Shenzhen Huakong Seg Co., Ltd. announced a private placement of A shares not exceeding 302,001,439 at a price of approximately CNY 2.69 per share for gross proceeds of approximately CNY 812,383,871 on September 24, 2020. The transaction will included participation from not more than 35 specific investors. The transaction has been approved at the first interim meeting of the company's seventh directorate, and still need to be reviewed and approved by the state-owned assets supervision and administration department, by the company's shareholders meeting and the China Securities Regulatory Commission.

The validity period is 12 months from the date of approval by the company's shareholders' meeting. All shares issued shall not be transferred within 36 months from the date of the completion of the transaction.