Dianguang Explosion-Proof Technology Co., Ltd. announced a private placement of not more than 96,802,200 A shares of par value of CNY 1 per share at a price not less than 80% of the average price of the company's stocks 20 trading days before the first day of the issue period for gross proceeds of not more than CNY 1,000,000,000 on August 27, 2020. The number of shares to be issued is equal to not more than 30% of the company's total share capital before the issuance. The transaction will include participation from not more than 35 special investors.

The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting. The transaction has been deliberated and approved in the 11th meeting of the 4th directorate of the company and is subject to the approval of the company's shareholders meeting and the China Securities Regulatory Commission. The shares to be issued are subject to a lock-up period of 6 months.