Shanghai Shenda Co., Ltd announced a private placement transaction of 332,393,613 A common shares for gross proceeds of CNY 600,000,000 on July 22, 2022. The transaction will include participation from new investor Shangtex Holding Co.,Ltd. Issue price for the shares to be issued in the private placement shall not be lower than 80% of the average stock price 20 trading days before the pricing reference date. The company has entered into a share subscription agreement with the investor.

The shares cannot be transferred within 36 months from the issuance closing date. The transaction has been approved in the 2nd meeting of the company’s 11th directorate, and is subject to the approvals of the state-owned assets management department, the company’s shareholders, and the China Securities Regulatory Commission.