Loctek Ergonomic Technology Corp. announced a private placement of not more than 41,668,824 common shares for gross proceeds of not more than CNY 1,194,360,000 on January 12, 2021. The transaction will involve participation from not more than 35 specific investors, including the actual controller of the company, Xiang Lehong, who intends to subscribe for the shares issued for no less than CNY 100,000,000. The pricing base date of this issuance is the first day of the issuance period, and the issuance price shall not be less than 80% of the average stock price of the company's shares on the 20 trading days before the pricing base date. The final issuance price will be reviewed by the Shenzhen Stock Exchange and approved by the China Securities Regulatory Commission for registration. The number of shares to be issued is determined by dividing the total amount of funds raised by the issue price, and does not exceed 30% of the company's total share capital before the issuance. The company may incur issuance cost in the transaction. The shares subscribed by Xiang Lehong shall not be transferred within 18 months from the end of this issuance and those subscribed by other specific subscribers shall not be transferred within 6 months from the end of this issue. The transaction has been approved at the 22nd meeting of the 4th board of directors of the company. The transaction requires approval from the 1st extraordinary general meeting of shareholders to be held on January 28, 2021, the Shenzhen Stock Exchange, and the approval of the China Securities Regulatory Commission.