Chengdu Huasun Technology Group Inc., Ltd. announced a private placement of no more than 85,470,085 A shares at a price of CNY 3.51 per share for gross proceeds of not more than CNY 299,999,998 on January 20, 2021. As a part of the transaction, Chengdu Yuanhong Biological Technology Co., Ltd. will hold 28.06% stake in the company. The transaction has been approved by the board of directors, and needs to be approved by the shareholders, necessary regulatory authorities, and the China Securities Regulatory Commission. The company has signed subscription agreement with the investor. All securities issued will be subject to restriction period of 18 months from the date of closing.