Shanghai Hongda New Material Co., Ltd. (SZSE:002211) announced that it has entered into stock subscription agreement with seven investors for a private placement of not more than 90,000,000 A shares at a price of CNY 4.69 per share for gross proceeds of not more than CNY 422,100,000 on March 8, 2020. The transaction will include participation from Zhejiang Yixiang Communication Co., Ltd. for 15,000,000 shares for proceeds of CNY 70,350,000, Shanghai Radio No. 33 Factory Co., Ltd. for 10,000,000 shares for proceeds of CNY 46,900,000, returning investor Shanghai Hongzi Enterprise Development Co., Ltd. for 36,000,000 shares for proceeds of CNY 168,840,000, individual investors Huang Wending for 12,000,000 shares for proceeds of CNY 56,28,000, Wang Yonggang for 7,000,000 shares for proceeds of CNY 32,830,000, Diao Honghao for 5,000,000 shares for proceeds of CNY 23,450,000, and Ni Jifang for 5,000,000 shares for proceeds of CNY 23,450,000. The securities to be issued to Shanghai Hongzi Enterprise Development Co., Ltd. will be subject to transfer restrictions for a period of 36 months from the closing date, and the securities to be issued to investors except Shanghai Hongzi Enterprise Development Co., Ltd. will be subject to transfer restrictions for a period of 18 months from the closing date. The transaction has been approved in the 21st meeting of the 5th board of directors of the company.