Inventronics (Hangzhou), Inc. announced that it has signed share subscription agreement for a private placement of not more than 88,753,844 A shares for gross proceeds of not more than CNY 1,000,000,000 on July 15, 2022. The transaction will include not more than 35 investors, including Hua Guichao, who will subscribe for not more than CNY 300,000,000. The issue price will not be less than 80% of the average price in the 20 trading days before the pricing reference date.

The transaction has been approved in the 22nd meeting of the company's 3rd directorate, and is subject to the approvals of the company's shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. At present, the company's total share capital is 295,846,149 shares, and Hua Guichao holds 100,455,235 shares, representing 33.96% stake. In the 12 months prior to the completion of the issuance, if Hua Guichao increases his stake in the company by more than 2% stake, the shares Hua Guichao subscribes to cannot be transferred within 36 months from the issuance closing date.

In the 12 months prior to the completion of the issuance, if Hua Guichao increases his stake in the company by not more than 2% stake, the shares Hua Guichao subscribes to cannot be transferred within 18 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date.