the pricing base date. The shares of the company acquired by investor and/or its controlled affiliates shall not be transferred within 18 months from the date of the end of the issuance. The transaction has been reviewed and approved at the 17th meeting of the fourth board of directors of the company, reviewed and approved at the 16th meeting of the fourth board of supervisors of the company and has been approved in principle by investor, the controlling shareholder of the company, and the State-owned Assets Supervision and Administration Commission of Yantai City.

The transaction is subject to approval of the asset appraisal report filed by the competent state-owned assets supervision and administration department, the company once again convened the board of directors and the board of supervisors to review and approve the formal plan of the transaction, state-owned assets supervision and administration department approved the formal plan of the transaction, the shareholders' meeting of the company reviewed and approved the formal plan of the transaction, and China Securities Regulatory Commission approved the transaction.