Guangdong Chaohua Technology Co., Ltd announced a private placement of not more than 279,493,123 shares for gross proceeds of not more than CNY 1,800,000,000 on October 15, 2020. The issuance price of shall not be less than 80% of the average price of the company's stock trading on the 20 trading days before the pricing base date. The transaction will include participation from not more than 35 investors. The shares issued are subject to restriction period of 6 months from the closing of the transaction. The validity of the transaction will remain for 12 months from the approval of the shareholders of the company in the general meeting. The transaction has been approved by the 31st meeting of 5th board of directors and 26th meeting of 5th board of supervisors and is subject to approval from shareholders of the company and the China Securities Regulatory Commission.

On October 16, 2020, the company announced that 1st extraordinary general meeting of 2020 for the transaction will be held on November 2, 2020.