Changzhou Shenli Electrical Machine Incorporated Company entered into share subscription agreement for a private placement of not more than 65,319,056 A shares at an issue price of CNY 9.95 per share for gross proceeds of not more than CNY 649,924,700 on June 6, 2022. The transaction will include participation from Sichuan Yumingyao New Energy Co., Ltd. All securities issued in the transaction have a hold period of 18 months. The transaction has been approved in the 6th Meeting of the Company's 4th Directorate and is subject to the approvals of the company's shareholders, the State Administration for Market Regulation Business Concentration Anti-monopoly Review, and the China Securities Regulatory Commission.