Beijing Kingee Culture Development Co., Ltd. (SZSE:002721) announced a private placement of not more than 166,943,630 A shares for gross proceeds of up to CNY 1,468,800,000 on January 22, 2018. The transaction will include participation from not more than 10 specific investors, including Zhong Cong, who will subscribe for not less than 10% of the total issuance amount, amounting to subscription of not less than 16,694,363 shares. The company signed a conditional shares subscription agreement with Zhong Cong on January 21, 2018. The shares subscribed by Zhong Cong will be subject to a lock-in period of 36 months from issuance and shares subscribed by other investors will be subject to a lock-in period of 12 months from issuance. The transaction has been approved at its 60th session of the 3rd directorate meeting on January 21, 2018. The company will convene another directorate meeting to deliberate on this private placement plan after the issuance of audit and appraisal results with base date of December 31, 2017 of the target assets to be acquired in the use of proceeds and after the company’s 2017 audit report is issued. The transaction is still subject to shareholders’ approval and China Securities Regulatory Commission.