Anhui Huati Smart Technology Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 40,000,000 on March 17, 2022. The transaction will include participation from retuning investors Suyichong Smart Technology (Beijing) Co., Ltd for CNY 18,900,000, Sichuan Huati Lighting Technology Co., Ltd for CNY 6,600,000, new investors Guorui Huake Smart Technology (Beijing) Co., Ltd. for CNY 9,500,000, and Hainan Yujun Investment Partnership Enterprise (Limited Partnership) for CNY 5,000,000. Post the transaction, the registered capital if the company will increase from CNY 10,000,000 to CNY 50,000,000.

The transaction has been approved in the 10th session of Sichuan Huati Lighting Technology Co., Ltd.'s 4th directorate and the 5th session of its 4th supervisory board. Post the transaction, Suyichong Smart Technology (Beijing) Co., Ltd will hold 20% stake, Guorui Huake Smart Technology (Beijing) Co., Ltd. will hold 19% stake, Sichuan Huati Lighting Technology Co., Ltd will hold 51% stake, and Hainan Yujun Investment Partnership Enterprise (Limited Partnership) will hold 10% stake in the company.