Beijing HeZhongHuiNeng Technology Co., Ltd announced a private placement of 7,250,000 shares at a price of CNY 4.48 per share for the gross proceeds of CNY 32,480,000 on January 13, 2017. The transaction will include participation from new investor Beijing Creative Distribution Automation Co., Ltd. (SZSE:002350) for 6,450,000 shares for gross proceeds of CNY 28,896,000. Post the closing the investor will hold 20% stake in the company and the registered capital of the company will increase from CNY 25,000,000 to CNY 32,250,000. The transaction has been approved at the 13th session of the 6th directorate meeting of the investor. The transaction is not subject to shareholders’ approval of the investor.