Xingtong Shipping Co., Ltd. announced a private placement of not more than 60,000,000 A shares for gross proceeds of not more than CNY 1,124,200,000 on March 31, 2023. The company shall issue shares at a price not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction will include participation from no more than 35 investors including Chen Qilong for not be less than CNY 50,000,000.

After the completion of this transaction, if the shareholding ratio of Chen Qilong and his concerted parties after the completion of the subscription does not increase by more than 2% compared with the 12 months before this issuance, the shares subscribed by Chen Qilong will not be transferred within 18 months from the date of the completion of the issuance; if the shareholding ratio of Chen Qilong and his concerted parties after the completion of the subscription increases by more than 2% compared with the twelve months before the issuance, Chen Qilong subscribed shares shall not be transferred within 36 months from the date of completion of the issuance. The shares subscribed by Chen Qilong for this issuance shall not be transferred within 18 months from the date of the completion of the issuance. The shares issued this time shall not be transferred within 36 months from the date of completion of the issuance.

The shares issued this time subscribed by other specific objects shall not be transferred within 6 months from the date of completion of the issuance. The transaction has been approved by the third meeting of the company's second board of directors and the third meeting of the second board of supervisors. The transaction is still subject to approval from general meeting of shareholders, Shenzhen Stock Exchange and the China Securities Regulatory Commission.