Zhejiang Zhaofeng Mechanical and Electronic Co.,Ltd. announced a private placement of not more than 10,000,000 shares for gross proceeds of not more than CNY 600,000,000 on July 24, 2020. The company will issue shares at a price not lower than 80% of the average price of the company's shares as of 20 trading days since issuance date. The transaction will include participation from not more than 35 investors. All securities to be issued will be subject to a hold period of six months. The transaction has been approved in the tenth meeting of the fourth directorate of the company, and is subject to the approvals of company's shareholders, the Shenzhen Stock Exchange, and China Securities Regulatory Commission.

On October 12, 2020, the company announced that Shenzhen Stock Exchange has accepted the application document for the transaction via ([2020] No. 627).