Feilong Auto Components Co., Ltd. announced a private placement of no more than 150,213,544 A shares for gross processed of CNY 780,000,000 on July 25, 2022. The transaction will include participation from total of not more than 35 special investors, including the company's controlling shareholder Henan Wanxi Holding Co., Ltd. and its concerted action person Sun Yaozhong. The subscription ratio of Henan Wanxi Holding Co., Ltd. is 5% of the upper limit and Sun Yaozhong is 1% of the upper limit of the issuance amount approved by the China Securities Regulatory Commission.

If the subscription amount is not an integer, it shall be adjusted downward to an integer. After the completion of this issuance, the controlling shareholder and actual controller of the company will not change. The company signed the Conditional Share Subscription Contract with Henan Wanxi Holding Co., Ltd.and Sun Yaozhong respectively.

For Henan Wanxi Holding Co., Ltd. and Sun Yaozhong the lock-up period is 18 months and for the rest of the investors is 6 months. The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting. The types of shares issued in this transaction are domestically listed ordinary A shares with a par value of CNY 1. The pricing base date of this transaction is the first day of the issue period, and the issue price is not less than 80% of the average price of the company's stocks 20 trading days before the first day of the issue period.

The number of non-publicly issued shares does not exceed 30% of the company's total share capital before the issuance. The transaction has been approved by at the eighth (temporary) meeting of the seventh board of directors and still needs to be submitted to the company's general meeting for deliberation and approval, and can only be implemented after being approved by the China Securities Regulatory Commission.