Vanchip(Tianjin)Technology Co., Ltd. announced that it has signed a share subscription contract for private placement of 1,350,000 shares at CNY 51.8518 per share for gross proceeds of CNY 69,999,930 on September 21, 2016. The transaction will include participation from new investor Masterwork Machinery Co., Ltd. (SZSE:300195). for 289,286 shares for CNY 14,999,999.8148, of which CNY 289,286 will be added to the registered capital and CNY 14,710,713.81 will be added to the capital reserve of the company.

Pursuant to the transaction, Masterwork Machinery Co., Ltd. shall hold 1.02% stake in the company. The transaction does not need approvals from the shareholders' meeting and the directorate of Masterwork Machinery Co., Ltd. The transaction is subject to approval from shareholders of the company and is required to be filed at the National Equities Exchange and Quotations. The company reported total assets of CNY 198,548,937.25, total liabilities of CNY 84,635,064.93, net assets of CNY 113,913,872.32, operating revenue of CNY 405,541,225.6, operating profit of CNY 36,810,870.18, and net profit of CNY 47,252,183.1 for the year ended December 31, 2015.